Best Small Business Accounting Software in 2023
This article is part of a larger series onAccounting Software.
The best accounting software for small businesses is easy to use and has all the essential features you need to manage your finances including invoicing, income and expense tracking, and bill payment. While some businesses may do well with basic and free software like Wave, others require an accounting solution with more developed features, like QuickBooks Online and Zoho Books. Meanwhile, businesses operating in specialized industries may prefer industry-specific software, such as PCLaw for law firms and Restaurant365 for restaurants.
Here are the nine best accounting software for small businesses:
- QuickBooks Online:Best overall small business accounting software with project, class, and location tracking
- FreshBooks:Best for small service-based businesses
- Zoho Books:Best for mobile accounting
- QuickBooks Desktop:Best desktop accounting software for managing multiple companies
- Wave Accounting:Best free solution for tracking income and expenses
- Bench:Best online bookkeeping service as an alternative to do-it-yourself (DIY) accounting software
- PCLaw:Best accounting software for law firms
- Restaurant365:Best accounting software for restaurants
- Nimble Property:Best accounting software for hotels
Quick Comparison of Best Small Business Accounting Software
Provider |
Price |
Users Included |
Free Trial |
Highlights |
Drawbacks |
---|---|---|---|---|---|
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$30 to $200 per month |
1 to 25 |
30 days |
|
|
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$17 to $55 per month or custom priced |
1 |
30 days |
|
|
|
$0 to $249 per month |
1 to 15 |
14 days |
|
|
|
$549.99 to $1,410 per year |
1 |
None; but has a 60-day money-back guarantee |
|
|
|
Free |
Unlimited |
None, as platform is free forever |
|
|
|
$299 or $499 per month |
N/A |
Fit Small Business readers get 2 months free |
|
|
|
Custom |
1 |
✕ |
|
|
|
$435 to $635 per month or custom priced |
1 |
✕ |
|
|
|
Custom |
1 |
✕ |
|
|
QuickBooks Online: Best Overall Small Business Accounting Software
Pros
- Track income and expenses by classes and location
- Excellent inventory tracking with automatic calculation of COGS
- Easy access to local independent QuickBooks ProAdvisors
- Excellent bank reconciliation features
Cons
- A bit expensive compared to other similar software
- Requires Plus subscription to track inventory and project profitability
- Unable to enter bills or record time worked from the mobile app
- Requires one subscription per organization
Pricing & Plans
You can try QuickBooks Online for 30 days or get 50% off for three months if you subscribe immediately:
- Simple Start:$30 per month for one user
- Essentials:$55 per month for up to three users
- Plus:$85 per month for up to five users
- Advanced:$200 per month for up to 25 users
QuickBooks Online is our best small business accounting program because it is widely used by business owners and accountants. It has a strong feature set, including the ability to create classes and locations for tracking income and expenses.
我t’s a versatile program that you can customize to specific industries, such as churches, restaurants, and nonprofits. QuickBooks Online is also easy to use and allows you to share data and files effortlessly with employees, certified public accountants (CPAs), and tax professionals.
另一个好处是,你可以找到一个当地的快Books ProAdvisor in your area easily if you need one. They can provide guidance and support on everything—from setting up your company file to managing your accounts, generating reports, and using QuickBooks Online to its full potential. Also, the provider offers many self-help guides to help new users get the most out of QuickBooks. If you need additional training resources, you can check out ourfree QuickBooks Online training courses.
QuickBooks Online now provides new subscribers a one-on-one meeting with a QuickBooks ProAdvisor to set up your company file at no additional charge.
FreshBooks: Best for Small Service-based Businesses
Pros
- Can compare estimated costs against actual costs
- Track time and expenses and easily add them to customer invoices
- Can send unlimited invoices in all plans
- Has a mobile app for invoicing and accounting
Cons
- Requires an additional fee for an extra user
- Can’t reconcile accounts without bank feeds
- Can’t track activity by class
- 缺少库存管理
Pricing & Plans
- Lite:$17 per month; up to five billable clients
- Plus:$30 per month; up to 50 billable clients
- Premium:$55 per month; unlimited billable clients
- Select:Custom pricing for unlimited billable clients and specialized features
FreshBooks is now available at 60% off for six months.
Add-ons available:
- Additional team members:$10 per person, per month, in all plans
- Gusto Payroll (separately billed from Gusto)
- Advanced payments at $20 per month (for Plus, Premium, and Select plans only)
FreshBooks也是我们的一个最好的小型企业乐鱼游戏app下载乐鱼登录网站appaccounting software and is our top choice for project-based companies because of its robust project management and time-tracking features. We recommend it for small service-based businesses that bill clients based on the time worked by their employees, including consulting firms and marketing agencies.
Another useful feature is its ability to compare estimated and actual project costs, which isn’t possible with QuickBooks Online. This helps you determine whether you are over or under budget, which allows you to make the necessary adjustments to your project plan or budget if needed.
You might enjoy ourfree FreshBooks tutorialsfor an in-depth view of how to use the platform.
Zoho Books: Best Accounting Software for Mobile Accounting
Pros
- Fee plan has many features
- Excellent inventory and COGS accounting
- Mobile app can perform almost any accounting function
- 我ntegrates with other Zoho apps easily
Cons
- Free and Standard plans limit the number of invoices that can be sent
- Can’t track unpaid bills in the Free and Standard plans
- Could be difficult to find third-party bookkeeping assistance using Zoho Books in the United States
Pricing & Plans
You can try any paid plan for 14 days with no credit card requirement:
- Free:For businesses making less than $50,000 in annual revenues—includes one user plus one accountant and up to 1,000 invoices per year
- Standard:$12 per month—limited to three users and 5,000 invoices
- Professional:$24 per month—limited to five users with unlimited invoices
- Premium:$36 per month—limited to 10 users
- Elite:$129 per month—limited to 10 users—includes advanced inventory
- Ultimate:$249 per month—limited to 15 users
Add-ons:
- Additional users:$3 per user, per month
- Receipts scanning:$10 for 50 scans per month
- Snail mail credits for sending invoices:$2 per credit
Zoho Books stands out from the other accounting software with its powerful mobile app. It tops our list of theleading mobile accounting appsbecause users can perform advanced accounting tasks on the app, including sending invoices, accepting online payments, entering bills, and viewing reports. The app also allows users to create recurring invoices and track time worked, making it our pick for the overallbest accounting software for freelancers.
We believe that conducting business with clients on the go is easier when you have a powerful mobile app like Zoho Books. However, that’s not the only thing it can offer, as it’s also remarkable in other aspects, like inventory and project accounting. In fact, it has features similar to QuickBooks Online—but at a more affordable price. This makes Zoho Books ourbest alternative to QuickBooks Online.
QuickBooks Desktop: Best Desktop Accounting Software for Managing Multiple Companies
Pros
- Doesn’t require an internet connection after the initial setup
- Can manage the books for multiple companies
- 我ndustry-specific editions available with Premier
- Eliminates security issues associated with cloud access
Cons
- Desktop software requires installation and setup
- Not as easy to use as a cloud-based accounting software
- Additional users require a separate subscription fee
- Difficult to share books with an external accountant
Pricing & Plans
- QuickBooks Pro:From $599 per year for one user
- QuickBooks Premier Plus:From $799 per year for one user
- QuickBooks Enterprise:From $1,410 per year for one user
- QuickBooks Accountant:我ncluded with $799 annual QuickBooks’ ProAdvisor membership
There is no free trial, but all QuickBooks Desktop products come with a 60-day money-back guarantee.
To help you determine which version of QuickBooks Desktop is right for you, read our:
QuickBooks Desktop is our recommendation if you don’t want cloud-based software like QuickBooks Online. As ourbest multicompany accounting software, you can manage the books of an unlimited number of companies for a single subscription price. With QuickBooks Online, you can set up and manage multiple companies, but each company requires its own subscription.
We recommend QuickBooks Desktop for businesses with complex accounting needs, including those with multiple locations, inventory management, or job costing. However, it has some drawbacks compared to QuickBooks Online. For instance, you can only access your data from the computer it is installed on. Also, it may be more challenging to collaborate with your team or accountant since you need to share the actual data file.
Read our in-depthcomparison of QuickBooks Online vs Desktopto choose the best software for your business.
QuickBooks Premier and Enterprise are the most popular desktop versions of QuickBooks for Windows. For Mac users, check out our list of thebest accounting software for Mac.
Wave: Best Free Solution for Tracking Income & Expenses
Pros
- Easy to setup and use
- Tracks expenses with automatic bank feeds
- Send invoices
- Receipt scanning
- Unlimited users with different roles
Cons
- No inventory accounting
- Not scalable in the long run
- Can’t reconcile bank statements when timing differences exist
Pricing & Plans
Wave is free for accounting and invoicing. However, it will charge you transaction fees when processing payments within the app.
Wave is our recommended free solution for small business accounting and our overallbest free accounting software.它包括免费记账、结账和实验ense tracking features, making it a great fit for freelancers and small businesses with simple accounting needs.
One of the advantages of Wave is that it supports unlimited users, which can be useful for small businesses or freelancers working with a team. Additionally, it offers some paid features that can be added as needed, such as payroll processing, credit card processing, and bookkeeping services.
However, Wave has some limitations, such as the lack of inventory management and project accounting. We recommend choosing QuickBooks Online or Zoho Books if you need a complete bookkeeping solution or have plans to upgrade in the future.
Bench: Best Online Bookkeeping Service as an Alternative to DIY Accounting Software
Pros
- Very affordable bookkeeping service
- Add customized reporting starting at $100 per month
- All plans include tax-ready financial statements
- Tax filing will be very simple using its Premium plan
Cons
- You’ll still have to issue your own invoices
- Proprietary software could make it hard to switch to another provider
- Software doesn’t sync with QuickBooks for invoicing
Pricing & Plans
Annual contract:
- Essential:$299 per month
- Premium:$499 per month; includes income tax advice and return filing
Pay-as-you-go:
- Essential:$349 per month
Add-ons:
- Historical bookkeeping:Catch up prior bookkeeping periods for $299 per month
- Specialized bookkeeping:Track A/R, A/P, or segments starting at $100 per month
Fit Small Business readers receive two months of free bookkeeping service with no commitment.
When you outsource your bookkeeping to Bench, ourbest online bookkeeping service, you can free up time to focus on more important aspects of your business rather than getting bogged down in administrative tasks.
Whether you are short on time or don’t have the bandwidth or resources to manage your books, Bench’s team of bookkeeping professionals can help you manage your accounting tasks, such as data entry, reconciliations, and financial reporting. For as little as $299 monthly, Bench costs far less than you would pay a local independent bookkeeper, and you can even add on tax filing and advisory services.
However, the service doesn’t completely eliminate your bookkeeping tasks. You’ll still need to issue invoices to your customers, collect payments, and pay your bills. These tasks are closely tied to businesses, and we believe most business owners like maintaining control over these activities. We recommend Zoho Invoice as a great free invoicing program to use if Bench is doing the rest of your bookkeeping.
*Bench is unrated since it’s not a full-fledged accounting software.
For freelancers, you may want to see our roundup of thebest online bookkeeping services for freelancersto find a service provider that can cater to your bookkeeping needs.
PCLaw: Best Accounting Software for Law Firms
Pros
- Has legal-specific features, like trust accounting and Legal Electronic Data Exchange Standard (LEDES) billing
- Can be run on-premise or in the cloud
- Supports mobile timekeeping through the PCLaw Go app
- Combines matter management and trust accounting in one place
Cons
- Pricing is not publicly disclosed
- Requires additional fee so that it can be run in the cloud
- No built-in payroll service
- Not suitable for small-scale law firms
Pricing & Plans
LexisNexis, the maker of PCLaw, doesn’t disclose its pricing information on its website. You will need to contact them directly to request a customized quote.
PCLaw, our overallbest law firm accounting software, is particularly beneficial for law firms needing a comprehensive solution that can handle all aspects of their accounting and matter management needs. It has a built-in trust accounting feature, which is essential for managing your client funds in compliance with legal and ethical requirements.
我t also has a robust time and billing management feature, allowing you to efficiently track billable hours and expenses related to a case or matter. Its other useful tools for law firms include client intake forms and a document management module that allows you to store and manage documents, emails, and research related to matters.
*As a legal accounting software, PCLaw is unrated because of its unique and complex nature. We were also unable to get a first-hand experience of the platform due to the lack of a free trial.
Restaurant365: Best Accounting Software for Restaurants
Pros
- Supports multilocation operations
- Lets you offer online ordering to your customers
- Allows you to schedule staff so that you can serve customers quickly
- 我ncludes a mobile app to view your event calendar
Cons
- Unable to print checks from within the platform
- Can be expensive for small restaurants
- Can’t categorize income and expenses by project
Pricing & Plans
- Essential:$435 per month; billed quarterly
- Professional:$635 per month; billed quarterly
- Enterprise:Custom pricing
Restaurant365, ourbest restaurant accounting software, is designed specifically for the restaurant industry, with numerous features that restaurant owners and managers will find useful. Some of the key features that make it popular for restaurant businesses include inventory management, POS integration, smart ordering, and a mobile app.
The ability to compare the actual costs incurred with the planned costs is a great feature to identify areas where you may be overspending or underspending and make necessary adjustments to stay on track. Also, we believe its full-featured mobile app is an important tool for restaurant businesses to stay competitive in the digital marketplace.
*Restaurant365 is rated using a different scoring rubric, which is covered in ourreview of Restaurant365.
Nimble Property: Best Accounting Software for Hotels
Pros
- Can be used to manage multiple properties
- 我ncludes an iOS and Android mobile app
- 我ncludes inventory management
- Offers assisted bookkeeping option
- Lets you manage and track 1099 vendors
Cons
- Pricing is not publicly disclosed
- Doesn’t offer a free trial
- No booking engine to take online reservations
Pricing & Plans
The provider doesn’t indicate pricing details on its website. You may need to contact it directly to request pricing information or a customized quote.
Nimble Property is one of our best small business accounting software andleading hotel accounting solutionsfor good reasons. For example, it has a unique door lock system that enables property managers to create unique access codes for each tenant. This gives them complete control over who has access to the property, improving security and convenience for tenants.
Property managers can use the KPI dashboard to track important metrics, such as rent collection, occupancy rates, and revenue growth. This helps them monitor the profitability of their hotels and make adjustments and optimize performance if needed. If you want to save time to focus on other important aspects of your business, you can use Nimble Property’s assisted bookkeeping service.
*Nimble Property is rated using a different scoring rubric, as discussed in ourNimble Property review.
How We Evaluated Small Business Accounting Software
我们评估最好的小企业会计乐鱼游戏app下载乐鱼登录网站appftware usingour case study framework, which we developed to assess the products we recommend objectively. There are 12 categories in this case study:
5% of Overall Score
我n evaluating pricing, we considered the billing cycle (monthly or annual) and number of users.
7% of Overall Score
This section focuses more on first-time setup and software settings. The software must be quick and easy to set up for new users. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information.
7% of Overall Score
The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions. The bank reconciliation module must also let users reconcile accounts with or without bank feeds for optimal ease of use. Lastly, the software must generate useful reports related to cash.
7% of Overall Score
The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.
7% of Overall Score
This takes into account customer management, revenue recognition, invoice management, and collections. The software must have A/R features that make it easy for users to collect payments from customers, remind customers of upcoming or overdue invoices, and manage customer obligations through analytic dashboards or reports.
10% of Overall Score
Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units.
10% of Overall Score
服务或基于项目的企业应选择accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.
4% of Overall Score
我n this section, we’re looking at sales tax features. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
4% of Overall Score
Reports are important for managers, owners, and decision-makers. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
30% of Overall Score
Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software. For this section, we considered customer service, support network, and a subjective expert opinion score. Users must have easy access to customer service channels in case of problems, questions, or assistance.
Support network refers to a community of software users that can extend professional help to businesses. Having an independent software expert perform the bookkeeping is good for overall ease of use. Lastly, our expert opinion score is our subjective rating based on our experience in trying the software.
5% of Overall Score
The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops.
4% of Overall Score
We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
Based on thelatest accounting statistics that we gathered, 64% of business owners do their own bookkeeping, but the number of small businesses using accounting software in and outside the US is significantly increasing. For instance, Xero, the second largest provider of accounting software in the world, has 3.5 million subscribers worldwide as of 2023.
Here are the reasons why you need to have small business accounting software:
- Automation:Small business accounting software automates accounting processes whenever you enter an invoice, expense, sale, or cash transaction. You don’t need to update ledger accounts because the software performs this already. Moreover, generating reports is faster.
- 我ntegration:大多数小型乐鱼游戏app下载企业会计软件集成with third-party apps to facilitate data transfer and enhance the experience. For example, connecting your ecommerce platform to the accounting software facilitates the faster transfer of sales and cost data for bookkeeping.
- Data security:Most accounting software has security features to protect accounting data from breaches and unauthorized access. Accounting software products have higher security than spreadsheets because data is encrypted to prevent accidental deletion or theft.
- Scalability:我n case you need to transfer from one accounting software to another, most small business accounting software allows migration. For example, migrating from QuickBooks Online to QuickBooks Desktop is possible.
All businesses should have accounting software that can bill customers, help manage their bills, track their payments, and provide reports to see how a business is performing. Beyond that, the features needed in accounting software will vary by industry and personal preference.
我nvoicing & Tracking Customer Payments
The best small business accounting software should be able to issue invoices and track them until they’re paid by your customer. It’s also helpful if your software will print an A/R aging report, which shows all of your outstanding invoices grouped by how long they’re past their due date. Finally, the best accounting software will track inventory, time, and expenses and allow you to add them to your invoices easily without much manual data entry.
Managing Bills & Tracking Expenses
我deally, your accounting software should allow you to input bills when you receive them, including their due date. You can receive reminders of upcoming due dates and print an A/P aging report, grouping bills by how long they’re overdue.
Reporting
At the very least, your accounting software should print a profit and loss (P&L) statement and a balance sheet that can be used to prepare your tax returns. It’s helpful if software prints comparative financial statements that show both current and prior year numbers side by side. Check out our sample
The best accounting software will print many more reports than just basic financial statements. For instance, if your business deals with inventory, a report summarizing the quantity and cost of the current inventory on hand is essential. If your company works on large projects (e.g., a construction company), you’ll want reports that track the profitability of individual projects and compare the actual results to the estimated costs.
Fulfilling Industry-specific Needs
Many industries have specific requirements for their accounting software that might not apply to other industries. For example, restaurants and brick-and-mortar retail stores need a strong point-of-sale (POS) system. For these businesses, it’s important to choose an accounting system that will integrate with a POS system to transfer the data automatically without manual entries, which can cost time and create mistakes.
Other industry-specific needs include time and location tracking of employees, ecommerce platforms, CRM, and subcontractor management.
Frequently Asked Questions (FAQs)
QuickBooks is by far the most popular and top small business accounting software in the US. However, there are some less expensivealternatives to QuickBooksyou may want to consider.
selecti时需要考虑的一些关键因素ng the best business accounting software include cost, ease of use, deployment method, scalability, features, and customer support.
Prices range from $0 to $200 per month for cloud-based software. Desktop accounting software can go as high as more than $1,000 per month, depending on the number of users included in the plan.
For businesses with basic accounting tasks, Wave might be the simplest solution. It lets you create and send unlimited invoices, track income and expenses, and create financial reports.
Cloud-based software like QuickBooks Online allows you to access your books from the internet. On-premise programs like QuickBooks Desktop can be accessed only from the computer where it’s installed. Read ourQuickBooks Online vs Desktop comparisonto learn more.
我f you only need basic accounting features like income and expense tracking, then you may benefit fromfree accounting software.Some free accounting programs, such as Lendio Accounting, also offer great invoicing functions.
No, you don’t. There is some easy-to-use accounting software that doesn’t require prior bookkeeping experience. Examples are QuickBooks Online, Lendio Accounting, and FreshBooks. However, to get the most out of accounting software, we recommend that you work closely with your accountant.
Bottom Line
There are many terrific small business accounting software applications available, but none of them are as versatile and comprehensive as QuickBooks Online. However, it isn’t always the best solution, especially if you only have very basic needs and wish to save money. If your priority is mobile accounting, Zoho Books is more suitable. If your business needs special industry features, you choose one of QuickBooks Desktop Premier’s five industry-specific editions.