We tested multiple accounting software for small businesses and found Intuit QuickBooks to be the best among them. This is because they continue to provide one of the best accounting services available in the market.
Business accounting software lets you tackle every aspect of keeping financial records. You can quickly keep track of all costs and monitor profit & loss. Having the right package is essential, especially if you’re running your own small business and taking control of your finances. The best accounting software for small businesses helps you keep detailed and accurate books. They generate useful reports, provide live support, integrate with your business apps, and accommodate growth.
Many different accounting software types are available for small businesses, with varying capabilities and price tags. Generally, the type of industry and number of employees are two factors that help small businesses choose accounting software. When evaluating different accounting software, we considered price, ease of use, features, integrations, and scalability.
What to look for when buying the best accounting software for small businesses in 2023?
Adaptability
You have to check if your chosen small business accounting software can be adapted to your needs. Everyone has different requirements and tailoring your software to suit your needs can be invaluable.
Pricing
Small business accounting software plans vary in price depending upon your requirements. You don’t have to sign up for any plan which offers you way more functionality than you’ll ever need. Therefore, you can pick an accounts package that can be expanded if the business grows.
Integration
Having an accounts package as a small business will also require other systems to streamline your workflow. Look for quick and easy reporting capabilities that integrate with your existing software and allow you to share data with your accounts whenever needed.
Reporting
Keeping track of the accounting figures is crucial; therefore, having the tried and tested accounting software brand is the best way to go about it. This route will also ensure that your software is future-proof and can be adapted easily.
Technical Support
Before choosing any accounting software, you need to ensure that your package gives you access to quality technical support. Having an expert either by phone, email or chat can be of great help if you run into some problems. There are software products that offer some free and paid support, so make sure to check for them.
The 5 Best Account Software For Small Businesses in 2023
- Intuit QuickBooks – Best Overall
- FreshBooks – Best for ease of use
- Zoho Books – Best for Automation
- Xero – Best for advanced features
- Sage – Best for multiple users
Intuit QuickBooks
QuickBooks is one of the world’s most popular financial, tax and accounting software. It puts highly effective accounting functionality into an exceptional user experience. It stands out as it is easily customizable, comes in multiple versions with hundreds of add-on apps, and offers better mobile access than others. It is not only used by the majority of small business accounting professionals but there are also endless online training resources and forums to get support.
Price
- Simple Start
- $25 per month
- Best for businesses who are just getting started
- Essentials
- $50 per month
- Best for growing businesses with up to 3 users
- Plus
- $80 per month
- Best for businesses that need help with organization, project management, inventory, and contractors with up to 5 users.
- Advanced
- $180 per month
- Best for businesses that need help with analytics, deeper insights, exclusive apps, automated workflows, and dedicated support with up to 25 users.
Features include:
- Track expenses in one place
- Financial institution integration
- User guides and tax data export that will help you to file quarterly and annual tax returns
- Sales tax calculations, returns, and recorded tax payments
- Scan receipts and attach them to invoices
- Export documents or share them with your accountant
- Cashflow tracking is visible on your dashboard
- Track miles with your smartphone GPS
Integrations
Integrates with PayPal, Shopify, Square, and 450+ apps.
Pros
- Scalable
- Ease of use, even for business owners who have no accounting experience.
- Extremely comprehensive accounting features
- Excellent tax categorization
- Cloud-based
- Mobile app
Cons
- Users limited by plan
- Customer support could be better
- Occasional syncing problems with banks and credit cards
Who is it beneficial for?
Intuit QuickBooks is beneficial for small businesses with a technology budget. It is easy for an inexperienced bookkeeper to learn and, at the same time, comes with advanced features that a more demanding user can make use of.
Reviews – 4/5 based on 2,927 reviews
FreshBooks
FreshBooks has excellent features that allow you to get on top of all your cloud-based accounting and invoicing needs. The site is a full-featured, double-entry accounting website that offers an exceptional user experience. Its primary function is sending, receiving, printing, and paying invoices, but it can also take care of your business bookkeeping needs.
Aside from general accounting functions, FreshBooks mobile app allows you to respond to clients’ questions and get notified when they view or pay invoices and when invoices are overdue.
Price
- Lite
- $15 per month
- Best for self-employed business owners with five billable clients
- Plus
- $25 per month
- Best for businesses with 50 billable clients
- Premium
- $50 per month
- Best for growing businesses supporting unlimited billable clients
- Select
- Custom pricing
- Best for unlimited billable clients
Features include:
- Online credit card payments
- Recurring invoices with customizable options, including due dates and discounts
- Payment reminders
- 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 integrations
Integration
Integrates with G Suite, Gusto, Etsy, and 750+ apps.
Pros
- Team collaboration and time tracking tools
- Supports projects, proposals, and retainers
- Automatic mileage tracking on mobile apps
Cons
- Limited invoice customization
- Establishing bank connections can take time
- Mobile app has limitations
Who is it beneficial for?
FreshBooks is beneficial for sole proprietors and companies with few employees. Very small businesses can use it for basic money management, like sending invoices, accepting payments, and tracking income and expenses. More complex companies can benefit from advanced tools, including projects and proposals, mileage & time tracking, and reports.
Reviews – 4.5/5 based on 653 reviews
Zoho Books
Zoho Books automates the most common bookkeeping tasks, which means you can dedicate more time to your business & customers. It also lets you set automatic customer payment reminders, create recurring expense profiles, and manage 1099 contractors.
Recurring transactions like invoices, expenses, or bills can be set on autopilot. It includes multiple products, including accounting software, Customer Relationship Management (CRM), inventory control, and human resource management software. If you make under $50k a year, you can take advantage of Zoho book’s free plan.
Pricing
- Free
- $0 per month
- Best for businesses with annual revenue up to $50,000, including up to two users, up to 1,000 invoices per year, payment gateways, and expense mileage tracking with email support only.
- Standard
- $10 per month
- Best for businesses who can manage with up to three users, up to 5,000 invoices per year, and recurring expenses with email, voice, and chat support.
- Professional
- $20 per month
- Best for businesses who can manage with up to 5 users, up to 10 automated workflows, timesheet tools, retainer invoices with email, project profitability, and chat support.
- Premium
- $30 per month
- Best for businesses who need up to 10 users, up to 200 automated workflows, a vendor portal, budgeting tools, and premium integrations with email, chat, and voice support.
- Elite
- $100 per month
- Best for businesses needing up to 10 users, integrate 2 Shopify stores, up to 5 warehouse management, and email, voice, and chat support.
- Ultimate
- $200 per month
- Best for businesses who need up to 15 users and provides 25 custom modules along with email, voice, and chat support.
Features include:
- Sales orders
- Invoicing
- Tax compliance and audit reports
- End-to-end accounting
- Reconcile bank transactions
- Client Portal
- Reports and schedules
- Automatic tax calculations
- 1099 forms and sales tax reports can be exported
Integrations
Zoho Books integrates with online payment gateways, G Suite, CRM, forms, landing pages, Zoho apps, and much more.
Pros
- Low cost
- Multiple payment gateways
- Document management
Cons
- It can be complex for some small businesses
- Limited pool of account partners
- Live chat support is not available
Who is it beneficial for?
Zoho Books benefits small businesses, growing businesses, and established businesses that want its customizability, depth, and usability. It is best for companies that use some of Zoho’s other applications.
Reviews – 4.5/5 based on 117 reviews
Xero
Xero is a web-based accounting system designed for small and growing businesses. It has a two-step authentication to keep your data secure and different subscription plans for different user needs. The software is considered easy to set up and use. Not to mention that its dashboard is intuitive and easy to read, and it can be used to collaborate with multiple users, including team members, employees, and your accountant.
Pricing
- Early
- $12 per month
- Best if you want to send up to 20 invoices, enter five bills, reconcile bank statements, capture bills and receipts
- Growing
- $34 per month
- You can send invoices and quotes, enter bills, reconcile bank statements, capture bills and receipts
- Established
- $65 per month
- Includes all growing tier features plus multiple currencies, expenses, and projects
Features include:
- Send invoices
- Fast bank reconciliation
- Create expense claims
- Up-to-date financial reports
- Real-time cash position
- Collaborate with team members
Integrations
Xero can integrate with Xero expenses, Shopify, Stripe, Pipedrive, Slack, Gmail, Mailchimp, Salesforce, and 200+ apps.
Pros
- Cloud-based
- Mobile app
- Excellent Online Support
- Great project tracking
- Simple inventory management
Cons
- Limited reporting
- Limited customer service as they don’t have a phone and chat support
- User interface could be better
Who is it beneficial for?
Xero benefits small businesses with more integrated features and more robust reporting options. It allows you to track fixed assets which is a unique tool in the category of small business accounting software.
Reviews – 4.4/5 based on 497 reviews
Sage
Sage is cloud-based accounting software that lets you choose the industry, company size, and needs. It is the best accounting software for multiple users as it is designed for the same reason. They provide a 30-day free trial with access to manage quotes, invoices and submit VAT online. Smart bank feeds and reconciliation is also part of the package.
Pricing
- Sage Accounting Start
- $10 per month
- Best for entry-level accounting help to manage cash flow
- Sage Accounting
- $25 per month
- Best for invoice management and quote/estimate capabilities for unlimited users
Features include:
- Accept and receive payments
- Create and send invoices
- Manage Payroll
- Manage business finances and cash flow
- Tax compliance tools
- Easy to read financial reports and analysis
- Inventory control
- Forecast cash flow
- Shares access with your accountant in real-time on any device
- Add-ons such as human resources management and estimating
Integrations
Sage integrates with Salesforce, Shopify, PayPal, WooCommerce, and many more apps.
Pros
- Great customizability
- Double entry accounting
- Affordable monthly costs
- Free trial
- Comprehensive reporting and inventory tracking
Cons
- Windows only and resource-heavy
- Outdated user interface
- Lack of clarity with product details on the website
- No time tracking
Who is it beneficial for?
Sage is beneficial for companies that need robust inventory tracking capabilities. It is also suited for companies that need more advanced accounting capabilities, customizability, and data capacity but isn’t averse to desktop software. Their remote employees can own software installations to share company data through Sage’s remote access.
Reviews – 4.2/5 based on 55 reviews
Conclusion
Intuit Quick Books is on the top list for the best accounting software in 2023. It is quick to set up and easy for business owners without accounting experience to use. It has a reasonable price, offers lots of tools and features that are helpful for small business accounting. It keeps everything organized in one place and keeps your business tax ready throughout the year.