The best accounting software for small business with inventory is a must-have for any business that does more than just sell products.
It’s so important to have an accurate inventory of all your possessions and assets, and it’s even more important to be able to track them accurately every single day. If you don’t, there’s no way you can keep up with what’s going on in your business, or how it’s performing.
For example: if you have an emergency and need to make sure something is still available at a particular time (or if there are delays in production or delivery), how can you do that without knowing what exactly is on hand?
That’s why it’s so important to have some sort of system in place—and the best accounting software for small business with inventory will help you do just that.
Best Accounting Software For Small Business With Inventory
PCMag Nav Logo
Find products, advice, tech news
Computers & Electronics
Software & Services
ALL BEST PRODUCTS
Computers & Electronics
Software & Services
PCMag editors select and review products independently. If you buy through affiliate links, we may earn commissions, which help support our testing. Learn more.
Home Best Products Accounting SMB Accounting
The Best Small Business Accounting Software for 2022
If you run a small business or are a freelancer, then keeping a tight grip on finances is critical for success. Our reviews cover the best small business accounting tools to help keep your company in the black.
By Kathy Yakal
Updated February 2, 2022
Related SMB Accounting Picks:
Best Online Payroll SoftwareBest Tax SoftwareBest Project Management Software
OUR 9 TOP PICKS
Best for Sole Proprietors and Very Small Businesses
FreshBooks offers a well-rounded and intuitive double-entry accounting experience with the tools that a very small business needs. An exceptional user experience and smart blend of features make it a top choice for sole proprietors and freelancers.
Read Our FreshBooks Review
Best for SMBs
Intuit QuickBooks Online Image
Intuit QuickBooks Online
Intuit QuickBooks Online is still the best online accounting application for small businesses, thanks to its depth, flexibility, and extensibility. It’s easy to use, well designed, and built to serve a wide variety of users. It’s also expensive.
Read Our Intuit QuickBooks Online Review
Best for Inventory Tracking
Sage 50cloud Accounting Image
Sage 50cloud Accounting
at Sage US
Sage 50cloud Accounting is a robust small business accounting application with comprehensive financial tools and generous customization options. Its integration with Microsoft 365 makes it a hybrid solution: local, hard drive-based software that can share data with productivity applications via the cloud.
Read Our Sage 50cloud Accounting Review
Best for Free Invoicing
Wave delivers a free accounting service for very small businesses. Its invoice creation and management tools are capable, as well as its transaction tracking. New features this year add to its effectiveness.
Read Our Wave Review
Best for Integrated Add-Ons
Accounting service Xero has very good tools for reconciling accounts, tracking project, and managing sales and purchase transactions. Recent improvements to its setup process and new business overviews solidify it as an excellent choice for small businesses.
Read Our Xero Review
Best for Mobile Access
Zoho Books Image
at Zoho Books
Zoho Books is a laudable small business accounting service, with a tidy user experience, attractive pricing, and a rich set of tools. Larger businesses may want to consider it, too, now that integrated payroll is supported for all states.
Read Our Zoho Books Review
Invoicing Tools and Double-Entry Accounting
at Sunrise App
Sunrise is a good choice for freelancers and sole proprietors who need to track income and expenses and invoice customers. It might also appeal to small businesses that need double-entry accounting but not time tracking, robust reports, or full mobile access.
Read Our Sunrise Review
Best for Microbusinesses
Kashoo Classic’s strengths are income and expense management, usability, and support. It’s a simple, speedy choice for smaller businesses that don’t need inventory management or time-tracking tools but that want to automate select elements of their accounting.
Read Our Kashoo Classic Review
Best for Accounts Receivable Only
$36 Per Month
at The Neat Company
NeatBooks is an accounts receivable-only accounting website that offers an excellent user experience, simple reconciliation, and helps you match downloaded bank transactions with original source documents, such as receipts.
Read Our NeatBooks Review
PROS & CONS
Table of Contents
You Can Trust Our Reviews
Since 1982, PCMag has tested and rated thousands of products to help you make better buying decisions. (Read our editorial mission.)
It’s been nearly two years since small businesses began to feel the impact of COVID-19. Congress has passed legislation that continues to help companies through the long recovery, but you may still be feeling the effects of the virus on your company’s finances. Small business accounting websites certainly aren’t a panacea, but if you use one religiously, you should feel more in control of your finances and be able to make better decisions. As you grapple with the current state of your income and expenses, you can make smarter, more informed plans for your future.
We tested nine of the best web-based accounting applications available for this roundup. All are capable of handling the tasks required for small businesses, though some are better suited to very small businesses, like sole proprietors or freelancers or companies that only have an employee or two. These are FreshBooks, Sunrise, Kashoo Classic, and Wave. Others can accommodate slightly larger businesses, though they might also be appropriate for startups and less complex companies. This group includes Editors’ Choice Intuit QuickBooks Online, Xero, Sage 50cloud Accounting, and Zoho Books. The ninth application, NeatBooks, is new.
Note that, while we don’t include it here because it’s not strictly speaking a double-entry accounting service, we also reviewed Bill.com, which does, however, offer advanced accounts receivable and payable management, plus the ability to create multiple approval levels. No other service provides its set of features and sophisticated workflow. It’s an excellent app, and an Editor’s Choice winner.
The Best Small Business Accounting Deals This Week*
*Deals are selected by our commerce team
Intuit QuickBooks Online — Save 50% off Online Plans
FreshBooks — $4.50 Per Month for Lite Plan (List Price $15)
Xero — 30-Day Free Trial
What These Services Can Do
Financial bookkeeping is complicated and time consuming. Business owners find it challenging enough to cover the basics—paying the bills and tracking incoming revenue—let alone answer critical questions such as: Are we profitable? Why or why not? Can we make required tax payments? Should we invest in new equipment? Do we need to explore financing? Will we hit our budget numbers? Where can we cut expenses? Can the appropriate team members access all our accounting data online, if they have to work from home?
A good small business accounting website can provide information in seconds that will help you answer these questions, based on the input you supply. Once you populate a site with information about your financial accounts, your customers and vendors, and the products or services you sell, you can use that data to create transactions that the site can, in turn, use to create insights. Instant search tools and customizable reports help you track down the smallest details and see overviews of how your business is performing. Android and iOS apps for the sites give you access to your finances from your mobile devices.
Setting Up Bookkeeping
Depending on how long your business has been operating, getting started with a small business accounting website can take anywhere from five minutes to several hours. after signing up for an account. These sites charge monthly subscription fees and usually offer free trial periods. The more you need it to do, the longer your setup tasks will take (and the higher the monthly payment, generally). Early setup will involve creating an account, of course. You may also be asked ask questions like when your fiscal year starts, for example, and whether you use account numbers.
Do you want access to the transactions you have stored in online financial accounts (checking, credit cards, and so on)? Enter your login credentials for that account and the small business accounting site will import recent transactions (usually 90 days’ worth) and add them to an online register. This process is not as simple as it used to be. Banks have been tightening up their security (which is a good thing), but you may have to jump through a couple more hoops to get connected.
Would you like to let customers pay with credit cards and bank withdrawals? You’ll need to sign up with a payment processor such as PayPal or Stripe (extra charges will apply). It’s also a good idea to browse through the whole Settings menu. The sites I reviewed all come with their own default settings, which you may want to change. For example, do you plan to use specific features such as purchase orders and inventory tracking? You can usually turn some tools on or off, which can help you either simplify the user interface or maximize the functions available to you.
Your People, Your Stuff
After you’ve supplied information about your company structure, one of your next setup tasks should involve supplying information about your customers and vendors. Most websites allow you to include more than basic contact details (customer since, birthday, and other similar fields), which can be helpful as you develop and maintain relationships with them. You’ll do the same thing for the products and services you sell, so you can add them easily to transactions.
One of the great things about using a small business accounting website is that it reduces repetitive data entry. Once you fill in the blanks to create a customer record, for example, you never have to look up that ZIP code again. When you need to reference a customer in a transaction, it will appear in a list. The same goes for vendors, items or services, and employees. No more filling out card files or messy spreadsheets.
Once you complete a customer record and started creating invoices, sending statements, and recording billable expenses, you can usually access those historical activities within the record itself. Some sites, such as Zoho Books, display a map of the individual or company’s location and let you create your own fields so you can track additional information that’s important to you (customer since, birthday, and other similar fields).
It is possible to do minimal setup and then jump into creating invoices, paying bills, and accepting payments. All of the services included here let you add customers, vendors, and products during the process of completing transactions (you need to do so anyway as you grow and add to your contact and inventory databases). You just have to decide whether you want to spend the time upfront building your records or take time out when you’re in the middle of sales or purchase forms.
Most small business accounting sites offer the option to import existing lists in formats such as CSV and XLS. They provide mapping tools to make sure everything comes in correctly. This procedure works better on some sites than others.
Moving Money and Products
Accountants love to use phrases like accounts receivable and accounts payable to describe the primary elements of accounting: recording and tracking income and expenses or tracking sales and purchases. Small business accounting sites are designed to appeal to people who don’t use the same kind of language as accounting professionals and avoid such terminology.
The services let you easily create any transaction that a small business is likely to need. The most common of these are invoices and bills, and most of the services we reviewed support them. Sites such as Xero and Zoho Books go further, allowing you to produce more advanced forms, like purchase orders, sales receipts, credit notes, and statements. They provide templates for these online forms that resemble their paper counterparts. All you have to do is fill in the blanks and select from lists of variables like customers and items.
Once you have completed an invoice, for example, you have several options. You can save it as a draft or a final version and either print it or email it. If you do the latter and have established a relationship with a payment processor, then your invoice can contain a stub explaining how the customer can return payment via credit card or bank withdrawal. You can create a PDF version of the invoice, copy it, record a payment on it, and set it up to recur on a regular schedule. All forms in these sites work similarly.
These services also pay special attention to your company’s expenses—not bills that you enter and pay (though many support this), other purchases you make. This is an area of your finances that can easily get out of control if it’s not monitored. So, small business accounting sites tell you about them, dividing them into expense types and comparing them with your income using totals and colorful charts.
If you’re traveling and have numerous related expenses on the road, for example, then you can take pictures of receipts with your smartphone. Some sites just attach these receipts to a manually entered expense form. Others, such as Intuit QuickBooks Online and Neatbooks, read the receipts and transfer some of their data (such as date, vendor, and amount) to an expense form using OCR technology.
As I mentioned earlier, one of your setup tasks involves creating records that contain information about the products and services you sell so you can use them in transactions. These vary in complexity, so you need to understand the differences before you go with one site or another. Some, such as Kashoo Classic, simply let you maintain descriptive records. Others, such as Intuit QuickBooks Online, go further. They ask how many of each product you have in inventory when you create a record and at what point you should be alerted to re-order. Then they actually track inventory levels, which provides insights on selling patterns and keeps you from running low.
Transactions and Banking
While much of your daily accounting work probably involves paying bills, sending invoices, and recording payments, you also need to keep a close eye on your bank and credit card activity. If you have connected your financial accounts to your accounting site, then this is easy to accomplish. For one thing, their balances often appear on the dashboard (homepage). You can also view each account’s online register, which contains transactions that have cleared your bank and been imported into your accounting solution (along with those you have entered manually).
You can do a lot with these transactions once they appear in a register. For one thing, they should be categorized (office expenses, utilities, travel, and meal costs are some examples) so you know where your money is coming from and where it’s going. Every site guesses at how at least some transactions might be categorized. You can change these if they’re incorrect and add your own. Conscientious categorization will result in more accurate reports and income tax returns.
You can also match related transactions, such as an invoice that was entered into the system and a corresponding payment that came through. Again, some sites make educated guesses here. You can split transactions that should be assigned to multiple categories, make notes, and reconcile your accounts with your bank and credit card statements.
Read It in a Report
Reports are your reward for keeping up with your daily work and completing it correctly. Every small business accounting site comes with templates for numerous types of insightful output. You select one, customize it by using the filter and display options provided, and let the site pour your own company data into it. It only takes a few seconds to generate a report after you have defined it.
There are two kinds of reports. The bulk are the type that any small businessperson could customize, generate, and understand. They tell you who owes you money, which of your products and services are selling well, whether you’re making money, which expenses and services haven’t yet been billed, which customers are buying the most, and how much you owe in sales tax, for example.
There are other reports, though, that aren’t so easy to understand. These are considered standard financial reports and they’re the kind of documents you’ll need if you ever want to get a loan from a bank or attract investors. They have names such as Balance Sheet, Statement of Cash Flows, Trial Balance, and Profit & Loss. Small business accounting sites can generate them, but you may need an accounting professional to analyze them to tell you in concrete terms what they mean for your company.
How Accounting Tools Work
Accounting probably doesn’t make the list of things you like to do as a business owner. It can be complicated, and it needs to be done correctly. So, the makers of small business accounting sites have worked hard to present this discipline as simply and, well, pleasantly as possible. Some—including Intuit QuickBooks Online and Zoho Books—have been more successful at this than others.
If you have ever used a productivity application online, you shouldn’t have any trouble understanding these sites’ structure. They all divide their content into logical modules by providing toolbars and other navigation guides. Sales tasks are grouped together as are purchase, inventory, reporting, and payroll activities. There’s always a Settings link that takes you to screens where you can specify preferences for the entire site. These include your setup chores and settings you may need to modify at times, such as restricting additional users to specific areas.
A site’s dashboard (homepage) usually provides a real-time overview of the financial information you need to see frequently, including charts comparing income and expenses, account balances, and invoices and bills that need immediate attention. There are often links to areas of the site where you can take action.
You use standard web conventions to navigate around each site and enter data. Along the way, you encounter a lot of buttons and arrows, drop-down lists, and menus. Color is sometimes used to signify important information, while graphics and fonts are well chosen to make the tools as aesthetically pleasing as possible.
These services simplify the accounting process, but there will undoubtedly be times when you have questions. Support comes in many forms. Some apps provide context-sensitive help along the way and searchable databases of articles. All offer a combination of chat, email, and phone assistance.
Intuit takes it a step further. Its QuickBooks Live service adds bookkeeping support to QuickBooks Online Plus. You communicate with your dedicated bookkeeper through one-way video chat (they can’t see you) or email. This individual and his or her team work with you on customizing your setup and monitoring your transactions so they’re accurately entered and categorized for tax purposes. They reconcile your accounts and close your books at month’s end to prevent errors, plus they’re available for questions during regular business hours. Finally, they generate the reports you need so you’re ready to prepare your taxes or hand them off to your accountant. Sunrise and Wave offer fee-based bookkeeping services, but they lack QuickBooks Live’s interactive features.
Choose the Right Financial Tools for Your Business
Choosing a small business accounting application is challenging. You want the product to allow room for your business to grow, but you don’t want to spend a lot of extra money on features you may never need. Most of the websites we reviewed are available in multiple versions, so you can start at the low end and upgrade to a more powerful edition that looks and works similarly.
Intuit QuickBooks Online, our current Editors’ Choice, is one of these. Its scalability is one of the reasons it takes top honors. We recommend you look at it first to see if it fits your needs—and your budget. It offers the best combination of flexibility, accounting functionality, and usability of all the services we reviewed.
While you’re thinking about your money, you might also like to consider our reviews of online payroll services and tax software.
what accounting software is best for small business
The Balance Small Business
STARTING A BUSINESS
SMALL BUSINESS MANAGEMENT
Best Accounting Software for Small Business
Easily track your business’s finances
BY ALLISON BETHELL Updated on March 24, 2022
FACT CHECKED BY DALE BRAUNER
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.
Accounting software is used by individuals and business owners to enter income and expenses and track their finances. It’s especially important for small businesses because it is more efficient and makes fewer mistakes than manual processing. It can also save time with features like automation and it gives the owner a place to store important documents and receipts to access at any time.
Accounting software is used by 64.4% of small business owners, which is good because 60% of small business owners admit to not being knowledgeable about finances or accounting.1 If accounting isn’t your strength or even if it is and you want to save time, read on to see which accounting software is right for your small business.
To determine the best accounting software for small businesses, we researched more than 20 programs and applications before deciding on the top eight. We chose these based on the features and functions specifically designed for small business owners, how easy they are to use, cost, and more. Here are our top picks.
The 8 Best Accounting Software for Small Business
Best Overall: FreshBooks
Runner-Up, Best Overall: Intuit QuickBooks
Best for Multiple Users: Sage Business Cloud Accounting
Best for Experienced Accountants: AccountEdge Pro
Best Value: Wave Accounting
Best Extra Features: Xero
Best for E-commerce Businesses: GoDaddy
Best for Automation: Zoho Books
Best Accounting Software for Small Business
Sage Business Cloud Accounting
What Is Accounting Software?
Why Do Small Businesses Need It?
What Does Accounting Software Cost?
What Does The Software Include?
SIGN UP NOW
FreshBooks is a Canadian-based company that was founded in Toronto in 2003 for small business accounting needs. It uses cloud-based accounting and invoice software that can be accessed via iPhone, Android, and iPad apps.
It is our choice for best overall accounting software for small business because it’s easy to use for business owners with little or no accounting experience, offers robust features and helpful functions, is reasonably priced, and can be used on-the-go and at any time.
FreshBooks’ features include:
Recurring invoices with customizable options including due dates and discounts
Online credit card payments
Multi-currency and language billing
Automatic tax calculations for sales tax
Tax-friendly expense categories
Time tracking with a Chrome browser extension
Bank deposits, recurring payments, and auto bills with bank integration
Tax help integrations with tax apps, estimates, deductions, and filing tools
Easily integrates with other products including Goggle Workspace and Gusto
FreshBooks’ pricing is tiered as follows:
Lite: $4.50 per month for the self-employed business owner with five billable clients
Plus: $7.50 per month for small businesses with 50 billable clients
Premium: $15 per month for growing businesses with unlimited billable clients
Select: Custom features and pricing for businesses with unlimited billable clients
FreshBooks may also offer discounts or bundled pricing if you pre-pay, so make sure you check the website for any offers before you sign up.
RUNNER-UP, BEST OVERALL
SIGN UP NOW
QuickBooks is an accounting software developed and marketed by Intuit. Its latest cloud-based release was in 2019, but it also offers separate desktop options you can purchase and download. Its products are typically geared toward small and medium-sized businesses, and over seven million businesses use this software.
We chose it as our runner-up for the best overall accounting software for small businesses because it is easy to use for business owners with no accounting experience. It’s also quick to set up, reasonably priced, and offers tools and features that are helpful for small business accounting. It keeps everything organized in one place and keeps your business tax-ready all year long.
Features of QuickBooks include:
Financial institution integration as well as integration with PayPal, Square, Shopify, and more
Help to file quarterly and annual tax returns with user guides and exporting tax data
Sales tax calculations, returns, and recorded tax payments
Automatically sort transactions and expenses into tax categories
Track expenses in one place
Scan receipts and attach them to invoices
Share with your accountant or export documents
Create customized reports with cashflow tracking visible on your dashboard
Track miles with your smartphone’s GPS
QuickBooks offers tiered pricing so you can pick the best plan for your needs:
Simple Start: $12.50 per month for businesses just getting started
Essentials: $25 per month for managing growing businesses
Plus: $40 per month to help you get better organized and manage projects, inventory, and contractors
Advanced: $90 per month to help your business grow with deeper insights and dedicated support
Contact QuickBooks directly to see which specific features are included in each tier.
BEST FOR MULTIPLE USERS
Sage Business Cloud Accounting
SIGN UP NOW
Sage Business Cloud Accounting, formerly known as Sage One, is a global brand that offers online accounting and business services for small businesses. It was founded in 1981 in Newcastle, England, as a way to develop estimating and accounting software specifically for small businesses. It’s now cloud-based and allows you to choose your industry, company size, and needs. It will match you with specific accounting solutions and is used by over three million businesses.
It’s our choice for best accounting software for small businesses with multiple users because it’s a reputable company, provides software that doesn’t require any accounting knowledge, and is set up for use by multiple users. Your accountant can use the software and access your books for no additional fees.
Sage Business Cloud Accounting’s features include:
Manage business finances and cash flow
Accept and receive payments
Create and send invoices
Available on all devices so you can check your financials on the go
Integrate with your financial institution and other apps including AutoEntry, Zync, and more
Tax compliance tools
Dashboard view with easy-to-read financial reports and analysis
Forecast cash flow
Share access with your accountant in real-time on any device
Add-ons such as human resources management and estimating
Pricing is tiered for Sage Business Cloud Accounting as follows:
Accounting Start: $10 per month for entry-level accounting to help manage cashflow
Accounting: $25 per month for powerful cloud accounting with invoicing, cash flow, management, and actual entries
The company is currently offering a 50% discount for three months and offers free trials. Contact them directly for specific features your business may need.
BEST FOR EXPERIENCED ACCOUNTANTS
SIGN UP NOW
AccountEdge Pro is desktop accounting software for small businesses founded in 1989 and has developed new features and enhancements over the years. If you need to access your finances on the go or from your smartphone, you can use their cloud-based app or their hosting platform. It’s geared toward small to medium-sized businesses, has a basic version and a pro version, and offers comprehensive accounting solutions full of customizations.
We chose AccountEdge Pro as our best accounting software for experienced accountants because of its robust features and reporting capability. It’s a bit more complex than some of the other software, so this software works best if you’re already familiar with accounting terminology.
AccountEdge Pro’s features include:
Bank feeds with integration
Turn quotes into invoices
Customer and vendor management
Free accountant copy
Data sync with company files
Pricing for AccountEdge Pro is as follows:
AccountEdge Basic: $149 one-time fee, $199 per year for one user
AccountEdge Pro: $499 one-time fee, $199 per year, and additional fees for licenses and add-ons such as payroll services, checks, and credit card processing
To find out more about what features are included and how much add-ons cost and to add custom features, it’s best to contact the company directly.
SIGN UP NOW
Wave Accounting was founded in Toronto in 2010 and provides software and financial services for small businesses. It’s an invoicing and accounting software that also has credit card processing and payroll services. It’s cloud-based, easy to use, and can be used by business owners with no accounting or bookkeeping experience. All of your data is backed up for extra security, and you can connect your bank accounts to sync your expenses at any time from anywhere.
We chose Wave Accounting as our best value accounting software for small business because its accounting and invoicing services are free. Keep in mind that payroll services and credit card processing have charges associated with them, so not all of the features are free, and the free features aren’t as robust as some of the other software options. However, it’s great for new businesses, especially those working with an accountant or another software.
Wave Accounting’s features include:
Unlimited income and expense tracking
Track sales tax on income and expenses
Dashboard with easy-to-read financials
Organize income and expenses into tax categories
Reports including profit and loss statements and cashflow
Pricing for Wave Accounting is as follows:
The accounting, receipt scanning, and invoicing software is free with no hidden charges
Credit card processing is 2.9% plus $0.30 for Visa, Mastercard, and Discover and 3.4% plus $0.30 for American Express
Bank Payments (ACH): 1% per transaction with a $1 minimum fee
Payroll: $35 monthly base fee plus $6 per active employee and $6 per independent contractor, and payroll taxes are handled by the company (only available in certain states)
BEST EXTRA FEATURES
SIGN UP NOW
Xero is a web-based accounting system designed for small and growing businesses. It was founded in New Zealand in 2006 and is used by small business owners, accountants, and bookkeepers. No accounting knowledge is necessary, and it’s generally considered easy to set up and use. It’s cloud-based and also has Android and iPhone apps. It’s known for its intuitive, easy-to-read dashboard and can be used to collaborate with multiple users including team members, employees, and your accountant.
We chose Xero as our accounting software for small business with the best extra features because it offers several useful features, including a Hubdoc where you can capture bills and receipts and project tracking and costs. It’s great for small business accounting because of its two-step authentication to keep your data secure, as well as its different plans for different business needs.
Xero’s features include:
Create expense claims
Fast bank reconciliation and integration with your financial institution and other apps including HubSpot, Square, and over 450 different programs
Up-to-date financial reports
Business data protected
Real-time cash position
Collaborate with staff or your accountant
Pricing for Xero is as follows:
Early: $12 per month, send 20 invoices, enter five bills, reconcile bank statements, and capture bills and receipts
Growing: $34 per month, send invoices and quotes, enter bills, reconcile bank statements, and capture bills and receipts
Established: $65 per month, includes all Growing tier features plus multi-currencies, expenses, and projects
Each plan comes with a free 30-day trial for unlimited users.
BEST FOR E-COMMERCE BUSINESSES
SIGN UP NOW
Established in Baltimore, Maryland, in 1997, GoDaddy is a big name in the web hosting and website creation space, but it also offers accounting software for small businesses. It has tools to automate and organize your bookkeeping and accounting solutions and requires no prior accounting knowledge. You can automatically create and send invoices, accept online payments, and view business reports.
We chose GoDaddy as our best accounting software for an e-commerce business because this is exactly what the software is designed for. It’s made for e-commerce sellers, so you can get started in a few minutes, and it syncs to Amazon, Etsy, eBay, PayPal, and more. Keep in mind that GoDaddy is great for online sellers, but may fall short if you’re a small business looking for comprehensive accounting solutions including automation, tax forms, and payroll.
GoDaddy’s features include:
Syncing with online retailers
Online payment processing
Track sales and expenses
Create and send invoices
View business reports including profit and loss
GoDaddy’s pricing is tiered as follows:
Get Paid: Starts at $4.99 per month and includes invoices and estimates, accepts payment from your smartphone, tracks mileage and time, and current-year business reports
Essentials: Starts at $9.99 per month and includes everything from the Get Paid tier plus unlimited business reports, automatic credit card imports, and sales data imports
Premium: Starts at $14.99 per month and includes everything from the Essentials tier plus recurring invoices
BEST FOR AUTOMATION
SIGN UP NOW
Zoho Corporation was founded in 1996 in India and now also has a corporate office in California. It’s online accounting software for small businesses that lets you track your finances, create invoices, collaborate with your accountant in real-time, and more. It includes multiple products including accounting software, customer relationship management (CRM), inventory control, and human resource management software.
We chose Zoho Books as our best small business accounting software for automation because it offers robust accounting features and automation for bank feeds, categorizing, invoices, and more. It also has more than 40 app integrations so it can be used with the software you’re already using. Zoho Books requires no accounting knowledge and can be easily set up. However, it only offers payroll features to companies in India, so if you need payroll solutions, you will have to choose another accounting software.
Zoho Books’ features include:
Tax compliance and audit reports
Reconcile bank transactions
Reports and schedules
Automatic tax calculations
1099 forms and sales tax reports that can be exported
Pricing for Zoho Books is tiered as follows:
Free: $0 per month per organization. One user, manages up to 1,000 invoices.
Basic: $15 per month per organization and includes up to three users, five automated workflows, and 50 contacts
Standard: $40 per month per organization and includes up to five users, 500 contacts, and 10 automated workflows/module
Professional: $60 per month per organization and includes up to 10 users, more than 500 contacts, and 10 automated workflows/module
What Is Accounting Software for Small Business?
Accounting software for small business is a type of accounting software program specifically tailored to small businesses. It can be used instead of or alongside an accountant and it assists in recording and reporting your small business financial transactions. It helps you manage your accounts, track your revenue and expenses, and store your receipts and important financial documents.
It also helps keep you in compliance with tax law and prepares filings at tax time.
Why Do Small Businesses Need Accounting Software?
In our increasingly mobile world, all small businesses should be using accounting software instead of keeping track of finances on paper or a spreadsheet. Not only is accounting software more accurate, but it also helps ensure double entries are set up correctly.
Small business accounting software helps businesses better manage and track their finances. It also includes automated features that organize receipts, reconcile data, and integrate with your financial institution so you don’t have to balance your business account or worry about adding the numbers correctly.
It also saves time, increases productivity, improves efficiency, promotes organization of documents, and can be used by multiple users including a bookkeeper or accountant. Additionally, “Accounting software for small businesses facilitates the transparency and visibility of financial data. If you want to find out how your company is doing financially, all you need to do is generate a report,” according to Reuben Yonatan, Founder & CEO, GetVoIP.
How Much Does Accounting Software for Small Business Cost?
Accounting software for small businesses varies in features and functions, so it also varies in price. Most software is offered as a subscription-based model where you choose your tier and pay monthly. Typically, you can expect to pay anywhere from about $5 to $75 per month, depending on the number of users and functions that you need the accounting software to handle. Other software offers a one-time fee and monthly fees. The one-time fee usually starts at $149, and annual fees start at $199.
Custom options are available, and custom pricing coincides with the features that you choose. Most software also offers add-on features such as payroll services, state tax compliance, CRM, human resources, and inventory control. These prices vary based on features, the state you’re based in, and the number of users.
What Does Accounting Software for Small Business Include?
“Accounting software for small businesses should include features that manage your income and expenses automatically so you can focus on making powerful decisions for the planned growth of your company,” says Mark Condon, CEO/Founder, Shotkit.
For example, it can include features that handle accounts payable and receivable, track transactions including bank transactions, generate quarterly reports, and reconcile data so you don’t have to spend time doing it. It can also store documents securely, and some of the more expensive options offer features like payroll or integration with a payroll company, multi-user access, inventory management, and financial forecasting.
However, small business accounting software usually doesn’t include accounting or financial advice and can’t answer specific questions that may pop up. It usually doesn’t offer tax-saving tips or recommendations, either.
How We Chose the Best Accounting Software for Small Business
We chose the best accounting software for small business by thoroughly researching and reviewing 20 different options. We then chose the top eight based on factors including their accounting features, functions, how easy they are to use for a non-accountant, and price.
All of our top picks require minimal accounting experience, provide affordable, customizable accounting features that integrate with other software and apps, and offer cloud-based backup options.
Let us know your thoughts in the comment section below.