The following are the top 5 small business accounting apps: There is no such thing as a company that does not have money. Accounting follows where there is money. Accounting is critical in all businesses. This is not only a legal requirement, but it is also critical to the operation of your organisation. Accounting provides you with up-to-date information about your business. In today’s digital age, tracking payments, revenue, and spending may be difficult for business owners because most businesses operate online.

Accounting Software’s Benefits

When your company’s transactions are small, you may be able to handle the accounting yourself. However, as your company grows, accounting on your own becomes difficult. This is especially problematic if your business relies on internet transactions. Each payment requires invoicing, tax documents, bookkeeping, and internet records. Handling this manually is nearly impossible because no one can predict the number of trades that will occur at any given time. This complexity is handled by online accounting software, which performs all of these operations at the same time. This saves you time that you can put towards other aspects of your business.

Another important benefit of implementing an accounting system is that the entire accounting process becomes automated, dependable, and structured. Every transaction does not necessitate a manual review. The programme is less likely to make mistakes. The detailed reports offer business insights and help you stay organised.

The majority of these businesses share some characteristics. These are de facto standards in accounting software. Pricing and your company’s needs should be the deciding factors when choosing software.

Best Accounting Software for Businesses

While there may be disagreements about which of the 5 best small business accounting apps is the best, we have chosen to follow the wisdom of the crowd. The software we’ve described here is used by thousands of businesses all over the world. As a result, you can have faith in their consistency and support.

All of these mentions include common elements that are required for businesses. The cost varies. Each programme has a few distinguishing features. This distinguishes them. The best software for your company’s needs provides the functionality you require at a reasonable price. So, keep reading to find the one that’s right for you.

Top 5 Accounting Software for Small Businesses in 2022

• QuickBooks Online
• Xero
• FreshBooks
• QuickBooks Self-Employed
• Wave

1 QuickBooks Online

Its most recent cloud-based update came in 2019, however, it also sells and downloads individual desktop versions. Its solutions are primarily aimed at small and medium-sized businesses, and the software is used by over seven million of them.

Because it is simple to use for business owners with little accounting knowledge, we chose it as our runner-up for the best overall accounting software for small firms. It maintains everything in one place and ensures that your company is tax-ready throughout the year.

QuickBooks has the following features:

• Integration with financial institutions, as well as PayPal, Square, Shopify, and other services
• With user manuals and tax data exporting, it’s easier to file quarterly and annual tax returns.
• Calculations, reports, and tax payments for sales taxes
• Sort transactions and costs into tax categories automatically.
• Keep track of all of your costs in one location.
• Scanned receipts should be attached to invoices.
• Export documents or share with your accountant.
• Create bespoke reports that include cashflow tracking on your dashboard.
• With your smartphone’s GPS, you can keep track of how many kilometres you’ve travelled.

QuickBooks has tiers of pricing, allowing you to choose the appropriate package for your needs:

• Simple Start: $12.50 per month for newly established businesses.
• $25 per month for managing developing enterprises is the bare minimum.
• Plus, for $40 per month, you can get help getting organised and managing projects, inventories, and contractors.
• Advanced: $90 per month for deeper insights and dedicated support to help your business develop.
• To find out which features are included in each tier, contact QuickBooks directly.

2 Xero

This programme features a straightforward user interface and seamlessly interacts with a third-party payroll service

Overview of Xero

Xero was founded in New Zealand in 2006, and it now has over 3 million subscribers worldwide. Accounting software like this is widely used in New Zealand, Australia, and the United Kingdom. Xero employs over 4,000 people and is rapidly expanding in the United States.

Xero provides three monthly subscription plans as well as a full-service payroll add-on: Starting at $12 per month, growing to $34 per month, and finally settling at $65 per month. Gusto offers a full-service payroll option for an additional $39 per month plus $6 per employee. The company provides a free 30-day trial.

The Early plan has a usage cap of 20 invoices or quotes and five bills per month. This limited plan may be appropriate for a micro-business with a few high-ticket transactions per month, such as a consulting or small service provider. Both the Growing and Established plans include an unlimited number of invoices and bills. The only distinction between the two is that the Established plan includes extra features such as multi-currency, expense management, and project costing.

Advantages

• Cloud-based Mobile App
• Gusto payroll integration Third-party app marketplace
• Simple inventory control

Disadvantages

• Reporting restrictions
• Fees for ACH payments are charged. Customer service is limited.

3 freshBook

Invoicing is the most important accounting requirement for the majority of service-based businesses. In comparison to other accounting software, FreshBooks provides more customization options for invoicing. Its primary function is to send, receive, print, and pay invoices, but it can also handle basic bookkeeping for businesses. This accounting software makes it easier for service-based businesses to send proposals, track time on projects, and receive payments.

Advantages

• User-friendly cloud-based interface
• Integration of third-party apps
• Affordable
• Features for advanced invoicing

Disadvantages

• Limitations of the mobile app

Overview of freshBook

More features have been added over time, and FreshBooks now has over 30 million users. There are four different plans available, and businesses can save 10% by paying yearly rather than monthly. Furthermore, FreshBooks frequently offers discounts for your first months of membership. The four plans are as follows: Lite ($15 per month), Plus ($25 per month), Premium ($50 per month), and Select ($50 per month), which is a custom service with custom pricing. These are the prices before any discounts.

The main distinction between the four plans is the number of different clients who can be billed per month. Up to 50 clients can be billed per month under the Plus plan. Unlimited clients can be billed per month under the Premium plan. The Select plan does not have a limit on the number of clients that can be billed per month, but it does include some unique features. It costs an extra $10 per month to use the accounting software with multiple team members, and an extra $20 per month to use the advanced payment feature, which allows users to charge a credit card in real-time or set up a recurring payment.

There are numerous third-party app integrations available, including Gusto, G Suite, and others. FreshBooks’ invoices can be highly stylized and customised for a professional look and feel, which is a unique feature. FreshBooks is an excellent tool for project budgeting, sending estimates or proposals, and collecting customer payments.

4 QuickBooks Self-Employed

QuickBooks Self-Employed accounting software is our top recommendation for part-time freelancers and independent contractors who want to track their income and expenses for tax purposes. This software is intended for small business owners who file a Schedule C with their personal tax returns.

Without this software, freelancers would have to sift through all of their bank and credit card statements at the end of each year to add up their income and expenses, which can be time-consuming. QuickBooks Self-Employed will automatically total all business transactions.

Advantages

• Cloud-based Mobile App
• Maintain a mileage log.
• Distinguish between business and personal expenses.
• Connects to TurboTax

Disadvanteges

• Data is difficult to transfer to other accounting software.
• Reporting is limited, as is invoicing functionality and customization.

5 Wave

Wave is an excellent accounting software platform for a service-based small business that sends simple invoices but does not require payroll processing. Wave’s free features will cover all of the accounting needs of many freelancers or service-based businesses, making it the best free software in our review. Accountants can use Wave to pull the reports they need to prepare a company’s tax return at the end of the year.

Advantages

• Accounting, invoicing, and receipt scanning are all free.
• There are no transaction or billing limits.
• Run multiple businesses from a single account with an unlimited number of users
• App for mobile devices

Disadvantages

• Third-party app integrations are limited.
• Fees for credit cards and ACH payments are increasing.
• Only 14 states have full-service payroll.

Conclusion

We looked into the top five small business accounting apps and accounting software for small businesses. The best 16 tools were chosen based on their functionality, scalability, affordability, and ease of use.

NetSuite and Wave are our top picks for the top five best small business accounting apps. NetSuite offers a solution that is suitable for both small and large businesses. Wave is a powerful accounting programme that is completely free. Slick Pie and Zip Books are two more products on our list with a free plan.

QuickBooks is a well-known small business accounting software that is also known for its ease of use. Although its plans are a little pricey, Xero is the best overall solution. Sage 50cloud Accounting has the most expensive pricing plans.