Small businesses are the backbone of the economy in any developing country. Small and medium-sized businesses represent 90% of all businesses worldwide. They create more jobs than any other sector, accounting for a large part of GDP. But running a small business is no easy task. One of the most critical aspects of success is keeping accurate records of expenses and income. Customized Finance & Accounting BPO services enables your business to enhance its operational and financial agility by streamlining and optimizing key processes.
There are tons of accounting software and apps designed to specifically help small and medium-sized businesses create invoices, track and manage inventory, manage payroll for employees, overall business finances, and other critical functions.
Small business owners who choose an accounting software are more likely to be aware of their company's finances, with 64.4% utilizing it, according to a recent survey by GoRemotely. It's excellent because 60% of small company owners claim to be inadequately educated about finance and accounting services.
To understand which accounting tool would be the best fit for small businesses, we researched more than 25 software, tools, and mobile apps before concluding the top seven.
We chose these tools based on the features and functions specifically designed for small business owners, how easy they are to use, their cost-effectiveness, and the overall features.
FreshBooks is one of the best and most popular accounting tools. It helps you manage invoicing, time tracking, payments, and more. It is a fast, secure, and easy-to-use tool.
With exceptional customization, you may personalize your emails and create your invoice, including your logo and signature. It also includes an automatic expense tracker. Plus, it makes it easy to get paid with features like automatic late payment reminders and online payments.
FreshBooks offers four different versions, namely, Lite ($4.50/month), Plus ($9.00/month), Premium ($16.50/month), and Select (Custom Pricing).The only drawback is the tool does not provide any free plan. And also, the tool is cloud-based, so you cannot deploy it on-premise once you scale.
Also read: How To Keep Invoices Organized in Accounting
Zoho Books is trusted online accounting software that can help you manage your finances, automate business workflows, and work collectively with other departments. Zoho Books is known for its simple interface.
You can easily track your expenses, create and send invoices, and even monitor your inventory levels. It also includes a project management feature to track project progress and deadlines. The tool also provides automation to avoid tedious, error-prone, and repetitive tasks.
Zoho Books offers six different versions, namely, Free version (INR 0), Standard (INR 749/month), Professional (INR 1,499/month), Premium (INR 2,999/month), Elite (INR 4,999/month), and Ultimate (7,999/month). The only flaw in Zoho Books is they do not have live chat support, which could be a deal-breaker for small business owners.
Intuit QuickBooks is arguably the most popular accounting tool for small businesses. It helps you manage your employees’ finances, invoicing, and even payroll. QuickBooks is known for its easy onboarding experience, clean UI, and comprehensive features. Custom invoicing, custom dashboards and reports, cash flow management, and inventory management are some of the top features of QuickBooks.
QuickBooks offers four different versions, namely, Simple Start ($15/month), Essentials ($27.50/month), Plus ($42.50/month), and Advanced ($100/month). The tool is limited to only the English language and does not provide a free plan to start.
Wave Accounting is a comprehensive and integrated software that may handle all your accounting demands. It's one of the best tools for small businesses, self-employed people, and freelancers. The tool is entirely free to use. The tool focuses on three essential things that small businesses need help with: Accounting, Invoicing, and Compatibility.
Wave offers multiple options to choose from; Invoicing ($0), Accounting ($0), Banking ($0), Payments (2.9% + $0.6/transaction, 3.4% + $0.6/AMEX transaction, and 1%/transaction for Bank Payments), Payroll (Tax Services: $40/month + $12 extra charges that may exceed and Self Service: $20/month + $12 extra charges that may exceed), and Advisors (Bookkeeping Support: $149/month and Accounting & Payroll: $379 - one-time fee). The tool does not offer a credit note feature and charges a processing fee for some transactions like dispute settlement or return fees.
Xero is one of the most recent accounting software, among others. It comes fully equipped with all of the accounting functions you'll need to develop your small business. The accounting tool is web-based and can be accessed from anywhere.
Xero offers three specific versions, namely, Early ($13/month), Growing ($37/month), and Established ($70/month). For individual traders, new businesses, and the self-employed. Suitable for fast-scaling small businesses. Suitable for established businesses. Free 30 Days Trial Inclusive of All Features Additional: Full-service payroll at $39/month. The tool is relatively new, so the technology is still improving. The tool might have a few bugs.
The highly configurable software assists you in managing all of your business accounting activities. The software is simple and highly adaptable, providing cooperative access to help you make strategic decisions. The key features include financial reporting, tools to configure processes per needs, job or event automation, inventory and order management, sales order management, etc.
Custom Pricing Provided by Vendor. No free trial, No free version. You need to contact their team to know the pricing details. This might become a concern for SMBs because of no transparency.
Zip Books is a clean, simple, and compelling account software that encourages you to work smarter. It's a web-based tool that automates all of your accounting activities. It can generate invoices, income statements, and financial reports.
Simple features such as accounting, billing, expense management, actionable reporting, and team management make it a fantastic accounting software to use.
ZipBooks come in Free version, Smarter ($15/month), Sophisticated ($35/month), and Accountant (Custom Pricing). Custom Unlimited invoices, Vendors, and Customers Free Trial Available. The tool is only available in the English language. It also does not provide support via live chat or ticketing.
It's essential to try out a few different accounting software before you settle on one, as each tool provides unique features and benefits per your needs. We have used multiple accounting tools for small businesses and helped many. If you're looking for an accounting tool to help you manage your finances and grow your small business, consider one of the tools from this list as per the features you need and your budget.
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