Accounting Software for Small Businesses in 2022

Accounting software for small businesses can be quite beneficial to a growing company that thrives on working with limited resources.

Accounting software assists small business owners in tracking accounts receivable and payable, comprehending the concept of profitability, monitoring revenue, cost budgeting, and economic planning. Practicing detailed financial bookkeeping is always has been and still is the critical
element for running a business

There is a wide range of accounting software that is ideal for small enterprises. Depending on the sort of business, you can select from among the top accounting software. We’ve compiled a list of the five top accounting software for small businesses for 2022 in this blog.

These technologies can help you keep track of inventories, measure economic performance, manage payroll services, and manage your business funds, among other things.

What Is Accounting Software For Small Businesses?

Small business owners looking for accounting software that will help them manage their accounting computations on a daily basis.

Accounting software also enables accountants and bookkeepers to keep track of their company’s financial transactions. Large firms will hire professional accountants to use customized accounting solutions. Whereas for small business firms, off-the-shelf accounting software will be an immense

With such software, owners with their accounting skills can avail themselves functions such as
invoicing, accounts payable, accounts receivable, online payment, financial statement preparation, profit-and-loss statement, balance sheet, cash flow statement, taxation,
and many others.

What Are The Best Small Business Accounting Softwares?

From a pool of accounting software, some of which support small businesses
through a variety of functions and affordable pricing, include:

  1. FreshBooks
  2. QuickBooks Online
  3. Wave
  4. Xero
  5. Zoho Books

1. FreshBooks

Small business owners can have the best solution for invoicing from FreshBooks accounting software. It is one of the most effective accounting systems for simplifying financial administration.

FreshBooks is a well-rounded accounting program that includes features like sending, receiving, printing, and paying invoices.

FreshBooks is service-based accounting software that, due to its great usability and aesthetic characteristics, is the best accounting solution. Regular backups and a mobile app, for example, allow you to keep track of your business constantly.

The pros of FreshBooks include:

  • Cloud-based
  • User-friendly interface
  • Third-party app integration
  • Double-entry accounting
  • Inventory tracking
  • Detailed client records
  • Estimate and retainer functionality
  • Easy invoicing

In addition, the cons of FreshBooks are:

  • No payroll service
  • The mobile app lacks some of the site features
  • No quarterly tax estimation

FreshBooks provides resources that can support your small business with features like invoicing, expenses, time tracking, projects, payments, reporting, and accounting.

FreshBooks is available for $7.50 per month for the Lite plan. In addition, there are three unique plans other than the Lite plan. The most popular is the Plus plan for $12.50 per month to manage up to 50 clients.

2. QuickBooks Online

QuickBooks Online by Intuit is one of the best accounting software for small businesses. Live bookkeeping, cost management, accounting, payroll, payments, and tax are among the most popular features.

Because of its depth, versatility, extensibility, and limitless training resources and support, most small business owners use QuickBooks Online.

QuickBooks Online is an accounting software solution for accountants, bookkeepers, small business owners, and financial officers that are hosted in the cloud. It allows you to keep track of your revenue, expenses, invoices, payments, estimations, sales, and taxes, among other things.

With one of the best mobile accounting app, the pros of QuickBooks Online are:

● Excellent user interface
● Third-party application integration
● Scalable
● Customizable reports
● Payroll management and support
● Hybrid sales tax option
● Cash flow management
● Track inventory

The cons of QuickBooks Online include:

  • Occasional synching problems
  • Not very accurate auto-categorization
  • Online support lacking

Intuit QuickBooks Online is available to you for $12.50 for the Simple Start plan. There are three other plans, namely Essentials, Plus, and Advanced.

The plus plan is the most popular at $35 per month. You can include five users, track inventory, and track project profitability.

Related: Skills You Need To Be A Successful Accountant

3. Wave

Wave is a free accounting program that may help you make, move, and manage your money. Small business owners and independent contractors will find it to be an intriguing accounting solution. It has a user-friendly dashboard with a lot of options.

The Wave is free accounting software that includes recurring billing, invoice templates, multi-currency compatibility, expense tracking, and double-entry bookkeeping, among other features.

Wave is perfect for independent contractors and small business owners. You can even use the same account to incorporate several firms. Furthermore, unless you sign up for payroll or consumer payments, most of its services are free.

The pros of Wave are:

  • Free software (payment and payroll incur fees)
  • Excellent user interface with navigation tools
  • Multi-currency support
  • Unlimited number of users
  • Multiple businesses in one account
  • Instant payouts
  • Double-entry accounting
  • Pre-authorize recurring credit card payments

The cons of Wave include:

  • Limited third party application integration
  • No inventory management
  • Simple record templates
  • No time tracking features or comprehensive mobile app
  • Weak invoice customization

Xero is the most simple accounting software that is apt for micro-business owners. It helps them incur robust account reconciliation, data imports, sales, and purchase transactions, reconcile bank transactions, track inventory, and capture records for easier record-keeping.

4. Xero

Third-party payroll providers are completely integrated with Xero, simplifying regular accounting processes. It also allows you to see financial performance data and link your bank account for a seamless experience.

Xero’s mobile experience, which allows small business owners to operate on the go, is a standout feature.

Xero’s advantages include:

  • Cloud-based integration
  • Mobile application
  • Impressive d ashboard
  • Thorough reconciliation tools
  • Project tracking
  • Exceptional online support
  • Simple inventory management

Whereas, the cons of the Xero accounting software include:

  • Limited reporting
  • No reorder level in inventory
  • Expenses handled in separate mobile app

The Starter plan, which costs $20 per month, gives you access to all of Xero’s features. It is believed to be appropriate for sole traders, small firms, and self-employed individuals. The Xero pricing plans are divided into three categories, one of which is the Starter plan.

The Standard plan, which costs $30 per month, is the most widely utilized and popular option for developing small businesses. The Premium plan, which costs $40 per month and is ideal for established businesses of all sizes, is the next step up.

5. Zoho Books

For cloud-based small-business accounting, Zoho Books is a great automation accounting software. It’s a cutting-edge accounting program that’s developed to Organize your money and cash flow. Furthermore, Zoho Books is known for its automation workflows, which allow you to collaborate across departments.

Zoho Books is a powerful platform that emphasizes usability, flexibility, and bookkeeping services such as sales and purchases, inventory management, and project management.

Invoicing, client portal, invoice receivables and payables, inventory, banking, timesheet, purchase orders, online payment, and more are some of Zoho’s capabilities.

The pros of Zoho Books include:

  • Ease of use
  • Multiple payment gateways
  • Document management
  • Dozens of custom fields
  • In-depth record and transaction forms
  • Affordable
  • Invoice distribution and tracking

The cons exhibited in Zoho Books are:

  • The payroll feature is only accessible in Texas, California, New York, and India
  • Does not integrate with third-party payroll providers
  • Limited pool of accounting partners

Apart from the Free plan, suitable for businesses with less than $50K turnover, there are
three other plans.

First, you can avail of the standard plan for $15 per organization or per month. The remaining two are the professional plan and the premium plan, with $40 and $60, respectively.

6. Accounting Seed

Accounting Seed is a highly-customizable software solution that helps you take care of all accounting-related aspects of your business. It’s highly flexible, easy to use, and provides a collaborative environment that enables you to make strategic business decisions.

Powered by the Salesforce Platform, their open architecture allows both open customization and reliable connections with tools on and off Salesforce. This streamlined database provides best-in-class security, collaboration, and automation in one place.

This guide includes how accounting technology has changed over the last 50 years, key accounting features you need, the current costs of new accounting software, how to implement new solutions, and more.

7. Tipalti

Tipalti is a comprehensive accounting software platform that provides end-to-end solutions to automate the entire supplier payments operation, making global mass B2B payments efficient and frictionless. Moreover, it is a KPMG-certified application.

  • Supplier management – You can easily guide suppliers through submitting contact information, banking details, tax forms, and more
  • Invoice management – Provide automated invoice capture, approvals, payments, and reconciliation in a single end-to-end AP platform to boost efficiency and standardization
  • Tax compliance – It solves the complex manual process of collecting tax information through digital capture, ensuring payment validation even before its processed. It has a KPMG-certified tax module ensuring IRS and VAT compliance
  • Tipalti Detect feature – It can proactively prevent fraud with detailed payee monitoring that effectively mitigates risk exposure

To Sum Up

With so much accounting software for small businesses on the market, you can pick the best one for your needs. We’ve compiled a list of the top five accounting software options for small business owners.

They can use these to conduct numerous accounting activities while paying a little price for the program. Utilize these platforms to update your business play in order to move forward with your accounting processes.

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