Finding The Best Accounting Software For Your Small Business

Small businesses have a lot on their plate. They have to worry about sales, marketing, and production, to name a few things. However, one thing that small businesses should not have to worry about is accounting software. 

There are so many different types of accounting software on the market that it can be tough to decide which one is right for your business. 

This blog post will help you determine which type of accounting software is best for your small business. We will discuss the different types of accounting software available and give you a few tips on choosing the right one for your business.

Accounting software can help track your business’s expenses, income, and growth trends. The problem is that with so many different options on the market, it can be difficult to decide which one is right for you.

Therefore, we will outline the different factors you should consider when choosing accounting software and provide some suggestions for the best options on the market for small businesses.

When it comes to finding the best accounting software for your small business, there are many options to choose from. And with so many different programs out there, it can be not easy to decide which is the right one for you. 

In this blog post, we’ll outline some of the most important features to look for in accounting software and provide a few recommendations to get you started. So if you’re ready to find the perfect program for your business, keep reading!

Let’s get started!

Feature Specifications Of Accounting Software

There are a great number of facets of accounting software that contribute to the tool’s usefulness. As the owner of a small business, it is essential that you are aware of the characteristics to search for.

The majority of online accounting software includes tools for banking and reporting, as well as accounts receivable and accounts payable. In addition, several applications come equipped with capabilities for the management of payroll, time and attendance, as well as inventories and projects.

The following is a list of some of the most important characteristics that accounting software should have:

1. Bank Feed

This function allows the programme to establish a connection to the business bank and credit card accounts so that a daily update of the transactions may be obtained.

This eliminates the need for you to manually upload transactions, saving you a significant amount of time.

In addition to this, it provides you with a summary of your accounts on a daily basis rather than on a monthly basis. In addition, a function that provides a bank feed in real-time might be of assistance with reconciliation.

This feature will make it possible for you to transform reconciliation from a time-consuming monthly struggle into a manageable daily task.

2. Dashboard

A dashboard that displays a summary of your account activity and important indicators, including cash flow, profit and loss, account balances, costs, accounts payable and receivable, and sales, will greet you when you log in to your account.

By rearranging the data, you can customise what you see first in some accounting software.

3. Online Invoicing

If your company sends out invoices, having the capability to send them by email and accepting payments online will help you get paid more quickly.

When it comes to payment processing, there are accounting packages that allow you to link with third-party services, while others force you to utilise their own internal processing services.

The ability of accounting software to also function as a generator of invoices is a desirable feature.

4. Recurring Invoices

You are able to set the system to automatically generate and send invoices for recurring costs, such as subscription fees, when you make use of this feature of the system.

You have the option of selecting how frequently invoices are delivered (daily, weekly, monthly, or annually), as well as indicating whether or not there is a termination date for the billing process.

5. Automatic Payment Reminders

You are able to notify consumers about impending and overdue payments with the assistance of this function. Some of them provide sample email wording that you can either use as is or modify to suit your needs.

After that, you will have the option to select the times at which you would like the reminders sent.

After collecting payments from clients, you may have the opportunity, depending on the service you use, to send customers thank-you emails.

6. Bank Reconciliation

You will save a significant amount of time by using intelligent reconciliation tools because these tools will identify potential matches between the transactions in your bank account and the bills and invoices that you have entered into the accounting software.

If you did not use these tools, it would take you a significant amount of time to search through your bank account for this information.

After that, you will be given the option to accept or reject the proposed matches. The most helpful applications make suggestions for possible matches as you work through the process of reconciling your accounts, and some even incorporate a reconciliation function within their mobile applications.

7. Financial Reporting

The ability to generate financial reports is a feature of every accounting programme. However, some of them are more fundamental than others, and some of them require you to subscribe to a more expensive plan in order to access the more extensive reporting options.

If there are particular kinds of financial reports that you need, you will want to be sure that the software application and plan that you select include those specific kinds of reports.

Interpreting your financial data in order to make educated decisions about your company might be facilitated by detailed reports.

8. Mobile Apps

The top accounting and invoicing software packages do feature mobile apps, but this is not the case for all of them. The capabilities of mobile apps, on the other hand, can vary quite a bit from one another.

For instance, some can merely collect receipts for expenditure monitoring, others let you create and send invoices, and still others offer practically every feature that the web-based programme has. All of these features are available in some form or another in the software.

Checking to see if the software you’re thinking about purchasing has a mobile app and, if it does, determining what functions are built into the app to assist you in running your company when you’re not at the office is something you should do.

9. Integrations

When you connect your accounting software to other company programmes, you eliminate the need to manually move data from one system to another. This frees up important time that you can put towards other tasks.

Some of the most common types of interfaces that are available with accounting software are payroll and payment processing, point-of-sale (POS) systems, and customer relationship management (CRM) software. Integration with systems that are currently in use on your end reduces the amount of time needed to train staff who will be using the software.


10. Monitoring for Billable Hours

If you are a consultant or if your company charges its customers by the hour, you need software that either gives you the ability to track and bill your time or that interfaces with the time-tracking application that you are already utilising. Freelancers can benefit greatly from having this feature.

11. Inventory Management

You need a piece of software that can assist you with keeping track of your inventory and placing buy orders if you own a retail, e-commerce, or distribution company.

It’s possible that you won’t be able to access this feature unless you upgrade to a more expensive plan. Look for software that interacts with a specialised inventory management system if you require more advanced inventory features.

12. Project-Based Billing

Firms, freelancers, and consultants who deal with customers on projects or jobs should search for accounting software that helps them track the tasks associated with their projects as well as the budgets associated with those projects.

You should be able to send clients invoices for monitored time as well as bill them for project expenses using the programme.

13. Support for Multiple Businesses

We found that several of the programmes allow you to connect multiple businesses to a single account; however, some services charge an additional fee for providing this functionality.

In addition, the particular requirements of your company will determine the categories of accounting tools that are of the utmost significance to you.

If you run a tiny freelance firm, for instance, you may find that project-based pricing is the item that tops your list of priorities the most. Or, if you intend to conduct some work on your mobile device, you should probably prioritise finding a mobile app that has as many features as possible.

Which Companies Offer The Best Accounting Software?

There are a few industry leaders among accounting software vendors who deliver excellent customer support.

Your decision on which service provider to go with should be based on a few primary considerations, but you can trust that the more well-known brands give trustworthy and dependable assistance.

The following companies are widely considered to be among the most reputable providers of accounting software:

1. QuickBooks

QuickBooks Online, which is offered by Intuit, is a well-known bookkeeping programme that can assist business owners in efficiently managing their accounting responsibilities.

There is a solid reason why QuickBooks is consistently ranked as one of the top accounting software vendors worldwide. QuickBooks is a terrific accounting solution for companies that are either just starting out or that are in the process of expanding. QuickBooks is known for having outstanding products and accounting assistance.

Payroll, the creation of estimates, the organisation of receipts, and even cutting-edge automation technologies to keep your accounts up to date and error-free are all included in QuickBooks as standard features.

QuickBooks comes with a nice variety of features that can handle the needs of the majority of businesses.

Prices range from $12.50 per month for a single user to $90 per month for 25 users. A single user will pay $12.50 per month. If, on the other hand, you are not operating an accounting company, you generally won’t need to establish accounts for an excessive number of staff.

This will allow you to keep your monthly expenses within a reasonable range.

QuickBooks includes all of the features that are necessary for business owners to gain control of their bookkeeping.

QuickBooks has a streamlined, user-friendly design and intuitive reporting, making it easy for even inexperienced users to rapidly become productive with the software. In addition, all versions of QuickBooks include with a mileage and cost tracking feature, as well as features to handle 1099 contractors and generate sales and tax reports.

Other subscription levels for QuickBooks include access to additional features and functionality, such as an inventory tracking system, individual user support for up to 25 people, and even a dedicated customer care manager. Plans begin at $12 per month in starting price.

2. FreshBooks

FreshBooks is another excellent option for accounting software, and it is packed with features that will help you maintain order in your financial matters.

Because the subscription mechanism for FreshBooks is based on the number of billable clients that a business has rather than the number of users that require access, this makes it an excellent option for contract workers and really tiny firms.

The services provided by FreshBooks cost only $6 per month for businesses that have five customers each. An organisation might subscribe to a service plan that would allow them to accommodate a “unlimited” number of customers for the cost of twenty dollars per month.

A significant number of FreshBooks’ tools incorporate intuitive assisting technology and automated processes with the goal of simplifying bookkeeping.

For instance, FreshBooks may be set up to automatically import financial data from a variety of sources and reconcile amounts that have been credited and debited.

Individual users also have the ability to modify access rights for themselves. For instance, you may provide your staff with restricted access to financial data, while at the same time you could allow your accountants administrator powers.

FreshBooks offers a variety of features, some of which include tracking expenses, submitting estimates, receiving automatic bills on a recurring basis, managing vendors, and more.

It offers a wonderful return on investment to any small business and is easily scalable to accommodate the expansion of your company.

3. Sunrise

Accounting and bookkeeping can be laborious and time-consuming activities; as a result, Sunrise makes accounting more straightforward, straightforward, and uncomplicated.

Sunrise is able to assist you in the management of the accounts for your company.

Users are able to generate customised invoices with only a few clicks using this application, as well as create and send quotes to customers, rapidly compile reports, and obtain a high-level overview of the financial health of their company.

Sunrise is all about simplicity, making it ideal for do-it-yourself accountants. Plans for self-service are provided at no cost, while prices for additional plans begin at $149 per month.

4. Sage 50cloud

Sage 50cloud Accounting is a comprehensive piece of accounting software that is hosted in the cloud and comes with a wide variety of personalisation choices and advanced functionalities.

The straightforwardness with which Sage 50cloud accounting software may be integrated with Microsoft 365 enterprise software is the product’s most compelling selling point.

With Sage 50cloud’s powerful and user-friendly interface, you’ll be able to comprehend and evaluate your accounting processes with relative ease, all from a centralised location.

50cloud is able to access and organise your data by making use of the cloud architecture that Microsoft 365 provides. This helps to simplify all of your accounting-related actions.

Sage 50cloud only makes its pricing information available for annual subscriptions. In spite of this, each plan includes features such as cash flow analysis, inventory management, and support available around the clock to help you overcome any challenges posed by your accounting software. If you’ve decided that Microsoft 365 is the enterprise software solution that best suits your needs, this accounting software is an excellent option for you to consider.

The product’s Pro Accounting plan, which is the least priced option and can be purchased for $50.58 a month, is designed for firms that are smaller and more independent. It is capable of handling a variety of accounting duties, including the administration of expenses, the creation of invoices, and the tracking of inventories.

Additionally, Sage 50cloud Accounting interfaces without any difficulty with Microsoft Office.

Sage’s other plans include extra capabilities, such as role-based security privileges and account management for several firms, but they may be cost prohibitive for smaller organisations with more modest administrative expenditures. Sage’s other plans include:

5. Wave Accounting

The majority of the small business accounting software packages that we have researched have been available at affordable prices. However, for freshly established independent firms, even a low-cost option may initially be too much of a financial burden.

Wave, which is an accounting programme created specifically for small businesses, is aware of this issue, which is why Wave is entirely free to use.

Wave Accounting is an excellent place to begin for any company that is looking for an accounting system that is both free and simple to use.

In spite of the fact that it is free to use, Wave Accounting provides a comprehensive set of features and functionalities that can assist any company in being more organised and efficient. Any company can set up their fundamental accounting needs and find ways to improve their operations with Wave.

Wave gives you the ability to integrate a number of different bank accounts or credit cards. In contrast, vital financial tools enable you to develop reports to monitor your financial performance, whether month over month or year over year, and provide substantial financial insights into your company’s general health.

These reports can be compared to previous versions of themselves.

Wave is perfect for independent firms that are still establishing their footing because it is accessible for Windows and OS X as well as apps for Android and iOS.

Wave can be used to create invoices and receipts. Wave is capable of doing practically everything that high-quality accounting software programmes are capable of, such as managing expenses, reconciling bank accounts, processing payroll, and issuing invoices.

If you think that all of this information is too good to be true, you can sign up for a free account and see how Wave can assist you in managing your business accounts in a shorter amount of time without charging you a single penny.

6. Xero

Xero could be the accounting tool that busy business owners who are always on the move have been waiting for all this time.

Xero is a clever accounting software programme that focuses on ease of use and mobile usability, and it is designed specifically with small businesses in mind. Xero allows for synchronisation across various devices and provides users with real-time updates.

This provides business owners with access to the most recent information regardless of where they are.

The user interface of the product is well-organized and simple to use. It is capable of handling a variety of accounting duties, including payroll (through interface with Gusto), costs, billing and invoicing, as well as the computation of sales tax, among other things. The cost of the service starts at $4.50 per month.

7. Kashoo

The accounting software for small businesses known as Kashoo is designed to assist company owners in automating a significant portion of the administrative labour involved in bookkeeping.

Because it uses algorithms that learn from experience, Kashoo gets better at understanding your company the more you use it.

Everything from the categorisation of receipts to the tracking of sales tax is analysed by Kashoo, which enables the tool to give individualised recommendations on actions that may be taken to save money, reduce waste, and improve overall efficiency.

The intuitive and computerised method of bookkeeping utilised by Kashoo is not going to appeal to all users. Small business owners who are interested in Kashoo’s approach to bookkeeping can sign up for a free trial of the service, which has a one-time fee of $199 per year (about $16 per month).


1. What functions does accounting software have?

Transactions are recorded and many accounting parameters are tracked using software designed for accountants.

You have the option of configuring the software to automatically get financial information from your bank, or you can utilise an incredibly basic version that may require the data to be entered manually by the user.

When it comes to keeping track of your company’s money, we strongly recommend that you make use of software that can automatically receive financial data from your bank and credit card issuer.

In addition, the majority of software solutions save the information in the cloud, which ensures that your data will remain private and protected in the event that your computer malfunctions or you have any other type of technical issue.

2. Which accounting software for small businesses is best?

According to the findings of our research, QuickBooks Online is the most effective accounting system for small businesses. On the other hand, if the requirements of your company are more particular, a different system can be a better fit or offer a better value.

For instance, if your company offers a service and sends out a significant number of bills, FreshBooks may be the most suitable option for you because of the powerful invoicing features that it possesses. You can find specific recommendations for a variety of business sizes and requirements in the list of our top options above.

3. What kind of functionality are you looking for in your accounting software?

It would be beneficial for you to have accounting software that keeps track of the money coming into and going out of your company.

This software should also have capabilities for managing accounts payable and accounts receivable. Unfortunately, some software systems do not offer the necessary information for accounts paying and accounts receivable.

In addition, accounting software should be able to connect to your bank and credit card accounts and should be able to automatically retrieve transactions.

It is possible that you will want project management tools if your company is service-based. If you run a company that deals in physical goods, you should probably look for an accounting solution that also includes capabilities for managing inventory.

Look for software solutions that offer greater benefits by connecting to other business applications that you already use, such as your point-of-sale system, customer relationship management system, or email marketing software.

Finally, look for software solutions that offer greater benefits by connecting to other business applications that you already use.


4. Do you require accounting software or do you require online bookkeeping software instead?

When referring to software for use by small firms, the terms “online bookkeeping software” and “online accounting software” are frequently identical. (On the other hand, there is a distinction to be made between accountants and bookkeepers.)

The most best online accounting solutions for small businesses contain bookkeeping tools that allow users to record debit and credit transactions, as well as accounting features that enable users to run reports and analyse the financial performance of their company.

Look for a solution that does more than just bookkeeping; accounting software should include more detail and allow you to generate invoices and thorough reports. Look for a solution that does more than just bookkeeping.

5. Should your accounting programme also produce invoices?

It is dependent on the kind of your company. If you send out a lot of bills to your clients and customers, or if you expect to send out a lot of invoices, we strongly suggest that you look for an all-inclusive accounting tool that has capabilities that allow you to generate invoices.

Freelancers, on the other hand, ought to seriously consider making use of accounting software that is able to produce invoices.

6. What services do online accounting providers offer?

Accounting services available online can handle a wide variety of responsibilities for owners of busy businesses.

Some of them, for instance, concentrate on bookkeeping tasks, such as entering and classifying transactions, balancing accounts, and producing financial statements and reports that you can take to your certified public accountant when it is time to file taxes.

Some businesses offer services in the areas of payroll and tax preparation. Last but not least, some accountants, such as chief financial officers, virtual controllers, and certified public accountants, offer high-level accounting services such as internal audits, financial planning and analysis.

7. How much money should be budgeted for purchasing accounting software when starting a small business?

It may be sufficient for some owners of small businesses to have access to an accounting software that can send invoices and keep track of spending. However, more significant than other aspects are advanced reporting, inventory management, and online commerce.

Your choice of which camp you belong in will determine the cost of the accounting software you choose. There are accounting software solutions available completely free of charge, while paid versions might cost as much as $25 per month for each user. The level of complexity of the software you select and the number of employees who will need access to it are two of the primary factors that will decide the total cost of what you spend.

8. Should small firms look for certain features in accounting software?

The owners of small businesses should seek accounting software that is quick to install, easy to use, easily interfaces with third-party applications, and provides features and capabilities, including the management of invoicing and inventory. In addition, the best accounting software makes it simple for you and your accountant to work together on financial transactions.

9. Why should my company think about switching accounting software providers? 

Changing the accounting software you use is something that is easier to say than it is to do. After all, you have already taught yourself how to use the system and have put all of your data onto the platform. Despite this, there are things to think about while contemplating a change, no matter how difficult it may be. They are as follows:

  • In the same way that you comparison shop for your insurance, you should make it a habit to check out what other accounting firms in your area are providing from time to time. If you find a different vendor who can provide the features you require at a lower cost, this may give you reason to think about switching to them.
  • If your company continues to expand beyond the capabilities of your current accounting software, it may be time to make the investment in a newer version.
  • If the people who use the accounting software don’t like it, there’s a clear indication that you should look for an alternative. If they find it challenging to utilise, you should probably pay heed to what they say.

10. What company operations have accounting software automated? 

The automation of previously laborious tasks is a significant advantage that comes with using accounting software. This decreases the possibility of mistakes being made by humans and speeds up the accounting process.

Automation can be seen in almost every aspect of accounting software. This software can minimise the need for manually entering data, make new journal entries, track payments, and send invoices. It can also extract data from massive tax papers.

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