Best Accounting Software for Small Business in 2023
Accounting software is a critical tool for any small business. It can help you track your income and expenses, manage your inventory, and prepare your taxes. But with so many different accounting software options available, it can be difficult to know which one is right for you.
In this article, we will discuss the best accounting software for small businesses in 2023. We will cover the best accounting software options, including their features, pricing, and pros and cons. We will also provide some tips for choosing the right accounting software for your business.
Why Do You Need Accounting Software?
Accounting software can help you with a variety of tasks, including:
- Tracking your income and expenses
- Managing your inventory
- Preparing your taxes
- Generating reports
- Communicating with your accountant
Accounting software can save you time and money and help you make better business decisions. If you are a small business owner, accounting software is an essential tool.
How to Choose the Right Accounting Software
Factors to consider when choosing accounting software include:
- Your business size and needs: How big is your business? What kind of features do you need? If you’re a small business, you may not need all the bells and whistles of a larger business. But if you’re a growing business, you’ll want to choose software that can scale with you.
- Your budget: How much are you willing to spend on accounting software? Accounting software can range in price from free to hundreds of dollars per month. It’s important to set a budget before you start shopping so you don’t overspend.
- The features you need: What features are important to you? Do you need invoicing, payments, inventory tracking, or reporting? Make a list of the features you need and use that to narrow down your options.
- The ease of use: Accounting software can be complex, so it’s important to choose software that’s easy to learn and use. If you’re not comfortable with computers, you’ll want to choose software with a user-friendly interface.
- The level of support: If you have any questions or problems with your accounting software, you’ll need to be able to get help. Some software providers offer 24/7 support, while others only offer support during business hours. Choose a software provider that offers the level of support that you need.
- Read reviews: Read reviews of different software options to get a sense of how other users have rated the software.
- Try out the software for free: Many accounting software providers offer free trials. This is a great way to try out the software and see if it’s a good fit for your business.
- Talk to your accountant: Your accountant can help you choose the right accounting software for your business and your specific needs.
Tips for choosing the right accounting software for your business:
- Start by making a list of your business needs. What features are essential for your business? Do you need a basic accounting solution or a more comprehensive one?
- Set a budget. How much are you willing to spend on accounting software?
- Compare the features and pricing of different options. There are a number of accounting software options available, so it is important to compare the features and pricing of different options before making a decision.
- Read reviews. Once you have narrowed down your choices, read reviews of different accounting software options. This will help you get a sense of how other users have rated the software.
- Try out the software for free. Many accounting software providers offer free trials. This is a great way to try out the software and see if it is a good fit for your business.
1. QuickBooks Online (Best for small service-based businesses)
QuickBooks Online is the most popular accounting software for small businesses. It is easy to use, affordable, and packed with features. QuickBooks Online offers a wide range of features, including invoicing, payments, inventory tracking, and reporting. It also integrates with other popular business apps, such as PayPal and Salesforce.
Features:
- Invoicing: You can create and send invoices to customers, track payments, and manage your receivables.
- Payments: You can accept payments online, via credit card or ACH, and track your cash flow.
- Inventory tracking: You can track your inventory levels, costs, and sales.
- Reporting: You can generate a variety of reports to track your financial performance.
- Integrations: QuickBooks Online integrates with other popular business apps, such as PayPal, Salesforce, and Shopify.
Pros and cons of QuickBooks Online:
Pros:
- Easy to use
- Affordable
- Wide range of features
- Integrations with other business apps
- Mobile app
- Customer support
Cons:
- It can be complex for some users
- Not as customizable as some other accounting software
- No offline mode
QuickBooks Online is a good option for small businesses that are looking for an easy-to-use, affordable accounting software with a wide range of features. It is also a good option for businesses that need to integrate their accounting software with other business apps.
2. FreshBooks (Best for small service-based businesses)
FreshBooks is a great option for small service-based businesses. It is easy to use, affordable, and has a mobile app that makes it easy to track expenses and invoices on the go. FreshBooks also offers a variety of features that are specifically designed for service businesses, such as time tracking and project management.
Features
- Invoicing: FreshBooks makes it easy to create and send invoices to your clients. You can customize your invoices to include your branding, and you can track when invoices are sent, viewed, and paid.
- Time tracking: FreshBooks’ time tracking feature makes it easy to track your time spent on projects and tasks. You can also create reports to see how you are spending your time.
- Project management: FreshBooks’ project management features can help you to track the progress of your projects and to collaborate with your team members.
- Expense tracking: FreshBooks’ expense tracking feature makes it easy to track your business expenses. You can upload receipts, categorize your expenses, and create reports.
- Reports: FreshBooks offers a variety of reports that can help you to track your income, expenses, and projects. These reports can help you to make better business decisions.
Pros and Cons of FreshBooks:
Pros
- Easy to use: FreshBooks is a very user-friendly software. Even if you don’t have any accounting experience, you should be able to get started with FreshBooks quickly.
- Affordable: FreshBooks is a very affordable accounting software. Even the most basic plan is enough for most small businesses.
- Mobile app: FreshBooks has a mobile app that makes it easy to track expenses and invoices on the go.
- Integrations: FreshBooks integrates with a variety of other popular business apps, such as PayPal, Stripe, and Salesforce.
Cons
- Limited features: FreshBooks doesn’t offer as many features as some of the other accounting software options on the market.
- No inventory tracking: FreshBooks doesn’t offer inventory tracking features. This can be a problem for businesses that sell products.
- Customer support: FreshBooks’ customer support is not as good as some of the other accounting software options on the market.
FreshBooks is a great option for small service-based businesses that are looking for an easy-to-use and affordable accounting software. However, if you need more features, such as inventory tracking, you may want to consider another option.
3. Zoho Books (Best for mobile accounting)
Zoho Books is a cloud-based accounting software that offers a wide range of features at an affordable price. It is easy to use, has a mobile app, and integrates with other popular business apps. Zoho Books is a good option for businesses that are looking for a comprehensive accounting solution that won’t break the bank.
Features of Zoho Books:
- Invoicing: Zoho Books makes it easy to create and send invoices to your customers. You can customize your invoices with your company logo and branding, and you can even set up recurring invoices.
- Payments: Zoho Books integrates with a variety of payment processors, so you can accept payments from your customers online. You can also track your payments and see when they are due.
- Inventory tracking: Zoho Books can help you track your inventory levels, so you know when you need to reorder products. You can also track your inventory costs and profits.
- Reporting: Zoho Books provides a variety of reports that can help you track your business’s financial performance. You can generate reports on income and expenses, sales and marketing, and inventory.
- Mobile app: Zoho Books has a mobile app that makes it easy to manage your finances on the go. You can view your invoices, payments, and reports from your smartphone or tablet.
- Integrations: Zoho Books integrates with a variety of other business apps, such as PayPal, Salesforce, and Google Drive. This makes it easy to share your financial data with other apps and services.
Pros and Cons of Zoho Books:
Pros
- Easy to use: Zoho Books is a user-friendly software that is easy to learn and use. Even if you don’t have a lot of accounting experience, you should be able to get up and running quickly.
- Affordable: Zoho Books is a very affordable accounting software. Even the most basic plan is quite affordable, and you can get a free trial to test it out before you buy.
- Wide range of features: Zoho Books offers a wide range of features, including invoicing, payments, inventory tracking, reporting, and mobile app access. This makes it a good choice for businesses of all sizes.
- Integrations: Zoho Books integrates with a variety of other business apps, making it easy to share your financial data with other apps and services.
Cons
- Not as powerful as some other accounting software: Zoho Books is not as powerful as some other accounting software, such as QuickBooks. If you need a very complex accounting solution, Zoho Books may not be the best option for you.
- Customer support can be slow: Zoho Books customer support can be slow to respond. If you have a problem, you may have to wait a few days to get a response.
Zoho Books is a good option for businesses that are looking for an affordable, easy-to-use accounting software with a wide range of features. If you don’t need a very complex accounting solution, Zoho Books is a good choice.
4. QuickBooks Desktop (Best desktop accounting software for managing multiple companies)
QuickBooks Desktop is a popular choice for businesses that need more control over their accounting data. It is a powerful software that offers a wide range of features, but it can be more difficult to use than some of the other options on this list. QuickBooks Desktop is a good option for businesses that need to track complex financial transactions or that have multiple locations.
Features of QuickBooks Desktop:
- Accounting: QuickBooks Desktop offers a comprehensive set of accounting features, including invoicing, payments, inventory tracking, and reporting.
- Project management: QuickBooks Desktop also offers project management features, such as time tracking and resource allocation.
- Integrations: QuickBooks Desktop integrates with a variety of other business apps, such as PayPal, Salesforce, and Google Drive.
- Customization: QuickBooks Desktop is highly customizable, so you can tailor it to the specific needs of your business.
Pros and Cons QuickBooks Desktop:
Pros
- Powerful features: QuickBooks Desktop offers a wide range of powerful features that can help you manage your finances effectively.
- Control: QuickBooks Desktop gives you a lot of control over your accounting data.
- Customization: QuickBooks Desktop is highly customizable, so you can tailor it to the specific needs of your business.
Cons
- Complexity: QuickBooks Desktop can be complex to use, especially for first-time users.
- Cost: QuickBooks Desktop is more expensive than some other accounting software options.
- Updates: QuickBooks Desktop requires regular updates, which can be time-consuming.
QuickBooks Desktop is a powerful accounting software that offers a wide range of features. However, it can be complex to use and is more expensive than some other options.
5. Wave Accounting (Best free solution for tracking income and expenses)
Wave Accounting is a free accounting software that offers a basic set of features for tracking income and expenses. It is a good option for businesses that are just starting out or that don’t need a lot of complex accounting features. Wave Accounting is also a good option for businesses that are on a tight budget.
Features of Wave Accounting:
- Free for basic features: Wave Accounting is a free accounting software that offers a basic set of features for tracking income and expenses. This includes invoicing, payments, expense tracking, and basic reports.
- Invoicing: Wave Accounting makes it easy to create and send invoices to your customers. You can also track payments and set up recurring invoices.
- Payments: Wave Accounting integrates with PayPal and Stripe, so you can accept payments online. You can also set up direct deposit for your employees.
- Expense tracking: Wave Accounting makes it easy to track your expenses. You can scan receipts, categorize your expenses, and export your data to Excel.
- Reports: Wave Accounting provides a variety of reports that can help you track your finances. These reports include income statements, balance sheets, and cash flow statements.
Pros and Cons of Wave Accounting:
Pros
- Free: Wave Accounting is free for basic features, which makes it a great option for businesses on a tight budget.
- Easy to use: Wave Accounting is easy to use, even for beginners. The interface is clean and intuitive, and the features are well-organized.
- Mobile app: Wave Accounting offers a mobile app that makes it easy to track your finances on the go.
- Integrations: Wave Accounting integrates with a variety of other business apps, such as PayPal, Stripe, and Google Drive.
Cons
- Limited features: The free version of Wave Accounting does not offer all of the features that you might need. For example, it does not offer inventory tracking or project management.
- Customer support: Wave Accounting’s customer support is not as good as some of the other accounting software options.
- No offline mode: Wave Accounting is a cloud-based software, so you need an internet connection to use it.
Wave Accounting is a good option for businesses that are just starting out or that don’t need a lot of complex accounting features. It is free to use, easy to use, and mobile-friendly. However, the free version does not offer all of the features that you might need, and customer support is not as good as some of the other accounting software options.
6. Bench (Best online bookkeeping service as an alternative to do-it-yourself (DIY) accounting software)
Bench is an online bookkeeping service that can help you with all aspects of your accounting. It is a good option for businesses that don’t have the time or resources to manage their own accounting. Bench can help you with everything from invoicing and payments to tax preparation.
Features of Bench:
- Invoicing and payments: Bench can help you create invoices, track payments, and manage your receivables.
- Bank reconciliation: Bench can help you reconcile your bank accounts and identify any discrepancies.
- Expense tracking: Bench can help you track your expenses and categorize them into different categories.
- Tax preparation: Bench can help you prepare your taxes and file them with the IRS.
- Reporting: Bench can help you generate reports that track your income, expenses, and other financial metrics.
Pros and Cons of Bench:
Pros
- Easy to use: Bench is very easy to use, even for people who don’t have a lot of accounting experience.
- Reliable: Bench has a good reputation for reliability and accuracy.
- Personalized service: Bench assigns you a dedicated bookkeeper who will work with you to understand your business and needs.
- Value for money: Bench’s pricing is very competitive, especially for businesses that need help with all aspects of their accounting.
Cons
- Not as customizable as some other accounting software: Bench is not as customizable as some other accounting software, so you may not be able to tailor it to your specific needs.
- Not as good for businesses with complex financial needs: Bench is not as good for businesses with complex financial needs, such as businesses that have multiple locations or that track a lot of inventory.
Bench is a good option for businesses that don’t have the time or resources to manage their own accounting. It is easy to use, reliable, and offers personalized service. However, it is not as customizable as some other accounting software and may not be as good for businesses with complex financial needs.
7. PCLaw (Best accounting software for law firms)
PCLaw is an accounting software specifically designed for law firms. It offers a wide range of features that are tailored to the needs of law firms, such as time tracking, billing, and trust accounting. PCLaw is a good option for law firms that are looking for a comprehensive accounting solution that meets their specific needs.
Features of PCLaw:
- Time tracking: PCLaw allows you to track your time spent on billable and non-billable tasks. This can help you bill your clients accurately and efficiently.
- Billing: PCLaw can help you create and send invoices to your clients. You can also track payments and manage your accounts receivable.
- Trust accounting: PCLaw can help you manage trust accounts, which are accounts that hold money that belongs to your clients. This is a critical feature for law firms, as it helps to ensure that client funds are kept separate from the law firm’s funds.
- Document management: PCLaw can help you store and manage your documents. This can help you keep track of your case files and ensure that you have access to the documents you need when you need them.
- Reporting: PCLaw can generate a variety of reports, which can help you track your finances and make better business decisions.
Pros and Cons of PCLaw:
Pros
- Tailored to the needs of law firms: PCLaw is specifically designed for law firms, so it offers features that are tailored to their specific needs.
- Powerful and comprehensive: PCLaw is a powerful and comprehensive accounting software solution. It offers a wide range of features that can help law firms manage their finances and run their businesses more effectively.
- Secure: PCLaw is a secure software solution. It uses industry-standard security measures to protect your data.
Cons
- Can be complex: PCLaw is a complex software solution. It can be difficult to learn and use, especially for users who are not familiar with accounting software.
- Expensive: PCLaw is an expensive software solution. It can be a significant investment for law firms.
PCLaw is a powerful and comprehensive accounting software solution that is specifically designed for law firms. It offers a wide range of features that can help law firms manage their finances and run their businesses more effectively. However, PCLaw can be complex and expensive. Law firms should carefully consider their needs before deciding whether PCLaw is the right accounting software solution for them.
8. Restaurant365 (Best accounting software for restaurants)
Restaurant365 is an accounting software specifically designed for restaurants. It offers a wide range of features that are tailored to the needs of restaurants, such as inventory tracking, table management, and reporting. Restaurant365 is a good option for restaurants that are looking for a comprehensive accounting solution that meets their specific needs.
Features of Restaurant365:
- Inventory tracking: Restaurant365 allows you to track your inventory levels, costs, and usage. This information can help you to optimize your inventory management and reduce food waste.
- Table management: Restaurant365 allows you to track your tables and reservations. This information can help you to improve your table turnover and customer service.
- Reporting: Restaurant365 provides a variety of reports that can help you to track your finances, sales, and operations. These reports can help you to make better business decisions.
- Integrations: Restaurant365 integrates with a variety of other business apps, such as POS systems, payroll processors, and food delivery services. This integration can help you to streamline your business processes and save time.
Pros and Cons Restaurant365:
Pros
- Specifically designed for restaurants: Restaurant365 is specifically designed for restaurants, so it offers a wide range of features that are tailored to the needs of restaurants.
- Easy to use: Restaurant365 is easy to use, even for people who are not familiar with accounting software.
- Affordable: Restaurant365 is affordable, especially for small businesses.
- Good customer support: Restaurant365 has a good customer support team that is available to help you with any problems you may have.
Cons
- Not as feature-rich as some other accounting software options: Restaurant365 does not offer as many features as some other accounting software options, such as QuickBooks Online.
- Not as customizable as some other accounting software options: Restaurant365 is not as customizable as some other accounting software options, so you may not be able to tailor it to your specific needs.
Restaurant365 is a good option for restaurants that are looking for an affordable, easy-to-use accounting software solution that is specifically designed for restaurants. However, if you need a more feature-rich or customizable accounting software solution, you may want to consider another option.
9. Nimble Property (Best accounting software for hotels)
Nimble Property is an accounting software specifically designed for hotels. It offers a wide range of features that are tailored to the needs of hotels, such as room management, revenue tracking, and reporting. Nimble Property is a good option for hotels that are looking for a comprehensive accounting solution that meets their specific needs.
Features of Nimble Property:
- Room management: Nimble Property allows you to track room availability, rates, and bookings. You can also create custom reports to track your occupancy rates and revenue.
- Revenue tracking: Nimble Property tracks your hotel’s revenue from all sources, including room bookings, food and beverage sales, and spa treatments. You can also track your expenses to get a clear picture of your hotel’s profitability.
- Reporting: Nimble Property provides a variety of pre-built reports that you can use to track your hotel’s performance. You can also create custom reports to track specific metrics that are important to you.
- Integrations: Nimble Property integrates with a variety of other hotel management software, such as PMS and POS systems. This allows you to import data from these systems into Nimble Property, which can save you time and effort.
Pros and Cons Nimble Property:
Pros
- Specifically designed for hotels: Nimble Property is specifically designed for hotels, so it offers a wide range of features that are tailored to the needs of the hospitality industry.
- Easy to use: Nimble Property is easy to use, even for non-accounting professionals. The software has a user-friendly interface and a step-by-step guide to help you get started.
- Cloud-based: Nimble Property is a cloud-based software, which means that you can access it from anywhere. This is a great option for hotels that have multiple locations or that need to access their accounting data from the road.
Cons
- Price: Nimble Property is more expensive than some other accounting software options. However, the price is justified by the wide range of features and the ease of use.
- Limited customization: Nimble Property offers a limited amount of customization. This means that you may not be able to tailor the software to your specific needs.
- No mobile app: Nimble Property does not have a mobile app. This can be inconvenient for hoteliers who need to access their accounting data on the go.
Nimble Property is a good option for hotels looking for a comprehensive accounting solution specifically designed for the hospitality industry. The software is easy to use, cloud-based, and offers a wide range of features. However, the price is more expensive than some other accounting software options.
