5 Best Bookkeeping Software Solutions for Small Businesses

For these reasons, it’s an Editors’ Choice winner and is one of the first accounting options a small business should consider. It’s intuitive enough for novice bookkeepers to learn but supports all the elements that a larger business would need, including payroll. For additional features, these were elements that fell into the “nice-to-have” category that not all software providers offered, either as part of their regular plan or as a paid add-on. Both kinds of features combined to account for 60% of our total score. When you have a Small Business Plus plan or higher, you get unlimited online support. All plans come with onboarding, a dedicated bookkeeper and account manager, reconciliation at month-end, balance sheet, P&L, statement of cash flows and a portal with document storage.

You can usually turn tools on or off, which can help you either simplify the user interface or maximize the functions. Sage 50 Accounting—also sometimes known as Sage accounting or Sage business cloud accounting—is a massive small business accounting application that’s designed for desktop use. It’s the most comprehensive accounting program we review, and it does more than what many small businesses need.

Related Accounting Software

We don’t recommend Xero for sole proprietors or freelancers, even though it has a starter pricing level that would suit those budgets. It advertises a start-from price of $200 but the fine print indicates that the first month of full-service bookkeeping is $500. The ongoing monthly fee will be based on average monthly business expenses and is $200 for monthly average $0 – $10,000 per month, $300 for $10,001 – $50,000 per month, $400 for $50,001 or more. You’ll also have to pay for a QuickBooks Online subscription on top of that. Simply put, the best accounting software is one that suits your unique needs.

Accounting software reduces the amount of time spent on manual 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, which 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.

Compare SpecsThe Best Accounting Software for Small Businesses in 2024

Our restaurant tax accounting expertise revamps the way that businesses maintain their financial records and daily accounting ledgers. We consult and coach our clients on the benefits of using technology to save time, money and focus on growing their businesses. Service-based e-commerce businesses that send frequent invoices may find that not all customers pay on time.

• ZipBooks’ iOS app has disappeared from the App Store, and it’s never had a Google Play app worth mentioning.
• While some may include a longer list of features, they can all help you manage your business finances the right way.
• The Essential Plan offers cash-basis accounting and starts at $300 a month.
• Even though it’s free, it doesn’t limit the number of invoices you can send (like Xero) or clients you can bill (like FreshBooks) per month—you can access unlimited customizable invoices and accept payments too.
• If you are a small business owner, you know the last three years have been brutal.

Intuit’s QuickBooks Online has been one of the most common accounting software programs used by small businesses and their bookkeeping and tax professionals. The cloud-based software can be accessed through a web browser or a mobile app. Businesses that fall on the larger end of the spectrum of small- to medium-size businesses may find they quickly outgrow some of the free and low-cost accounting software options on the market. They may find a worthy solution in QuickBooks Enterprise, desktop enterprise accounting software with cloud-access add-on options. It’s costlier than any of the other options on this list, but it’s built to fulfill the more sophisticated accounting needs of larger businesses. 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.

Why QuickBooks

The best online bookkeeping services will provide you with as many services as you need — and none that you don’t need. All the applications on this list bookkeeping solutions offer good bookkeeping capability. While some may include a longer list of features, they can all help you manage your business finances the right way.

While you’re thinking about your money, you might also like to consider our reviews of online payroll services and personal finance apps. Keeping a tight grip on finances is critical for the success of small businesses and freelancers. We test the best small business accounting tools to help keep your company in the black.