Accounting software for small businesses comes in a variety of flavours, each with its own set of capabilities and price tags. In general, the type of industry and the number of employees are two aspects that might assist a small business owner in selecting appropriate accounting software. A freelancer, for example, does not require the same accounting software functionality as a restaurant owner.
Before selecting our top five accounting software firms for small businesses, we investigated and compared nineteen accounting software vendors. We evaluated cost, simplicity of use, features, integrations, and scalability when evaluating firms.
2021's Top 5 Accounting Software for Small Businesses:
- Xero: The best option for micro-businesses searching for relatively easy accounting software. This software features a straightforward user interface and seamlessly interacts with a third-party payroll service. Customers can pay businesses online thanks to Xero's connection with Stripe and GoCardless.
- QuickBooks Online: The best overall accounting software for small businesses out of the ones we looked at. Not only do the vast majority of small business accounting professionals utilise QuickBooks Online, but there is also an abundance of online training materials and forums where you can obtain help when you need it. All accounting elements are easily accessible from a single primary interface, making bookkeeping more fluid and efficient.
- Wave: An excellent accounting software platform for a service-based small firm that delivers basic invoices and does not require inventory tracking or payroll processing. Wave's free features will meet all of the accounting demands of many freelancers or service-based enterprises, making it the top free software in our evaluation. Accountants can use Wave to pull the reports they need to compile a company's tax return at the end of the year.
- FreshBooks: It provides greater customisation options for invoicing. Its major role is to send, receive, print, and pay invoices, but it may also do basic bookkeeping for a firm. This accounting software streamlines the process of sending proposals and invoices, requesting deposits, collecting client retainers, tracking time on projects, and receiving payments for service-based enterprises.
- QuickBooks Self-Employed: This is best for part-time freelancers and independent contractors who primarily need to manage their income and spending for tax purposes. This programme is intended for business owners who submit a Schedule C with their personal tax returns.
Accounting software will provide you with an accurate picture of your financial health, including details on earnings and losses, costs, tax summaries, and more. Choosing software with automated reporting is a terrific way to keep track of your cash flow and learn about your money.
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