Accounting software benefits small business owners by allowing them to handle accounts receivable and payable, have a clear knowledge of their profitability, and prepare for tax season. 1 A tiny firm, in the area of accounting software, is one that can use out-of-the-box software without major adaptations. As a company grows, its accounting requirements get more sophisticated, necessitating the use of a specialized enterprise resource planning (ERP) system.
Accounting software for small businesses comes in a variety of flavors, each with its own set of capabilities and price tags. In general, the type of industry and the number of employees are two factors that can assist a small business owner in selecting appropriate accounting software. 1 A freelancer, for example, does not require the same accounting software features as a restaurant owner.
Before selecting our top five accounting software companies for small businesses, we researched and compared nineteen accounting software companies. We considered cost, ease of use, features, integrations, and scalability when evaluating companies.
Top 5 accounting software 2022
I am giving the list of the best software that can help your business to grow in 2022.
- Best Overall: QuickBooks Online
- Best for Micro-Business Owners: Xero
- Best for Service-Based Businesses: FreshBooks
- Best for Part-Time Freelancers: QuickBooks Self-Employed
- Best Free Software: Wave
QuickBooks Online is the best overall accounting software for small businesses out of the ones we looked at. Not only do the vast majority of small business accounting professionals use QuickBooks Online, but there is also an abundance of online training resources and forums where you can get help when you need it. All accounting features are easily accessible from a single main dashboard, making bookkeeping more fluid and efficient.
QuickBooks Online from Intuit has long been the most popular accounting software among small businesses and their bookkeeping and tax professionals. The software is cloud-based and can be accessed via web browser or mobile app.
Following the 30-day free trial, the subscription plans are as follows: Simple Start at $25 per month, Essentials at $40 per month, Plus at $70 per month, and Advanced at $150 per month. Typically, a substantial discount is offered for the first few months, and some accountants are also able to offer wholesale pricing to small businesses.
BEST FOR MICRO-BUSINESS OWNERS
In our review, Xero is the best option for micro-businesses looking for very simple accounting software. This software has a straightforward user interface and fully integrates with a third-party payroll service. Customers can pay businesses online thanks to Xero’s integration with Stripe and GoCardless.
Xero was founded in New Zealand in 2006, and it now has over 2.7 million users worldwide. Accounting software like this is widely used in New Zealand, Australia, and the United Kingdom. Xero employs over 3,500 people and is rapidly expanding in the United States.