Small business accounting tasks are not easy. The arduous tasks of meticulously tracking expenses, selecting the best accounting services, filing personal and business taxes, etc. can be exhausting.
According to a survey by TD Bank, 46% of the 508 small business owners surveyed said that bookkeeping was their least favorite task.
This is why it’s important to get the help you need and use the right accounting software. A recent clutch survey reports that, “Many small businesses employ minimal accounting staff, potentially causing their financial records to suffer. Nearly half of small businesses (45%) do not employ an accountant or a bookkeeper.”
If you’re unsure which small business accounting tools are best for you, or you’re ready for a change, here’s a quick look at 7 options to help get your finances in order.
The power of QuickBooks Online lies in its versatility. You can use your iPad, mobile phone or computer to do invoicing, billing, time tracking, accounting, run reports, or even pay employees online.
QuickBooks Online offers a wide range of accounting services in their cloud-based platform. Starting at $10 per month with Simple Start you can track income and expenses, upload and organize receipts, maximize tax deductions, invoice and accept payments, run basic reports, send estimates and track sales and sales tax. QuickBooks Online also offers easy add-ons, like enhanced or full-service payroll, which allows you to scale accounting needs at your own pace.
Xero Xero is a cloud-based accounting software platform for small and medium-sized businesses. At first glance, you’ll notice that there is no contract or setup fee with Xero.
As with many of today’s cloud-based accounting options you can run your business on the go and use their mobile app to reconcile, send invoices, or create expense claims – from anywhere. Users can also send online invoices to customers – and receive updates when they’re opened. Best of all, Xero imports and categorizes your latest bank transactions with one simple click on “OK” to reconcile.
Xero really shines when it comes to flexibility. This means you can add as many users as you want for free. Meanwhile Xero is free to try for 30 days, which includes unlimited users and no credit card requirement.
If you’re just getting started, then Sage Business Cloud is an adequate tool to help manage accounting, payroll, payments, and your people. Their entry product, Accounting Start, is $10 a month. This product includes basic accounting features such as: income and expense recording, bank reconciliations, accountant access, and automatic backup. However, it only supports one user (unlimited users requires an upgrade to their $25 per month Accounting package). Sage currently offers a 30-day free trial – no credit card or contract required.
FreshBooks is a well-known and popular platform for small business accounting needs. FreshBooks is known for its simplicity when it comes to small business invoicing and billing.
Freshbooks offers a streamlined approach to accounting with clear deliverables. Need an estimate? Take the guesswork out of planning and set expectations with their user-friendly dashboard. Users can easily track time in FreshBooks (a great tool for freelancers) and see exactly how much time is spent on clients and projects. The Projects feature also makes it easy to collaborate with team members. Meanwhile the app offers reporting and mobile app access to manage your finances on-the-go.
If you’re looking for an incredibly simple and easy to use accounting tool, a free-trial with Freshbooks (No credit card. Cancel anytime.) may be a step in the right direction.
5. Zoho Books
Sighted is ideal for solopreneurs and freelancers who simply need to send professional quotes and invoices. Their platform provides free online invoicing software with standard features including time and expense tracking, sending quotes, inventory management, invoicing and more. Sighted also integrates easily with payment gateways and makes its easier for clients to submit payment. The real win here is Sighted’s simplicity and affordability without the bloat and add-on costs associated with other accounting tools.
Kashoo cloud-based accounting software is designed for startups and small businesses. Users are able to send invoices, track expenses and receive and transfer payments quickly. Features include financial reporting, invoicing, payments and more. Kashoo also offers easy integration with existing platforms like Freshbooks. They claim to be the best solution to eliminate the frustration of bulkier accounting platforms. Your first 14 days are free. No credit card needed.
Build your bottom line with the right tools
No matter how big or small is your business, the right accounting software will save you time and money. Ultimately, stick with online-based solutions, and stay away from recording your finances on paper (manual accounting). Given the number of affordable options in the market, it’s simple to access accounting software built to help your business grow.
Tracy Watson is an accounting expert at Accounting To Taxes. As an active contributor to the accounting industry, she handles the accounting processes of small and medium businesses worldwide.