It is a complete accounting and invoicing platform that automates your time tracking, expense management, and invoicing workflows. It even supports payment processing and project collaboration. Accounting is an ever-evolving field. New types of accounting techniques and focus areas arise.
These include forensic accounting and green accounting. To keep up with these, together with the garden-variety financial kind, one needs to find flexible accounting software to handle all the intricacies accurately and in real-time.
There are numerous accounting products available to cater to different business sizes, types, and niches. To jumpstart your search, we compiled the top products in the category.
You can explore each product, determine if it matches your requirements, and narrow down your choices. The pandemic fueled a higher rate of cloud-based software adoption in many fields including accounting. Hence, by using cloud-based tools firsthand, more businesses and professionals got to know the benefits of using them better. With the way industries are shaping up, remote work is here to stay.
So expect cloud-based accounting software adoption rates to shoot up in the next five years. However, even before the outbreak, accounting professionals have a positive stance towards the use of accounting software tools. In particular, they are investing in the following emerging technologies:. They believe that these can further empower their accounting processes by making data much easier and faster to gather, manipulate, and analyze.
We also expect these technologies to be widely available and deployed in the future and be well-integrated with the top 15 tools in this list. FreshBooks is one of the leaders in our accounting software category. Our team found FreshBooks to be the most easy-to-use accounting solution for freelance accountants and small businesses currently offered in the market. The software is being used by more than five million users around the world to streamline time tracking and invoicing.
The vendor has recently updated the product to allow easy collaboration between team members and has added a redesigned dashboard where you can prioritize tasks and manage payments. The classic features have not changed, and FreshBooks continues to offer top-rate invoice-to-payment functionalities, including direct payment gateways , overdue payment reminders, delay fees, and payment claims.
You can use the system to collect payments easily and automate the recurring billing process to accept Google Checkouts, Amex, PayPal, and credit card payments. FreshBooks also recently added features such as bank reconciliations, invitations for up to 10 accountants, new balance sheet reports, directly adding the credit card to the client profile, and adding payments in bulk.
It also improved the navigation experience by adding sections for Invoices, Reports, and Accounting. FreshBooks has not neglected any utility, and companies can use it to manage invoices as well as expenses. You can easily generate insightful tax summaries and reports after the data is processed. The vendor also offers a handy mobile app. The system seamlessly integrates with other business apps, such as billing and invoicing software.
You can rely on the support of knowledgeable and experienced agents if you have any issues. NetSuite ERP is essentially a customer relationship management CRM solution, but the platform can be used for sales and marketing automation, as well as order management and customer support. It offers a myriad of tools and features to make financial management simple. Standard features include pre-configured dashboards that can be customized by users for their specific needs.
NetSuite ERP also offers robust automation and scalability features. It can grow with your company and automate processes such as financial management, order management, revenue management, fixed assets, inventory management, and billing. For starters, users can easily customize their view of key performance indicators and generate reports that are specific to their role in the company.
They can also track vendor performance and monitor inventory levels, allowing them to further improve the customer experience. QuickBooks Online is an accounting solution for small businesses, freelancers, and independent accounting firms. This cloud-based application combines all essential accounting tools in a single platform to help small businesses streamline accounting and financial management tasks. Among its features are automated tax calculations, expense tracking, invoice management, balance sheet reporting, bill management, sales monitoring, and more.
QuickBooks Online supports multiple devices and is equipped with auto-syncing options so your data will be up to date no matter what device you are using. As for third-party applications, QuickBooks integrate seamlessly with Bill. Tipalti is a cloud payment automation and management software that helps simplify global mass payments. This makes the software suitable for companies with offices worldwide. Notably, you can accept payment in more than countries, use currency options, and rely on 6 payment methods, including PayPal, wire, local bank transfer, and debit card.
T he software helps businesses avoid late payments, noncompliance, and over-tasking the accounting team. It also has flexible payment reconciliation, AP, and financial reporting features that work with a myriad of payment gateways and ERP systems. With it, you can minimize, if not eliminate, downstream issues and human error, by letting suppliers input tax data directly in the Supplier Management portal.
A Remittance Validation Engine, which monitors over 26, national and international standards, guarantees the integrity of supplier data. Sage Business Cloud Accounting is ideal for small businesses. With that, it offers two affordable plans designed to fit the budget and needs of small businesses.
The product focuses on streamlining paperwork, minimizing spreadsheets, and staying on top of your finances. It simplifies business payroll and ensures compliance with the Affordable Care Act.
It is loaded with premium accounting functions with an easy to use interface, encouraging you to take the reigns in your hands. And if you hire a seasoned accountant, QuickBooks Online makes the process all the more simpler. Wondering what if you get stuck in the middle? There is a proactive team of experts to resolve your doubts and problems. In fact, you can also watch from its plenty of demo videos on YouTube to navigate smoothly.
QuickBooks Online is an ideal choice for new businesses, nonprofits and small businesses that require a premium business accounting system. It also works well for online sellers, in-store sellers, wholesalers and independent professionals, such as architects and wedding planners. Besides, this accounting software is a boon for businesses requiring anytime, anywhere access with multi-device compatibility. If you want an effective on-the-go version, it is available as an app on both the Play Store and App Store.
The features this solution packs in, right from income and expense tracking to tax deductions to cash flow management to report generation, takes the hassles out of the otherwise complex accounting process. Also, QuickBooks Online offers uncomplicated integrations with many renowned business software and apps that you may be using already.
Thus, in a way, the system only streamlines operations for you, empowering you to run your business more competently. If you are unsure of making an instant investment, you can try the software for free for 30 days and then decide to upgrade to a premium plan. Reading a few reviews about QuickBooks Online would give you an idea of its popularity and efficiency. It scores praises for its ease of use, flexibility, accessibility, and accountant-friendly functions the most.
QuickBooks Online has enhanced its accounting platform over the years as per the changing market dynamics and user demands. It serves a variety of user brackets with its precise accounting capabilities in the most hassle-free way possible. The best part is, the improvement efforts never stop to surpass user expectations to live up to its full-service bookkeeping solution reputation. The automation of all the accounting operations makes this product unique and the best. It is not a complicated item to use.
I see it as the best accounting tool. Xero is all-inclusive online accounting software with an uncomplicated and robust set of features. The software brings together every critical aspect of your business in one place, be it accounts, contacts or invoices, letting you be in control all the time. That way, it becomes an ideal option to go with when it comes to handling your books of accounts in the most effortless yet accurate manner.
Xero easily syncs with your bank accounts and provides a clear picture of your financial standings whenever you need it. It also automates repetitive tasks, such as reporting and invoicing, to accelerate things further.
As a cloud accounting software solution, Xero fits perfectly well with the accounting needs of small businesses, bookkeepers and accountants. It also streamlines operations for self-employed individuals and start-ups that have less complex accounting requirements. If you are someone who is just starting out to take hold of your books, this can be your go-to system. Xero grabs the second spot on our list of the best accounting software for small businesses due to its all-in-one features packed into a simple-to-navigate interface.
It enables you to do every vital task you would expect out of it - from tracking and paying bills to claiming expenses to monitoring projects to bank reconciliations. Moreover, the solution includes built-in, easy pay runs for employees, along with the functionality to integrate with a third-party payroll app. Its real-time collaborations are smooth, and so are its reporting functions. We particularly liked the seamless way in which it offers anytime, anywhere access across devices.
Xero greatly impresses users with its easy to use functionality, precision and customer service. Xero packs in everything to handle the basic accounting needs of a start-up, accountants, small businesses and self-employed professionals.
I finally have the tools from Xero to drive my company to its greatest potential. It's so easy to share the reports with people at all levels in the company, and I feel a fantastic sense of control with the numbers because of Xero.
With Sage Online Accounting Software, you can automate your invoicing and billing without any fuss. The software is designed to seamlessly sync with your bank accounts, streamlining all your financial operations. That empowers you to always be on top of each transaction, enhancing the decisions you make as a business owner. The solution is simple enough to use by a newcomer and a pro accountant. You should go for it if tax and compliance is something that bothers you a lot since this software handles it both for you.
Sage Accounting system is ideal for small businesses as well as sole traders, irrespective of whether they have a workforce. You can belong to any industry - from retail to professional services - and still make the most out of this cloud-based accounting system. The software also fits well with the needs of individuals who need to collaborate with others, accountants or teammates, for example.
You can grant access to them multiple users at a time without breaking the system. And the best part? Accounting software by Sage provides an easy to use, all-in-one system that can organize your business accounts while centralizing your operations. From creating and tracking invoices to monitoring cash flow to recording transactions, it offers impeccable features and accuracy. Another reason why we chose Sage is because of its interesting forecasting feature that helps project business cash flow.
Moreover, there is an insightful dashboard that fills you in with a real-time view of your financial state. Sage Accounting registers significant positive reviews from its users for its automated bookkeeping, uninterrupted remote access, and invoicing functions. The one-on-one sessions with its expert team seem to be a hit for problem-solving by both existing and potential customers. Before you make an opinion, here is the compiled list of the ratings:.
Sage Accounting turns out to be a great choice for its simple to use design, workflow automation, quick implementation and regular maintenance.
It provides a low-cost way to manage invoices and expenses, and it helps you keep track of clients efficiently and neatly. The software allows uncomplicated imports of your trial balance, customer and vendor data while making it super easy for you to generate invoices and pay bills. The system is easy enough to comprehend and use by individuals who are not tech-savvy.
However, it is also competent to handle the complex accounting needs of businesses. With Patriot Accounting, you can accept payments via credit cards and set rules for transactions. To give you a precise stature of your financial standings, the system offers reports that are simple to understand. Patriot Accounting Software is perfect to use by both startups and established entities.
Whether it is monthly accounts processing or invoice tracking, the software caters to even the smallest of accounting requirements of small business owners tactfully. It also suits well for those who are keen to take their accounts into their own hands. Since it is easy to use, there is no extensive training needed to get up and running.
The solution turns out to be a breather for every business owner who is worked up about tracking their finances, tax and compliance. Since it smoothly imports bank transactions, automatically, and creates smart reports, you always know where your business stands in terms of finances. It never lets you miss a payment and organizes everything in one place.
Plus, there are no restrictions on the number of users or invoicing - something which is great for small businesses looking for value at lesser costs. You can try its fully-featured free trial for 30 days before making an actual purchase. Patriot Accounting is becoming a favorite among businesses worldwide for its effortless functionality and ease of use.
Read the thousands of reviews to get to know what its users are saying about the system:. It is a good software that is continuously improving on the basis of the inputs provided by its users - accountants and business owners - alike. The reports are sufficient and easily exported.
For a staff of or so, you cannot beat the value. I had great experience with their service team. Patriot took us from our first employee up until we had a major expansion and went to 40 employees. Wave Accounting provides you with complete control of your finances, leaving no gaps for powerful business decisions.
The system is designed in such a way that it easily connects with your bank accounts, brings a balance to your books, syncs all your expenses, and much more. It is also compatible with tax and compliance laws, saving you the usual hustles of the tax season.
Getting started with Wave Accounting is utterly simple and secure. You get instant updates on your payments, invoices and payroll data, along with invoicing reminders. Things get even smoother as you can manage all your books belonging to multiple businesses through its single account.
Wave Accounting ideally falls into the bracket of free accounting software for small businesses, regardless of the industry. In other words, you can be a retailer with a store-front or a self-employed individual offering professional services, and still rely on this solution as your go-to accounting tool. If you are looking for a bookkeeping system that also makes you tax-ready, this one fits the bill perfectly.
It also works well with the complex needs of professional accountants keen to manage cash flow and balance the books for their clients. We selected Wave into our top small business accounting software list because of its reliability, all-inclusive features and ease of operation.
Since it uses a double-entry accounting system, it becomes a boon for your accounts team. We particularly like the smart dashboard Wave offers. It not only organizes your payments, expenses, incomes and invoices but also provides a quick overview of where your business stands financially at a click of a button.
Furthermore, the software possesses PCI Level-1 certification, ensuring the thorough security of your sensitive bank and credit card details. That is an incredible feature to have when the product is free for use by everyone. All you got to do is create an account, follow the instructions and get started. There are no fees for setting up the system nor any hidden charges once you start using it.
As a free accounting system for small businesses, Wave is garnering accolades from its users. The primary reason is its simple UI, efficient functions and security. If you are only starting out or an established small business, Wave is a great choice to go with. The software is free, have adequate features for your accounting needs, is reliable and offers robust performance at the same time. It is hard to find such a good combination in a competitive market.
Simplicity of use meets perfect design - kudos to your UX team! Saving me from Quickbooks and Xero. FreeAgent, the online accounting software, can centralize your entire accounting process. From expense management to invoices to sales tax to project management, everything gets streamlined, enabling your business to reach greater heights.
With a user base of over , customers, FreeAgent makes for a reliable system that is simple to operate by even a first-time accounting software user. The software is meant to easily connect to your bank accounts so that you can get automatic imports of all your transactions every single day.
It also consists of a real-time view of your cash flow, taking the haste out of your money management and decisions. Apart from that, the software also helps freelancers and self-employed professionals to align their books without running from pillar to post. If you have hired professional accountants to do the job for you, this software helps them glide through every process without the worries of accuracy.
We provided a spot to FreeAgent in our list after carefully going through its exhaustive yet user-friendly features. With this software, you will receive automatic updates from your bank accounts, letting you stay on top of every transaction at any given time. It also offers account status in real-time, along with live insights on cash flow.
One of the most striking features of this system is the ease with which you can handle invoices. It offers the set up of recurring invoices in addition to sending them automatically.
There are automated reminders too, saving a lot of your energy. Its expense tracking can be customized as per your needs. Besides, you can have a quick overview of your project activities - from estimates and expenses to invoices and tasks - in a single place. The plan offers support assistance and access to all the features with zero set-up fees.
You can also choose to try the software for free for 30 days and upgrade later. The users of FreeAgent has a lot of good things to say about the solution. Whether it is simplified invoicing or tax compliance, it tends to relieve the stress that accompanies accounting operations.
Check out the ratings this system has garnered on trusted platforms for software reviews:. FreeAgent is loved by freelancers and small businesses alike for its ease of use and thoughtful functions.
Moreover, the solution is cloud-based, allowing remote access from wherever you are. That helps stay on the top of your accounting process, opening up opportunities for business growth. My use of the system isn't huge but it has made my life so much easier. Finance is my background and so I understand numbers however, even if that wasn't the case I know this system would make it easy to understand.
What I also love is the great customer service. Always get a quick response to my query and always resolved. Deskera Books is an all-in-one solution that can change the way you operate your business, making it more organized. It is not only an online accounting system but also doubles up as your go-to invoicing and inventory software. It includes every possible feature that you may need to streamline your accounts as a business owner.
With Deskera Books, you can manage your orders and sales, as well as monitor the inventory levels in real-time. Their integration capabilities allow you to sync payment data with your accounting system, which will remain the record of truth. Microsoft Dynamics GP gives small and midsize businesses complete control over their finances, inventory, and business intelligence BI information within an easy-to-use and easy-to-deploy enterprise resource planning ERP software solution.
Start with what you need now, and easily adapt as your business needs change. In the Microsoft cloud or on your servers—the choice is yours. For more info visit microsoft. Xero is designed to be the accounting engine for your small business, giving you real time access to your financial data and access for your accountant or bookkeeper for quicker, easier collaboration at any point.
Log in online anytime, anywhere on your Mac, PC, tablet or phone and see up-to-date Financials. Fast, easy accounting for your small business. Real accounting, unlimited invoicing. The world's fastest growing small business accounting software. Made specifically for entrepreneurs, freelancers, consultants and small businesses with 9 employees or less. Loved by over 5 million, FreshBooks lets you create professional looking invoices in seconds, automatically record expenses with ease and track your time quickly and efficiently so you can focus on what matters most - serving the needs of your clients.
He was using Microsoft Word to create invoices and was pulling out his hair because Word simply wasn't built to create good looking invoices efficiently. One day he accidentally saved over an old invoice, and snapped — he knew there had to be a better way. Over the next two weeks he coded up a solution and eventually turned that side project into what is now FreshBooks.
Nearly a decade later and over five million users strong, FreshBooks has grown to be the 1 cloud accounting specialist for small business owners. An easy-to-use business accounting software, Sage 50 Accounting helps you invoice customers, pay bills, manage inventory and stay on top of banking. Sage 50 formerly Peachtree brings you best-in-class accounting standards, secure desktop installation, unlimited access to support, plus new subscription plans that offer the best value for your business.
You decide when to move your business processes to the cloud. Keep your accounting information securely on the desktop and expand your potential with cloud and online apps that connect with your software. Easy to set up and use.
And unlike spreadsheets, it does the accounting automatically. QuickBooks helps you keep track of the money coming in and out of your business, all in one easy-to-use place. Don't worry about losing your laptop or important files. QuickBooks automatically backs up your data with bank level security so it's always safe, and always available, from any device. The rankings for this list were based on a number of customers each software product has along with recent online reviews.
We greatly appreciate any feedback, just send us a message below. 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. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.
We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Best Accounting Software for Small Business. How Does Accounting Software Work? Best Overall : QuickBooks Online. Buy on Intuit. 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.
Best for Micro-Business Owners : Xero. Buy on Xero. Buy on Shareasale. Pros Cloud-based User-friendly interface Third-party app integration Affordable Advanced invoicing features. Cons No inventory management No payroll service Mobile app has limitations.
Cons Data cannot be easily transferred to other accounting software Limited reporting Limited invoicing functionality and customization. Best Free Software : Wave. Buy on Waveapps. 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 No inventory management. 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.
Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
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