Bookkeeping Software Options Businesses Should Know About

To track finances and keep details, bookkeeping software is used by many small business owners. This software is prone to make fewer mistakes and is effective in keeping track of data.

Bookkeeping software is far better than manual processing, as it saves time and offers a safe place for owners to record and store documents.

It is widely used by 60% of small business owners. Account software is needed if you are unfamiliar with accounting and finances or just want to save time.

There are numerous accounting software programs, and it can be difficult to choose the right one for your business. Don’t worry; we have researched and handpicked the 5 best bookkeeping software programs for small businesses.

We’ve listed some best software, and you can choose one of them based on features, functions, use, cost, scalability, and more. 

#1 QuickBooks: Overall best accounting and user-friendly software

QuickBooks is one of the best financial and accounting software programs worldwide for small businesses. It is a cloud-based accounting software solution, marketed and developed by Intuit. It offers isolated options to purchase and download. More than 7+ million small- and medium-sized businesses use QuickBooks. It is also best suited for those who don’t have any prior knowledge of accounting. It is an easy-to-use software with a quick setup and an affordable price. Keep everything organized at a single place with this software for long periods of time. 

Special Features

  • Integrates with PayPal, Shopify, Square and more
  • Automatically classifies expenses and transactions into tax categories
  • Easy to share and export with an accountant
  • Ease of access via web browser and mobile app

Pros

  • A mobile app is available
  • Strong third-party integration is included
  • Scalable and easy to use
  • 30-day free trial is available

Cons

  • The upgrade is needed for many users

Pricing Plans

QuickBooks comes with 4 pricing plans. It’s Simple Start plan costs $25/month, Online Essentials plan costs $50/month, Online Plus plan costs $80/month, and Online Advanced costs $180/month.

#2 Xero: Best for micro-businesses and offer best extra features and invoicing

Xero is an effective web-based bookkeeping software for growing and small businesses, bookkeepers, accountants, etc. It’s easy to use and set up software with an intuitive dashboard that doesn’t require accounting knowledge. It has Android and iPhone apps. Another great feature is it offers many extras, like Hubdoc. This software also allows sending customized invoices, reconciling bank transactions, capturing recipients, and more. 

Special Features

  • Send custom invoices
  • Financial reports are up-to-date
  • Protects business data
  • Integrates with financial institutions and apps, including HubSpot, Square etc.

Pros

  • The mobile app is included
  • Inventory management is simple
  • Each plan comes with an unlimited user feature

Cons

  • Reporting is limited

Pricing Plans

It offers 3 paid plans:  Xero’s Early plan costs $12/month, Xero’s Growing plan costs $34/month, and Xero’s Established plan costs $65/month.

#3 Wave: Best value and free software

Wave is cloud-based software offering financial and accounting services for growing and small businesses. It includes credit card processing, payroll services etc., to offer a better experience for all bookkeepers, freelancers, and non-accountants. The best part about this software is it offers invoice and accounting services for FREE!  However, all the features can’t be accessed for free; payroll services and credit card processing require you to pay charges, but it is still best suited for growing small businesses. 

Special Features

  • A double-entry system is included
  • Unlimited expense and income tracking
  • Multiple user option
  • Intuitive, easy-to-use dashboard

Pros

  • Scanning, invoicing, and accounting – free
  • Billing and transactions – unlimited
  • Ability to run various businesses from a single account

Cons

  • Lacks in inventory management

Pricing Plans

It is free software, but you need to pay for add-ons, like payroll ($20/month) and per employee ($6/month). 

#4 FreshBooks: Best for invoicing, service-based businesses and mobile-friendly options

FreshBooks is a cloud-based accounting and invoice software that can be accessed by all iPhone, Android, and iPad apps. It fulfills the crucial accounting need of invoicing, including customizing the invoices. This software is mainly used for sending, receiving, and “pay and print invoices,” along with basic bookkeeping services. If you are a service-based business owner, FreshBooks will make it easy to send invoices, receive deposits and tracking, collect payments, etc. Its features are effective and easy to use, and no accounting knowledge is required. 

Special Features

  • Reminders for payments due
  • Invoice comes with custom options like discounts and due dates
  • Tax calculation for sales tax is automatic
  • Online credit card payments are included

Pros

  • User-friendly, intuitive interface
  • Plans are affordable
  • Advanced and custom invoices features are there.

Cons

  • There are no payroll services

Pricing Plans

It comes with 3 paid plans. The lite plan costs $4.50/month, plus plan costs $7.50, and a premium plan costs $15/month.

#5 Zoho Books: Best for value and automation

Zoho Books automates various bookkeeping tasks so that you can focus on other aspects of your business.  Zoho Books takes care of data entry.  Automatic customer payment reminders can be set up, expense profiles created, finances tracked, invoices created, and more. Also included are various products, like inventory control, customer relationship management etc. It’s easy to set up, requires zero accounting knowledge, and integrates with 40+ apps. 

Special Features

  • Invoicing and end-to-end accounting
  • Tax calculations are automatic
  • Schedules and reports
  • Coordinate bank transactions

Pros

  • Starting price is affordable
  • Recurring invoicing automatic is offered
  • Creating contacts is possible

Cons

  • Payroll plans are only offered in California, Texas, New York, & Florida, USA. They are also offered in India.

Pricing Plans

It comes with 4 plans. There is a  free plan, a standard plan that costs $15/month, the professional plan that costs $40/month, and a premium plan that costs $60/month.

Conclusion

We have discussed the 5 best bookkeeping software programs for small businesses. Each of the five offer unique features and functionality. Choose the one that best suits your business needs, features, cost etc. The correct accounting software can change your work-life, lead to positive results, and offer more time to focus on different aspects of your growing business. Try out one or more of these programs to decide what is right for you and your growing business. 

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