It is very important for you to monitor & improve the financial health of your business. Owners of small businesses benefit from accounting software as it helps them to track accounts receivable & accounts payable, be prepared for tax season, and have a clear understanding of their profitability. When it comes to accounting software, a small business belongs to one that can use this software without needing extensive customizations. As a small business grows, its accounting needs to be more complex & a custom enterprise resource planning system is often required. Now, we will discuss accounting software for small business further.
Best Overall Accounting Software for Small Business
QuickBooks Online is considered as the best overall accounting software you can use for your small business. It doesn’t only do the majority of small business accounting, but it also offers endless online training forums & resources to get supported when you need it. You can access all accounting features conveniently on one main dashboard so that bookkeeping is efficient & more fluid.
The pros of QuickBooks Online include mobile app, Cloud-based, integration with 3rd-party apps, commonly used by professionals, and scalable. However, it also has cons including occasional syncing issues with blanks & credit cards and upgrade is required for more users.
Best Accounting Software for Micro-Business Owners
When it comes to micro-business, Xero can be considered as the best option. This software is very simple and comes with a clean interface. It also fully integrates with a 3rd-party payroll service. Xero has some pros including simple inventory management, 3rd-party app marketplace, payroll integration with Gusto, mobile app, and Cloud-based. Then, there are also a few cons such as limited customer service, fees charged for ACH payments, and limited reporting.
This software offers 3 monthly subscription options & a full-service payroll add-on:
- Early at 11 dollars/month
- Growing at 32 dollars/month
- Established at 62 dollars/month
The option of full-service payroll is offered through Gusto & it is an extra 39 dollars/month + 6 dollars/employee. You can enjoy this software in a 30-day free trial. Then, it offers a promotion for 50 percent off for 2 months.
Best Accounting Service for Service-based Business
As we know, invoicing is the most crucial need of accounting for a service-based business. In this case, FreshBooks features more customizations for invoicing than other accounting software. The main function of FreshBooks is to receive, send, pay, and print invoices. However, this software can take care of a service-based business’ basic bookkeeping needs. This software makes it easier for a business to send proposals & invoices, collect client retainers, request deposits, track time on projects & receive payments.
This accounting software for small business is recommended so much because it has some pros including advanced invoicing features, affordable, third-party app integration, user-friendly interface, and cloud-based. However, there are also a few cons including it has limitations, no payroll service, and no inventory management. A FreshBooks’ unique feature is that invoices can be stylized & customized highly for a professional feel & look. That is why FreshBooks is considered as a good tool for sending estimates/proposals, budgeting out projects & collecting customer payments.