Intuit QuickBooks Online
Top rated accounting software
Innovation award in financial services
Most satisfied customers award
The need to maintain company books and records and perform other financial operations with software solutions cannot be overstated. This is where accounting software comes in. These programs are able to improve business efficiency by simplifying the process of managing books and customer relations.
Accounting software has been in existence for many years with the first one being introduced in 1978. The implementation of accounting software is an important factor that many business owners consider when making a decision on which one to use.
6 Best Accounting Software For Small Business 2023
What Is Accounting Software?
Accounting software is a computer program that helps accountants and bookkeepers to manage the financial transactions of a company. The software records all transactions and account balances and helps users to examine the financial status of an organization. Accounting software is produced by various companies and the functionality of these programs varies depending on the type of product that was purchased.
All companies cannot use the same type of software because their accounting software needs vary. A company might be focused on making easy and efficient electronic payment processes while another may primarily need a program that monitors all financial transactions in the firm. The accounting software a business uses must be streamlined to the needs of the company to serve all the major purposes required.
How Does Accounting Software Work?
Accounting software records financial transactions and examines the current state of a company’s finances. They are programs that help simplify the difficult process of recording all of the money flowing in and out of a company. Accounting software has different features and offers a wide range of services. They track expenses and income, pay vendors, process invoices, access and print tax forms, and so much more.
An accounting system may either be a single or double entry. A single-entry system is a type of accounting system where a transaction is recorded using a line item in a business ledger. Whereas, double-entry systems record each transaction in separate accounts as both a credit and debit.
Read more: Top 10 Best Bookkeeping Software
Intuit QuickBooks Online
- Excellent record management
- Intuitive and user-friendly interface
- Multiple third-party integrations
- Seamless expense tracking
- Availability of a mobile app
- Multiple payment processing options
Sage Business Cloud Accounting
- Fully automated bookkeeping
- Interactive dashboard and navigation
- Automatic reminders
- Supports multiple currencies
- Availability of several pricing options
- Automated financial processes
6 Best Accounting Software For Small Business January 2023
There are several accounting software available to companies. The various options come equipped with different functionalities and small businesses must choose which one suits them the most. The best accounting software for small business are stated below.
Intuit QuickBooks Online
QuickBooks was developed and introduced in 1983 by Intuit. The accounting software simplifies the process of managing company finances with comprehensive tools for accounting, tax filing, inventory, expense management, invoicing and payroll.
Intuit QuickBooks was primarily designed for small and medium-scale businesses and the product is available in different international markets across the world. The software can be installed directly on a device and can also be accessed online using a cloud service – QuickBooks Online. This option allows users to use the product by charging a monthly subscription fee, unlike a full upfront fee that is required for the local software.
Wave accounting is a free accounting software that is perfect for small businesses to track and monitor all company income and expenses as well as other financial management options. The software is free to use which implies that small business owners can use it to design several accounting reports, perform accounting tasks, accept payments online, project management, and send invoices.
The software offers a paid option with the provision of additional features to users. The primary goal of the program is to help small businesses make their bookkeeping more efficient, accessible and accurate. There are customizable invoice templates that can be implanted easily by end users.
Xero is a cloud-based accounting software that was developed for small businesses to easily manage financial operations in the firm. The software makes easy integrations with third-party platforms and software. Users are offered a 30-day free trial when the software is used for the first time and users can input their company details and connect their banks.
Xero helps to improve the efficiency of businesses by automating multiple day-to-day tasks and also managing client records. Users do not have to run the software manually each time a record is needed. The software can run with full automation.
Freshbooks is an accounting software that was developed in 2004 to provide financial management features like expense and time tracking, payrolls, and invoicing to small and medium-sized businesses. The software serves the primary function of running invoices quickly and accurately. It is best suited for small businesses (service-based businesses) with tools for cash flow and financial reporting.
Freshbooks provides multiple invoicing tools to clients, which allows them to easily create, send and track invoices to clients with additional customization features. The software has an intuitive dashboard and requires no steep learning curve to understand its functionalities. Small businesses can track the time and expenses of employees easily with Freshbooks.
Sage Business Cloud Accounting
Sage Business Cloud Accounting is a cloud-based accounting software that was introduced by the Sage Group in 2011. This software allows small and medium-sized companies to manage invoices, stocks, and track expenses. Users can easily create, send and track invoices with the software.
Sage Business Cloud Accounting was primarily developed to offer businesses tools for tracking files and expenses as well as payrolls and payments. The software also has fully customizable invoices and other additional features in the dashboard.
Zoho Books is an online accounting software that allows small-scale businesses to manage inventory, projects and invoices efficiently. The software was developed to improve business efficiency by automating workflows with full finance management tools.
Zoho Books makes it easy for enterprises to organize all transactions. There are multiple packages offered to users with a free version offering of the software also available. The higher-level plans offer more functionalities
Benefit Of Accounting Software For Small Business
Accounting software helps small businesses to save time and become more efficient through the automation of financial processes. These software programs provide basic accounting management tools. However, each tool has unique features that make it stand apart from others. Most accounting software help to manage recurring invoices, and bank accounts.
Small businesses must choose affordable accounting software that offers functionalities that are streamlined and suited for their operations. Accounting software can help small businesses understand their financial status and health better as well as the organization of accounts, invoices, expenses, time and payrolls for the smooth running of business transactions. .
How To Choose Small Business Accounting Software
To choose the right accounting software for a small business, the most important factor to consider is the required features and functionality. Businesses must ensure the software offers solutions to all their accounting, bookkeeping and financial management needs.
Another factor to consider is the budget. Small businesses must determine the amount they are willing to pay for automated accounting assistance or if free software with reduced functionalities is better for them. Also, small businesses should choose accounting software according to how familiar the accountant or operator is with them. Small businesses should avoid complex software programs. The accounting software program should have advanced features to support business bank accounts as well as income and expense tracking. The best overall accounting software for a business will typically include all these functionalities.
Cost Of Accounting Software For Small Business
The costs of acquiring or using accounting software vary from product to product. Some software come with set-ups and packages that must be installed and configured for them to run properly while others may be cloud-based where users can access them from supported devices anywhere.
Different companies price their accounting software in various ways. Some software programs require the payment of a one-time fee to purchase the whole software and have unlimited access to the functionalities and features while some other ones may require subscriptions. The subscriptions may be available under different pricing plans for various account levels. The system usually follows a similar pattern – the higher the price, the more functionalities.
Some free accounting software programs are available to small businesses and their functionalities can be checked to determine if they will be able to cover all the needs of the business. Some software include both one-time payments and subscriptions (monthly or annual) especially those that feature multiple add-on products. Small businesses should go for accounting software with affordable packages that are streamlined for their requirements and accounting needs.
The importance of accounting software to small businesses cannot be overstated. They improve the overall efficiency and accuracy of businesses and help maximize output. These programs can monitor and keep records of all transactions flowing in and out of a company as well as create and send customizable invoices, perform inventory management, track time and expenses, perform tax management, authorize payments and payrolls, and employee access within the company.
Different software programs have areas where they shine and a company that needs full invoicing tools should invest in accounting software that provides this feature primarily. With accounting software, small businesses can run and view a financial report in a matter of seconds to review the financial state.
This will help in determining whether profit is being made and also predict all tax liabilities. They allow small businesses to make calculated and quick business decisions from the raw data and the automated workflows ensure businesses are not covered in errors of any form.
Frequently Asked Questions (FAQs)
Yes, there is. Wave Accounting and ZohoBooks both offer users free packages
Yes, you can. Accounting software programs are deployed in different ways and some can be downloaded while others can only be used online.
No. There is simple accounting software that people without apricot accounting knowledge can easily use.
Most accounting software offers different pricing packages and business owners must choose plans that are affordable for them.
ABOUT THE AUTHOR
ABOUT THE REVIEWER