Scaling your small retail business comes down to spending your limited time and money on a few essential elements: providing high-quality products, delivering exceptional customer support, and engaging in consistent marketing efforts. Using accounting software designed for small retail businesses can help save time and money otherwise spent trying to figure out bookkeeping techniques so that you can focus on the sales, service, and advertising that will help your business grow.
The best retail accounting software enables you to manage inventory, create and send invoices, file taxes, track sales from multiple avenues (including sales through your brick-and-mortar stores and ecommerce), pay your employees, and generate reports.
The eight best retail business accounting software are:
- QuickBooks Desktop: Best Industry-Specific Software
- QuickBooks Online: Best Overall
- Xero: Best for Claiming Expenses
- Zoho Books: Best for Zoho Users
- Wave: Best Free Accounting Software
- FreshBooks: Best for Invoicing
- NetSuite ERP: Best for Growing Businesses
- Gusto: Best for Payroll
Best Accounting Software for Small Retail Businesses Comparison Table
| Cost | Invoicing | Track Income and Expenses | Inventory Management | Payroll | |
| QuickBooks Desktop | Plans start at $1,410 for your first year | ✔️ | ✔️ | ✔️ | ✔️(available as add-on for lowest-tier plan) |
| QuickBooks Online | 30-day free trial, 50% off your first three months, then plans start at $30/month | ✔️ | ✔️ | ✔️ | ✔️ (available as an add-on) |
| Xero | Plans start at $13/month | ✔️ | ✔️ | ✔️ | ✔️ (available as an add-on through Gusto) |
| Zoho Books | 14-day free trial, then businesses with less than $50/k revenue can continue with the free plan, or plans start at $15/month | ✔️ | ✔️ | ✔️ | ✔️ (available when integrated with the Zoho Payroll app) |
| Wave | Accounting software and invoicing software are free; the payroll service starts at either $20 or $40 per month depending on your state | ✔️ | ✔️ | ❌ | ✔️(available as an add-on) |
| FreshBooks | Plans start at $17/month | ✔️ | ✔️ | ✔️ | ✔️ (as an add-on through Gusto) |
| NetSuite ERP | Customized pricing | ✔️ | ✔️ | ✔️ | ✔️(available as an add-on module) |
| Gusto | Plans start at $6/month per person | ❌ | ❌ | ❌ | ✔️ |
8 Accounting Software for Small Retail Businesses
The best accounting software for your small retail business should enable you to connect bank accounts, track income and expenses, manage inventory, pay your employees, and prepare taxes. We have chosen eight accounting software that offer the features you need as a small retail business owner, plus accessible customer support and mobile apps for when you need to do your bookkeeping on the go.
QuickBooks Desktop: Best Industry-Specific Software
Benefits
QuickBooks Desktop Enterprise is the best accounting software for industry-specific accounting software. It offers editions tailored for specific industries, including:
- Contractors
- Manufacturers
- Wholesale and distribution
- Retail
- Nonprofits
- Professional Services
- Accountants
QuickBooks Desktop is a comprehensive accounting system with all the features that small to mid-sized retail businesses need, including ecommerce integration, inventory tracking, payroll, and an advanced pricing tool that allows you to set automated price rules for your products. You can even pair QuickBooks Desktop with Shopify POS (an online sales system) for your chip and contactless payment needs.
Pros
- If you want to access QuickBooks Desktop online from anywhere, you can purchase cloud access for an additional monthly fee
- Three higher-tier plans come with a payroll feature
- Add-ons for the top-tier plan include assisted payroll, employee time tracking, and Salesforce CRM (a customer management platform) integration
Cons
- Cloud access can get expensive, starting at an additional $206/month
Pricing
QuickBooks Desktop’s Silver, Gold, and Platinum plans are charged annually, while its Diamond plan is available as a monthly subscription.
Silver: $1,410/first year
Gold: $1,830/first year
Platinum: $2,250/first year
Diamond: $4,400/first year
QuickBooks Online: Best Overall
Benefits
QuickBooks Online is the best accounting software for small retail businesses overall, as it provides a complete selection of features that retail stores need, including automated transaction tracking, invoicing that enables you to collect payments directly through the invoice, expense categorization to help simplify taxes, and profit and loss, expense, and balance sheet reports.
Pros
- All plans offer a free setup session with a QuickBooks Online expert
- Assisted bookkeeping is available for an additional $50/month, and can help answer questions, categorize transactions, and reconcile accounts
- Free self-paced training and 24/7 customer support available to top-tier customers
Cons
- Payroll is not included in plans and costs extra, plus $5-$8 per employee per month
Pricing
30-day free trial, then plans are 50% off for your first three months.
Simple Starts: $30/month
Essentials: $55/month
Plus: $85/month
Advanced: $200/month
Xero: Best for Claiming Expenses
Benefits
Xero is the best accounting software for claiming expenses, as its mobile Expenses app enables you to scan and store receipts on the go and approve and reimburse employees’ expense claims. Employees can scan their receipts and submit expense claims as they spend so that their transactions are instantly accessible in one place. Xero allows you to easily connect with your bank and invite financial advisors to access your accounts at any time. It also provides tools for bill pay, invoicing, project tracking, and inventory management, and integrates with other accounting apps.
Pros
- Payroll is available as an add-on through Gusto for an additional $40/month
- Mileage claims can be submitted via Xero’s app, simplifying mileage reimbursements for retail businesses with employees that do a lot of driving
- Recurring expenses can be automatically added to customers’ invoices
Cons
- Xero’s Early plan only allows you to send 20 invoices and enter 5 bills per month
Pricing
Keep an eye on Xero’s website, as it often offers discounts. Xero offers a 30-day free trial, then plans are priced as follows:
Early: $13/month
Growing: $37/month
Established: $70/month
Zoho Books: Best for Zoho Users
Benefits
Zoho Books is the best accounting software for small retail businesses that rely on any of Zoho’s 50+ apps, including sales, marketing, productivity, communication, HR, and business process apps. Zoho Books provides users with invoicing, purchase orders, inventory management, bank connections, and over 70 business reports.
Pros
- The time tracking feature enables you to track your billable hours and makes tracking and managing expenses for multiple projects easy
- Zoho Books’ customer portal promotes collaboration and communication with clients
- Automated workflows help save you time and money
Cons
- Payroll is available through integration with Zoho Payroll, but it is currently only accessible in 12 states
Pricing
14-day free trial, then businesses that make less than $50K/year can continue with a free plan. Retail companies with higher annual revenue can choose from one of the plans below:
Standard: $15/month when billed annually, or $20/month
Professional: $40/month when billed annually, or $50/month
Premium: $60/month when billed annually, or $70/month
Elite: $120/month when billed annually, or $150/month
Ultimate: $240/month when billed annually, or $275/month
Wave: Best Free Accounting Software
Benefits
Small retail businesses that are just getting started or are on a tight budget will do well with Wave’s free accounting and invoicing software. Wave’s accounting software features the basics small retail businesses need, including income and expense tracking, bank connections, receipt capture, and reports covering financial statements, taxes, payroll, customers, vendors, and more.
Pros
- Unlimited income and expense tracking
- Unlimited bank connections
- Online payment processing and bookkeeping coaching available as add-on services
Cons
- It can take from 1-7 business days for employees to receive payroll bank payments
Pricing
Wave’s accounting and invoicing software is free. You can get a free 30-day trial of its payroll service, then plans depend on which state your business is located in.
Self Service States: $20/month plus $6/month per employee or contractor
Tax Service States: $40/month plus $6/month per employee or contractor
FreshBooks: Best for Invoicing
Benefits
FreshBooks provides everything you need to keep your small retail business’s books in order, including expense tracking, invoicing, reports, and payroll (through Gusto). If you have been looking for software that can meet your invoicing needs no matter the size of your business, FreshBooks has what you need. All of its plans allow you to send unlimited invoices; its lower-tier plans permit you to send invoices to 5 or 50 clients, and its higher-level plans have no client limit. FreshBooks enables you to customize your invoices with your logo, receive notifications when clients open their invoices, and automatically charge late fees when customers’ invoices are overdue.
Pros
- 30-day money-back guarantee
- Customers can pay you directly through their invoices
- Can access software from anywhere via FreshBooks’ iOS and Android apps
Cons
- Adding team members to your plan costs an additional $11 per member per month
Pricing
FreshBooks often offers sales and provides a 30-day money-back guarantee.
Lite: $17/month
Plus: $30/month
Premium: $55/month
Select: Custom
NetSuite ERP: Best for Growing Businesses
Benefits
Netsuite’s enterprise resource planning (ERP) software is ideal for growing retail businesses, as it provides a real-time look at your business processes and helps you access and manage data from multiple sources, saving you time so that you can focus on scaling your business. Its accounting software includes an automated general ledger, custom reporting capabilities, invoicing, account reconciliation, tax management, and more.
Pros
- Netsuite’s Resource Center includes articles on accounting, small business, human resources, and business strategy
- Real-time access to data enables you to make necessary changes to stay compliant with applicable state and federal laws
- Netsuite is cloud-based accounting software, meaning it is accessible from anywhere with an internet connection
Cons
- Online chat unavailable on weekends
Pricing
The amount users pay for an annual license fee depends on the size of their business and the add-on modules they choose.
Gusto: Best for Payroll
Benefits
Gusto is the best option for small retail businesses looking to supplement their accounting program with payroll software. It offers employee benefits, HR, and payroll, so that you can recruit, hire, onboard, manage, and pay your team all in one place. Gusto’s payroll software can automatically file payroll taxes for you, track hourly and salaried employees’ time, and administer benefits, including health, dental, vision, life, and disability insurance.
Pros
- Unlimited payrolls
- Ability to run payroll from your phone through the mobile app
- Time tracking services available for higher-tier plans
Cons
- No other accounting features
Pricing
Gusto’s contractor-only plan is the most cost-effective and the best choice for freelancers, while its Plus plan includes a priority support and HR services add-on for an additional $8/month per person.
Contractor Only: $6/month per contractor
Simple: $40/month plus $6/month per person
Plus: $80/month plus $12/month per person
Premium: Custom
Methodology
We evaluated the best accounting software for small retail businesses by choosing software that provides the features that small retail businesses need, including inventory and income and expense tracking, report-generating capabilities, payroll integration, invoicing tools, tax prep, and accessible customer service. We looked for software that fits a range of budgets and can be used for brick-and-mortar and ecommerce businesses and chose services with mobile accounting options.
FAQs
What is the best accounting software for a retail store?
The best accounting software for a retail store depends on your unique needs. QuickBooks Desktop is a wise option if you do most of your accounting through your desktop computer or need industry-specific accounting software. QuickBooks Online is a good option if you are looking for comprehensive accounting software that can handle both brick-and-mortar and online sales. Wave is the best choice for free accounting software, while FreshBooks simplifies small business invoicing. Zoho Books works well for businesses that already use other Zoho apps, and Xero is great if you have a lot of employee expenses. NetSuite is a solid choice for scaling businesses, while Gusto is the best option for processing payroll.
