Discover the top 8 accounting software solutions for small business owners, from cost-effective and feature-rich platforms to those with integrated payroll and billing capabilities


Accounting software for small business is a useful tool to help you record and examine the flow of your company's money. With it, you can generate reports for transactions, manage customer contacts, create purchase orders with accurate stock levels that will save time compared to waiting on inventory counts every day or week, monitor account balances, and much more. But what is the best accounting software for small businesses and how can it benefit a small company? And, isn't it easier to do all the bookkeeping manually, just recording and counting expenses and income?

Benefits of Accounting Software for Small Businesses

Small businesses are the backbone of the European economy, and accounting is a critical aspect of ensuring the smooth operation of these companies. In today's digital age, accounting software has become an important tool for small business owners looking to streamline their financial management and gain a better understanding of their financial health.

One of the main benefits of accounting software for small businesses is the ability to automate many of the tedious and time-consuming tasks associated with bookkeeping. For example, billing and expense tracking can be done with just a few clicks of the mouse, and the software can automatically generate financial reports such as profit and loss statements and balance sheets, saving business owners valuable time.

In addition, the accounting software allows small business owners to get a real-time view of their financial situation. This means they can quickly see how much money is coming in and how much is going out, and identify areas where they can cut costs or increase revenue. This understanding of the financial situation is essential to making sound business decisions and staying competitive in today's economy.

Another benefit of accounting software is the ability to easily track and manage inventory, which is especially helpful for small businesses that sell physical goods. Software can help small business owners track inventory levels, set reorder points, and even generate purchase orders, saving time and preventing shortages.

Many accounting programs also come with built-in tools for tax compliance and tax preparation. They can automatically calculate taxes, generate tax reports and help users stay on top of their tax obligations, which can be a major headache for small business owners.

Finally, accounting software can help small business owners improve cash flow and make timely payments. It can integrate with payment processors such as PayPal and Square and allow owners to set up recurring transfers and track payments from customers.


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Top 8 Bookkeeping Software Solutions for Small Business

1.  Quickbooks Online

QuickBooks Online is cloud based accounting software for small businesses, and it’s some of the best accounting software that Intuit offers for such companies. QuickBooks Online has a large number of features, including modules for accounts payable and receivable, alongside invoicing, and inventory management tools. Additionally, it has a payroll module for businesses with employees and a time tracking module for companies that bill clients on an hourly basis. 

One of the key benefits of QuickBooks is its ability to integrate with other popular business tools. For example, it can integrate with popular payment processors such as PayPal and Square, as well as with e-commerce platforms including Shopify and WooCommerce. This allows small businesses to optimize their financial management processes and streamline their operations. It even offers integration with Freshbooks for time tracking. One of the best things about accounting software like QuickBooks Online is its ability to handle multiple users, which means your entire team can work on it at once without any concerns about sharing sensitive information or finances. 

QuickBooks Online is the best accounting software for small businesses because of the large number of features it offers. It's also very easy to use and has a user-friendly interface that can be learned quickly. You'll need basic computer skills to get started with QuickBooks online such as knowing how to open an account on your web browser and working within a spreadsheet program like Excel (which will help prepare reports). 

Advantages of Quickbooks Online: 

·   700 app integrations

·   A large list of accounting features is available such as inventory management and  payroll services.

·   Includes Freshbooks integration.

·   Your entire team can work on accounting together. 

2.  Freshbooks Accounting

Freshbooks is accounting software designed specifically for small businesses. It's a cloud-based accounting solution that allows you to track your business expenses, organize financial data and produce reports with ease. You can also use Freshbooks accounting to manage projects and send professional-looking invoices, which will help generate more revenue. This application makes it simple to keep up on finances even when away from the office. It helps save time spent doing manual bookkeeping or preparing monthly reports by automating these processes entirely. 

Additionally, FreshBooks offers a module for tracking and managing inventory. This feature is particularly useful for businesses that sell physical goods, as it allows them to keep track of stock levels, set reorder points, and generate purchase orders.

The software can generate financial documents such as profit and loss reports, balance sheets, and cash flow statements, which can help businesses gain insight into their financial health and make informed business decisions.

FreshBooks provides a secure and reliable cloud-based service. The software is accessible from anywhere, at any time, and allows businesses to collaborate with their team members and access their financial data from any device with internet access. This feature is particularly useful for businesses with employees or contractors working remotely.

Another great feature of this accounting program is its ability to handle multiple users at once, so everyone working in your company has access to real-time information, including income, expenses, and accounting reports. This accounting program also has several integrations available to connect your accounting software with other applications such as Google Drive, Dropbox, and MailChimp. FreshBooks accounting is very easy to use, which means you'll be up and running in no time. 

Advantages of FreshBooks:

·   Time-saving features that automate accounting processes, including an option for sending invoices directly from this application.

·   It offers unlimited users, so it's great for small business owners who need help staying organized when working together.

·   Live and call support. 

3.  Xero

Xero is accounting software for small businesses that provides users with a complete accounting suite to manage their finances. This accounting application makes it easy to track all your income and expenses throughout the year while also offering support if you need help along the way. Xero offers free trial periods so you can try out this accounting program risk-free before making any financial investments. 

One notable feature offered is its ability to provide real-time information. This allows accountants and business owners to stay up to date on the company's latest changes as they happen to take action when necessary. Additionally, being able to log into multiple devices at once means you'll always have access to your accounting data from wherever you are, and  when it's most convenient. 

One downside to using Xero accounting is that there aren't many free add-ons available, making this accounting suite more expensive than others on the market today, even with its competitive price point per month. However, if saving money isn't a top priority for you and ease-of-use and real-time reporting matter, consider this accounting software for small business owners. 

Advantages of Xero:

·   Infinite users in all of its plans.

·   Inventory management.

·   Complete reporting for all plans.

·   Automation of bill captures.

·   Double-entry accounting. 

 4.  Zoho Books

Zoho Books is accounting software for small businesses to manage their accounts payable, billing, and invoicing. It allows users to keep track of different bank accounts, credit cards, and bills due or paid. Accounting professionals can also use Zoho Books to integrate with other programs like QuickBooks Online and Xero accounting software. This means that data does not have to be entered twice into two separate systems. This saves accounting firms time when keeping track of multiple clients' finances at once because all the information will automatically update in one place.  

Advantages of Zoho Books:

·   Simple to use.

·   Allows integration with apps of the Zoho family.

·   Workflow automation.

·   Customer support.

·   Nonprofits and startups can get customized versions. 

5.  Sage 50

Sage’s accounting software, formerly known as Peachtree accounting, has been used by small businesses for decades to keep track of their finances. It is a complete accounting system that integrates with the QuickBooks accounting program and offers many unique features. 

A great feature, called ‘AutoEntry,’ offered by this accounting software, is its ability to create invoices directly from sales orders without entering data twice or exporting reports before generating them into an invoice. This saves time, especially when billing large numbers of clients at once. This is because all information will be automatically updated in one place instead of entering account details separately on each client's order form.  

Advantages of Sage 50:

·   High levels of security

·   24/7 user support.

·   Easily accessible with a user-friendly interface.

·   Backup automation.

·   Enables efficient and simple collaborations with other users, partners, or accountants. 

6. Wave Accounting

Wave accounting is free accounting software for small businesses. The company earns through payment transactions and payroll ad-on. Anyone who has a basic understanding of accounting concepts can easily manage their business's finances using Wave accounting. It's free and offers many useful features that are typically found in expensive accounting applications. 

You have access to various financial reports, including balance sheets, income statements, and trial balance reports. The best part about these reports is you can download them as PDF or Excel files so they are automatically saved on your computer drives where you can view them anytime you wish too.

The administrator would share a unique URL link with all the employees, and once they log in to their account, each employee would be able to access Wave accounting from anywhere in the world. 

The best feature of wave accounting is how it automates payment processing between customers and business accounts by updating bank balances each time a sale occurs. This allows for tracking every transaction made through the system, making everything much easier once tax season rolls around. Other billing systems do not provide detailed information about clients' incoming payments until after taxes are completed and filed. 

Advantages of Wave Accounting:

·   It is transparent and free accounting software for small businesses.

·   Easy to use and navigate.

·   Infinite tracking of income and expenses.

·   Infinite users, partners, or accountants.

·   Double-entry accounting. 

7.  FreeAgent

FreeAgent’s bookkeeping software for small businesses stands out in its organizational and easily accessible features and capabilities. This aspect makes it perfect for freelancers and small businesses. The software offers features like recurring invoices, which are sent automatically to clients. Once you connect the software with your bank account, it will enable automatic transactions without the hassle of completing these tasks daily. 

Advantages of FreeAgent:

·   It enables quick estimate creations with its ready-made templates.

·   Offers time tracking.

·   Provides a bird’s eye view of your dashboard. 

8. Finom Invoicing and Accounting Solution for Small Businesses

Finom provides exceptional financial services for small businesses and freelancers by integrating tools that large enterprises use. With a user-friendly and interactive interface, e-invoicing service, accounting integrations, automated features, and full or partial access to an accountant, Finom aims to transform your experience in handling your small business. It is also available on mobile.

The invoicing feature of Finom allows businesses to create, send, and track invoices easily. It also enables businesses to set up recurring invoices and payment reminders, which can help businesses get paid faster. The software also allows businesses to accept online payments, which can save time and reduce the risk of lost or delayed transactions.

There are four affordable options you can choose from:

1.  Solo: This is priced from 5 EUR, with 1 user included. It allows one wallet, 50 in/out SEPA transfers, a 20,000 EUR monthly withdrawal limit, and an unlimited number of invoices.

2.  Start: Start: The monthly fee starts from 14 EUR. Here you get 2 user accounts and 100 SEPA transfers.

3.  Premium: Priced at an affordable 34 EUR per month, the premium plan offers five users, three wallets, 200 in/out SEPA transfers, along with the standard offers.

4.  Corporate: The highest plan level is priced at 119 EUR per month. You can register infinite users, four wallets, and 500 in/out SEPA transfers, along with unlimited invoices, credit notes. 

These are some of the best and most popular accounting software for small businesses. Integrating these business accounting software packages with Finom's innovative features, including e-invoicing and a full or partial accountant service, will enable your business to reach new heights.

Why Do You Need Accounting Software for Your Business?

Accounting software for small businesses is a very important tool to manage your accounting and finances. It helps you track the business's financial status, expenses, and revenue, which in turn will help you make informed decisions about your company's spending and budgeting. You can also avoid any overspending with such software as it keeps track of all expenditures made by the business. With this accounting system at hand, you can easily keep records of each transaction within the organization without wasting too much time on manual bookkeeping or tracking down receipts from various files or drawers. 

Functions and Features to Look For in Accounting Software for Small Business

Key features that accounting software for small businesses must have: 

1.  It must include accounting capabilities like transaction recording, report generation, etc.

2.  It should allow you to manage invoices, accounting documents, and bills.

3.  It should be easy to use with a clean interface.

4.  It should provide support in multiple languages.

5.  It should integrate well with other applications such as your CRM, POS systems, ecommerce platforms, etc., so everything is integrated.

6.  It must have a free trial.

7.  It must have a good support team by phone, email, and chat.

8.  The software should work well with mobile devices like tablets or phones.

9.  The software should be compatible with different operating systems such as Windows, Mac or Linux, etc. 

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Accounting Software Is a Powerful Tool for Small Businesses

The best accounting software for your business depends on the size of your company, what you need to accomplish with it, and how much time you have. We’ve given some suggestions here that should help get you started in finding a great fit for your small business. Identify your business priorities and remember to remain realistic about your budget and time. Lastly, let your business grow with the accounting software because as a small business owner or freelancer, you may want to gradually bring in the features to your business.

In conclusion, accounting software is a powerful tool for small businesses, helping them automate routine tasks, get a real-time view of their financial situations, manage inventory, comply with taxes and improve their cash flows. As the small business environment becomes increasingly competitive, investing in accounting software is a smart move that can give small business owners the edge they need to succeed.

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