Overview
As a small business owner, there’s nothing more exciting than watching your company grow and your revenue increase. However, with your company’s expansion comes the demand for tools to handle your growth. Accounting software is an essential tool for small businesses, as it can help you send purchase orders, invoices, and payment reminders, manage your taxes, track your expenses and income, analyze your business’s financial transactions, and handle bank reconciliation tasks.
Using accounting software can help your small business save time and money, but which accounting software is right for you?
We’ve done the research so you don’t have to! We have created this list of the best accounting software for small businesses so that you can pick the plan that’s best for your business.
Best Accounting Software in 2023:
- Zoho Books: Best for Freelancers and Microbusinesses
- FreshBooks: Best for Customized Invoicing
- Xero: Best for Employee Expense Claims
- Intuit QuickBooks: Best for Ease of Use
- Sage Business Cloud Accounting: Best for Customer Service
- Neat: Best for Managing Receipts
- Kashoo: Best for Businesses on a Budget
Accounting Software Comparison Table:
| Software | Pricing | Users Included | Mobile App | Invoicing | Accept Payments | Payroll | Receipt Tracking |
| Zoho Books | $0-$200/month | 1-15 | Yes | Yes | Yes | Available in some parts of the US | Yes |
| FreshBooks | $6.80-$22/month, or custom pricing | Team members cost $10 extra per month | Yes | Yes | Yes | Yes | Yes |
| Xero | $3.50-$17.50 per month for the first three months, then $13-$70 per month | Unlimited | Yes | Yes | Yes | Yes | Yes |
| Intuit QuickBooks | $7.50-$100 for the first three months, then $15-$200 per month | 1-5 | Yes | Yes | Yes | Yes, as an add-on when you bundle your plan | Yes |
| Sage Business Cloud Accounting | $7.50 for the first 6 months, then $25 a month, or $10 per month | 1-unlimited, depending on the plan | Yes | Yes | Yes | No | Yes |
| Neat | $200/year | Multi-account user access, meaning you must share your user name and password for other users to access your account | Yes | Automated Invoices can be added to the plan | Yes, if you add Automated Invoices to your plan | No | Yes |
| Kashoo | $1-$2 for your first year | Unlimited | Yes | Yes | Yes | Yes | Yes |
The Best Accounting Software of 2023
We’ve rounded up some of the best accounting software for small businesses excel in 2023. Whether you’re looking for ease of accessibility, superior customer service, app integration, automated invoicing, or affordability, these are the companies that are taking the lead in accounting software for small business owners. Additionally, you can also check our article on free accounting software for more.
Zoho Books
Why we like it: Zoho Books is a good option for freelancers and other microbusinesses (any small business that has under ten employees), as it is simple, straightforward, and more than affordable with a free option for businesses that make less than $50,000 per year. It is generally considered as one of the best accounting software for small businesses.
Key features: With Zoho Books, you can send invoices (including recurring invoices), reconcile bank accounts, track bills, and accept payments.
Pros:
- Scalable
- Has a mobile app that is available on both iOS and Android devices
- Can integrate with several other apps, including its own apps and cloud document apps
Cons:
- Zoho Books’ largest plan can handle up to 100,000 transactions per year, but you can contact the company to request an extension if your business surpasses that amount
- The free plan can only accept payments from PayPal, Stripe, and PayTabs
- Payroll is currently only available in some parts of the US
Pricing: Plans range from free to $200/month.
FreshBooks
Why we like it: Not only does FreshBooks give small businesses the option to create customized invoices, but it also enables them to track whether invoices have been received and when they are due, send payment reminders, and give customers the ability to pay you from their invoices.
Key features: FreshBooks offers more than just invoicing with features including employee time tracking, project management and proposal tools, and the ability to accept payments online.
Pros:
- Easy to create professional invoices from which customers can pay you directly
- Provides financial reporting and time and expense tracking tools
- Allows you to assign your accountants access to its dashboard
Cons:
- Adding team members to your plan can add up, costing you $10 extra per month for each additional team member.
Pricing: Free trial for 30 days, then plans start at $6.80/month
Xero
Why we like it: Xero provides small business owners with expense management tools that help them to submit and reimburse expense claims. You can scan a photo of your receipt, autofill your claim, and submit mileage claims through Xero’s app.
Key features: Xero offers expense management, purchase order, invoicing, bill-paying, payroll, and bank reconciliation tools, as well as project tracking software and document storage space.
Pros:
- Xero can help simplify your bill-paying process with its online bill-pay feature that keeps all of your bills in one place so that you can easily track, pay and access them
- Xero provides payment management tools
- You can track projects easily using Xero’s software
Cons:
- Using Xero’s Gusto payroll software will cost you $40 extra each month, and will cost an additional $6 for each person that you add
- Xero has no phone number or email address for prospective customers to contact, meaning that you have to start a free trial in order to contact them
Pricing: Free trial for 30 days. After the free trial, plans start at $3.25 per month for your first three months, then go up to $13 per month for the least expensive plan.
Intuit QuickBooks
Why we like it: QuickBooks is super easy to use, and all plans come with a free guided setup. It provides small business owners with everything they need to manage their finances and offers scalable plans that you can upgrade to as your business grows.
Key features: QuickBooks provides tools for tracking finances, sending pay-enabled invoices, and forecasting cash flow for up to 90 days.
Pros:
- QuickBooks can help you stay on top of your taxes by tracking income, expenses, and mileage, organizing receipts, and estimating quarterly taxes
- QuickBooks allows you to send and track invoices
- You can use QuickBooks’ time tracking tools to manage employee hours
Cons:
- QuickBooks’ Online Payroll service is optimized for 50 employees and is capped at 150 employees, so you will need to find a different payroll service when your staff exceeds its limits
Pricing: Free trial for 30 days. Plans start at $7.50 a month for freelancers and independent contractors, or $15 per month for other small business owners.
Sage Business Cloud Accounting
Why we like it: Learning how to use accounting software isn’t exactly second nature for many small business owners, and not all accounting software companies are available right when you need them. However, Sage offers 24/7 access to online product support to help troubleshoot any issues you may come across when using its service.
Key features: Sage offers a mobile accounting app, invoicing, payments, and billing tools, and gives users the option to include a “Pay Now” button on their invoices that enables customers to pay immediately upon receipt of their invoice.
Pros:
- Mac-compatible
- Capable of accepting multiple currencies
- Can help you manage your inventory
Cons:
- Stripe is the only payment processing platform that is integrated with Sage’s accounting system
Pricing: One-month free trial, then plans start at $7.50 per month for the first 6 months, then go up to $25/month.
Neat
Why we like it: Neat is a good option for keeping track of and organizing your receipts so that you can stay on top of your taxes.
Key features: Neat’s mobile app and unlimited storage offer a convenient way to upload and manage your receipts throughout the year.
Pros:
- Neat can connect with other business software, including QuickBooks, Turbotax, H&R Block, Quicken, Outlook, Mailchimp, Campaign Monitor, Contacts, and Constant Contact
- Enables you to track receipts
- Provides tax preparation tools
Cons:
- Does not provide any bill-paying tools
- Doesn’t allow monthly payments for its service
Pricing: 14-day free trial, then $200 per year.
Kashoo
Why we like it: Did somebody say $2…a year? That’s right, Kashoo provides small business owners with a super affordable accounting service that starts at only $2 for your first year. What’s more, if you don’t need payroll integration, check printing, or customized design services, you can use its TrulySmall Accounting program for only $1 for your first year.
Key features: Kashoo provides invoicing, payment, and automatic bank feed tools, business reports, and the ability to connect to over 5,000 banks and credit unions.
Pros:
- Kashoo’s mobile app now supports both iOS and Android users
- You can collect payments from clients through Kashoo
- Provides income and expense tracking tools
Cons:
- Kashoo is unavailable via chat or phone on the weekends
- The mobile app and payroll integration must be added to its plans
Pricing: Starts at $2 for your first year.
Methodology:
We analyzed the features that each accounting software provides and made sure to choose companies that offer accounting software that is high-quality, affordable, and user-friendly. We looked for accounting software that contains features that are essential for small businesses, such as bank feeds that track your transactions automatically, automated payment reminders and recurring invoices, tax management services, and the ability to analyze and generate reports about your business’s financial history.
FAQs:
Can I access my accounting software anywhere?
When you choose a cloud-based accounting software you don’t have to download or install anything; all of the software’s features are available to you over the internet once you sign up. All of the companies on our best accounting software of 2023 list offer cloud-based accounting services.
