Best Accounting Software for Small Business of 2023

Of the accounting software providers listed here, only QuickBooks and Wave offer payroll plans in all 50 states. Of the two, we recommend Wave Payroll over QuickBooks Payroll, which is on the pricier end and doesn’t offer a tax-filing guarantee—a key industry standard you should expect from https://www.bookstime.com/ any payroll provider. QuickBooks Online has a longstanding reputation as one of the easiest accounting software programs to use. The dashboard is well organized with clear graphics for each feature and easy-to-read reports that simplify finances for non-accountant business owners.

Recently, the company added an $8-per-month charge for scanning expense receipts, which puts a dent in its appeal, though it’s still an excellent service that gives you a lot for free. Wave follows standard accounting rules and is especially skilled at invoicing and transaction management. The app supports multiple currencies and has a smart selection of features for very small businesses. It doesn’t have a dedicated time-tracking tool, comprehensive mobile access, or inventory management, though.

Preparing Basic Financial Statements

The priciest plan, intended for enterprises with complex finances, includes a suite of advanced tools like in-depth reporting and advanced inventory management. As a freelancer or small-business owner, you can use Wave Accounting bookkeeping to track your finances by syncing it with any and all of your business bank accounts and credit cards. When customers no longer have an active, paid subscription, they will not be eligible to receive benefits.

Even though Wave has a useful payroll tool, its accounting software isn’t necessarily right for businesses with dozens of employees. Since Wave offers just one accounting plan, businesses can’t scale up to plans that include more accounting tasks for growing businesses. And Wave’s lack of inventory tracking makes it better matched to service-based solopreneurs and freelancers who don’t need both accounting and inventory software. For exactly $0, Wave presents you with a slick, user-friendly dashboard and a slew of features that rival those of paid accounting systems. Xero is easily one of the most user-friendly online accounting systems available. Its accessibility and starting price of $15 a month make Xero ideal for first-time business owners, freelancers and solopreneurs alike.

Best for paying bills

Sage Intacct also boasts an intelligent, AI-powered general ledger that can parse thousands of recorded transactions in just a few minutes to give you clear, trustworthy insights into your business’s finances. The free plan’s freelance-friendly features include mileage tracking, recurring invoices, a client portal and free accountant access. Other small-business owners can benefit from free features like 1099 contractor management and access to a chart of accounts. Wave Accounting is a fully featured, completely free accounting plan for freelancers and small-business owners. It integrates natively with more third-party apps than any other online accounting service provider besides Xero (which syncs with 1,000+ apps compared to QuickBooks’ 700+ apps). Businesses that fall on the larger end of the spectrum of small- to medium-size businesses may find they quickly outgrow some of the free and low-cost accounting software options on the market.

• Xero lets you track fixed assets, which is an unusual tool in the category of small business accounting software.
• QuickBooks Online generally has the highest starting prices in the industry at $30 a month for a basic plan.
• Terms, conditions, pricing, service, support options, and support team members are subject to change without notice.
• They may find a worthy solution in QuickBooks Enterprise, desktop software with cloud-access add-on options.
• The State of the industry report is based on the responses from an online survey run by global insights and discovery agency One Picture between 3 July and 24 August, 2023.
• The bottom line is that bookkeeping is a crucial aspect of running a small business.