What is the Best Online Accounting Software for Small Business?

What is the best online accounting software for small business? Running a small business can be incredibly rewarding but come with its fair share of challenges. Among these, managing finances efficiently is crucial to ensure long-term success. With the advent of online accounting software, business owners can now streamline their financial processes, reduce errors, and gain real-time insights into their financial health. But with so many options available, which software stands out as the best for small businesses?

In this article, we’ll explore the top contenders for What is the best online accounting software for small business. We’ll look at key features, pricing, ease of use, and customer support to help you make an informed decision.

1. QuickBooks Online

Overview:

QuickBooks Online, developed by Intuit, remains a popular choice for small businesses worldwide. It offers a comprehensive suite of features tailored to various accounting need, from invoicing to tax preparation.

Key Features:

Invoicing and Payments: Create & send professional invoices & accept online payments.

  • Expense Tracking: Automatically sync your bank accounts & categorize expenses.
  • Tax Preparation: Generate tax reports and simplify filing with integration options for tax software.
  • Payroll Integration: Easily manage employee payrolls.
  • Customizable Reports: Generate detailed financial reports to analyze your business performance.

Pricing:

Plans start at $25 per month for the Simple Start package, with advanced features available in higher-tier plans.

Why It’s Great:

QuickBooks Online is known for its user-friendly interface, scalability, & extensive integrations with third-party apps. It’s suitable for businesses of all sizes but particularly shines for small businesses looking for a reliable and comprehensive solution.

2. Xero

Overview:

Cloud-based accounting software designed for small business. Thanks to its multi-currency support, it’s especially popular among businesses with international clients.

Key Features:

  • Automated Bank Reconciliation: Automatically import and categorize transactions.
  • Inventory Management: Keep track of stock levels and value.
  • Multi-Currency Accounting: Perfect for businesses dealing with international clients.
  • Mobile App: Access financial data on the go.
  • Collaboration Tools: Invite your accountant or bookkeeper to work together in real-time.

Pricing:

Plans start at $13 each month for the Starter plan. The Growing & Established plans offer more advanced features at $37 and $70 per month, respectively.

Why It’s Great:

Xero’s intuitive design and robust features make it a favorite among entrepreneurs who value simplicity & efficiency. The ability to handle multi-currency transactions is a significant advantage for businesses with global operations.

3. FreshBooks

Overview:

FreshBooks is a fantastic choice for small businesses & freelancers. It focuses on invoicing and time tracking while also offering essential accounting features.

Key Features:

  • Invoicing: Create professional invoices and send payment reminders.
  • Time Tracking: Track billable hours & link them to specific client or projects.
  • Expense Management: Snap photos of receipts to track expenses.
  • Project Management: Collaborate with team members & client on projects.
  • Payment Processing: Accept online payments directly through invoices.

Pricing:

Plans start at $17 each month for the Lite plan. Higher-tier plans, such as Plus and Premium, are priced at $30 and $55 per month.

Why It’s Great:

FreshBooks excels in invoicing and time tracking, making it ideal for service-based businesses & freelancers. Its clean interface and robust customer support add to its appeal.

4. Wave Accounting

Overview:

Wave is a free accounting software platform designed for small business & freelancers. Despite being free, it offers a range of features that rival many paid options.

Key Features:

  • Invoicing: Create and send unlimited invoices.
  • Expense Tracking: Sync your bank accounts to monitor expenses.
  • Accounting Reports: Generate profit and loss statements, balance sheets, & more.
  • Receipt Scanning: Using the mobile app to scan & upload receipts.
  • Payroll Services: Available as a paid add-on.

Pricing:

Wave’s core features, including accounting & invoicing, are free. Optional payroll services start at $20 every month.

Why It’s Great:

Wave’s affordability (it’s free!) makes it an excellent choice for startups and very small businesses. It’s easy to use and offers essential features without any hidden costs.

5. Zoho Books

Overview:

Zoho Books is part of the Zoho suite of business tools, making it a great option for businesses already using other Zoho applications.

Key Features:

  • Automation: Automate recurring invoices, payment reminders, and workflows.
  • Inventory Management: Track inventory levels and reorder stock when necessary.
  • Multi-Currency Support: Handle transactions in various currencies.
  • Tax Compliance: Stay tax-compliant with localized tax settings.
  • Third-Party Integrations: Seamlessly integrate with popular payment gateways and apps.

Pricing:

Plans start at $15 each month for the Basic plan. The Standard and Professional plans cost $40 and $60 per month, respectively.

Why It’s Great:

Zoho Books is feature-rich & integrates well with other Zoho product, making it a perfect fit for businesses that rely on the Zoho ecosystem.

6. Sage Business Cloud Accounting

Overview:

Sage Business Cloud Accounting is designed for small & medium-sized businesses looking for a simple yet effective accounting solutions.

Key Features:

  • Real-Time Bank Feeds: Sync your bank accounts to track income and expenses.
  • Invoicing: Create & send invoices in just a few clicks.
  • Cash Flow Management: Get insights into your cash flow to make informed decisions.
  • VAT Compliance: Simplify VAT submissions with automated calculations.
  • Mobile App: Manage your finances on the go.

Pricing:

Plans start at $10 each month for the Start plan. The Accounting plan, offering more advanced features, is priced at $25 per month.

Why It’s Great:

Sage’s affordability & easy of use make it an attractive option for small businesses. Its mobile app is particularly handy for business owners who need access to their finances anytime, anywhere.

Choosing the Right Software

When selecting best online accounting software for your small business, consider the following factors:

  1. Budget: Determine how much you’re willing to spend. Free options like Wave are great for tight budgets, while premium tools like QuickBooks Online offer extensive features at a higher cost.
  2. Business Needs: Identify your business’s specific needs, such as multi-currency support, payroll integration, or project management.
  3. Ease of Use: Choose software with an intuitive interface to minimize the learning curve.
  4. Scalability: Ensure the software can grow with your business as your needs evolve.
  5. Customer Support: Opt for software with reliable customers support to assist you when needed.

Conclusion

The best online accounting software for small businesses ultimately depends on your unique needs and preferences. QuickBooks Online and Xero stand out for their comprehensive features, while FreshBooks is excellent for invoicing and time tracking. Wave’s free offering is perfect for startups, and Zoho Books is ideal for those in the Zoho ecosystem. Sage Business Cloud Accounting offers a simple yet effective solution at an affordable price.

By carefully evaluating your options and aligning them with your business requirements, you can choose the perfect accounting software to streamline your financial processes and set your business up for success.