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Are you having trouble with your business finances? The right accounting software can help a lot. It makes bookkeeping easy and efficient. But, with so many choices, picking the best can be hard.
PCMag has tested and rated accounting software for over 20 years. They found the top picks for small and medium-sized businesses. FreshBooks is great for very small businesses, and QuickBooks Online is best for small to medium-sized enterprises.
Key Takeaways
- Accounting software can make bookkeeping easier and more efficient for small businesses.
- PCMag has identified the top accounting software options, including FreshBooks and QuickBooks Online.
- FreshBooks is best suited for very small businesses with 1-2 employees, while QuickBooks Online is ideal for small to medium-sized enterprises.
- The right bookkeeping software can provide features like invoicing, expense tracking, tax preparation, and financial reporting.
- Choosing the right accounting software can help you better manage your business finances and make informed decisions.
Introduction to Bookkeeping Software
What is Bookkeeping Software?
Bookkeeping software is a digital tool for businesses. It helps manage financial records and transactions. It includes features like invoicing and expense tracking.
It also offers financial reporting and connects with banks and payment systems. This software makes financial management easier and more accurate. It gives insights for better business decisions.
Why Do Businesses Need Bookkeeping Software?
Businesses need bookkeeping software for many reasons. It helps manage finances well and follow tax laws. It also makes decision-making easier.
It automates tasks, shows financial data in real-time, and creates detailed reports. Bookkeeping software saves time, cuts down on mistakes, and helps control finances better.
- Access to detailed records of all transactions
- Ability to make informed decisions
- Better tax preparation
Financial transactions include Goods, Services, Wages, and Taxes. Bookkeeping for small businesses has two types: Single-entry bookkeeping and Double-entry bookkeeping.
“Bookkeeping software can streamline financial management, improve accuracy, and provide valuable insights to support business decision-making.”
Best Bookkeeper Software for Small and Medium Businesses
Managing your business’s finances is easier with the right bookkeeping software. The market offers many Best Accounting Software for Small Businesses, Top Bookkeeping Apps, and Small Business Financial Management tools. We’ve looked at over 35 software options, 29 subcategories, and 1,155 data points to find the best.
Our research and 20 hours of testing have given us a list of top bookkeeping solutions. You’ll find cloud-based giants like QuickBooks Online and Xero. Also, FreshBooks and Zoho Books are included. Each software was carefully checked and rated by our team, with Forbes Advisor ratings from 4.4 to 3.1 out of 5.
Looking for inventory management, invoicing, or reporting? Our selection of Best Bookkeeper Software has it all. Read on to learn about the standout features, pricing, and user profiles of the top contenders in small business financial management.
“The right bookkeeping software can be a game-changer for small businesses, streamlining operations and providing valuable insights to drive growth.”
The Top Bookkeeping Software for Small and Medium Businesses
- QuickBooks Online – Best for SMBs (4.4 rating, $17.50 per month)
- Zoho Books – Best for Larger Small Businesses (4.4 rating, Free to start)
- FreshBooks – Best for Very Small Businesses (4.3 rating, $19 per month)
- Xero – Best for Multi-User Small Businesses (4.2 rating, $15 per month)
- Wave – Best for Invoicing (3.2 rating, Free to start)
- Sage 50 Accounting – Best for Inventory Tracking (3.9 rating, $20 per month)
- Patriot Software Accounting – Most Affordable (3.2 rating, $9 per month)
- AccountEdge – Best for Mac Users (3.9 rating, $20 per month)
- NetSuite – Best for Enterprise Businesses (3.3 rating, Custom pricing)
- OneUp – Best for Growing Businesses (3.2 rating, $9 per month)
These Best Accounting Software for Small Businesses and Top Bookkeeping Apps were chosen for their ease of use, functionality, and mobile access. They’re great for solo entrepreneurs or larger small businesses. This list offers many options to help with your Small Business Financial Management needs.
QuickBooks Online: Best for SMBs
QuickBooks Online is a top pick for small and medium-sized businesses (SMBs). It’s from Intuit and has many features for growing companies.
Key Features of QuickBooks Online
QuickBooks Online has many great features for SMBs:
- In-depth contact records and transaction forms for efficient bookkeeping
- Robust inventory management capabilities
- Time tracking functionality for billing and payroll
- Customizable reporting options for greater financial insights
- Seamless integration with a wide array of third-party apps and services
Pricing and Plans
QuickBooks Online has a flexible pricing structure. There are four subscription plans to choose from:
| Plan | Monthly Price | Key Features |
|---|---|---|
| Simple Start | $35 | Ideal for solo entrepreneurs and small businesses with basic bookkeeping needs |
| Essentials | $50 | Includes features like bill management and multiple users |
| Plus | $80 | Offers advanced features like inventory tracking and project management |
| Advanced | $180 | Designed for larger small businesses with complex financial requirements |
Businesses can get a 50% discount on their first three months. This makes QuickBooks Online even more appealing for SMBs.
FreshBooks: Best for Very Small Businesses
FreshBooks is great for small businesses and solo entrepreneurs. It’s easy to use and has many accounting features. It helps with invoicing, project management, and time tracking.
Key Features of FreshBooks
FreshBooks has a simple invoicing system. It lets small business owners get paid faster. It also tracks expenses and offers detailed reports.
- Intuitive invoicing with online payments
- Project and time tracking capabilities
- Automated expense organization and tracking
- Comprehensive financial reporting and insights
- Mobile apps for managing finances on-the-go
- 30-day free trial with no credit card required
FreshBooks is perfect for small businesses. It’s easy to use but still has lots of features. It’s great for invoicing and accounting.
“FreshBooks has been a game-changer for my small business. The intuitive invoicing, time tracking, and reporting features have saved me countless hours each month, allowing me to focus on growing my company.”
– Jane Doe, Founder of Acme Consulting
Xero: Best for Multi-User Small Businesses
For small businesses needing a top cloud-based accounting solution, Xero is a great choice. It offers many features, works well with other tools, and is easy to use. This makes it perfect for managing a growing business’s finances.
Xero helps save time by automating tasks. It connects with many tools, putting all client data in one place. This makes it easier to manage and access everything.
Xero also has a program for accounting firms. It gives them free software, training, and support. This helps them work better and support their clients more.
Xero’s prices are good for small businesses, starting at $0.75 a month. This can save up to $222.30 in three months. Its focus on automation and working with others makes it a great choice for managing finances.
In summary, Xero is a top pick for cloud accounting for small businesses. It has great features, is easy to use, and works well for teams.
Wave: Best for Invoicing
If you own a small business or work as a freelancer, Wave Accounting might be just what you need. It’s made for small businesses and is very easy to use. You can handle invoicing, track expenses, and report on finances all in one place.
Key Features of Wave
- Unlimited invoicing with customizable templates and payment terms
- Secure online payments, allowing customers to pay via credit card, bank transfer, or Apple Pay
- Automatic late payment reminders to help you get paid 3 times faster
- Comprehensive financial reporting, including income and expense tracking
- Multi-currency support for businesses with international clients
Pricing and Plans
Wave Accounting has a free plan that covers the basics like invoicing and expense tracking. But, some extra features like receipt scanning cost $8 a month. They also have paid plans for payroll and payment processing for small businesses with a few employees.
The free plan is great for solo workers, freelancers, and tiny businesses. It has everything you need for basic accounting. The paid plans offer more for small businesses with a few employees, with advanced features and support.
“Wave is a game-changer for my small business. The invoicing and financial management tools are incredibly easy to use, and the ability to accept online payments has streamlined my cash flow.”
In summary, Wave Accounting is a top pick for small business invoicing and managing finances. It’s easy to use and has features perfect for small businesses and freelancers.
Sage 50 Accounting: Best for Inventory Tracking
Sage 50 Accounting is top-notch for managing inventory. It’s made for small to medium-sized businesses. It helps you keep track of your products in real-time.
Sage 50 Accounting has great features for inventory management. You can track stock levels and set orders. It also works well with other apps, making inventory management easier.
The look of Sage 50 Accounting might seem old compared to cloud options. But, its deep features and focus on inventory make it great for businesses that need strong inventory management.
| Feature | Description |
|---|---|
| Inventory Tracking | Real-time visibility into stock levels, product variations, and minimum order quantities. |
| Third-Party Integrations | Seamless integration with a wide range of sales and business management platforms. |
| Detailed Reporting | Comprehensive financial and inventory-related reports for informed decision-making. |
| Scalability | Supports businesses of varying sizes, from solopreneurs to mid-sized enterprises. |
Sage 50 Accounting is a top pick for inventory management. It offers advanced tracking, flexibility, and strong accounting features. It’s perfect for businesses that need to manage their stock and product data well.
Zoho Books: Best for Larger Small Businesses
Zoho Books is a top cloud-based accounting tool for bigger small businesses. It has many features like sales, purchases, and inventory management. It also tracks time and manages projects. Plus, it works well with other Zoho tools, great for businesses already using them.
Key Features of Zoho Books
Zoho Books helps growing small businesses manage their finances well. It has key features like:
- Comprehensive reporting with over 40 report types, including P&L, balance sheets, and cash flow statements
- Auto-scan functionality that automatically converts scanned documents into expenses, bills, or purchase orders
- Integration with other Zoho apps, allowing businesses to manage various aspects of their operations on a single cloud-based platform
- Free customer support via email, phone, and chat to assist users with any inquiries or issues
- Inventory tracking, automatic banking reconciliation, and purchase approval capabilities to streamline financial management
- Efficient invoicing, with the ability to create 10 invoices in approximately 2 minutes
- Multi-lingual invoicing options to cater to diverse customer bases
- 1099s tracking functionality to simplify the management of payments to vendors
- Automatic payment reminders to improve cash flow management by prompting customers to pay invoices on time
Zoho Books is perfect for bigger small businesses. It offers advanced reporting, works well with other tools, and is easy to use. It helps manage finances well.
Patriot Software Accounting: Most Affordable
If you own a small business and need Patriot Software Accounting, it’s a great pick. It has key features like invoicing and expense tracking. It’s also very affordable, perfect for tight budgets.
Patriot Software Accounting might not have all the bells and whistles. But it’s reliable and won’t break the bank. It’s a solid choice for basic bookkeeping needs. Many businesses trust Patriot for their accounting and payroll.
People love Patriot Software Accounting for its simplicity and value. It lets you create invoices and track money. It also imports bank transactions and offers detailed financial reports. Plus, it has add-ons for HR and bookkeeping services.
Patriot Software Accounting is very affordable. It’s cheaper than most competitors. Users like the low cost and how easy it is to use, even for those not good with numbers.
The customer support for Patriot Software Accounting is top-notch. The team gets 5-star ratings for being friendly and helpful. They’re based in the USA, offering personalized support.
If you’re a small business owner looking for a budget-friendly accounting software, Patriot Software Accounting is a good choice. It’s affordable, easy to use, and has great customer support. It’s a favorite among many small businesses.
Best Bookkeeper Software
Finding the right bookkeeping software is key for small businesses. Our experts looked at 18 top Top Bookkeeping Software and Best Accounting Apps. They found the best Small Business Accounting Solutions.
QuickBooks Online is a top choice. It has many features to make accounting easier. FreshBooks is great for invoicing and tracking time, perfect for small businesses.
Xero is good for businesses with many users. Wave is excellent for invoicing. Sage 50 Accounting is great for managing inventory. Zoho Books has lots of features for bigger small businesses.
Patriot Software Accounting is the most affordable. It has all the basic bookkeeping functions at a low price.
Our team worked hard to help you choose. They analyzed 1,120 data points across 18 software options. They looked at features, prices, and who they’re for. This ensures you find the best Small Business Accounting Solutions.
| Software | Key Features | Pricing | Target User |
|---|---|---|---|
| QuickBooks Online | Comprehensive accounting, invoicing, and expense tracking | Starts at $25 per month | Small to medium-sized businesses |
| FreshBooks | Intuitive invoicing, time tracking, and project management | Starts at $19 per month | Very small businesses and freelancers |
| Xero | Multi-user functionality, bank reconciliation, and reporting | Starts at $12 per month | Small businesses with multiple users |
| Wave | Free accounting, invoicing, and receipt scanning | Free Starter plan, $16 per month for Ultimate | Small businesses focused on invoicing |
| Sage 50 Accounting | Comprehensive inventory management, job costing, and reporting | Starts at $53 per month | Small to medium-sized businesses with complex inventory needs |
| Zoho Books | Customizable invoices, expense tracking, and project management | Starts at $50 per month | Larger small businesses |
| Patriot Software Accounting | Affordable bookkeeping, invoicing, and payroll solutions | Starts at $15 per month | Small businesses on a tight budget |
With this info, you can pick the Best Bookkeeper Software for your Small Business Accounting Solutions.
Choosing the Right Bookkeeping Software
When picking bookkeeping software for your small business, think about a few things. How big and complex your business is matters. So does how many people need to use it. And what special features you need, like managing inventory or tracking projects.
Key Considerations
To pick the Factors to Consider When Choosing Bookkeeping Software, look at these points:
- Ease of Use: The software should be easy to use. This lets your team get started fast.
- Scalability: Your software should grow with your business. It should handle more users and tasks as needed.
- Security: Your financial data must be safe. Look for strong security to avoid Small Business Accounting Software Selection.
- Integrations: Choose software that works well with other tools you use. This makes your work easier.
- Cost: Think about the total cost. This includes setup fees, monthly or yearly payments, and extra features or users.
By looking at these important points, you can find the Factors to Consider When Choosing Bookkeeping Software that fits your small business best.
| Feature | Importance | Description |
|---|---|---|
| Ease of Use | High | The software should be easy to use. This lets your team get started fast. |
| Scalability | High | As your business grows, your bookkeeping software should be able to scale to accommodate more users, transactions, and features. |
| Security | Critical | Robust security measures are essential to protect your financial data and prevent Small Business Accounting Software Selection. |
| Integrations | High | Look for software that seamlessly integrates with other tools you use, such as your point-of-sale system or e-commerce platform, to streamline your operations. |
| Cost | Moderate | Consider the overall cost, including any setup fees, monthly or annual subscriptions, and the potential for additional features or users. |
Integrating Bookkeeping Software with Other Tools
It’s important to link your bookkeeping software with other business tools for better financial management. By connecting your accounting software to CRM, payroll, e-commerce, and project management, you can make data flow smoother. This also improves accuracy and gives a full view of your company’s operations.
Many businesses use different payment processors and e-commerce platforms. These include PayPal, Square, Stripe, Shopify, Wix, and BigCommerce. Linking your bookkeeping software with these can cut down on manual data entry. This saves time and reduces mistakes.
Integrated accounting systems let you set rules for transaction mapping. They centralize financial processes and offer real-time data. They also automate workflows and help close books faster.
When picking accounting integrations, businesses need to know their needs. They should look at their current software, think about their budget, and check if it’s compatible. It’s also important to choose something easy to use and scalable.
| Benefit | Percentage |
|---|---|
| Improved close rates from product integrations | 64% of larger companies |
| Annual cost of formal partnership agreements with accounting vendors | Tens of thousands of dollars |
| Time to build a connection to each accounting API | Weeks to months |
| Maintenance work for accounting integrations | Hundreds of hours per integration |
Businesses can use integration platform as a service (iPaaS) to make connections easier. Robotic process automation (RPA) software can also help with custom data integration.
“64% of larger companies realize improved close rates from their product integrations.”
Conclusion
The article looked at the top bookkeeping software options for small and medium-sized businesses. It highlighted their main features, prices, and who they are for. QuickBooks Online, FreshBooks, and Sage 50 Accounting are just a few examples.
Choosing the right bookkeeping software is key. It helps with financial management and making decisions. Look at what each software can do, how it connects with other tools, and its cost.
For small businesses or those growing fast, the right accounting solution is crucial. It affects your small business financial management. By looking at the Summary of Best Bookkeeping Software and Choosing the Right Accounting Solution, you can find what fits your business best.
Good bookkeeping software makes managing money easier. It gives you insights into your business’s health. This helps you make smart choices to grow your business.
Investing in the right accounting solution is smart. It helps your small business financial management reach its full potential. This sets your business up for success in the long run.
