Accounting software is beneficial for small business owners because it allows them to track receivables and payables, understand their profitability, and prepare for tax season. A small business can use standard accounting software without having to customize it. A custom enterprise resource planning system (ERP) is often required as a business grows.
The 5 Best Accounting Software for Small Businesses of 2022
Overall Best: QuickBooks Online
Best for Microbusiness Owners: Xero
Best for Service-Based Business: FreshBooks
Part-Time Freelancers - Best: QuickBooks Self-Employed
Best Free Software: Wave
1- BEST OVERALL: QuickBooks Online
Why We Choose It
QuickBooks Online is the best accounting software for small businesses of all those that were reviewed. QuickBooks Online is the most popular accounting software for small businesses. There are many online resources and forums that can help you get support if needed.
All accounting functions like quickbooks tool hub, quickbooks file doctor and many others can be accessed from one dashboard making bookkeeping easier and more efficient
Overview
QuickBooks Online by Intuit has been a popular accounting software for small businesses, as well as their bookkeeping and tax professionals. It is cloud-based and can be accessed via a web browser or mobile app.
The four subscription options available to you after the 30-day trial are Simple Start at $25 per month, Essentials at $50 per month, Plus at $80/month, Advanced at $180/month, and Plus at $80/month. Most months there is a substantial discount and some accountants can offer wholesale pricing to small businesses.
The mobile app can also be customized to allow for payments, reviews, receipt capture, business mileage tracking, and image recognition.
2- Best For Micro-Business Owners: Xero
Why We Choose It
Xero has rated the best accounting software for micro-businesses looking for a simple solution. The interface is simple and the software can be integrated with third-party payroll services. Through Xero’s integration with Stripe or GoCardless, businesses can receive payment online from their customers.
Overview
Xero was established in New Zealand in 2006. This accounting software is very popular in Australia, New Zealand, and the United Kingdom.
3- Best for Service-Based Businesses: FreshBooks
Why We Choose It
Invoicing is the most important accounting requirement for service-based businesses. FreshBooks has more options for invoicing than other accounting software. Although its primary function is to generate, send, print, and pay invoices it also has the ability to manage basic bookkeeping tasks for businesses. Service-based businesses can send proposals, track time, and receive payments with this accounting software.
Overview
FreshBooks has over 30 million registered users. There are four plans available. Businesses can receive a 10% discount if they choose to pay annually, instead of monthly. FreshBooks offers discounts on your first month of membership. There are four plans available: Lite, at $15 per month, Plus, at $25 per month, Premium, at $50 per month, and Select, which offers a custom service with customized pricing. These prices do not include discounts.
4- Best for Part-Time Freelancers: QuickBooks Self-Employed
Why We Choose It
QuickBooks Self-Employed accounting software has been voted our best choice for freelancers and contractors who want to track their income for tax returns. This software is for individuals who have to file Schedule C on their personal tax returns.
Freelancers who don't use software such as QuickBooks Self-Employed to keep track of business activity would have to go through their credit and bank statements to calculate their income and expenses for the year. This can be very daunting. QuickBooks Self-Employed will automatically total all business transactions.
Also Read- quickbooks connection diagnostic tool
Overview
QuickBooks Self-Employed by Intuit is a product that uses a cloud-based online interface as well as a mobile application. This software was designed to assist freelancers in staying organized for tax season. QuickBooks Self-Employed features include tracking mileage, sorting expenses, organizing receipts, and seamlessly filing taxes through TurboTax.
5- Best Free Software: Wave
Why We Choose it
Wave is a great accounting platform for small service-based businesses that can send simple invoices and don't require payroll. Wave's free features are ideal for freelancers and service-based businesses. It is also the best free software we reviewed. Wave allows accountants to pull all the reports needed for preparing a tax return.
Overview
The wave was established in Toronto in 2010. Wave employs over 250 people and was acquired by H&R Block in 2019. This free software includes all the essential accounting features small businesses require, including income and expense tracking, financial reports, invoicing, scanning receipts, and financial reporting. These features are accessible online and via the mobile app. Payroll and customer payment processing are premium services. However, all bookkeeping, invoicing, and reporting features are free.
.jpg)
0 Comments