Best Accounting Software for Small Business (2023)
Best Overall
QuickBooks
Its diverse feature set and customization options make it a compelling choice for small businesses of all types.
Best For Simplicity
FreshBooks
Perfect for small businesses and freelancers looking for a simple and efficient accounting system.
Best For Budget
Wave
Free accounting software could be an ideal solution. Explore its core features without any subscription costs.
Best For Team Adoption
Zoho Books
A perfect solution for small to medium-sized businesses looking for robust accounting tools.
Best For International
Xero
Real-time data and multiple currency management make it a strong choice for small to medium-sized businesses.
Introduction
In today’s fast-paced business environment, small businesses need robust and scalable accounting solutions tailored to their unique needs. Choosing the right accounting software is vital for managing financial tasks efficiently, such as invoicing, expense tracking, and financial reporting.
According to a recent study by Fit Small Business, 64% of small businesses have begun using online accounting software, reflecting a growing need for digital and accessible financial management solutions.
At Get X Media, we recognize this need and invest in research projects to support the growth of small businesses. Our aim is to help business owners make well-informed online buying decisions, as we understand the significant impact that the right tools can have on efficiency and profitability. Our core services are web design, SEO, PPC, and business automation, and this article is part of our ongoing commitment to providing valuable insights to the small business community.
This article explores some of the best accounting software options available for small businesses in 2023, focusing on their features, pricing, and how they can cater to various business types.
QuickBooks Online
QuickBooks, a renowned name in accounting software, offers solutions specifically designed for small business owners. With its intuitive interface, QuickBooks provides ease of access, cloud integration, and a wide range of functionalities. The software’s automation capabilities and customization options make it a preferred choice for diverse industry needs.
- Automation: Streamlines repetitive tasks
- Customization: Tailors to specific business needs
- Integration: Collaborates with other popular business apps
- Compliance: Ensures adherence to tax regulations and financial standards
Who is QuickBooks best for?
QuickBooks caters to various types of small businesses, including:
- Retailers: Tailor-made features for inventory management
- Freelancers: Simplified invoicing and time-tracking
- Service Providers: Customized billing and client management
- Manufacturers: Detailed production cost analysis
What problems does QuickBooks solve?
QuickBooks aims to resolve several pain points common to small businesses:
- Complexity: Simplifies complex financial tasks
- Time Consumption: Automates tedious manual processes
- Compliance Issues: Ensures adherence to legal regulations
- Integration Challenges: Facilitates smooth integration with other tools
What are the key features of QuickBooks?
- Automated invoicing and billing
- Customizable financial reports
- Cloud-based access and mobile optimization
- Inventory management
- Payroll integration
- Time-tracking capabilities
- Secure data protection
- Integration with third-party applications
- Multi-user support
- Advanced tax features
How much does QuickBooks cost?
QuickBooks offers various pricing tiers, ranging from basic to advanced packages. Prices start at around $15/month for the simplest version, scaling up depending on the features required.
What is the user experience like inside QuickBooks?
QuickBooks offers a user-friendly experience. With its clean design and logical navigation, users can easily access features on both desktop and mobile platforms. The mobile optimization ensures seamless operations, even on the go.
Does QuickBooks have a good support community?
QuickBooks provides a robust support community, including:
- 24/7 Customer Service: Dedicated support team
- Online Forums: Peer-to-peer assistance
- Tutorials and Guides: Extensive learning resources
- Certified Advisors: Professional consultancy services
Pros and Cons of QuickBooks
| Pros | Cons |
|---|---|
| Intuitive interface | Somewhat expensive for advanced features |
| Comprehensive feature set | Learning curve for new users |
| Robust customer support | Limited customization in basic plans |
| Mobile optimization | Add-ons can become costly |
| Seamless integration with other tools | Potential over-complexity with addons |
| Strong security measures | |
| Regular updates and improvements | |
| Diverse pricing options | |
| Suitable for various industries | |
| Compliance assurance |
What we personally like about QuickBooks
- Ease of use
- Broad functionality
- Mobile responsiveness
- Strong customer support
- Integration capabilities
- Reliable security features
- Customizable to specific business needs
- Regular updates and feature enhancements
What we personally dislike about QuickBooks
- Complexity for new users
- High costs for advanced features
- Limited customization in basic packages
- Potential hidden costs with add-ons
- Lack of certain industry-specific tools
- Difficulty in migrating data from other platforms
QuickBooks Online
Take control of your financial management with QuickBooks. Its diverse feature set and customization options make it a compelling choice for small businesses of all types.
FreshBooks
FreshBooks offers cloud-based accounting software specifically designed for small businesses and freelancers. Known for its simplicity and user-friendly design, FreshBooks provides robust invoicing capabilities, expense tracking, time management, and more. It’s a perfect choice for those seeking a more straightforward approach to accounting
- Invoicing: Easy-to-create professional invoices
- Expense Tracking: Integrates with bank accounts for real-time monitoring
- Time Management: Tracks billable hours with ease
- Collaboration: Enables team collaboration on projects
Who is FreshBooks best for?
FreshBooks is well-suited for various small businesses, including:
- Freelancers: Easy invoicing and time tracking
- Agencies: Collaborative tools for team projects
- Consultants: Robust client management and billing
- E-commerce Businesses: Inventory and sales tracking
What problems does FreshBooks solve?
FreshBooks addresses several key pain points:
- Inefficient Invoicing: Automates invoice creation and follow-ups
- Expense Mismanagement: Tracks expenses comprehensively
- Time-consuming Time Tracking: Simplifies time logging and billing
- Lack of Collaboration Tools: Facilitates teamwork
What are the key features of FreshBooks?
- Simple and intuitive invoicing
- Automated expense tracking
- Time tracking for billable hours
- Project collaboration and budgeting
- Financial reports and insights
- Mobile app for on-the-go management
- Secure online payments
- Integrations with popular business tools
- Client portal for easy communication
How much does FreshBooks cost?
FreshBooks offers several pricing plans, starting from around $18/month for the Lite version. The price increases with additional features and users.
What is the user experience like inside FreshBooks?
FreshBooks is known for its clean and intuitive user interface. Even non-accountants find it easy to navigate. Mobile optimization ensures that users can manage their finances from anywhere.
Does FreshBooks have a good support community?
FreshBooks offers a strong support community:
- Customer Support: Accessible via phone and email
- Knowledge Base: Extensive library of tutorials and guides
- Community Forum: Peer support and discussions
- Webinars and Training: Regular educational resources
Pros and Cons of FreshBooks
| Pros | Cons |
|---|---|
| User-friendly interface | Limited features in the basic plan |
| Excellent customer support | Costs can add up with more users |
| Strong invoicing capabilities | Some integrations may require add-ons |
| Mobile app for on-the-go access | Limited inventory management features |
| Transparent pricing | |
| Secure online payments | |
| Customizable reports |
What we personally like about FreshBooks
- Simplicity and ease of use
- Strong invoicing tools
- Mobile app functionality
- Transparent pricing
- Responsive customer support
- Integrations with other tools
- Automated expense tracking
- Client portal for smooth communication
What we personally dislike about FreshBooks
- Limited features in the basic plan
- Costs can escalate with more users
- Limited inventory management
- Some desired integrations may require extra cost
- Lack of advanced customization options
Try FreshBooks
FreshBooks is perfect for small businesses and freelancers looking for a simple and efficient way to manage their accounting needs. Give it a try and experience the ease of cloud-based accounting.
Wave
- Free to Use: No monthly subscription costs
- Invoicing and Billing: Customizable and automated
- Expense Tracking: Connects to bank accounts
- Reporting: Provides essential financial insights
Who is Wave best for?
Wave is best suited for:
- Freelancers: No-cost solution for individual needs
- Start-ups: Basic accounting tools for new businesses
- Small Service Providers: Simple billing and invoicing
- Non-profit Organizations: Free accounting for budget-conscious entities
What problems does Wave solve?
Wave addresses key challenges, including:
- High Costs: Offers a free solution for basic needs
- Complexity: Provides an easy-to-use interface
- Invoicing Delays: Automates invoicing processes
- Limited Reporting: Includes essential financial reports
What are the key features of Wave?
- Free and unlimited invoicing
- Expense tracking and categorization
- Basic financial reporting
- Seamless bank connections
- Receipt scanning via mobile app
- Online payment acceptance (additional fees apply)
- Payroll services (additional fees apply)
How much does Wave cost?
Wave’s core accounting features are free, with additional fees for online payments and payroll services.
What is the user experience like inside Wave?
Wave offers a simple and intuitive experience, focusing on essential accounting tasks. Its mobile optimization ensures that users can manage their finances from various devices.
Does Wave have a good support community?
Wave’s support community includes:
- Online Help Center: Guides and FAQs
- Community Forum: Peer support
- Paid Support Plans: Additional dedicated support
Pros and Cons of Wave
| Pros | Cons |
|---|---|
| Completely free for core features | Limited advanced features |
| User-friendly interface | Customer support mainly online-based |
| Suitable for freelancers | Additional fees for payments and payroll |
| Mobile receipt scanning | No inventory management |
What we personally like about Wave
- Free core accounting features
- Simple and intuitive design
- Suitable for small and starting businesses
- Online payment acceptance
- Mobile app for receipt scanning
- No unnecessary complexities
What we personally dislike about Wave
- Limited advanced features
- Online-based customer support
- Additional fees for certain services
- Lack of inventory and project management
Zoho Books
Zoho Books is part of the extensive Zoho suite, offering cloud-based accounting solutions designed for small businesses. With a focus on automation, collaboration, and customization, Zoho Books provides a comprehensive toolset for diverse accounting needs.
- Automation: Workflow automation for repetitive tasks
- Integration: Seamless connectivity with other Zoho apps
- Collaboration: Enables team and client collaboration
- Customization: Tailors to specific business requirements
Who is Zoho Books best for?
Zoho Books caters to:
- Small to Medium-sized Businesses: Comprehensive features for growing businesses
- Zoho Suite Users: Seamless integration within the Zoho ecosystem
- Service Providers: Customizable invoicing and billing
- E-commerce Platforms: Specific tools for online sales
What problems does Zoho Books solve?
Zoho Books solves various challenges:
- Manual Workloads: Automates repetitive accounting tasks
- Integration Hurdles: Smoothly integrates with other Zoho apps
- Collaboration Barriers: Enables teamwork on financial tasks
- Customization Limitations: Offers a flexible platform
What are the key features of Zoho Books?
- Automated invoicing and billing
- Customizable templates and branding
- Inventory management
- Time tracking and project accounting
- Financial reports and analytics
- Multi-currency support
- Mobile app for on-the-go access
- Secure data protection
- Compliance with tax regulations
How much does Zoho Books cost?
Zoho Books offers various pricing tiers, starting at $0/month for the Basic plan. Prices increase with added features and users.
What is the user experience like inside Zoho Books?
Zoho Books provides a user-friendly experience, with easy navigation and a clean design. Mobile optimization ensures accessibility across devices.
Does Zoho Books have a good support community?
Zoho Books’ support community includes:
- 24/5 Customer Support: Phone and email support
- Knowledge Base: In-depth guides and tutorials
- Community Forums: Peer support and discussions
- Webinars and Training: Regular educational sessions
Pros and Cons of Zoho Books
| Pros | Cons |
|---|---|
| Comprehensive feature set | Higher learning curve |
| Seamless integration with Zoho | Costs can add up with more users |
| Customizable and flexible | Limited features in the basic plan |
| Strong mobile app | Additional charges for add-ons |
What we personally like about Zoho Books
What we personally dislike about Zoho Books
What we personally dislike about Zoho Books
- Complexity for new users
- Costs can escalate with add-ons and users
- Limited features in the basic plan
- Some integrations may require extra configuration
Zoho Books
Sage
Sage offers a variety of accounting solutions tailored to small businesses. With a focus on scalability and industry-specific features, Sage provides a platform that can grow with your business. Its cloud-based system ensures accessibility and security.
- Scalability: Suitable for growing businesses
- Industry-specific Solutions: Tailored features for various sectors
- Cloud-based: Access from anywhere
- Integration: Compatibility with popular business apps
Who is Sage best for?
Sage is suitable for:
- Growing Small Businesses: Scalable features
- Manufacturers: Detailed production and inventory management
- Retailers: Sales and inventory tracking
- Service Providers: Customized billing and client management
What problems does Sage solve?
Sage aims to resolve:
- Scalability Issues: Grows with your business
- Industry Mismatches: Offers tailored solutions
- Accessibility Constraints: Cloud-based access
- Integration Challenges: Facilitates smooth integration with other tools
What are the key features of Sage?
- Scalable financial management
- Industry-specific solutions
- Cloud-based access
- Inventory management
- Payroll integration
- Time-tracking capabilities
- Secure data protection
- Integration with third-party applications
- Advanced tax features
How much does Sage cost?
Sage’s pricing varies based on the chosen solution and features, with options suitable for different business sizes and needs.
What is the user experience like inside Sage?
Sage offers a user-friendly experience with a focus on industry-specific tools. Mobile optimization ensures seamless operations across devices.
Does Sage have a good support community?
Sage provides a robust support community, including:
- 24/7 Customer Service: Dedicated support team
- Online Forums: Peer-to-peer assistance
- Tutorials and Guides: Extensive learning resources
- Certified Advisors: Professional consultancy services
Pros and Cons of Sage
| Pros | Cons |
|---|---|
| Scalable solutions | Pricing can be complex |
| Industry-specific features | Some learning curve for beginners |
| Strong customer support | Limited customization in basic plans |
| Mobile optimization | Additional costs for certain add-ons |
What we personally like about Sage
- Scalable to business growth
- Industry-specific solutions
- Robust customer support
- Mobile accessibility
- Integration capabilities
- Secure and compliant with regulations
What we personally dislike about Sage
- Complexity in pricing structure
- Learning curve for specific tools
- Limited customization in basic packages
- Potential hidden costs with add-ons
Sage
Explore Sage’s scalable and industry-specific solutions, a strong choice for growing small businesses with diverse needs.
Xero
- Real-time Data: Access up-to-date financial information
- Collaboration: Teamwork on financial tasks
- Integration: Wide range of app integrations
- Automation: Streamlines repetitive tasks
Who is Xero best for?
Xero is well-suited for:
- Small to Medium-sized Businesses: Comprehensive features
- Collaborative Teams: Enables team collaboration
- E-commerce Platforms: Integrates with various online sales tools
- Service Providers: Customizable invoicing and billing
What problems does Xero solve?
Xero addresses:
- Data Delays: Real-time financial data access
- Collaboration Barriers: Facilitates team cooperation
- Integration Hurdles: Wide range of compatible apps
- Manual Workloads: Automation of common tasks
What are the key features of Xero?
- Real-time data tracking
- Collaborative tools
- Wide range of integrations
- Automated invoicing and billing
- Inventory management
- Payroll services
- Time-tracking capabilities
- Secure data protection
- Advanced tax compliance
How much does Xero cost?
Xero offers several pricing plans, starting from $9/month for the Starter plan. Costs vary based on features and number of users.
What is the user experience like inside Xero?
Xero provides an intuitive user experience, with a focus on collaboration and real-time data. Mobile optimization ensures accessibility across various devices.
Pros and Cons of Xero
| Pros | Cons |
|---|---|
| Real-time data access | Limited features in the basic plan |
| Strong collaboration tools | Some learning curve |
| Wide range of integrations | Costs can add up with more users |
| User-friendly interface | Additional charges for certain add-ons |
What we personally like about Xero
- Real-time data tracking
- Collaboration features
- Wide range of app integrations
- User-friendly design
- Scalable pricing plans
- Strong customer support
What we personally dislike about Xero
- Limited features in the Starter plan
- Some complexities for new users
- Costs can escalate with additional users and features
- Certain add-ons may require extra configuration
Comparison Table
A side-by-side comparison of the listed accounting software:
| Software | Best For | Pricing Range | Why Choose This? |
|---|---|---|---|
| QuickBooks Online | Small to medium-sized businesses needing comprehensive features | $25-$180/month | For its comprehensive feature set and user-friendly experience tailored to diverse business needs. |
| FreshBooks | Service providers, freelancers, agencies | $15-$50/month | Ideal for client-centric businesses looking for simplified invoicing and client management tools. |
| Wave | Freelancers, solopreneurs, small businesses with basic needs | Free (Additional for Payments) | Perfect for those seeking essential, free accounting tools without the complexity of advanced features. |
| Zoho | Businesses requiring integrated solutions and scalability | $9-$30/month | Suitable for those needing a flexible, customizable suite that can adapt to various industry needs. |
| Xero | Collaborative teams, small to medium-sized businesses across sectors | $11-$62/month | Best for businesses that value real-time collaboration and wide integration capabilities. |
| Sage | Small to medium-sized businesses looking for customizable solutions | $10-$60/month | Known for its scalable options and customization, Sage is suitable for businesses seeking tailored accounting solutions. |
Conclusion & Recommendations
Selecting the right accounting software is a critical decision for small businesses. This comprehensive review of the top solutions provides insights into their features, pricing, pros, and cons. Whether you’re a freelancer, start-up, or growing business, there’s a platform tailored to your needs.
- For Freelancers and Start-ups: Wave offers free core features.
- For Scalability and Industry-specific Needs: Sage provides tailored solutions.
- For Collaboration and Real-time Data: Xero focuses on team collaboration.
- For Comprehensive and Customizable Tools: QuickBooks and Zoho Books offer
Editorial Process
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