Best Accounting Software for Small Businesses of May 2023 - The first knowledge sharing application in Vietnam

Here are NerdWallet’s picks for the best small-business accounting software and why we like each product, plus tips on how to choose the right software for your business’s specific needs.

NerdWallet independently reviewed 12 accounting software products before determining our top picks. The best accounting software received top marks when evaluated across eight categories and more than 20 subcategories. We collect these data points from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.

To choose the right option for you, think about the present and future versions of your business — your accounting software should be able to support both. Right now, check that it’s within your budget and is compatible with your point-of-sale and/or payroll software , as well as your accountant’s system. Based on how much you expect your small business to grow, keep an eye on scalability, too.

Accounting software helps you track how money moves in and out of your small business. The best accounting software makes it easy to keep a detailed financial record so that you’re ready come tax season. It also includes tools for streamlining the invoice process and gaining insight into your business’s financial health.

of the Sage Accounting plan for six months or free 30-day trial.

It is possible to purchase cloud hosting for QuickBooks Enterprise, but it can be expensive, starting at $171 per month for one user. If you operate multiple stores or an online business and want to be able to manage your finances from anywhere, a cloud-based accounting software might be a better fit.

Business owners can set up volume discounts and customize pricing rules according to sales rep, item category or customer in the Platinum plan and up. The same plans help speed up the inventory count process by allowing businesses to use mobile devices as barcode scanners. And unlike some competitors that only track single inventory items, QuickBooks Enterprise lets you track inventory parts plus assemblies. You can also track the cost of goods sold and adjust inventory for loss or shrinkage.

As far as locally installed desktop accounting software goes, QuickBooks Enterprise is one of the most feature-rich. While QuickBooks Online and other cloud-based products are typically easier to use, QuickBooks Enterprise includes specialized reporting for construction companies, nonprofits, manufacturers, wholesalers and distributors. It has more complex inventory tracking and pricing capabilities built in, too.

That being said, you will have to pay extra for a time tracking module and there is no built-in mileage tracking feature.

Sage’s more expensive $25-per-month plan offers the most value for your money. For example, it accommodates unlimited users, which isn’t typical, even in more expensive plans from competitors. You can also forecast cash flow, an important feature for businesses trying to stay within their budget or gauge whether they can afford certain expenses. This plan covers the basics when it comes to inventory management, too. You can set minimum reorder levels, see which products sell best, and organize items into categories and subcategories.

Sage Accounting, also known as Sage Business Cloud Accounting, offers two affordably priced plans that cover the basics for small business with up to 10 employees. And unlike Wave Accounting, another budget software product, Sage includes audit trails and some third-party integrations.

of the Sage Accounting plan for six months or free 30-day trial.

Wave can be a sufficient solution for entrepreneurs with small, service-based businesses who need a simple way to invoice clients and separate business and personal expenses. However, if you need built-in mileage tracking, time tracking or a billable expense feature, it’s probably not the right choice.

Unlike some “freemium” software products, Wave doesn’t put out a bare-bones free product as bait, then load it down with costly upgrades. The free accounting software lets you add unlimited collaborators, along with unlimited bank and credit card connections. You can create and send invoices through the app, as well as set up recurring invoices and track client communication and payment history. The software also offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services.

FreshBooks is especially cost-effective for freelancers who can work within the confines of lower-tier plans’ billable client limits. Plans that allow for unlimited billable clients start at $55 per month.

Unlike some competitors that require you to pay extra for a time tracking module, all FreshBooks plans come with unlimited time tracking, too. You can start a timer from within the mobile app to log hours spent on a particular project, or sync data from tools like Asana or Trello.

FreshBooks is especially useful for freelancers because it lets users view invoices, respond to clients’ questions and send payment reminders, all from its mobile app. Clients can also choose to create their own accounts. This lets them save and comment on invoices, save their payment information, invite others to access the account, and collaborate on projects they’ve been invited to view.

The software is an especially good fit for entrepreneurs who already use other Zoho suite products (like Zoho CRM, Zoho Inventory or Zoho Commerce), since they directly integrate. Third-party integrations, however, are limited compared to the competition.

The software’s mobile-first features — such as the ability to send invoices by iMessage or add widgets to your phone’s home screen to easily access timers and overdue invoices — really help set it apart, though. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices.

Zoho Books packs in an impressive collection of features and capabilities for an affordable price, and higher-tier plans let users automate workflows and track project profitability. Unlike some competitors, none of Zoho Books’ plans put a limit on billable clients, and even its free plan lets you send up to 1,000 invoices per year. On top of that, the free option offers a customer portal, automatic payment reminders, mileage tracking and the ability to schedule reports.

If you appreciate simplicity and don’t want to dedicate much time to learning how to navigate a product, Xero is a great choice. Just know that if you need mileage and time tracking, you’ll need to subscribe to the highest-tier Established plan.

In terms of functionality and features, Xero is one of QuickBooks Online’s biggest competitors. Like QuickBooks Online, it has excellent reporting features and a capable mobile app — but with a more customizable dashboard that lets each user rearrange or hide panels according to their preferences. It also offers more integrations than QuickBooks Online.

Xero stands out for allowing unlimited users at every subscription tier, a valuable feature in situations where several users need some level of access to the system. And you can assign them different permission levels: For example, one user might only be able to create invoice drafts and submit time entries, while another can view reports but not edit transactions. Competitors’ plans limit how many users you can add, or they charge an additional monthly fee for each user. If you have a large team, those fees can add up quickly.

The software’s biggest downside is its cost. You have to subscribe to the Plus plan ($85 per month) or up to record billable expenses and access inventory tracking features, and time tracking software isn’t included. Make sure to factor this into your budget if any of these features are on your must-have list.

In particular, entrepreneurs trying to measure performance in different segments of their business will like QuickBooks Online’s granular transaction tracking tools that let you group transactions by department or location, among other categories. Reporting capabilities increase with each plan, but even the least expensive Simple Start plan includes more than 50 reports. These features, along with QuickBooks Online’s ability to scale up and integrate with a wide range of products, make it valuable to self-employed entrepreneurs and larger small businesses alike. And with millions of users worldwide, your accountant will likely be familiar with it.

QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set and scalability. It has robust reporting and transaction tracking tools, invoicing capabilities, inventory management features and mobile app functionality.

Mục lục bài viết

What is accounting software?

Accounting software is like a database for all of your business’s financial transactions. It helps you follow basic accounting principles so that you can keep your books up to date and in order, which is especially important come tax season. Most software uses double-entry accounting , meaning it factors in assets, liabilities and equity, in addition to revenue and expenses.

You can use accounting software to do the following:

Enter and organize financial transactions.
Record income and expenses.
Reconcile accounts.
Generate financial statements and reports.
Keep track of how much money you’re owed and vice versa.

Most accounting software goes beyond these tasks with additional built-in modules for invoicing, bill-pay and inventory management , among other functions. The more your accounting software becomes a one-stop shop for these financial chores, the fewer integrations you need to consider.

How to choose accounting software

Ideally, your accounting software will make your day-to-day routine easier through automation. Here are some tips to help ensure that’s the case for your small business:

Think about accessibility

Most accounting products today are cloud-based, meaning you can access them through any device with an internet connection. This generally allows for easier collaboration with accountants and seamless integration with other business software . However, some accounting products, like QuickBooks Enterprise, are still desktop-run and can only be accessed from a single computer.

Ask your accountant what accounting software they use

If you’re working with an outside accountant, find out which accounting software they work with. QuickBooks is almost ubiquitous, but other companies, such as Xero, are making inroads as well.

Take scalability into account

You want accounting software that can grow with your business. If you’re planning to scale, consider accounting software for medium-sized businesses that comes with enough users and can be upgraded to serve a larger organization with more complicated financials.

Make sure subscription costs fit your budget

Subscription fees for accounting software can start at under $20 per month, but add-ons could increase the price. See NerdWallet’s picks for best free accounting software if you run a micro business or are self-employed and want to keep costs down.

What accounting software features do you need?

Typically, solid invoicing features and reporting are must-haves for small businesses. But you’ll want to choose accounting software with features that are most important to your business.

For instance, if inventory management is a priority, look for a system that comes with useful tracking features or integrates with your POS system. Depending on the type of business you run, you might also want industry-specific options — like construction accounting software that can cost out different jobs or nonprofit accounting software that logs donor details.

Here are some features to look for in accounting software. If you’re not sure whether a product fits your business’s needs, try out the free trial offered by most providers.

The basics

At a minimum, you’ll want accounting software equipped with a chart of accounts , reconciliation tools, bank connections, and a way to track income and expenses. Together, these features help ensure your financial records are accurate and thorough.

Reporting

Most businesses will need accounting software with basic report templates — think a profit and loss statement and balance sheet , along with reports on aged receivables and sales tax. Some business owners might also want to run more specialized reports. For example, retail accounting software may offer details on monthly sales by customer or product margins.

Consider the types of reports your company needs, as well as customization options and the ability to filter by date and tag.

Invoicing

Invoicing features are key, especially for service-based businesses. You should be able to customize invoices with your logo, easily turn estimates into invoices, add terms and due dates, and accept online payments

Some products’ plans cap the number of clients you can invoice, which could force you into a higher pricing tier. If you work with dozens of clients and send a high volume of invoices each month, this is important to consider. Another invoicing feature to look for is automatic payment reminders to save you the admin of tracking down unpaid invoices.

While it might not be as convenient as having invoicing features built into your accounting system, third-party invoicing software is also available.

Mobile app

Accounting apps help you access your financial data quickly and easily, even if you’re away from a computer. A capable app can also allow you to invoice a customer from anywhere.Accounting software for freelancers , for example, often includes mobile apps that let you track time and miles — the latter of which can help you claim deductions come tax season . Other conveniences include being able to view reports and photograph receipts so they’re automatically turned into expenses.

Extras

Additional features worth considering include project tracking, budgeting and forecasting tools, and the ability to manage multiple businesses from one account.