1. QuickBooks Online

QuickBooks Online is a leader in accounting software for small businesses. It's known for its strong feature set and scalability, making it a great choice for startups. Whether you're just starting out or growing fast, QuickBooks Online can keep up with your needs.

Pros & Cons

Pros

• Scalable
• Commonly used by accounting professionals
• Integration with third-party applications
• Cloud-based
• Has mobile app

Cons

• Upgrade required for more users
• Occasional syncing problems with banks and credit cards

Overview

QuickBooks Online is one of the most familiar names in accounting software, widely used by small businesses and their bookkeeping and tax professionals. The cloud-based software can be accessed through a web browser or a mobile app.

There are four options for monthly subscription plans:

• Simple Start ($30 per month)
• Essentials ($60 per month)
• Plus ($90 per month)
• Advanced ($200 per month)

You can select a 30-day free trial, but if you choose to skip it, you'll receive 50% off the first three months.

The monthly subscription for this software can be upgraded as a business grows. The feature-packed mobile app can be used to receive payments, send invoices, capture an image of a receipt, provide estimates, and more. QuickBooks Payroll fully integrates with QuickBooks Online for businesses looking for a payroll solution.

Each plan offers more advanced features like inventory management, time tracking, additional users, and cash flow. Most service-based small businesses will find that Simple Start meets all of their needs. Essentials adds additional features for bill and time management. For product-based small businesses, Plus will have more options for inventory and customizations.

The Advanced subscription adds many features, including expense management, exclusive premium apps, a dedicated account team, and on-demand training. All plans allow integration with third-party apps such as Stripe or PayPal. QuickBooks Online’s app store breaks down its apps by function and provides helpful examples of each app's benefits.

QuickBooks Online is a great smart accounting software that is very responsive and nice to send invoices and get paid faster. Overall very positive, happy to use it.

Why We Chose QuickBooks Online

QuickBooks Online is by far the most popular small business accounting software in North America—and rightly so with its easy-to-use interface and outstanding features. Nearly every bookkeeper in the United States is familiar with QuickBooks, so you’ll easily be able to get bookkeeping assistance so that you can focus on your new business. Whether you want to do all the input yourself or leave everything to the bookkeeper, you’ll have no trouble finding a bookkeeper.

We selected QuickBooks as the best small business accounting software, in part because of its scalability for startups. You can easily upgrade plans as additional features and users are needed, with the advanced plan supporting 25 users. And if you do outgrow it, you’ll have no trouble finding a bookkeeper to help transition to an enterprise resource planning (ERP) like NetSuite.

In our evaluation, QuickBooks Online took a hit in pricing, so if affordability is a concern, then a provider like Wave may be a better option. It also lacks a fixed asset manager, so we recommend Xero if that is something you’re seeking in accounting software. Project managers who need to compare estimated and actual costs would be better suited with FreshBooks since that feature isn’t offered with QuickBooks Online.

2. Xero

Xero is a fantastic choice for startups looking for a comprehensive accounting solution. It's packed with features that can grow with your business, making it a versatile tool for various needs.

Why We Picked It

Xero supports all major financial elements you would expect in a double-entry accounting system. This includes sales, purchases, bills, expenses, inventory, and payroll. The software also offers exceptional reports and advanced analytics, which are crucial for making informed business decisions. Xero's use of artificial intelligence helps automate processes and improve connectivity with related financial websites.

Who It's For

Xero is ideal for small businesses where multiple people need access to the accounting software. It's also perfect for businesses that will use most of its well-integrated features and need powerful reporting tools. However, we don't recommend Xero for sole proprietors or freelancers, even though it has a starter pricing level that might fit their budgets.

Key Features

• Bill Pay Support: Manage due dates, schedule payments, and store bills securely online.
• Expense Management: Capture receipt photos, manage reimbursements, and track mileage.
• Bank Account Connections: Automatic bank feeds, transaction tracking, and bank reconciliation.
• Invoicing: Accept payments, protect against fraud, and support multiple payment methods and currencies.
• Project Tracking: Track time and location, and manage project costs.
• Document Management: Securely store and share documents.
• Contact Management: Keep detailed transaction records.

Pricing

Xero offers three pricing plans:

1. Early Plan: $15/month - Send up to 20 invoices and enter up to 5 bills per month.
2. Growing Plan: $42/month - No caps on quotes, invoices, or bills.
3. Established Plan: $78/month - Includes multi-currency management, project tracking, and analytics.

You can also add Payroll with Gusto for an additional $40/month + $6/person.

If your business qualifies as a nonprofit, you may be eligible for a 25% discount. Just provide your registered charity number or certification for eligibility.

Integration and Usability

Xero integrates with over 1,000 business apps, making it easy to connect with other tools you use. The main dashboard is well-designed and acts as an onboarding tool, listing tasks you need to complete to take full advantage of the software. You can also customize the dashboard to hide features you don't need.

Support

Xero offers excellent online help and live support. They also provide webinars and events to help new business owners master the software. Accountants and bookkeepers can even get Xero certification.

In summary, Xero is a robust accounting solution that offers great value for money. Its extensive features and integrations make it a top pick for startups looking to streamline their accounting processes.

3. FreshBooks

FreshBooks is a fantastic choice for startups, especially those in the service industry. It's known for its excellent invoicing capabilities and user-friendly interface. Let's dive into what makes FreshBooks stand out.

Key Features

• Invoicing: FreshBooks shines in this area, allowing you to send unlimited invoices and estimates with every plan. You can also customize your invoices to give them a professional look.
• Time Tracking: Easily track time and bill clients accurately. This feature is available on both mobile and desktop platforms.
• Expense Tracking: Keep your budget balanced with built-in expense tracking. This feature helps you manage your finances effortlessly.
• Project Management: Assign cost rates, billable rates, and hours to individuals. The project dashboard is comprehensive and easy to use.
• Customer Support: FreshBooks excels in customer service, offering phone and email support. Their vast knowledge base is also a great resource.

Pricing

FreshBooks offers four plans:

Each plan includes one seat, with additional users available for $11 per month.

FreshBooks is ideal for very small businesses and sole proprietors. However, growing businesses might outgrow it quickly.

Why Choose FreshBooks?

• Ease of Use: FreshBooks is designed for non-accountants, making it easy to navigate and use.
• Mobile App: The mobile app can perform almost all the same functions as the desktop interface, keeping your data synced across all devices.
• Integrations: FreshBooks integrates with over 100 apps, including Gusto for payroll.

Choose FreshBooks if you want strong accounting software backed with excellent customer support and numerous great features, including strong invoicing and proposals.

4. Wave

Wave makes accounting look easy. More than that, it has a business model that's great if you don't want to add an extra subscription to your monthly bill: most of the core features are completely free.

So, how does Wave keep the lights on? The app processes your online payments and, as it does so, keeps a percentage of the invoice amount, the same way that platforms like Stripe or PayPal do. At the time of writing, this fee is at 2.9% + $0.60 for credit card transactions and 1% for each bank transaction + $1 minimum fee. If you receive most of your payments via other means, Wave may turn out to be easy on your wallet.

There are other ways that Wave makes money, too. There's a paid plan that removes the $0.60 fee of each transaction and adds automation features. You can also subscribe to the automated payroll plugin, letting you pay yourself and your team while keeping all the paperwork up to date. Lastly, you can book time with bookkeeping experts and access accounting coaching, so you'll reach the tax season feeling confident and ready. To boost this feeling, you can invite your accountant into your account, and they'll be pleased to see that Wave handles details like 1099s.

The dashboard provides a simple big-picture view of your cash flow and invoice information. There are a few reports that'll help you look into profit and loss, see balance sheets, and get deeper insights into cash flow. The only snag? It's not available outside the U.S. and Canada.

Wave makes the list as the best free accounting software for small business due to its great user experience, strong features, and generous plan. If you're on the right side of the ocean, give it a try. And connect Wave to Zapier, so it can talk to all the other apps you use. Learn more about how to automate Wave, or take a look at these examples.

5. Zoho Books

Zoho Books is a fantastic choice for startups looking for a comprehensive accounting solution. It's been easy to use and the customer service has been great whenever I need a little help. Zoho Books offers a wide range of features that can cater to various business needs, making it a versatile tool for growing companies.

One of the standout features of Zoho Books is its invoicing capabilities. You can create customizable invoices, set up recurring invoices, and even encrypt them for added security. The client portal allows customers to pay invoices directly online, which is super convenient.

Zoho Books also excels in inventory management. You can track inventory levels, set customizable product details, and manage rates. This is particularly useful for businesses that sell products and need to keep a close eye on stock levels.

For those who need to manage projects, Zoho Books has you covered. You can track time, create tasks, and even set up automatic retainer payments. The software also supports role-based permissions, so you can control who has access to what.

Another great feature is the integration with multiple payment gateways. This allows you to accept payments through various channels, making it easier for your customers to pay you. Plus, Zoho Books integrates with other Zoho apps and thousands of third-party apps via Zapier, giving you a lot of flexibility.

Zoho Books is best for larger small businesses and those already using other Zoho applications. Its depth and flexibility make it a powerful tool, but it might be a bit overwhelming for very small businesses.

In summary, Zoho Books is a robust accounting software that offers a lot of value, especially for businesses that need advanced features like project tracking and inventory management. If you're looking for a versatile and comprehensive accounting solution, Zoho Books is definitely worth considering.

6. NetSuite

NetSuite is a powerful cloud-based accounting tool that keeps all your financial data in one place. You can access it anytime, anywhere, as long as you have an internet connection. Plus, there's an app for both iOS and Android, making it even more convenient.

One of the standout features of NetSuite is its integration with other Oracle products. If you're already using Oracle for HR or inventory management, NetSuite is a no-brainer. It offers comprehensive accounting support, from balancing your general ledger to managing accounts receivable and payable.

However, one downside is the lack of transparent pricing. You have to contact the provider for a quote, and there's no free trial available. This can be a bit of a hassle for smaller businesses on a budget.

Pros and Cons

Pros:

• Integrates with other Oracle products
• Automates repetitive tasks like reconciling account statements
• Complies with multiple financial regulations (ASC 606, GAAP, SOX)

Cons:

• Lack of pricing transparency
• Additional costs for other NetSuite integration products
• No telephone support for the basic customer support plan

Who is NetSuite Best For?

NetSuite is ideal for companies looking for a robust, cloud-based accounting tool from a reputable provider. It's especially useful for businesses that need to comply with financial regulations like the Sarbanes-Oxley Act (SOX).

If you're managing international subsidiaries, NetSuite makes it easy to consolidate financials, unlike other tools that require manual work.

Functionality

NetSuite offers a wide range of accounting features. You can balance your general ledger, manage accounts receivable/payable, and monitor cash flow. The tool also allows for automatic reconciliation of accounts payable and receivable, bank and credit card statements, and other balance sheet accounts.

Support

NetSuite provides various support options. The starting point is SuiteAnswers, a database of support articles, training videos, and best practices. There's also a support community where you can ask other users for help. For more personalized support, you can choose from different service plans, including Premium and Advanced support, which offer toll-free help and one-on-one guidance.

In summary, NetSuite is a powerful tool for businesses looking to scale. "I tested the free trial for the software and was amazed at its capability. Definitely a winner for any company looking to scale their business."

7. Sage Intacct

Sage Intacct is a top choice for startups looking for a robust accounting solution. It's packed with features that make managing finances a breeze.

One of the standout features of Sage Intacct is its detailed dashboard. It offers cash flow statements, forecasting, and views into your bank account balances. You can easily integrate your bank accounts and set up automation to categorize transactions. This means you can identify transactions by source, name, or value, and Sage will automatically apply the categories.

Sage Intacct also excels in tax features. It includes sales tax tracking and 1099 vendor reports, which can simplify your accountant's life. You can even invite your accountant to access the system.

Sage Intacct is a step up from classic receipt capture features. It allows you to upload any relevant documents, and Sage will sort it out, extract data, and have it available when you need it.

Sage Intacct integrates with 31 additional apps in the Sage marketplace, including Stripe, CRM solutions, time tracking tools, and payroll platforms. Some of these may come with extra costs, so keep an eye out for subscription expenses. To integrate Sage with even more of your tech stack, connect Sage to Zapier.

If you're handling a lot of paperwork, Sage Intacct's AutoEntry feature can cut down on the time you spend managing documents. Although it's a paid feature, it offers more than just receipt capture. Once you set up rules to import data, you can upload any relevant documents, and Sage will take care of the rest.

Sage Intacct is also in the AI game with Sage Copilot. This AI chat-driven experience offers starter prompts that help you run actions on your account. It can give you an overview of invoice status, generate reports, and pull documents you can download directly.

In summary, Sage Intacct is a powerful accounting tool that offers a range of features to help startups manage their finances efficiently. From detailed dashboards to AI-driven tools, it's designed to make your accounting tasks easier and more efficient.

8. Kashoo

Kashoo is a fantastic choice for startups looking for simple and effective accounting software. One of the best things about Kashoo is its ease of setup. You can get started in about 60 seconds, and the app will immediately begin categorizing your expenses and learning your business spending habits.

Kashoo offers a free plan that includes sending invoices, tracking expenses, accepting online payments, and sending estimates. However, it's a bit unclear if the free plan allows you to track net income and expenses, as the information on their site is contradictory. But don't worry, Kashoo is planning to develop these features for the free plan if they aren't already included.

If you need more features, Kashoo's paid plan starts at $20 a month. This plan includes additional user options and tracks income, expenses, and sales tax. It's a great option if you're looking for a more comprehensive accounting solution.

Key Features

• Easy setup in about 60 seconds
• Free plan available with basic features
• Paid plan starting at $20/month with more advanced features
• Tracks income, expenses, and sales tax
• Syncs with SurePayroll for payroll management

Kashoo's automation is a standout feature, making it a strong contender for startups that want to streamline their accounting processes without spending a lot of time on setup and management.

9. FreeAgent

FreeAgent is a fantastic choice for startups looking for a user-friendly accounting solution. Voted friendliest software of the year 2023, it offers a free 30-day trial to get you started.

One of the standout features of FreeAgent is its excellent customer service. Many users have praised how it can revolutionize the way you manage your business finances. However, it's worth noting that FreeAgent is a bit more expensive compared to some other accounting software options. Additionally, the UI for viewing current expenses can be a bit clunky.

Key Features

• Invoicing
• Expense Tracking
• Time Tracking
• Project Management
• Tax Management

Pricing

FreeAgent offers a simple pricing structure:

Pros

• User-friendly interface
• Excellent customer support
• Comprehensive feature set

Cons

• Slightly more expensive
• Clunky UI for expenses

FreeAgent is a solid choice for startups that need a reliable and friendly accounting software. While it may be a bit pricier, the features and support make it worth considering.

10. ZipBooks

ZipBooks is a fantastic choice for startups looking for an easy-to-use accounting solution. One of the standout features of ZipBooks is its free plan, which includes unlimited invoicing. This is a great option for small businesses that need to keep costs low while still having access to essential accounting tools.

ZipBooks offers three pricing plans ranging from $0/month to $35/month. Each plan adds more features and supports more users, with the most expensive plan allowing for unlimited users. The software's design is simple and intuitive, using automations to save you time. The UI is even color-coded to make navigation a breeze.

Key Features

• Project management with expense and time tracking
• Chart of accounts with the ability to set custom accounts
• Built-in auto-categorization that learns from your updates
• Tracking via automatic bank sync, statement import, and bank reconciliation
• Accounts receivable with payment tracking and specialized account age reports
• Add your accountant as a team member for direct access to your business’s accounts
• Business health score and recommendations
• Strong, customizable reports features

ZipBooks' free plan stands out for its Square and PayPal payment integrations, a feature some companies only provide in paid plans or as an add-on.

Choose ZipBooks if you want built-in intelligence that gives financial insights and affordable, full-featured software that's easy to use.

Wrapping It Up

Choosing the right accounting software for your startup is a big deal. It can make managing your finances a breeze or a total headache. We've looked at some of the best options out there for 2023, and each has its own perks. QuickBooks Online is great if you're planning to grow big. Zoho Books is awesome for those who need a solid mobile app. Xero is perfect for startups with lots of fixed assets. FreshBooks is ideal for small service-based businesses, and Wave is a fantastic free option for those just getting started. No matter what you choose, make sure it fits your needs and helps you keep your business on track. Happy accounting!