A few decades ago, accounting transactions were recorded manually, this method presented a whole lot of disadvantages like human error, misplacement of vital documents, poor storage, manipulation, and most times the confidential documents may fall into the wrong hands.
With the advent of technology came the development of diverse Accounting software, which not only made financial transactions easier and accurate but also transformed the whole idea of accounting.
Small business accounting software assists business owners in recording and analyzing financial transactions efficiently, effectively, and accurately. The current accounting software has a wide range of features that have created ways for higher computational accuracy.
In this read, you will get to know more about this accounting software. The table above will guide you.
What is Accounting Software?
Accounting Software is a computer program that helps bookkeepers and accountants in recording and reporting a company’s or business financial transactions. It evaluates and takes care of the financial status of a company.
Business owners and accounting professionals use accounting software to process, record, and analyze accounting transactions. It provides accurate data, data export, security, account satisfaction and also helps in report generation.
They are used for recording general financial transactions like accounts payable and receivables, bank reconciliation, inventory, invoices, budgeting, etc. It is a necessary tool for analyzing the financial strength of a company. It also helps you to monitor the inflow and outflow of cash transactions.
Why do Small Businesses need Accounting Software?
Small businesses need accounting software for a structured and organized preparation of financial statements. It helps in monitoring the daily financial transactions of your business.
You might feel you don’t need accounting software since you run a small business but having accounting software will do you a whole lot of good.
Here are a few reasons why small businesses need accounting software:
1. Speed
Accounting Software guarantees speed and cuts down on time spent recording your transactions manually. All you need to do is input the correct figures and the results will be generated automatically.
2. Accuracy
As humans, it is not unusual to make errors while calculating manually, and a little error in your business financial transaction can have a negative effect on your business, accounting software helps you eliminate errors in calculations.
3. Organized financial report
Small businesses need accounting software for an organized and structured financial report. It helps you record your daily transactions in an orderly manner for clearer understanding, it also guarantees security, besides, getting your business’s vital information in the wrong hands could have a devastating effect.
4. Reduction in cost
It reduces the cost involved in hiring the services of an accounting professional and the cost associated with the maintenance of the manual accounting system.
5. Saves time
Small businesses need accounting software to save the time associated with recording financial transactions manually,
6. Tax
Taxation is very crucial to the continuation of your business, for accurate computation of your annual tax, you’ll need a detailed financial report, accounting software prepares these reports for you and with an accurate automated report, you can successfully handle your tax issues.
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12 Best Small Business Accounting Software In 2022
Below is a list of the 12 best Accounting Software in 2022, with detailed information on each, including their pros and cons.
1. Intuit QuickBooks Online
This is an accounting software developed by Intuit. They’re used by small and medium-sized businesses and provides on-premises accounting applications as well as cloud-based versions that accept business payment, provides payroll functions, manages and pays bills.
It comes with a complete tool for accounting, inventory, tax filing, invoicing, bank reconciliation and tracking, expenses management, budgeting, and a whole lot of amazing features for your business.
Intuit is one of the best small business accounting software. It also provides online training and support when you need it.
Additionally,it has a free trial period and the pricing system includes, simple start $25/month, Essentials at $40/month, Plus at $70/month, and Advanced at $150/month.
Pros of Intuit QuickBooks Online
Cons of Intuit QuickBooks Online
Visit the link below to get this app for your business.
2. Wave
Wave is a free accounting software, that has no limits on invoicing, contacts, items and other features, but you’ll have to pay a fee to access payroll, payment processing, or professional bookkeeping.
It was designed to cater to the needs of small business owners, no matter their knowledge of accounting.
As a cloud based software, you can easily sync it with your bank account. It was the first to offer an integrated leading feature, you can’t add multiple users, making it unfit for larger businesses.
Pros
- It is free
- Lots of features
- User friendly interface
- Attractive invoice templates
Cons
- Unsuitable for large companies
- Limited users
- Limited mobile app
- No project management features
- Limited time tracking and inventory.
3. FreshBooks
Freshbook is an online cloud based invoicing and accounting software designed for self employed professionals and small businesses.
It has detailed features which includes, online payment acceptance, time tracking, collaboration, automation, and other tools you might need.
It is also a cloud based software which is highly accessible, but secure enough for sync and integration with banks, credit card companies, payment centers etc. Pricing starts from $15/ month.
Pros
- Real time invoice tracking
- Affordable and flexible pricing plan
- Easy implementation
- Cloud support Multiple platform support
Cons
- No inventory management
- No payroll services
- Lack of multiple currency support
- Not easily accessible by large companies
- onboarding process
4. Kashoo
This is also a cloud based small business accounting software that automates bookkeeping tasks for small business owners.
It provides accurate, complete and real time reports in one click, using machine learning, the software categories and reconciles expenses for bank and credit card transaction.
The price starts at $19.95/month on monthly basis or $16.65/month billed annually.
Pros
- Supports multiple users
- Excellent user interface
- Simple accounting tools
- Tracks expenses and income
- Supports multiple income
Cons
- UI needs upgrade
- Doesn’t track inventory
- Limited features
- Email function needs fixing
5. Xero
Xero is a cloud based accounting software used by small and medium sized businesses, with tools for managing invoicing, bank reconciliation, inventory, purchases, expenses and more. It uses multiple currencies, it also helps you know your financial status.
The software can run over 50 reports including profit and loss statements and general ledger, you can customize reports, view them as charts search date range etc. It helps you keep track of financial transactions such as, cash flow, bank transactions, purchase orders, bill payment, inventory management, time tracking. Pricing starts from $10 per month
Pros
- Currency conversion
- User friendly
- Automated bank feeds
- Easy pricing system
- Easily accessible from any device with an internet connection
Cons
- Doesn’t support exchange rate products
- Restrictions on usage
- Doesn’t support large companies
- Limited accessibility on desktop
6. Sage 50cloud
Sage 50 is a set of accounting and payroll product developed by Sage group aimed at small and medium sized businesses. Learning the tools incorporated in sage allows you to manage your business more efficiently and profitably.
It is highly flexible and configurable. It can only be used online through the cloud or installed on your server as On-premises. As your business grows you can upgrade the software.
The pricing plan includes $56.08/month for pro accounting, $84.58/month for premium and $139.58/month for quantum accounting.
It also has another plan that cost $25/month for unlimited users, with it you can send invoices, quotes and estimates, run reports, conduct analysis to forecast cash flow.
Pros
- Easy invoice entry
- Import of entries from Excel
- Financial statement in both cash and accrual basis
- Quick to navigate the interface
- Printing checks is simple
Cons
- Lacks cost accounting
- Limited customer sales price
- No multiple warehouse
7. Oracle Netsuite ERP
This is an Enterprise Resource Planning software used for managing inventory, tracking your financial transactions, hosting e-commerce stores, and maintaining customer relationship management system.
It is also one of the best accounting software for small businesses, as it provides a complete image of your business transactions while also automating aspects of accounting.
You can manage all aspects of your business from one dashboard. You can make and receive payments, manage taxes, send invoices, if you also make global sales, this software automatically processes sales and payment based on the local laws you’re operating in. Pricing is available on request.
Pros
- Customizable reports
- Handles multiple business units
- Real-time data visibility
- Supports multiple currency
- Flexible
Cons
- Subscription cost is high
- Additional payment for advanced modules
8. AccountEdge pro
This is a complete small business accounting and management software for your company with everything you need to make sales and purchases, track and build inventory, bill for time and manage contacts.
The charts of accounts includes all the details you need to track your business, assets, liabilities, equities, income and expenses, etc. It also provides double entry accounting tools that are customized and optimized for desktop users. A cloud collaboration option is available for purchase. Pricing starts at $499, a one time fee license sold separately.
Pros
- Easy to navigate
- Offers a 30 dat free trial
- Includes features of recurring transactions
- Keeps track of all assets and liabilities
- Highly customizable
Cons
- It is not clouded based
- Limited integration and invoicing
- Steep learning curve
9. One-up
This is a small business accounting software used for running your business, with all in one invoicing, accounting, inventory, CRM and expenses.
It syncs with your bank, retrieves your transactions and automates 95% of your transactions. It is a double entry accounting solution, eliminates duplication and gives you accurate information .
Pricing starts from $9/month/user.
Pros
- Great inventory and pricing capabilities
- Low price
- Tracks incoming leads through inbuilt CRM functions
Cons
- No payroll features
- None time tracking
- No app integration
10. Tipalti
This is also a cloud based accounting software that provides comprehensive accounts payable and global remittance automation solution for businesses.
If you want to meet up with business transactions before deadlines, this software helps you do so every time, from late payments to non compliance and administrative overload.
The software also automates your payment options and ensure you’re tax compliant. Pricing is given based on request.
Pros
- Easy payment
- Easy reporting and analytics
- Payment currency selection
- Dashboard is easy to navigate
Con
- Limited customer support
- Low customization
11. Zipbooks
This accounting software is used for invoicing, accounting and time tracking, it makes managing your business simpler and easier.
You can also get invoicing and billing features such as auto billing and payment reminders to reduce your administration work. You can optimize the software’s competitive intelligence to make data driven decisions about your finances.
It features includes, customizable invoices, mobile payment, online invoicing and payment, account receivables, expenses tracking, payroll management, etc. Pricing starts from $15/month.
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Pros
- Has an intuitive accounting platform
- Gives detailed information on how your money was spent
- Supports multiple currencies
Cons
- Doesn’t support Android
- Not suitable for large companies
12. Holded
This is also a small business accounting software that offers accounting, invoicing, inventory, and project CRM features along with many others. It provides all the required tools you need to make better business decisions.
You can also link your bank, reconcile transactions, automatically classify data entries and manage them in your ledger. Pricing starts from $10/month and there’s also a free trial period of 14 days.
Pros
- Increases your sales
- Reduces expenses
- Saves time
- Limitless integration capabilities
- Intuitive
Cons
- Not suitable for multinationals
You can access the software for more information by clicking the link below.
Conclusion
Small business accounting software is needed by business owners to keep a proper record of all financial transactions.
It presents your financial data in an organized and structured manner, giving you a clearer understanding of your business’s financial situation and helps you make better decisions for the growth and development of your company.
It also ensures that confidential information is secured properly. You have a list of the best small business accounting software to choose from and most of them are quite affordable and easy to navigate.
References
- https://blog.hubspot.com/sales/small-business-accounting-software
- https://www.investopedia.com/best-accounting-software-for-small-business-5069679
- https://www.cloudninerealtime.com/quickbooks-online-vs-quickbooks-desktop/
- https://financesonline.com/tipalti-pros-cons-award-winning-accounting-software/
- https://www.bookkeeperhub.com.au/blog/xero-software-benefits
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