Best Accounting Software For Small Business Ireland

The Best Accounting Software For Small Business Ireland

If you are looking for a new accounting software for your small business, you have come to the right place. You may be wondering why we think this is the best accounting software for small business in Ireland. Well, we will tell you all about it in this article.

What Is The Best Accounting Software For Small Business Ireland?

The best accounting software for small business is one that helps your business grow and thrive while making sure that all of your financial records are up-to-date and accurate at all times. This means that when it comes time to do taxes or make important decisions, you will have all of the information that you need right at hand without having to worry about whether or not your numbers are accurate or if everything was recorded properly during the year.

What Does The Best Accounting Software For Small Business Ireland Do?

The best accounting software for small business Ireland does much more than just keep track of money coming in and going out; it also helps you take care of other important tasks such as creating invoices and generating reports so that you can make informed decisions about how much money needs to be spent or saved on certain aspects of your business such as marketing campaigns or employee salaries (depending on size).

Best Accounting Software For Small Business Ireland

Skip to content
Best in Ireland
BEST IN IRELAND
ENTERTAINMENT
MONEY
SERVICES
SHOPPING
Search
The Best Accounting Software in Ireland
HomeServicesThe 6 Best Accounting Software in Ireland
THE 6 BEST ACCOUNTING SOFTWARE IN IRELAND
Sarah Byrne Sarah Byrne | October 31, 2021
The accounting side of a business is indeed essential, but it doesn’t have to consume so much of your time.

Thankfully, you can now take advantage of plenty of tools to streamline tasks. Our picks for the best accounting software in Ireland is one example!

Expect this article to tackle that and more. But first, let’s take a look at how much this type of service costs.

Contents show
Accounting Software Costs
Our choices offer a variety of subscriptions and each one differs in the number of features you can avail of.

Usually, the most basic plan is best for starting businesses and sole traders. Of course, the plans next to that are more suited for growing and established businesses.

Depending on your chosen subscription, you’ll be able to track your expenses, send invoices, know your VAT, connect your bank, manage inventory, and so on.

Usually, basic plans only allow a limited number of users. And because it’s a basic plan, don’t expect it to support different currencies.

You may also come across limitations concerning the number of invoices you can send. Again, all these features would still depend on the plan offered by an accounting software company.

You can find a list of their estimated monthly costs in the table we’ve made below.

The good news is, many of them currently offer discounts. Just check out our picks’ respective websites!

SUBSCRIPTION COST PER MONTH
Starter $10 – $20
Plus $25 – $30
Premium $34 – $50
The Best Accounting Software in Ireland
Our top picks for the best accounting software in Ireland is right up ahead, so don’t miss it out!

1. Xero
   Xero’s Homepage
   RATES Starter (good for sole traders, self-employed, and new businesses) – $20/month

Standard (good for growing small businesses) – $30/month

Premium (good for established businesses of all sizes) – $40/month

Optional add-ons:
Claim expenses – from $4/month
Track projects – from $7/month
WEBSITE https://www.xero.com/ie/
CONTACT DETAILS sales@xero.com
Xero is a cloud-based accounting software platform headquartered in New Zealand and boasts of having almost 3 million subscribers worldwide

While it’s also available in Ireland, they have yet to establish an office here in the country.

You can use Xero to store important files such as bills, contracts, receipts; evaluate your business through reports; keep track of your stocks; import data from your bank and other financial institutions, and more.

You can even customise Xero by connecting it to an extensive list of apps available in the Xero app store.

There’s a wide array of options for functions such as financial services, e-commerce, debtor tracking, payroll HR, time tracking, and so on.

You can even look for apps that are especially suited for a particular industry such as education, agriculture, health, hospitality, among others.

On pricing, Xero offers 3 plans, and each differs depending on the size of a business.

What’s great about their plans is they that all include the following features: inventory, sales tax, import bank transactions, reporting, accept payments, purchase orders, files, and manage contacts.

Moreover, there’s plenty to read about in each plan, making it easier for clients to understand how it can help them.

Pros

24/7 support
30-day free trial
Promos available
Offers a discount for multiple organisations
Supports more than 160 currencies
Website includes accounting glossary
Cons

Currently no plan discounts offered
No physical office in Ireland
Only premium plan has multiple currency feature
Customer Reviews

Most satisfying software ever used

“I have been scared to manage other accounting software as such as Sage group or Quickbooks. As the UI differs and one simple mistake can lead to big troubles, XERO has been the most satisfying software I have ever used. With great UI/UX.” -Mohammad Bilawal B

Good value for money

“Xero is a very useful accounting package for small businesses to manage their day to day financial transactions. It is a very intuitive product which does not require extensive accounting knowledge. The product is very reasonably priced and is very good value for money. Overall I would recomment Xero to any small businesses over the other products available.” -Administrator in Computer Software

2. Quickbooks Online
   Quickbooks Online’s Homepage
   RATES Simple Start (for new micro businesses and the self-employed) – $16/month

Essentials (for growing businesses) – $25/month

Plus (for established businesses) – $34/month
WEBSITE https://quickbooks.intuit.com/ie/
CONTACT DETAILS 1800 80 71 32
Quickbooks Online is one of the products of Intuit, a California-based global technology platform. It’s a cloud accounting software that comes with a 30-day free trial.

Among its features, Quickbooks highlights its inventory management, invoicing, and financial reporting. Thus, these could be its strengths, in particular.

Meanwhile, Quickbooks allows you to connect it to your bank accounts, PayPal, credit cards, and more. Keeping track of VAT is easier as it already contains updated VAT rates for Ireland and also calculates it automatically for users.

Plus, Quickbooks has a multi-currency feature that’ll allow you to send invoices and more using different currencies. This is especially handy if your business makes transactions abroad.

Moreover, Quickbooks’s 3 plans are currently discounted. One key difference between the 3 plans is in the number of users.

Simple Start, the most basic plan only allows for 1 user, while the Essentials plan allows for 3, and their Plus plan for up to 5. All plans allow another user, which is your accountant.

However, in terms of support, their website states that it’s available Monday to Friday, from 7:00 am to 12:00 am (GMT+8). It’s not 24/7, in other words.

But this could be for prospective clients only, so inquire about this.

Pros

30-day free trial
Discounts available
Supports different currencies
Can set invoices in 5 foreign languages
Offers other financial products
All plans include unlimited invoices
Cons

Support could be limited
Software is not supported on Linux
No office in Ireland
Customer Reviews

Straightforward to navigate

“The best part about QBO is the ease of use. The software is clutter-free and straightforward to navigate. Unlike many software, where there are options under the options creating a much complex environment, QBO is very simple. It has pretty much everything a company would in its accounting software.” -Vikrant B

Tons of resources available

“QuickBooks is one of the most popular accounting software around, and for good reason. There are tons of resources available to help you get started or troubleshoot issues that may arise in your business. Some great features include inventory management, accounts payable/receivable, billing/invoicing options etc., which can be customized depending on what type of company you’re running.” -Angelo S

3. FreshBooks
   FreshBooks’ Homepage
   RATES Lite (for professionals with basic needs) – $15/month

Plus (for owners looking for more automation and insights) – $25/month

Premium (for growing businesses that want to empower employees) – $50/month

Select (for businesses with more complex needs) – custom pricing

Add-ons:
Team members – $10/person/month
Advanced payments – $20/month
WEBSITE https://www.freshbooks.com/en-ie/
CONTACT DETAILS 1800 949 046
support@freshbooks.com
FreshBooks caters to freelancers and self-employed professionals as well as businesses with contractors or employees.

You can reach customer support by phone or email from Mondays to Fridays. While it’s not exactly 24/7 support, FreshBooks does boast of an award-winning support team that’s been recognised near 10 times for their service.

So, we expect them to particularly shine in this area. In fact, they even host live webinars to help new clients get the hang of FreshBooks.

Features-wise, there’s plenty of things to do with invoices, including invoice customisation, late fee application, payment reminders, multi-currency billing, and more.

There’s also a time-tracking feature that allows clients to track team time, track time against clients and projects, log hours, and such.

What’s more, FreshBooks lets you create project proposals and collaborate on a project with other people.

Meanwhile, you can also integrate it with a variety of apps. Just head over to their Integrations page.

App categories include bookkeeping services, connector tools, e-commerce, file storage, payroll, website management, to name some.

It’s a good thing also that Freshbooks includes a plan comparison chart on its website, making it easier for clients to know which plan is best for them. Plus, they have a plan suited for businesses with more complex needs.

Pros

30-day free trial
Discounts for yearly subscriptions and more
Award-winning customer support team
Free calculator tools on website
Offers multi-currency billing
All plans include unlimited and customised invoices
Cons

No office in Ireland
Support may be limited
Customer Reviews

Used it for over 10 years

“I love the ease of use and the way all my clients are saved in Freshbooks. I’ve used it for over 10 years and have all my client data stored there. I frequently look back at my old billing history to see how I’ve changed my packages and pricing over the years. Saved items are also a huge help — it’s like a menu of services that are saved and can be reused on invoices over and over again, making sending a new proposal/invoice to a new client a cinch.” -Lauren H

Lots of features

“Freshbooks is simple to use. It has lots of features and you can get quickly and easily started in very little time. Great for taking payments from your clients.” -Peter G

4. Sage
   Sage’s Homepage
   RATES Sage Accounting Start (ideal for the self-employed and micro businesses) – $10/month

Sage Accounting (for small businesses) – $25/month
WEBSITE https://www.sage.com/en-ie/
ADDRESS 1 Central Park, Leopardstown, Dublin 18, D18 NH10
CONTACT DETAILS 01 447 0800
Founded in 1981, Sage has grown to 9 locations worldwide, including one office in Dublin.

It offers a variety of solutions for accounting, payroll, HR, real estate, and more, making it really ideal for businesses.

Their accounting software is divided into two categories: Sage Accounting for small businesses and Sage 50cloud Accounts for both small and medium businesses.

Two plans are offered under Sage Accounting, both of which you can try for 30 days free.

With Sage Accounting, you can check your tax liabilities, convert accepted quotes/estimates into invoices, customise invoices, convert currencies, be aware of your cash flow, and so on.

There’s also a payroll service, but it looks like you’ll have to purchase this as separate software.

And like our other picks, you can integrate a host of other apps as well as other Sage products to Sage Accounting via Sage Marketplace.

You can pick from a wide array of categories, such as payments and banking, e-commerce, payroll and HR, taxation and compliance, just to name some.

Best of all, Sage provides 24/7 telephone support. This is complemented by online drop-in Q&As, pre-recorded webinars, among others.

Pros

Has an Ireland office
Other products available
24/7 support
Offers discounts
30-day free trial
Supports different currencies
Cons

No time tracking feature
No subscription discounts
Customer Reviews

Good cloud-based software

“It’s good cloud based software that you can work on at the same time as your client. The 24/7 phone support from Sage is valued highly by my clients.” -Anonymous

Works great for small and medium businesses

“This system has been very helpful in enabling my departments to easily track all our financial operations. It works great for small and medium businesses and can grow as a company. By being in the browser this eliminates the need to set up a separate server to host all the accounting, CRM and finance we need, which is a great advantage. Customer service can be easily achieved and data is always more useful.” -Priscila R

5. AccountsIQ
   AccountsIQ’s Homepage
   RATES Essentials (for businesses of all sizes) – from €250/month

Growth (for growing and multi-entity businesses) – from $450/month

Enterprise (for larger/complex enterprises) – contact us
WEBSITE https://www.accountsiq.com/
ADDRESS Sand House, Bath Place, Blackrock, County Dublin
CONTACT DETAILS Sales:+ 353 (1) 707 44 90
sales@accountsIQ.com

Support:+ 353 (1) 707 4400
support@accountsIQ.com
OPERATING HOURS 8:30 pm to 6:00 pm (Monday – Friday)
AccountsIQ may not be as well-known as our other picks, but that may be because they’re more suited for larger companies.

They’ve been awarded multiple times and also have a physical office here in Ireland. More than 4,000 companies use AccountsIQ, including The Irish Times and multinational companies like Mazars.

With AccountsIQ, you can have accounting, business intelligence, and consolidation under one cloud accounting system.

It supports multiple currencies and clients may even add a cryptocurrency as well as utilise more than 250 pre-built in reports.

Just some of the features offered are 3-level general ledger structure, accounts payable automation, period management, and bank statement feed and auto reconciliation.

However, with their services, you can expect their plans to be more expensive than others. Subscriptions start at €250 per month.

Unfortunately, AccountsIQ only gives 2 weeks for clients to test their software.

Pros

Multi-awarded software
Ideal for big companies
Supports all major currencies even cryptocurrencies
Has an office in Ireland
Comes with 250+ pre-built in reports
Cons

Only offers a 2-week trial
Not suitable for small companies or freelancers
More expensive than other picks
Doesn’t seem to currently offer discounts
Customer Reviews

Lot of visual control

“I like that they use a lot of visual control to represent the data. The control panel gives you a great overview of all the important personalities. At a glance, you see the total amount of receivables and payables. One of the best features is the OCR One, which allows you to automatically draw invoice information. Banks can also be easily applied.” -Moira T

Always accessible

“Intuitive to navigate. Always accessible even over highly contended internet connections. And unlike many of it’s competitors – it handles Irish Vat! Great selection of standard report to meet most users needs.” -Fiona M

6. Lightyear

RATES https://www.lightyear.cloud/uk/pricing
WEBSITE https://www.lightyear.cloud/
CONTACT DETAILS +44 2896 002357
OPERATING HOURS
Lightyear is a global Software as a Service business that is geared to accommodate businesses, accountants, and bookkeepers. With various offices across Ireland, Australia, and UK, they are able to service up to 40 countries worldwide ever since its founding back in 2017.

Their software is able to help enterprises by providing innovative technical tools for purposes such as streamlining, data digitalization and even enhancing business network relations across other clients. Though it has limited availability in Asia and the American region, clients residing in the said regions may contact them for more information.

The website also features a table of their comprehensive plans in which clients may avail of along with its corresponding perks, inclusions, and price for each range. Their rates are fixed and are free of any hidden fees and clients may also cancel or upgrade their subscription at any time on their site as well.

The payment is in accordance with the credit usage which differs from the usual payment scheme which clients may find a bit confusing. Customer support is readily available should the client have any queries for that matter.

Pros

Comprehensive pricing
Data is readily backed-up even after subscription
Accommodates services in 40 countries
Cons

Unclear operating hours
Customer Reviews

Here are some reviews from their clients:

“I love that all my actions can be done in one place – Lightyear stores/archives all information received and makes searching it a breeze.” – Sharon Batty, Accountant
“Simplicity – easy for non-finance users to navigate, a clear audit trail on all interactions with our docs and it is very cost-efficient.” – Merran Brookman, Financial Controller, Zagame Corporation
Tips for Selecting Accounting Software
Of course, each company that creates accounting software would claim they’re the best out there. However, what’s best for other businesses, might not be what’s best for yours.

Check out these tips we’ve gathered to aid your decision-making:

Business needs
Identify your business needs and know how a specific accounting software will meet those needs.

For example, what are its invoicing features? How can it help you with tax, time tracking, inventory, etc? And if you conduct international transactions, how many currencies does it support?

Ask how many users can have access to the software. Plus, it’s also a good idea to inquire about their clients who belong to your industry.

Ask your accountant
Another good tip is to ask your accountant. Remember, your accountant would be among those who have considerable knowledge of your business.

His or her input will lend valuable insight to your decision in choosing accounting software.

Usability
It’s always a good idea to consider the software’s ease of use for you and your employees as well.

Adjusting wouldn’t be that hard, and you wouldn’t spend so much time on training. Thus, include this factor in your evaluation when you try out the software.

Pricing
Don’t immediately assume that your monthly subscription is all that you would be paying for.

Ask if there are any other fees to think about. These could be maintenance fees, training, support, and so on.

Know the features that come as standard to your subscription. If you’d like to integrate other apps, inquire about those costs as well.

Support
Don’t forget customer support. Even if accounting software companies have a wealth of resources on their websites, there will be times when you’ll need a real person to address a particular issue.

Inquire about how and when you can reach them, such as by phone, email, live chat, etc.

FAQs about the Best Accounting Software in Ireland
What are the benefits of using accounting software?
What are the disadvantages of using accounting software?
What are the signs I need to use accounting software?
Is cloud accounting software safe?
Our list of the best accounting software in Ireland ends here for now. Hoping you found it to be a worthwhile read!

Got your own picks for the best accounting software? Please let us know, so we can check them out as well!

what accounting software is best for small business

EDUCATION
MARKETS
SIMULATOR
YOUR MONEY
ADVISORS
ACADEMY

BUSINESS SMALL BUSINESS
Best Accounting Software for Small Business
Monitor and improve your business’ financial health
By REBECCA FREEDMAN, CPA Updated April 08, 2022
Fact checked by MATTHEW M KLAMMER
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

Small business owners benefit from accounting software because it helps them track accounts receivable and accounts payable, have a clear understanding of their profitability, and be prepared for tax season. In the world of accounting software, a small business is one that can use out-of-the-box software without requiring extensive customizations. As a business grows, its accounting needs become more complex, and a custom enterprise resource planning (ERP) system is often needed.

There are many different types of accounting software available for small businesses, with varying capabilities and price tags. Generally, the type of industry and number of employees are two factors that can help a small business owner begin to choose the accounting software that is appropriate. For example, a freelancer would not need the same features in accounting software as a restaurant owner.

Nineteen accounting software companies were researched and compared before selecting our top five best suited for small businesses. When evaluating companies, we considered cost, ease of use, features, integrations, and scalability.

The 5 Best Accounting Software for Small Business of 2022
Best Overall: QuickBooks Online
Best for Micro-Business Owners: Xero
Best for Service-Based Businesses: FreshBooks
Best for Part-Time Freelancers: QuickBooks Self-Employed
Best Free Software: Wave
Best Accounting Software For Small Business
QuickBooks Online
Xero
FreshBooks
QuickBooks Self-Employed
Wave
What Does Accounting Software For A Small Business Do?
How Does Accounting Software Work?
How Much Does Accounting Software For Small Business Cost?
Methodology
BEST OVERALL
QuickBooks Online
QuickBooks OnlineBUY ON INTUIT.COM
QuickBooks Online is the best overall accounting software for small businesses of those reviewed. Not only do the majority of small business accounting professionals use QuickBooks Online, but there are also endless online training resources and forums to get support when needed. All accounting features can be conveniently accessed on one main dashboard, making bookkeeping more fluid and efficient.

Pros
Scalable
Commonly used by accounting professionals
Integration with third-party applications
Cloud-based
Mobile app
Cons
Upgrade required for more users
Occasional syncing problems with banks and credit cards
Intuit’s QuickBooks Online has been one of the most common accounting softwares used by small businesses and their bookkeeping and tax professionals. The software is cloud-based and can be accessed through a web browser or through the mobile app.

After the 30-day free trial, the four options for subscription plans include: Simple Start at $25 per month, Essentials at $50 per month, Plus at $80 per month, and Advanced at $180 per month. Typically there is a significant discount offered for the first few months, and some accountants are able to offer wholesale pricing to small businesses, as well.

The monthly subscription for this software can be upgraded as a business grows, and there are many customization options with the mobile app that can be used to receive payments, review reports, capture an image of a receipt, and track business mileage. For businesses looking for a payroll solution, QuickBooks Payroll fully integrates with QuickBooks Online.

Each plan offers more advanced features like inventory management, time tracking, additional users, and budgeting. Most service-based small businesses will find that Simple Start meets all of their needs. For product-based small businesses, Essentials or Plus will have more options for inventory and customizations. The Advanced subscription is a new offering and provides robust financial reporting that is powered by Fathom. Fathom is an elite online financial report analysis tool used by many large companies all over the world.

All plans allow integration with third-party apps such as Stripe or PayPal. QuickBooks Online’s app store breaks down all of their apps by function and provides helpful examples of the benefits of each app.

BEST FOR MICRO-BUSINESS OWNERS
Xero
XeroBUY ON XERO.COM
Xero is the best in our review for micro-businesses that are looking for very simple accounting software. This software has a clean interface and also fully integrates with a third-party payroll service. Businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless.

Pros
Cloud-based
Mobile app
Payroll integration with Gusto
Third-party app marketplace
Simple inventory management
Cons
Limited reporting
Fees charged for ACH payments
Limited customer service
Xero was founded in 2006 in New Zealand and now has over 3 million subscribers worldwide. This accounting software is popular in New Zealand, Australia, and the United Kingdom. Xero has over 4,000 employees and is growing rapidly in the U.S., as well.

Xero offers three monthly subscription options and a full-service payroll add-on: Early at $12 per month, Growing at $34 per month, and Established at $65 per month. The full-service payroll option is offered through Gusto and is an additional $39 per month, plus $6 per employee. The company offers a 30-day free trial.

The Early plan limits usage and only allows entry for 20 invoices or quotes and five bills per month. This limited plan may be suitable for a micro-business with high-ticket transactions, but only a few per month, such as a consulting or small service provider. Both the Growing and Established plans offer unlimited invoices and bills. The only difference between the two is that the Established plan has additional features like multi-currency, expense management, and project costing. All three plans offer Hubdoc, a bill and receipt capture solution.

BEST FOR SERVICE-BASED BUSINESSES
FreshBooks
FreshBooksBUY ON SHAREASALE.COM
The most crucial accounting need for most service-based businesses is invoicing. FreshBooks offers more customizations for invoicing compared to other accounting software. Its primary function is to send, receive, print, and pay invoices, but it can also take care of a business’ basic bookkeeping needs as well. This accounting software makes it easier for service-based businesses to send proposals and , track time on projects, and receive payments.

Pros
Cloud-based
User-friendly interface
Third-party app integration
Affordable
Advanced invoicing features
Cons
No payroll service
Mobile app has limitations
Founded in 2003 in Toronto, FreshBooks started as just an invoicing software. Over time, more features have been added and FreshBooks now has over 500 employees. There are four different plans, and businesses can get a 10% discount if they choose to pay yearly, rather than monthly. Additionally, FreshBooks offers a 60% off discount per month for six months. The four plans are: Lite at $6 per month, Plus at $10 per month, Premium at $20 per month, and Select, which is a custom service with custom pricing.

The main difference between the four plans is the number of different clients that are allowed to be billed per month. In the Lite plan, up to five clients can be billed per month. In the Plus plan, up to 50 clients can be billed per month. In the Premium plan, unlimited clients can be billed per month. The Select plan also does not have a limitation on the number of clients that can be billed per month, but adds unique features. It costs an additional $10 per month for multiple team members to use the accounting software and it costs an additional $20 per month for the advanced payment feature, which allows users to charge a credit card in real-time or set up a recurring credit card charge for a client.

There are many third-party app integrations available, such as Shopify, Gusto, Stripe, G Suite, and more. A unique feature of FreshBooks is that invoices can be highly stylized and customized for a professional look and feel. FreshBooks is a great tool for budgeting out projects, sending estimates or proposals, and collecting customer payments.

BEST FOR PART-TIME FREELANCERS
QuickBooks Self-Employed
QuickBooks Self-EmployedBUY ON INTUIT.COM
QuickBooks Self-Employed accounting software is our top choice for part-time freelancers and independent contractors who primarily want to track their income and expenses for their tax return. This software is designed for business owners who file a Schedule C on their individual tax return.

Without keeping up with business activity using a software like this, freelancers would need to dig through all of their bank and credit card statements to add up their income and expenses at the end of each year, which can be quite daunting. QuickBooks Self-Employed will total up all business transactions automatically.

Pros
Cloud-based
Mobile app
Track mileage
Differentiate between business and personal expenses
Syncs with TurboTax
Cons
Data cannot be easily transferred to other accounting software
Limited reporting
Limited invoicing functionality and customization
QuickBooks Self-Employed is an Intuit product with a cloud-based online interface and a mobile app. This software was created to help freelancers stay organized each year for tax season. Features of QuickBooks Self-Employed include tracking mileage, sorting expenses, organizing receipts, sending invoices, and estimating and filing taxes seamlessly through TurboTax.

Users can choose between three plan options: Self-Employed at $15 per month, Self-Employed Tax Bundle at $25 per month, and Self-Employed Live Tax Bundle at $35 per month. There is a 50% discount for the first three months. The two tax bundles include a TurboTax subscription for income tax filing. The Self-Employed Live Tax Bundle also gives you access to a CPA to answer questions throughout the year and during tax season. The CPA will also perform a final review of your tax return in TurboTax prior to filing.

The mobile app makes it easy to track mileage while driving and capture photos of receipts for business expenses. Most accounting software is not designed to separate business transactions from personal transactions, but a special feature of QuickBooks Self-Employed provides an option to mark each transaction as business or personal. This is helpful for freelancers who don’t have a separate bank account for their business activity.

BEST FREE SOFTWARE
Wave
WaveBUY ON WAVEAPPS.COM
Wave is an ideal accounting software platform for a service-based small business that sends simple invoices and doesn’t need to run payroll. For many freelancers or service-based businesses, Wave’s free features will cover all of their accounting needs and is the best free software in our review. At year-end, accountants can pull the necessary reports from Wave to prepare a business’ tax return.

Pros
Free accounting, invoicing, and receipt scanning
No transaction or billing limits
Run multiple businesses in one account
Unlimited number of users
Mobile app
Cons
Limited third-party app integrations
Higher fees for credit cards and ACH payments
Full-service payroll is limited to only 14 states
Wave was founded in 2010 and is based in Toronto. The company has over 250 employees and was purchased by H&R Block in 2019. The foundational accounting features that most small businesses need, such as income and expense tracking, financial reporting, invoicing, and scanning receipts, are all included with this free software. These features can be accessed online or on the mobile app. Customer payment processing and payroll are considered premium services that cost extra, but all of the bookkeeping, invoicing, and reporting features are completely free.

Wave makes its money on its payment gateway. To process payment from a customer, Wave charges 2.9% plus 30¢ per transaction for Visa, Mastercard, and Discover, and 3.4% plus 30¢ per transaction for American Express. These fees are slightly higher than other accounting software. Additionally, to process an ACH payment, rather than a credit card, Wave charges 1% per transaction with a $1 minimum fee. This is unique to Wave, as the majority of accounting software does not charge a fee for ACH payment processing.

Wave offers two payroll plans as an add-on service. The first plan is $20 per month plus $6 per employee or contractor. In this plan, Wave will process payroll and prepare payroll tax calculations, but the user is responsible for manually completing payroll tax forms and submitting tax payments. The second plan is $35 per month plus $6 per employee or contractor. In this plan, payroll is full-service, which means that all tax filings and payments are completely managed by Wave. This full-service payroll option is only available in 14 states.

What Does Accounting Software for a Small Business Do?
Accounting software reduces the amount of time spent on data entry by allowing users to sync their business bank accounts and credit cards with the software. Once synced, transactions will flow into the accounting software, where they can be categorized into various accounts. While most accounting software is easy to use, a general understanding of accounting principles is needed to ensure that financial reports are prepared correctly. For this reason, many businesses hire bookkeepers or accountants to maintain or review their books. Cloud-based online accounting software makes it convenient for businesses to access their books at the same time as their bookkeeper or accountant.

The most basic functions of accounting software for small businesses are:

Invoicing
Bank and credit card syncing
Accounts payable
Accounts receivable
Online payment collection from customers
Basic financial statement preparation, such as profit and loss statements, balance sheets, and statements of cash flow
User access for accountants or tax professionals.
How Does Accounting Software Work?
Once a business’ bank accounts and credit cards are synced with the accounting software, transactions will appear in a queue and can be classified into the categories found on the business’ chart of accounts. After selecting the proper category, transactions begin to populate the business’ financial statements. Business owners can run a financial report in seconds to review profitability, compare revenue and costs, check bank and loan balances, and predict tax liabilities. Having quick access to this financial information gives business owners the power to make important decisions.

Additionally, many accounting software allows third-party application integrations. For example, if a business owner uses a point of sale (POS) system to capture sales transactions, the POS system could potentially integrate with the accounting software to record specific transactions, sales tax liabilities, sales by subcategories, and more. In a service-based business, a time tracking application could integrate with the accounting software to add labor to a client invoice.

How Much Does Accounting Software for Small Business Cost?
Small business accounting software ranges from $0 to $150 per month. Basic plans are in the $0 to $40 per month range and are a great place to start. With a basic plan, a small business will be able to categorize income and expenses, send invoices, and prepare financial reports. As a business grows, most software is scalable, and the plan can be easily upgraded to meet new business needs. The more robust plans allow businesses to track inventory, prepare more customized financial reports, run payroll, and choose from more invoicing options.

How We Chose Accounting Software for Small Business
We looked at nineteen accounting software companies with specialized products for small businesses before choosing our top five software options. We considered cost, scalability, ease of use, reputation, and accounting features. Reputation was a key consideration because the longer a company has been around, the more likely that any technological glitches have been resolved, which ensures that a company’s important financial information will be reported accurately. Scalability was the next most important consideration because as a company grows, its accounting needs grow as well, and transferring financial information to new software can be tedious. Finally, ease of use and collaboration for business owners, employees, and accountants was considered because it’s important for all users to be able to access and review the financials at the same time.

Conclusion

Let us know your thoughts in the comment section below.

Check out other publications to gain access to more digital resources if you are just starting out with Flux Resource.
Also contact us today to optimize your business(s)/Brand(s) for Search Engines