Every entrepreneur understands the importance of having stable finances when running a business. Managing financial statements is a crucial task for the success of failure of the venture.
If you are one of the risk-takers that decided to start a business in this era, managing every aspect can be stressful. Even for established business owners they still have few areas to improve.
Thankfully, there are tools that can help you with these tasks. Aside from MS Excel and Google Sheets, there is a variety of accounting software that can help you manage your finances easily and accurately.
Accounting software has the advanced features that can assist you in accommodating a larger set of data, more complex calculations, and can save more time.
If you are thinking that this investment will cost you tons of money, think again because there are free accounting systems software that you can use for your business. On the other hand, if you are willing to cash out extra bucks, there are also options you can choose from.
Which Accounting Software Is Best?
This will depend on your needs and willingness to pay. Every software has its unique features and benefits. But most small business accounting software systems are more similar than different. When looking for the best accounting software aside from the advanced features, it must have usual features – general ledger management, invoicing, and payment processing. Most entrepreneurs look for the software’s scalability, support, reliability to call it the best.
Best Accounting Software for Small Businesses in 2020
A strong accounting foundation is one of the keys to growing the company and every business owner only wants the best to make it happen. But it is also a fact that accounting software can be a little pricey and for a thriving small business entrepreneur you must seek alternatives. The vast Internet can offer the right accounting software that you can start with free and later on, as you expand you can invest in accounting system software with more advanced capabilities.
Here is a list of best small business accounting software you can choose from:
Well, it doesn’t get cheaper than free… FOREVER! Wave is one of a kind accounting software space because it allows users to enjoy an extensive list of features without having them to pay. This is perfect for sole proprietors and small businesses.
If you think it doesn’t get better from that, well, it has more great features. Wave is a web-based software. It automatically backs up information in the cloud. So you will never have to worry that you might lose any data or transaction records. Wave got your back up files.
Moreover, Wave allows you to manage your accounts receivable, and generate financial statements. It also has a free invoicing feature. This accounting software can also cater to advanced bookkeeping with its ability to track more than one business.
Wave makes it easier for you because you can track both personal and business finances in one place.
But no accounting software is perfect. Wave doesn’t allow the user to track accounts payable. In addition to that, Wave’s accounting features are not as in-depth compared to others. What to expect? it’s free, anyway.
Wave is good for you if you only have basic needs.
How does Wave charge users for payment? Users cash out when they want to use the payment processing and payroll services. These are integrated with the bookkeeping suite of tools. These services are in-line with most industry competitors.
Another free accounting software fit for small business owners looking for an upgraded system from spreadsheets.
Similar to Wave, ZipBooks is a web-based software offering a free plan called ZipBooks Starter.
ZipBooks Starter includes the essentials like bookkeeping function and profit & loss and balance sheet reporting. ZipBooks also has invoicing and quote features and you can link payments via credit card or PayPal. Users can keep track of multiple businesses but unlike Wave this free plan is limited to one user and one connected bank account only.
Aside from small business owners, ZipBooks is also recommended to freelancers who need to send quotes and invoices electronically. This free accounting software allows users to send unlimited electronic invoices and accept payments hassle-free through Square or PayPal.
ZipBooks offers other paid plans where you can enjoy a wider variety of features including generation of cash flow statements.
If you are looking for MS Excel, SlickPie is a good option for you. SlickPie is easy to use and it is packed with essential features you need as a small business owner.
This accounting software is recommended for those who lack bookkeeping experience. SlickPie has built-in automated features, which include auto-recurring invoices and an app called MagicBot, responsible to automatically add bills and receipts.
Almost the same with other free accounting software out there, SlickPie allows you to manage your bills, customer invoices, and generate financial reports for up to ten businesses.
Similar to Wave this option also includes an unlimited number of users and the ability to connect an unlimited number of bank and credit card accounts. SlickPie and ZipBooks also have similarities including the generation of cash flow statements. However, you can track your bills manually.
You can maximize the features of this software if you decide to upgrade to a paid plan. SlickPie’s Pro plan allows up to 50 companies and provides support both by email and telephone.
Chances are when you hear accounting software, Quickbooks will be at the top of your mind. This is a widely used software in the small business accounting world.
Right off the bat Quickbooks isn’t perfect and isn’t cheap but it is one of the most fully-featured accounting software packages in existence.
Even though they are both desktop versions, the features for Mac users are not as broad as the Windows or online versions. So if you are considering Quickbooks, choose wisely.
For Quickbooks Online, an account can cater to five users, allowing everyone to access all app’s features. However, the functions are limited for users who are subscribed to a plan with an unlimited number of users.
Another good thing about Quickbooks Online is it automatically syncs business profiles to a single dashboard, where multiple users can view reports and corporate accounts. It is also capable of generating profit and loss and trade sheets, invoices, and billing, all of which are accessible via mobile devices.
An advantage for Quickbooks users because of its popularity, it is easy to find tutorials, guides, videos, and other information on how it works.
Quickbooks is a great option because it works well for a wide range of businesses.
Xero accounting software is famous for having revolutionized accounting. This software was developed to provide the best user experience possible. It makes accounting tasks like double bookkeeping less complicated even for first-time users.
This accounting software has cashflow forecasting add-ons that will give you a clearer understanding of your current and future financial status. This feature also ensures that you are equipped to make smarter decisions about your business.
Xero comes with integrations with known third-party applications and accounting tools. It has an Express Setup feature which makes set up a breeze.
Aside from easy setup, Xero also offers comprehensive inventory/stock management. This feature will help you to automatically record every transaction. Another advantage of Xero is robust financial reporting.
If you want to have your own bookkeeper, the vendor offers certified advisors who are more than willing to assist you. You can maximize the Xer’s potential by reaching their help center for assistance.
Xero’s Starting plan will cost you $25/month. It also has a Premium package. This plan is able to handle complex accounting tasks such as invoices, bills, quotes, and multi-currency transactions.
MYOB Essentials is an Australian-based accounting system software.
This particular accounting software has a wide variety of features. MYOB Essentials allows you to supervise your expenses, create and send updated invoices, calculate taxes based on current regulations, and gain insights into your finances.
The good thing about MYOB is it supports over 130 banks and credit cards, allowing you to link your bank account for a simplified expense tracking process.
The stand out feature of MYOB Essentials is its single-touch payroll function. Users are not required to fill up multiple forms, prepare year payment summaries and other repeated tasks.
MYOB Essentials can also manage payroll processes regardless of the size of your team. This Australian-based accounting software automatically calculates taxes and superannuation, ensuring compliance with the latest tax regulations.
Accounting tasks are crucial. If you are one of the SMB owners that want to focus on other responsibilities, you can always opt to outsource these tasks. Knowing different accounting software allows you to find the best-outsourced accounting service fit for your budget.