Bookkeeping is a monotonous but important process for all companies. We know that handling your business’s financials appropriately is the only key to its success. There are hundreds of bookkeeping tools present in the market that are developed to aid small business owners to handle their businesses.
We know that hiring a bookkeeper can be costly for small/medium businesses with bounded resources. Here, it is recommended to invest in powerful bookkeeping tools or software to keep you on track and organized.
With online bookkeeping tools, you can save cost, time, work independently, concentrate on your goals and improve your performance. But how to adopt a powerful bookkeeping tool for your company that is affordable and offers security?
With hundreds of options available today, it is difficult to pick the best bookkeeping as well as accounting tools. Let’s check out the 5 Bookkeeping Tools for small businesses.
5 Best Bookkeeping Tools Comparison For Small Businesses
Here are the top 5 online bookkeeping tools we have picked after testing out each which works and which does not. Let’s find out.
Quickbooks allows you to work efficiently 24*7. The software is capable of assisting businesses in making any place a workplace. Hundreds of professionals, accountants as well as businesses trust this financial software to handle their work. Experts appreciate this software for its affordability, effectiveness, and simple interface.
Small businesses use this software as it offers them numerous features out of which banking is the most prominent one. This bookkeeper software also provides forums, online training courses, and support to assist users at all times.
Additionally, all features are found in a single dashboard making the software easy to understand. Also, its developer launches new updates every year to add extra features, tools, and bug fixes.
The Basic Features Regardless of the QB Subscription you Pay for Include:
- Income and expense monitoring
- Invoicing and estimates
- Basic reporting
- Tax organization tools
- Accept payments
- Bank reconciliation
- Bank account connection
- Receipt organization as well as capture
- Accountant access
- Free mobile app
- Great integration with numerous third-party platforms and QuickBooks apps as well
- Mobile-based customer service
Quickbooks has the ability to get integrated with numerous apps and platforms. Let’s check out some of them.
- TSheets Time Tracking
Quickbooks Pros and Cons
|Trusted by accounting experts.||It requires continuous upgrades for additional users.|
|Scalable.||The subscription is a bit expensive.|
|Better integration with many applications.||Syncing troubles while paying with cards.|
|Easy to use Mobile app.||Lack of features related to business and industry.|
|Cloud accounting.||Instability due to system crashes.|
|Excellent business accounting services.||Limited users.|
|Simple interface.||Problems in File size.|
|Efficient Payroll support.||Fewer transactions.|
|Contacts record forms.||Limited invoicing tools.|
|Cash flow pages.||Errors occur from time to time.|
|Cloud-based.||Software lags sometimes.|
|Customizable reports.||Limited plans.|
The software offers a 30-day free trial, through which you can decide if it is ideal for the business or not. Once you complete the free trial, you can choose from the four subscriptions plans namely:
- Simple – $25 monthly.
- Essentials – $40 monthly.
- Plus – $70 monthly.
- Advanced – $150 monthly.
FreshBooks is user-friendly and offers powerful invoice customization. It assists users to pay, send, receive as well as print invoices at a click. This software is a complete cloud accounting financial software for small businesses and entrepreneurs. Freshbooks automates tasks such as tracking invoicing, expenses, following up with customers, and many more.
Not only on the desktop, but you can also access this software on any mobile device. It offers all mandatory tools needed to handle invoices, finances, time, and place trackers. Also, it is easy to import expenses from your bank account/credit card just by capturing the receipt records.
Some Major Features of Freshbooks
- Accounts (Payable/Receivable)
- Freshbooks Invoice
- Fast Expense Management
- Time Tracking
- Fast Expense Management
- Financial Reports
- Business Estimates
- Regulation Compliance
The best part of FreshBooks is that it can well integrate with numerous platforms enabling businesses to run even smoother. More FreshBooks Integrations are:
- Mail Form
- 123Form Builder
Freshbooks Pros and Cons
|Convenient double-entry accounting.||Limited invoice customization.|
|Excellent user experience.||Poor setup assistance.|
|Enhanced team collaboration.||Low dashboard deficits.|
|Detailed customer records.||Mobile apps miss some site features.|
|Time tracking tools.||Absence of Quarterly tax approximates.|
|Inventory tracking.||Expensive pricing.|
|IOS tracking automatic.||Missing features.|
|Supports Proposals.||Lack of Support to Multi-Currency.|
Freshbooks like Quickbooks offers a 30-day free trial after which you have to choose from its three subscription plans.
- Lite Plan – Monthly $15, Bill up over five clients.
- Plus Plan – Monthly $25, Bill up over 50 clients.
- Premium Plan – Monthly $50, up Bill over 500 clients.
Xero is one of the online bookkeeping tools ideals for users handling micro-businesses. It not only offers a clean interface but also impeccable features. What makes Xero powerful is that its subscription supports unlimited users. It clearly means that to add employees, no extra cost has to be paid. Further, Xero enhances the businesses as it does not charge a penny per employee/user.
Additionally, Xero offers plans especially for solo traders, entrepreneurs, freelancers, enterprises, and large businesses as well. Let’s check out the features.
Some Features of Xero
- Accessibility for client’s bookkeeper or accountant
- Robust security with two-factor authentication and layers of data security
- Support unlimited users
- Multi-currency functionality
- Integration with more than 800 applications
- Financial and budgeting reporting
- Sales tax
- Fixed assets
- Sales quotes
- Purchase orders
- File storage
- Data capture from Hubdoc
- Contacts as well as smart lists
- Business performance dashboards
Xero Pros and Cons
|Additional business views.||No call or chat assistance.|
|Incredible dashboard.||Need for stamped icons for a new invoice.|
|Project tracking.||Complex mobile apps.|
|Enhanced setup process.||Separate mobile apps for handling expenses.|
|Interactive quotes.||No, reorder level.|
|Also Smart Lists.||Fewer expense claims|
|Great online support.||Lack of ‘Debtor Chasing’|
|Reconciliation tools.||Weak customer service|
|Integration with Gusto.||Sluggish performance|
Xero offers the following subscriptions:
- Early – Monthly $9.
- Growing – Monthly $30.
- Established – Monthly $60.
- Gusto offers a complete payroll option that will cost you Additionally $30 monthly and $6 extra per employee.
- Also, you get a 30-day free trial as well as a 40% promotional off for the initial two months.
Wave is considered one of the best bookkeeping tools to handle businesses in an organized way. Also, it offers bookkeeping tools free making it ideal for small businesses. All its tools, features, and services are free except credit card processing and payroll services.
Its exciting tools include expense tracking, invoicing, income tracking, financial recording, scanning receipts, and many more. Moreover, you can access and enjoy the services on your mobile app also.
Some Features of Wave
- Invoice scheduling
- Customizable invoices
- Online client portal
- Recurring billing
- Invoice payment reminders
- Expense tracking
- Accounts payable
- Live bank feeds
- Receipt scanning
- Contact management
- Bank reconciliation
- Customizable chart accounts
- Basic inventory list
- Accounts payable
- Journal entries
- 12 finance reports
- Automatic bill reminders
- Recoverable as well as non-recoverable sales tax
- Calculations of automatic exchange rate
- Multi-currency support
- Importing as well as exporting data files
- Lending add-on
- Payroll add-on (involves time tracking)
Wave Pros and Cons
|Free||Limited mobile apps|
|Easy to use||Not ideal for large businesses|
|Incredible features||Weak customer support|
|Amazing invoice templates||High ACH & credit card fees|
|Support from experts is available||Lack of some important features|
- 2.9% – Credit card processing fee
- $0.30 – For Visa, Mastercard, and Discover
- 3.4% extra $0.30 – American Express
- For bank payments: At least 1% per transaction, $1 minimum charge
- $35 Payroll monthly, an extra $6 per employee, also a $6 fee per independent contractor
5. Zoho Books
Zoho Books is one of the amazing bookkeeping tools. Every small business must have this incredible tool. With this, you can handle finances, cashflows, accept online payments, and more.
Its smart design is created after extreme attention to useful functions and organized detail so that it doesn’t interrupt the user’s work. Quick overviews and visual graphs are available on the Dashboard, and other functionalities are together in toolbar tabs.
Some Features of Zoho Books
- Unlimited invoicing
- Recording bills from vendors
- Tracking transactions of bank/credit card
- Expense tracking
- Reconciling bank accounts
- Multiple currency support
- Receiving online payments
- Managing contacts of both customers and vendors
- Financial reports, Trial Balances, Tax Reports, etc.
- Multi-user support
- Data access to the accountant
- Customizable templates
- Purchase Order
- Weekly timesheet
- REST APIs
Zoho Pros and Cons
|Sales order.||No Payroll services.|
|Tax compliance as well as Audit reports.||Frustrating payment plans.|
|Detailed invoicing.||Limited integration options.|
|Reports and schedules.||Plan restrictions.|
|Client portal.||Complex interface for newbies.|
|Accounting end to end.||Tutorials need improvement|
|Reconcile bank transactions.||Should include a chatbot.|
|Auto tax calculations.||Lagging live chat option.|
|Export of sales tax reports & 1099 forms||More features are needed.|
- Basic Plan: $9 monthly (For upto 2 users and 50 contacts).
- Standard Plan: $19 monthly (For upto 3 users and 500 contacts).
- Professional Plan: $39 monthly (For upto 10 users and 500 contacts).
This post educates you all about the best bookkeeping tools for small businesses. We have picked up five incredible tools namely- Quickbooks, Xero, Wave, FreshBooks, and Zoho Books. You can find a detailed comparison between features, integrations, pros, cons, pricing, and many other aspects. This will surely help you choose the best one for the success of your company.
If you are in any confusion then try out the free trials provided by these tools to get a better idea. All in all, your choice will depend on your company size, type, budget, and time. We hope you choose the best. Also, you are welcome to write down your reviews about each tool.