Xero

Xero is one of the most popular accounting software for small businesses, offering all the features you’d need. Beyond its core accounting capabilities, Xero offers an elevated experience for its record-keeping features. For example, it offers a document storage tool that allows you to drag and drop, upload or email documents to the platform, then sort and file them; however, you need to use a customizable filing system. From there, you can easily retrieve documents to attach to invoices as necessary.

Xero is best for small businesses where multiple people need to access the accounting software. It's also ideal for businesses that would make use of the lion's share of its well-integrated features, and that need powerful reporting tools. Xero lets you track fixed assets, which is an unusual tool in the category of small business accounting software. While the user experience is not exactly on the cutting edge, it's still fairly easy to learn. We don't recommend Xero for sole proprietors or freelancers.

Xero supports every major financial element you expect in a double-entry small business accounting solution: sales, purchases, bills and expenses, inventory, and payroll. Xero offers exceptional reports and advanced analytics and provides tools for tracking projects. It makes good use of artificial intelligence to automate processes and improve connectivity with related financial websites. Its usability, features, integration options, and network of advisors make it one of the best small business accounting software.

Xero is a trendy choice for small businesses and their accountants. It makes company financial data available to all relevant parties, including external accountants and advisors.

Xero’s interface is easy on the eyes with a grid-like layout. However, it can be a little confusing to navigate at first, especially in regard to figuring out which top menus house key features. Some convenience features help with this drawback, including a + button at the top of each screen that, when pushed, gives access to a list of key action items, such as the option to create a new invoice. Overall, given a slight learning curve, I awarded Xero 4.5 out of five stars on ease of use.

Sage Intacct

Sage Intacct is a powerful tool that offers a wide range of functions within its core application. It's perfect for businesses that need advanced accounting capabilities and customizability. Sage Intacct is a great tool for those who want to integrate various aspects of their business operations seamlessly.

One of the standout features of Sage Intacct is its ability to integrate with other software. You can connect it with CRM solutions, time tracking tools, and payroll platforms. This makes it easier to manage different parts of your business from one place.

The dashboard is very detailed, providing insights into cash flow statements, forecasting, and bank account balances. You can easily integrate your bank accounts and set up automation to categorize transactions. This feature helps in identifying transactions by source, name, or value, and then automatically applying the categories.

Sage Intacct's tax features are also top-notch. It includes sales tax tracking and 1099 vendor reports, which can simplify your accountant's life.

For those who need robust inventory-tracking capabilities, Sage Intacct is especially appropriate. It offers a bigger-business feel and functionality, making it suitable for companies that need more advanced accounting features.

However, the pricing packages can be a bit confusing, so it's essential to understand what you're getting before making a commitment. Despite this, the software's extensive features and integration capabilities make it a valuable asset for any business looking to streamline their operations.

Wave

Wave is a fantastic option for small businesses looking for a free accounting solution. Most of the core features are completely free, making it a great choice if you don't want to add another subscription to your monthly bills. You can link multiple bank accounts or credit cards, and it provides essential financial tools to generate reports. This helps you observe your financial performance, whether it's month over month or year over year.

Wave follows standard accounting rules and is especially skilled at invoicing and transaction management. The app supports multiple currencies and has a smart selection of features for very small businesses. However, it doesn't have a dedicated time-tracking tool.

Wave makes accounting look easy. It's the best free accounting software for small businesses due to its great user experience, strong features, and generous plan.

One downside is that customer support is only available if you pay for any of the services, like payment processing. Recently, Wave added an $8-per-month charge for scanning expense receipts, which puts a dent in its appeal. But overall, it's still an excellent service that gives you a lot for free.

Puzzle

A startup is a unique kind of small business. Focused on innovation and growth, it needs special tools to measure how it's lifting off the ground. With so much to do every day across every aspect of the business, accounting shouldn't be a source of friction.

This is where Puzzle steps in. Instead of the more general metrics, it goes all in on tracking those that matter for your startup. It checks your current burn rate against your cash balance, helping you see how monthly costs stack up versus your reserves. Closely related, it gives you an estimated runway length, so you can see how long you have to reach net zero or cross into profit. This can help understand whether you should cut costs, look for more funding, or optimize for revenue.

These are all critical decisions, which is why Puzzle helps you drill down into the data. When you click on Monthly Checklist, you get a rundown of everything you need to check out. Reconcile your spending with bank statements and review credit card payments and uncategorized transactions. This makes it easier to see the big picture of your finances, helping you stay compliant when tax season comes and—perhaps more important—understand where you should save, optimize, or invest more.

Unless you're building a startup in the accounting industry, I'm sure you don't love working the books. All good: Puzzle offers their accountants via chat, so they can audit and review your accounts to tell you what's going well—or what isn't. Now that accounting is no longer a problem, you can throw yourself fully into everything else.

Puzzle price: Startup plan starts at $50/month

LessAccounting

LessAccounting is perfect for small businesses that want to keep things simple. It's designed to be easy to use, so you don't need to be a financial expert to get started. LessAccounting helps you stay on top of your finances without the hassle.

One of the best things about LessAccounting is how it helps you review financial reports regularly. This way, you can stay informed about your business's financial health without getting overwhelmed. The software generates reports that are easy to understand, so you always know where your money is going.

Another great feature is its focus on managing expenses. LessAccounting makes it easy to track what you're spending and compare it to your income. This helps you see the big picture and make better financial decisions.

With LessAccounting, you can streamline your bookkeeping and focus on growing your business. It's a tool that makes managing your finances less of a chore and more of a breeze.

For those worried about security, LessAccounting has you covered. It uses secure accounting software and strong password policies to protect your data and prevent cybersecurity attacks. This means you can trust that your financial information is safe.

In summary, LessAccounting is a great choice for small businesses looking to simplify their bookkeeping. It's user-friendly, secure, and helps you keep a close eye on your finances.

OneUp

OneUp is a budget-friendly option for small businesses, with prices starting at just $9 per month for one user. They also offer a generous 30-day free trial that includes all features. All plans come with every feature, differing only in the number of users and customer support levels. However, it doesn't have a free forever version, and its features aren't as robust as some similarly priced options. This brings OneUp's value for money to a 4.0-star rating.

OneUp earns a 3.7 out of five-star rating on Capterra with six user reviews and 4.1 stars on G2 with 20 reviews. While it has very few user reviews, those who posted say it's an easy-to-use solution with task tracking and lead capturing tools. They also appreciate the friendly, responsive, and knowledgeable customer service OneUp offers. However, it doesn’t offer time tracking or payroll features, creating fewer efficiencies than some competitors provide.

OneUp showcases flexibility in its approach to client management. It offers two distinct operational modes—“Do-It-For-Me” and “I-Do-It-Myself”—allowing businesses to choose the level of control they wish to exert. This adaptability ensures businesses can navigate growth phases while maintaining financial oversight. Notably, OneUp is replete with features such as dashboards, invoicing, CRM, and more, offering businesses an expansive toolkit to navigate their financial landscape.

In our experience, using OneUp couldn't have been easier. Setting up the system was glitch-free and intuitive. The software offered instructions every step of the way, with clear action buttons to help customize the platform to our needs. Even setting up automations was as simple as filling out a basic form.

Sage Accounting

Sage Accounting is a powerful tool for small businesses. It offers a bigger-business feel and functionality, making it suitable for companies that need more advanced features. One of the standout aspects of Sage Accounting is its detailed dashboard. You can easily integrate your bank accounts, set up automation to categorize transactions, and get insights into your cash flow and bank balances.

Pros

• Plenty of add-ons and tools available as your business grows
• Professional and corporate vibe

Cons

• Pricing packages can be confusing
• Dated interface and no mobile app

For businesses that need robust inventory-tracking capabilities and advanced accounting features, Sage Accounting is a solid choice. It ensures accurate financial records for tax compliance and fraud prevention, which is vital for businesses.

Overall, Sage Accounting is a comprehensive solution that supports various business operations, even though it might be more than what many small businesses need.

Zoho Books

Zoho Books is a powerful, cloud-based accounting software that focuses on the professional side of things. While the interface can sometimes feel cluttered, especially when navigating away from the dashboard, there's a lot of power here. Zoho Books is an excellent choice for businesses that plan to grow and for those already using other Zoho software.

One of the standout features of Zoho Books is its surprisingly robust free version. This makes it a great option for small businesses and startups. The software includes features like client management, multilingual and recurring invoicing, expense and mileage tracking, and detailed reports. You can import bank and credit card statements, although you can't set up direct connections to your financial institutions.

Zoho Books is part of Zoho's larger business software ecosystem, which means your accounting data can be tightly integrated with other Zoho apps like CRM, customer service, and email. This integration adds a lot of value, especially for businesses looking for a comprehensive solution.

Zoho Books is best for businesses that use other Zoho applications, but its appeal isn't limited to such cases. We also recommend it to larger small businesses, growing businesses, and established businesses that want its customizability, depth, and usability.

Pros

• Wide feature set
• Good platform and account customization

Cons

• Has a bit of a learning curve

Zoho Books offers a lot of depth in standard bookkeeping areas like sales and purchases, time and project tracking, and inventory management. This makes it a strong competitor in the accounting software market, even surpassing some of its rivals in terms of flexibility and usability.

Manager

Manager is a fantastic choice for those looking for a free, open-source accounting software. It offers a wide range of features without any cost, making it a great alternative to paid apps. The user interface is also highly configurable, allowing you to set it up just the way you like.

One of the standout features of Manager is its ability to provide real-time access to financial data. This is crucial for better decision-making and maximizing efficiency with managed accounting services. However, be aware that data isn't saved automatically, so make sure to click the appropriate buttons to save your work.

Pros

• Lots of features for free
• Configurable user interface

Cons

• Data isn't saved if you don't click the appropriate buttons

Pricing

• Complete desktop version: Free
• Paid cloud hosting option: $49/month

Manager feels like a sleeper car: stock car on the outside, souped-up engine under the hood. Take it for a spin, and see how it handles.

Intuit QuickBooks

Intuit QuickBooks is a popular choice for small and medium-sized businesses, as well as for people who are self-employed. It offers a range of features that make managing your finances easier. One of the standout features is its intuitive interface, which means you don't have to spend a lot of time learning how to use it.

QuickBooks provides transparent pricing options. You can choose between a 50% off promotional price for the first three months or a free 30-day trial. However, it can be pricey compared to some alternatives, especially if you need add-ons like tax assistance, bookkeeping, and automated time tracking.

QuickBooks Live is an option that adds bookkeeping support to QuickBooks Online. You can communicate with a dedicated bookkeeper through one-way video chat or email. This team helps customize your setup and monitors your transactions to ensure they are accurately entered and categorized for tax purposes. They also reconcile your accounts and close your books at the end of the month to prevent errors.

In my experience, even advanced features within QuickBooks, such as automated workflows, are simple and intuitive to set up. All tools are at your fingertips when you click a menu option, so you don’t have to search the platform for needed tools. It even offers shortcuts to your most used tools on your dashboard. User reviews echo this sentiment, stating the software offers a low learning curve and an intuitive-to-navigate interface.

QuickBooks Online is easy enough for an inexperienced bookkeeper to learn but feature-rich enough that a more demanding user can tap its advanced accounting tools. Because it's so customizable and user-friendly, it appeals to a wide variety of business types.

Wrapping It Up

Finding the right accounting software can make a world of difference for your business. It can save you time, reduce stress, and help you keep your finances in check. Whether you're a small business owner or running a larger operation, there's a tool out there that fits your needs. From free options like Wave to more comprehensive solutions like QuickBooks, the choices are plenty. Take the time to explore and find the one that works best for you. Remember, the right software can turn a bookkeeping headache into a breeze. Happy accounting!