Top 5 Accounting Software for Small Businesses (2021)

Top 5 Accounting Software for Small Businesses (2021)

Accounting software provides great ease in maintaining accounts receivable and account payables. Several businesses take benefit from these leading programs. The users are not only provided a clear mindset related to the profit but also tax season preparation. Small businesses often use some unique software without adding anything extensive customizations. But, when a business expands, there needs enterprise resource planning (ERP) because of the complexity in accounting. 

Although there is various accounting software, here we are providing you with the best 5 bookkeeping software. We have tested almost 19 accounting offices before offering you the list. So, just rely on us and read about the guide that consisted of software with flexibility, cost, features, easy-to-use, and integrations. 

So, now, let’s get into the article and learn what all are the best software for us to use for business expansion. Small industry takes a fresh step in this new world. So, if we somehow help them then it is a good gesture to show. Anyone who is reading this article would surely find the best accounting software. It will be a promise from us. 

Well, we need to tell you that in our list of the best 5 accounting software, we have included Quickbooks, Freshbooks, Xero, Wave, and Quickbooks Self Employed. You can choose from them to carry out your business functionality. Now, let’s start with Quickbooks. 

List of 5 Best Accounting Software for Tiny Enterprises for 2021

Quickbooks Quickbooks Accounting Software

Quickbooks is the best among all. You will feel delighted to know that it is used by several users around the world including accounting professionals and non-professionals.  These enterprises grow into big companies while using this dynamic software. Moreover, it provides the best aid to numerous endless online training forums and resources. You can have all the accounting features on just one dashboard. It provides great ease to your work with a priority of making bookkeeping efficient and fluid. 

As one of the leading accounting software, errors usually come and disturb the scenario. Thereupon freeze the system and all the ongoing tasks. To know more, you can check out these pointers below. 

Advantages

  • You can use it on the mobile app
  • As it is cloud-based software so you can access it from any device and from anywhere. 
  • Most accounting professionals use this software. 
  • Integration with third-party apps
  • Scalable
Disadvantages

  • At times the software demands upgrades. 
  • You can face occasional syncing issues with credit cards and banks. 

Quickbooks is the most desirable accounting software. Intuit, an American company has designed it to provide a new way for young and tiny entrepreneurs. As it is cloud-based, every user can access it through a mobile app and web browser. It not only provides relief to the businessmen but also the bookkeeping and tax professionals

Initially, every user gets a free trial of 30 days with the four options that include: Simple Start, Essential, Plus, and Advanced variants. You can have these versions at the price of $25 per month, $40 per month, $70 per month, and $150 per month. However, you also get some significant discounts for the first few months. 

When the business grows then the monthly subscription also gets a height. Along with that, the mobile app provides you some of the best customization options that are best to track business, receive payments,  mileage, capture an image, and review reports. Every business, searching for a Payroll solution, must try the integration of Quickbooks online with Quickbooks Payroll.

With each plan, you will be provided with more advanced qualities such as time tracking, budgeting, inventory management, and so on. If you belong to a small business providing services then Simple Start will fulfill all of your needs. Whereas, Essential or Plus provides all the support like customization and inventory for product-based small businesses. If you want to witness the dynamic financial reporting then check out the Advanced plan. Fathom has powered the software, which is one of the best online financial report analysis tools. Many big companies across the world use this elite tool.  

Well, All plans enable the integration with third-party apps that include PayPal or Stripe. Quickbooks online’s app store offers some insights to use those beneficial apps.

XeroXero Accounting Software

Xero is another best software for micro-businesses that prefer an easy to use accounting software. Moreover, The software comes with a clean interface that every user can use. Also, it can fully integrate with a third-party payroll service. You should be aware of the fact that when Xero is integrated with Stripe and GoCardless then it becomes easy for every business to make their payment from customers.

Advantages

  • Integration of payroll with Gusto
  • Inventory management is simple and easy. 
  • Also comes in a Mobile app
  • Cloud-based
  • Third-party app marketplace
Disadvantages

  • Limitations within Reporting
  • Customer Service is also bounded. 
  • ACH payments can charge you a fee. 

Xero was discovered in New Zealand in 2006. It has around two million users across the world. Many countries like Australia, the United Kingdom, and New Zealand use it the most. It is no secret that the company is growing speedily in the US with its 3,000 employees.

The user can have a full-service payroll add-on and three monthly subscription options: For instance, you can get Early at $11 per month, while Growing and Established at $32 and $62 per month. Gusto usually offers the full-service payroll option with the addition of $39 per month, with $6 per employee. Furthermore, several offers like a discount of 50% for 2 months and a 30-days free trial are also provided. 

At times, there arise some limitations in the usage of Early plans as it has the specific places for five invoices or quotes, five bills, and reconciliation of 20 bank transactions per month. If you occupy a micro-business like a small service provider then you can have this limited plan. The later plans such as established and growing plans provide unlimited bills, invoices, transactions, and many more. The main difference between them is that the Established plan contains some more features like project costing, multi-currency, and expense management. Hubdoc, receipt, and a bill are offered in all of these three plans. 

FreshBooksFreshbooks Accounting Software

Every business is incompleted without an invoice. It is extremely useful for service-based enterprises. So, here comes Freshbooks in our rescue with the offering of several customizations invoices. This one point makes it useful software because all other lacks this basic functionality.  The main function of Freshbooks is to send, receive, print, and pay invoices. Not only that but it also measures the basic needs of bookkeeping. The accounting software provides an easy way for every business provider’s services. The services can be sending proposals, invoices, collecting clients’ retainers, requesting deposits, tracking time on projects, etc.  

Advantages

  • Integration of third-party app
  • Cloud-based
  • Interface with user-friendly
  • Having advanced invoicing features 
  • The software is affordable
Disadvantages

  • No inventory management 
  • Payroll Service is prohibited
  • Limitations in mobile app

The software was founded in Toronto as an invoicing application. Now, it has some more additional features that have grown into the most desirable software that with around 500 employees. It comes up with four different plans and the user can also receive a 10% discount only at the time of paying yearly, rather than monthly. Moreover, Freshbooks provides a 60% discount for around six months. The software’s four plans were Lite ($6 per month), Plus ($10 per month), Premium ($20 per month), and Select ($20 per month). At the rate of a good price, you can have the personalized service of Select. 

It should be noted that the number of clients is the key difference between the four plans. In the Lite plan, it can bile up to 5 clients, while 50 and unlimited clients in the Plus and Premium plan. Also, the select plan provides unlimited clients. Not only that but it also brings some out-of-the-box features. For instance, an additional $10 per month is provided for multiple team members and some more $20 per month for this advanced payment feature. 

You can have different third-party app integration such as G Suite, Gusto, Shopify, and many more. Well, the most outstanding feature of the software is that it is uniquely customized and stylized to give us a  professional feel. You can budget out projects, collect customer payments, send proposals or estimates with this great tool. 

Quickbooks Self EmployedQuickbooks Self Employed

Quickbooks Self Employed is the major choice for many independent contractors and freelancers who significantly track their savings and expenditure for the tax return. Furthermore, the software is for all those entrepreneurs who make a Schedule C on their tax returns. 

Freelancers ought to go deep inside of their income and expenses at the end of the year. That sometimes proved to be quite agitating. But, with Quickbooks Self Employed, all these kinds of worries are resolved as the software can bring these financial transactions on their own. 

Advantages

  • Access it through the Mobile app
  • Cloud-based
  • Help in tracking mileage
  • Syncing with Turbo Tax
  • A differece between business and personal expenses 
Disadvantages

  • You cannot transfer data to other accounting software. 
  • Limitations in reporting
  • Invoicing functionality and customization is limited 

Quickbooks Self Employed is developed by Intuit. It has a cloud-based online interface and a mobile app. The main aim before the creation of this software is to help freelancers with their financial activities. In addition to that, there are lots of dynamic features in the tool that include, sending invoices, sorting expenses, filing taxes and estimating through TurboTax, and organizing receipts. 

The users are generally offered three plan options from which they have to choose the most appropriate. The three plan options are Self- Employed at $15 per month, Self- Employed Live Tax Bundles at $35 per month, and Self Employed Tax Bundle at $25. You can also get a 50% discount in the first three months of its usage. The two tax bundles provide a TurboTax subscription for filling the income tax. The Self Employed Live Tax Bundles also provides you the essential access to a CPA. Through which you can answer questions during tax season and throughout the year. Moving on, CPA will prepare the ending review of all the tax returns in Turbo Tax. 

Using the mobile app provides ease in every manner. It manages the tracking of mileage at the time of driving and captures the records of business expenses such as receipts. Not only that but this accounting software segregates personal transactions from business transactions. Consequently, you can have the option to establish each transaction as personal or business with this dynamic tool. 

WaveWave Accounting Software

Wave is yet another significant accounting software. Every enterprise deals with services can easily use this tool and send invoices. Also, the software does not require running payroll or track inventory. The wave consists of some free features that will have all of your accounting needs. Many users reviewed it as one of the best free accounting software. The accountants can also have the essential reports from the software to create a business tax return.

Advantages

  • The number of users is unlimited
  • Run multiple businesses in single account.
  • Mobile app
  • There are no limitations to transaction and billing
  • Accounting, invoicing, and receipt scanning are free
Disadvantages

  • Full-Service Payroll is only accessible to 14 states
  • Lack of Inventory management 
  • Credit cards and ACH payments demand higher fees
  • Limited third-party app integrations

The wave was designed in 2010 in Toronto. Now, the company has employees of around 250 and above. H & R Block recently purchased it. Features like financial reporting, scanning receipts, invoicing, income and expense detailing are there in this magnificent tool. You can easily access all these features online or on your mobile app. Significantly, there are advanced services as well like payroll and Customer payment processing. To enroll them, you need to spend some extra. Although, all of these foundational features like invoicing, bookkeeping, and reporting are free to use. 

Also Find, Best 15 Accounting Firms in New York to Work For [2021]

Wave generates its income on its gateway of payment. The software charges around 2.9% plus 30¢ per transaction for Master Card, Discover, and Visa. For American Express, it charges around 3.4% plus 30¢ per transaction. No doubt that the fees are a bit higher as compared to others. In addition, Wave demands 1% per transaction with a $1 minimum fee to process an ACH payment. This is somewhat different for users as most of the accounting software does not include an extra fee for ACH payments.

Generally, Wave provides two payroll pans as an add-on service. You can get the first plan at $20 per month in addition to $6 per contractor or employee. Although this plan enables the software to make the payroll process and prepares tax calculations, other activities like submitting tax payments and completing payroll tax forms can only be completed by the user only. Another plan is estimated at $35 per month with the addition of $6 per employee or contractor. Payroll provides full service of tax payments and fillings. But, there are only 14 states that can use this full-service payroll option.

FAQs

What are the functions of Accounting Software?

Accounting software significantly aids us in every manner. It minimizes your precious time spent on data entry. Moreover, users can easily sync credit cards and business bank accounts with the help of the software. Transaction will flow into the accounting software once synced properly. Later on, you can distribute them into several accounts. Many businesses prefer to hire accountants or bookkeepers as they prepare financial reports. Consequently, This accounting software with cloud-based features makes it suitable for enterprises to access several books with their accountant and bookkeepers

Listing below, some of the most alluring functions of accounting software for tiny businesses 

  • Online payment collection from customers
  • Bank and credit card syncing
  • Invoicing
  • Basic financial statement preparation, like cash flow statement, statement of profit and loss, and balance sheets.
  • Accounts payable
  • Accounts receivable
  • Tax professionals and accountants can get user access.

What is the work of Accounting Software?

When we use the accounting software to sync the business’ credit card and bank accounts then all the transactions will appear in a queue. Business’ charts of accounts usually contain these categories. Transactions start to populate the business’ financial statements Once picking up the proper category. Consequently, these businesses can also become enable to run a financial report in seconds to get a comparison of loan balances, revenue, and costs, review of profitability, check bank and loan balances, and many more. With instant access to this financial information, business owners can have all the rights that make them quite able to decide some essential decisions. 

In addition, most of the accounting software provides the access to third-party integration. For instance, if an entrepreneur prefers to use a point of sale (POS) system to record, the POS system, and the sales transactions then it could instantly integrate with the accounting software and tracks sales tax liabilities, specific transactions, and activities like sales by subcategories. If you are in a service-oriented business, then use the time tracking software to bring labor to a client invoice with the integration of these apps. 

What is the cost of Accounting Software for Small Business Cost?

The ranges go from $0 to $150 for small business accounting software. Basic plans start from $0 and end at $40 per month per range. Basic plans enable a tiny business to differentiate income and expenses, prepare financial reports, and end invoices. When the business expands, most software becomes scalable and upgraded to fulfill new business requirements. If we talk about the more outstanding features then it enables businesses to create customized financial reports, track inventory, run payroll, and many more. 

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