Before I share the best bookkeeping software I have compiled for you, do you have a list of requirements on hand?
Every business demands certain functions from an accounting system. A product-based company will need inventory management to monitor its stock. A freelancer might seek only an efficient invoicing system.
Listing down your requirements will make it easier for you to decide which program may suit your profession. So, if you haven’t started yet, I suggest jotting down all you’re looking for in your software, first.
That’s settled, you’ll find tons of useful tools on the market. Some will have identical features; a few may offer particular actions.
Here, I will give you an overview of the nine best bookkeeping software that pretty much covers nearly every aspect of a small business venture.
It’s a free tool that is geared toward small business owners who prefer a simple layout and have little accounting knowledge.
Wave is cost-effective, user-friendly, and offers integration with multiple companies. You can go for full-fledged accounting or simply send professional invoices. Wave provides both products.
Inside the accounting app, you’ll find core functions related to invoices, billing, payroll, tax filing, and financial reporting. If you stumble over something, you can hire Wave professional advisors to facilitate you.
The navigation is remarkably easy. For instance, as you create an invoice, a trial will appear on the screen. The step-by-step procedure will take you from draft to payment, displaying various scheduling and payment options along.
Wave allows plenty of third-party partners to connect, including large eCommerce platforms, such as Shopify.
The only downside is location restrictions. Certain actions are unavailable to users outside the U.S.A. and Canada. It makes it difficult for some to run payroll.
Suffice to say, if you live in the mentioned countries and own a small venture, pick Wave software for your business.
Formally known as Peachtree, Sage is excellent accounting software for small businesses.
It offers multiple plans to cover a versatile audience. Among them, Sage Business Cloud Accounting and Sage 50 are purely account-based software.
Sage Business Cloud Accounting—or Sage One – is designed for micro-business, focusing most on invoice tracking.
Here, you can create quotes, send invoices, and track your payments. Sage One efficiently connects your bank and automates many functions.
If you’re a sole-proprietor or freelancer, this product has all the essentials for your accounting.
Sage 50, is a detailed version and offers more options. On a sidebar, you get access to customer, vendor, inventory, and payroll. Every time you click on a category, a visual description similar to QuickBooks Desktop appears.
Like Sage One, the 50 also provides automation features. For instance, if you reconcile your bank accounts, the software will quickly alert you if you’ve missed recording any invoices.
The dashboard displays the readily required basic information you want within your reach, such as; your current balance and due payments.
What’s interesting is that you can forecast your budget based on your cash flow status. The software shares reports on how much cash you’ve had and whether you can afford another project.
To surmise, Sage is a robust, and user-friendly platform to manage your company’s accounts.
As you know, small business owners typically integrate other software with their CRM to optimize their time and efforts.
While you can naturally link your books to your CRM from a different brand, using Zoho will save you the tedious job of going through a third party.
Since the company offers several products, you can get both CRM and accounting software in one place. That is what makes ZohoBooks most enticing to customers.
The app has simple IU to keep your accounts up to date. You can track your total payables, receivables, income, expenses, current projects, and bank status directly on your dashboard.
ZohoBooks extends straightforward options to manage your clients, create projects, and track your time. Additionally, it has a client portal to collaborate with your long-term customers.
You can also schedule your reports. Its auto-function includes banking transactions, payment reminders, and email notifications.
With all that said, the software comes with certain limitations you should know about. Since ZohoBooks targets micro-businesses, there’s a monthly cap on how many entries you can record.
If your company is scalable, ZohoBooks might not be the best choice for you. However, if you’re a sole proprietor or run a small enterprise, go for it. The software is extremely affordable and, like Xero, offers helpful add-ons.
While the software features are similar to Sage, Xero does offer a few distinct functions that make it one of the top accounting tools for small businesses.
Xero allows you to customize and track your invoices, for starters. The moment your client opens your invoice, you’ll receive an alert. Second, you have the option to prioritize your invoices and schedule them in bulk. The purchase graphs will automatically highlight urgent payments.
To maintain a check and balance system, Xero reconciles your bank entries with your vouchers, leaving little chance for errors.
As for tracking your money trail, the dashboard shows you a glimpse of your cash flow to inspect your business progress. Additionally, the software provides payroll, project management, and various reports.
What’s incredible is the language Xero employees use. You don’t have to be an accountant to run the software. Anyone can read the reports.
Xero also offers access to multiple users.
Adding members gives you the distinct advantage of collaborating with accountants and departmental heads. This action, in turn, will improve your operations. For example, if you set up an approval system in the invoice form—which Xero extends—you can control your transaction movement.
Since Xero is a cloud software, you merely need to set up a login ID for whoever you wish to add.
Xero is a convenient tool and accommodates a large app marketplace to get plugins.
This is one of the widely sought-after accounting software by small companies worldwide.
Quickbooks extends both desktop and cloud-based versions to meet all your needs.
You’ll naturally find the online application a better choice, as it syncs your bank accounts and keeps your transaction status updated. Plus, you will not have to create a daily backup to avoid data loss.
But as many still prefer an offline version, choose any you find comfortable.
Anyway, let’s cover the basics.
Quickbooks offers almost everything for product and service-oriented businesses.
You can see your total income and expenses, manage taxes, and get financial reports.
As you navigate the platform, the dashboard will share a drop-down menu listing customers, vendors, employees, and others. You can record invoices, track proceedings, and view aging reports on each client.
Apart from the daily operation functions, Quickbooks allows you to download financial reports, generate bank reconciliations, and study sales graphs to analyze your performance.
I do like to mention that while QuickBooks was created with both an accountant and non-accountant in mind, you might face a steep learning curve. Nevertheless, the software is well-known for a reason. You’ll know more about it as you explore it.
To help you out, here’s a video tutorial of a short, Quick book tour.
Most of Freshbooks’ features are targeted at self-employed individuals.
Here you can create flat rate and hourly projects, clock your time, and send invoices accordingly. The software gives you the option to deliver payment reminders to your clients and even allows you to charge your customers a late fee.
Managing your income and expenses is easier with Freshbooks.
The software allows integration with other apps. You can also issue invitations to your clients.
The one thing you’ll love about Freshbooks is that the company doesn’t prevaricate about anything. It has a straightforward dashboard and a simple UI. You can comfortably operate it from your cell phone.
Furthermore, Freshbooks supports several small businesses. Suppose you are a driver or a contractor. You can track your mileage, calculate your amount, and charge your clients directly from the app.
Needless to say, Freshbooks is perfect for people in the service industry.
Think of ZipBooks as Xero’s sister.
While Xero is famous for its user-friendly approach, ZipBooks takes it a step further with its visually appealing interface and colloquial language. Even the chart of accounts is being renamed as categories to increase user experience.
Naturally, the software keeps the accounting terminologies intact for your bookkeeper, but don’t worry about it. It automates technical areas.
ZipBooks comparatively offer fewer functions than Xero but compensate for it with their freemium plan. The software also has excellent customer service, which you’ll probably not receive from every accounting service.
There is an option to add team members, as well.
Coming to its accounting part, you can send professional invoices and run your billing on auto-pilot. The software has a recurring profile that will save you from recreating the same invoice for repeat customers.
Besides income and expenses, you can track your transactions, create payroll, and view financial reports.
Interestingly, ZipBooks generates color-coded reports to improve readability. You’ll see payments highlighted in red and receipts in green.
The software supports major payment methods and allows third-party integration with popular apps such as Slack. It also lets you to market your services through your public profile—a very useful feature.
To summarize, ZipBooks is decent accounting software for startups and small businesses.
Since accessing ZipBooks is easy, go ahead and sign up to get the feel of the tool without paying anything.
Unlike its peculiar spelling, Akaunting is an intuitive free software that supports both single entry and double-entry systems.
It offers various interesting features to record and receive quick information on your clients. As you click on your invoice section, you’ll find everything on a single page. The software has a mobile-friendly interface and provides a client panel to connect with your customers.
With Akaunting you can manage your transactions, get paid faster with reminder alerts, and study your finances to make informed decisions.
The company has recently made a few upgrades that will allow you to create contacts, add multiple taxations, and adjust recurring payments right on the invoice form.
Explore the Akuanting site to learn more about the software.
Built for small businesses, Kashoo is another cloud-based accounting software for those who manage their accounts without external help.
Like its competitors, you can send and receive invoices, reconcile banking transactions, and download financial reports. The software offers a default chart of accounts and has everything available to run a double-entry system.
You’ll get clean forms for invoices and a mini report displaying yearly finances.
It is a time-saving accounting app you can operate via your tablet. Use Kashoo to keep your invoices organized.
We hope you’ve found the best accounting and bookkeeping tool for your business.