Businesses of all sizes need to focus on accounting to keep track of their finances. Using software makes accounting easier. Small businesses have additional concerns. They cannot afford to have a team of accountants and would rely more on software for their accounting work. Small businesses need to have the best accounting software that offers all that they need to manage their accounts. At the same time, the software must be flexible to suit their needs and also cost-effective. If you are running a small business, then the recommendations given below will help you.
Five accounting software for small businesses
1) QuickBooks Online
When it comes to accounting for small businesses, QuickBooks online find the top spot in most lists. The online tool by Intuit is preferred by small businesses thanks to its ease of use and flexibility. The software can be customised to meet the specific needs of a business and is known for offering a great user experience.
The benefits of using QuickBooks Online are:
- It is a cloud solution allowing you access anytime and any place.
- It is easily scalable.
- Comes with a mobile app.
- Used by most accounting professionals.
- Easily integrated with other apps.
- The dashboard is enhanced and makes it easy to use.
- Can also support payroll and projects.
There are a few limitations to QuickBooks Online:
- It is comparatively expensive and requires an upgrade as you increase users.
- Online support needs improvement.
If you want your bookkeeping to be effective, then there is no doubt QuickBooks Online is the best tool in the market. Even someone with not much experience in accounting can use this tool conveniently. The user-friendly nature and great functionality make it a perfect software for small businesses.
At this point, it is important to highlight another software by Quick Books, which is QuickBooks Self Employed. As the name suggests, it is meant for freelancers and self-employed professionals. This cloud-based solution helps self-employed individuals manage their accounting easily. It is meant for those business owners who file Schedule C in their tax returns. It syncs with Turbo Tax.
2) Fresh Books
This software provides handy tools that allow you to handle double-entry accounting effectively. One of the key features of Fresh Books is the invoicing options it has. You can manage invoices conveniently with this software. It is ideal for freelancers and small businesses for whom invoicing is a key issue.
The pros of using Fresh Books include:
- The user interface makes it convenient to use even by novices in accounting.
- It is cloud-based.
- Integration with third-party apps is offered that extends its functionality.
- It is available at a competitive price.
- The invoicing features are top-class.
- Time tracking is a great option.
- Has a mobile app too.
The cons of using Fresh Books are:
- The mobile app has a few limitations.
- Connection with a bank can take time.
The simplicity and the availability of a host of features are what make Fresh Books great accounting software. Small businesses can turn to this software as their first option. It is ideal for all basic accounting operations and hence more suited for proprietorship firms. It is very helpful in sending proposals and tracking payments.
The software is meant for micro-businesses that want a simple solution for their accounting needs. The neat look of the software and the convenient integration it offers with other apps makes it very handy. Whether you need to reconcile accounts or track inventory, it is easy to implement thanks to Xero.
The advantages of using Xero are:
- It is cloud-based.
- The online support offered is one of its key features.
- The project tracking feature is a good option.
- Inventory management is simple and effective.
- Has a mobile app.
- Security features are improved.
- The analytics options offer powerful features for management.
Some limitations of Xero are:
- The user interface is not very intuitive.
- ACH payments are charged.
- Reporting features are limited.
All that a small business would expect from accounting software can be found in Xero. When you integrate it with other tools, payroll and other applications become easier to manage. The powerful accounting features make it a very useful software. An interesting feature is the use of Artificial Intelligence (AI) for process automation. It also has a network of advisors that offer convenience for users.
4) Zoho Books
The very convenient user experience Zoho Books offers makes it a very good option for small businesses to consider. It comes with various tools that make it useful not only for small businesses but even for larger firms. The depth offered is a key highlight of this software. It is an end-to-end business solution that can help in accounting and finance management throughout the firm.
The pros of using Zoho Books are:
- It offers great features at a very affordable price.
- There are different payment gateway options for user convenience.
- Document management is enabled.
- Integrated payroll is available
- Support options make it convenient to use.
- The web interface makes it easy to use.
The cons of Zoho Books are:
- A bit complex for small businesses.
- You can use time tracking only if you link to a project.
If you are running a small business that is in the service sector, then you will find Wave a good option to use. Such businesses are more concerned about invoicing and may not have payroll requirements. Wave offers all that they need. The best part about Wave is that it is free software with unlimited user options.
Wave offers many benefits to users like:
- The free features the software offers is an obvious benefit.
- There are no limits for billing and transaction even though it is free software.
- Comes with a mobile app.
- You can manage more than one business with a single account.
- The dashboard has great features.
The limitations of using Wave are:
- There is no time tracking offered.
- If you use a credit card or ACH payment, the fees are higher.
- For integration, you need to use only Zapier.
Each of these five types of accounting software is suited for small businesses. Based on your specific needs, choose one of them and make your accounting work easier.