Small Business Bookkeeping 2023 Guide

The best online bookkeeping service should offer a wide range of bookkeeping solutions, including catch-up bookkeeping, invoicing, bill pay, bank reconciliation, payroll, and tax filing. A free live bookkeeping consultation is required before signing up, and services are billed annually. You also have the option of customizing a package that is more specifically tailored to your business needs. Bookkeeping services and financial reports are available only with an Enterprise subscription, while business and personal tax preparation services are available with the Corporation and Enterprise plans. Its biggest drawback is that it only offers basic bookkeeping services, excluding bill payment and invoicing. The lack of access to tax and consulting services and financial advice is also a con.

  • This plan doesn’t limit the number of invoices and quotes you can send, nor the number of bills you can enter.
  • Generally speaking, bookkeeping means tracking finances to create solid records while accounting means analyzing those records to draw conclusions about your business’s financial health.
  • Bookkeeping focuses on recording and organizing financial data, including tasks such as invoicing, billing, payroll and reconciling transactions.
  • The savviest small-business marketers are the ones who figure out exactly who their customers are and advertise directly to them.
  • The free accounting software installs alongside its companion program, the paid-for VT Transaction+, but you don’t need to buy the latter to use the former.

For the regular price of just $13 a month, Xero lets you send custom invoices, reconcile bank transactions, capture receipts for easier record keeping, and track inventory. Similarly, Zoho Books’s cheapest plan doesn’t include automatic journal entry creation. Instead, how to start a 501c3, how to start a nonprofit whenever you debit or credit an account, you’ll have to manually create an entry. If you log more than a few transactions a month, the lack of automation adds major time and hassle—you’ll want the $40 a month (or $50, billed monthly) Professional plan instead.

Xero vs. Sage: At a Glance

While some of these are simply free tiers for paid software, others are freeware programs you can download and use without charge to help with budgeting. There are also time management apps  that can integrate for use by consultants or freelancers who have a need to charge by the hour. When you have a Small Business Plus plan or higher, you get unlimited online support. All plans come with onboarding, a dedicated bookkeeper and account manager, reconciliation at month-end, balance sheet, P&L, statement of cash flows and a portal with document storage.

Apple is mostly a consumer products company so their AI strategy is going to be focused on improving those offerings. Of course many businesses use Apple products too so there’s some overlap. But for most of us, Apple’s AI enhancements will more impact our personal lives rather than our professional lives.

  • At best, it’s time-consuming, and at worst, it’s frustrating and unreliable.
  • But for most of us, Apple’s AI enhancements will more impact our personal lives rather than our professional lives.
  • One big drawback of Xero is that it doesn’t have a dedicated customer service phone number.
  • Its commitment to the evolving demands of modern businesses is evident through the optional cloud app, AccountEdge Connect.

We don’t recommend using accounting software that doesn’t meet the minimum requirement of offering the essential tools listed above. Sage Business Cloud Accounting, like the others we’ve mentioned, is cloud-based accounting software that doesn’t require any accounting knowledge to use. In fact, it recommends the best accounting solutions based on your industry, company size, and unique business needs. Here are the top eight bookkeeping and accounting software options to look into for your small business. This is where software can save the day, cutting down on time spent on data entry and reducing errors that could negatively impact your financial health. But with so many options to choose from, how can you know which one is best for your business?

What Is the Easiest Accounting Program to Use?

But in a sea of countless software choices, how do you pinpoint the one that’s just right for you? Below, we delve into key considerations and tips to help guide your decision, ensuring your business thrives with the best cloud accounting solution. Detailed financial reports also help business owners secure loans and write off certain expenses as tax deductions. Just make sure you have a plan to pay off the balance before the introductory offer ends and a variable APR sets in. It’s not compulsory, but you might want to look into insurance for your bookkeeping business. This can help protect you from costly liability in case you make a mistake on your customers’ books — which can be a huge hit to your business and, in some cases, your personal finances — if you aren’t insured.


Once you sync your bank account and credit cards to your accounting program, the software automatically imports your financial transactions. This ensures you’re always working with the most up-to-date numbers as you’re making crucial business decisions. QuickBooks is easily one of the most popular financial, tax, and accounting software options in the world. Wave Accounting is a good free accounting option for budget-cautious freelancers and small-business owners. Financial Force
Financial Force is specifically designed to provide a cloud accounting and finance solution for Salesforce. This means full tracking of customer accounts across multiple workbooks, as well as recording assets, payables, collections, and more.

Its Elite plan is $120 per organization per month, and includes forecasting and multi-currency handling. For $240 per organization per month, its Ultimate plan includes advanced analytics and 25 custom modules. QuickBooks is a good choice for freelancers and small businesses that need a simple way to track expenses, organize receipts and log mileage. When choosing an accounting tool, take your business’s size, business model, industry, and future ambitions into account. You should also make a shortlist of what you absolutely need out of your accounting software, as well as a list of nice-to-haves. It’s always best to go into your search with a clear picture in mind.

How to Choose the Best Accounting Software for Small Businesses

Read through our reviews of the 10 best free bookkeeping options to learn more. Unfortunately, even though QuickBooks Online is our top pick, it’s also our priciest one. The cheapest QuickBooks plan starts at $30 a month—higher than any of our other recommended bookkeeping solutions. And if you want the best reporting QuickBooks can offer, you’ll need at least the $55 Essentials plan or, preferably, the $85 Plus plan. Most accounting software providers offer free trials, so you can try out the software before you commit to it.

GnuCash is accounting software designed for individuals and small businesses, and was initially conceived as an open source alternative to apps such as Intuit’s Quicken. The Business edition is aimed at growing businesses and limited companies. This has the benefit of allowing unlimited quotes and invoices, plus you can reconcile unlimited bank transactions. KashFlow prides itself on keeping things simple, which is always good news when you’re dealing with your accounts and anything tax-related.

What is the best free accounting software for small businesses?

They understand how these details add to the big picture, setting the stage for accountants, CPAs and CFOs to perform their best work. In short, accurate bookkeeping is the backbone of accurate accounting, tax advice and financial direction. A company hires a bookkeeper to manage and organize its finances, including detailing and categorizing all transactions. They help small-business owners get a handle on their cash flow — one of the most important barometers for a healthy business.

Holded is another software platform aimed more at small and medium businesses, offering an ERP that brings together sales, accounting, inventory, project and time management into a single dashboard. However, despite these diverse elements, the accounting feature is fully developed, and includes automated billing, along with instant reports on profit/loss, and the balance sheet. GnuCash – Best simple approach option for accounting
GnuCash is pretty simple to look at and even more straightforward to get to grips with, making it suitable for small business owners with simple accounting needs. The accounting software has been around for a long time, so it works surprisingly well for a package that can be used for free. It’s therefore a good bet if you work for yourself and have a workload that can be easily tracked without the need for too many features and functions. The Starter package is aimed at sole traders, contractors and small businesses.

Leave a comment

Your email address will not be published. Required fields are marked *