Different Methods to Manage Your Finances

Updated: Jan 25



Small business owners benefit from accounting software because it helps them track accounts receivable and accounts payable, have a clear understanding of their profitability, and be prepared for tax season. In the world of accounting software, a small business is one that can use out-of-the-box software without requiring extensive customization. As a business grows, its accounting needs become more complex, and a custom enterprise resource planning (ERP) system is often needed.


Below are accounting softwares best suited for small businesses:


QuickBooks Online

QuickBooks Online is the best overall accounting software for small businesses of those reviewed. Not only do the majority of small business accounting professionals use QuickBooks Online, but there are also endless online training resources and forums to get support when needed. All accounting features can be conveniently accessed on one main dashboard, making bookkeeping more fluid and efficient.


Pros

Scalable

Commonly used by accounting professionals

Integration with third-party applications

Cloud-based

Mobile app


Cons

Upgrade required for more users

Occasional syncing problems with banks and credit cards



Xero

Xero is the best in our review for micro-businesses that are looking for very simple accounting software. This software has a clean interface and also fully integrates with a third-party payroll service. Businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless.


Pros

Cloud-based

Mobile app

Payroll integration with Gusto

Third-party app marketplace

Simple inventory management


Cons

Limited reporting

Fees charged for ACH payments

Limited customer service



FreshBooks

FreshBooks offers more customization for invoicing compared to other accounting software. Its primary function is to send, receive, print, and pay invoices, but it can also take care of a business’ basic bookkeeping needs as well. This accounting software makes it easier for service-based businesses to send proposals and invoices, request deposits, collect client retainers, track time on projects, and receive payments.


Pros

Cloud-based

User-friendly interface

Third-party app integration

Affordable

Advanced invoicing features


Cons

No inventory management

No payroll service

Mobile app has limitations



Wave

Wave is an ideal accounting software platform for a service-based small business that sends simple invoices and doesn’t need to track inventory or run payroll. For many freelancers or service-based businesses, Wave’s free features will cover all of their accounting needs and is the best free software in our review. At year-end, accountants can pull the necessary reports from Wave to prepare a business’ tax return.


Pros

Free accounting, invoicing, and receipt scanning

No transaction or billing limits

Run multiple businesses in one account

Unlimited number of users

Mobile app


Cons

Limited third-party app integrations

Higher fees for credit cards and ACH payments

Full-service payroll is limited to only 14 states

No inventory management


#business #accounting #finances #software #management

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