Every 2 out of 3 small firm owners use accounting softwares. It is quite commendable since 60% of small firm owners admit to not being educated when we talk about finances and accounting. If this is the case, accounting is not your strength and you need to save time, read through, and know which accounting software is perfect for your small business.
To put up the best accounting software at present for small firms and businesses, our research team analyzed more than 30 programs and apps before putting up our top 5 list. We have this list totally based on the software features and functions specially designed for small firm owners, their advantages, cost and pricing, and many more.
Be with us and we assure you will make the correct choice for your business.
Accounting Software 2021: Top 5 For Small Business
- Best Overall Performance: FreshBooks
- Service-Based Businesses and Companies: QuickBooks
- For Multiple Users: Sage Business Cloud Accounting
- Business Owners and Micro Company: Xero
- Best For Automation: Zoho Books
We will begin with the best software reviewed for small business firms here.
FreshBooks
FreshBooks came in 2003 and is a Canadian-based company founded in Toronto. It is majorly developed for small firms and business accounting operations. It makes use of cloud-based accounting and invoice software. Also, it has multiple device accessibility like iPhone, Android, and iPad.
It is our top pick and reviewed as the best overall accounting software for small firm owners. Since it is easy to use for small business owners with less accounting experience, it also provides robust features and other advanced functions. Most of all, it is quite reasonably priced and is becoming the Go-To software application for everyone.
Advantages
- Tax assistance with tax apps, deductions, estimates, and other filing tools.
- Easy integration with products such as GSuite and Gusto.
- Easy Payment reminders
- Availability of online credit card transactions.
- Language billing & multi-currency.
- Auto tax calculations feature for sales tax
- Customizable invoice options along with due dates and discounts.
- Different categories for tax-friendly expenses.
- Vendors Records.
- Time tracking feature present with a Chrome extension.
- Bank deposits, contactless payments, and auto-bills feature along with bank integration.
- Tax help with tax apps, deductions, estimates, and other filing tools.
- Easy integration with products such as GSuite and Gusto.
Cost & Pricing
- For self-employed business owners, upto 5 billable clients
Lite: $6 monthly.
- For small business owners, upto 50 billable clients
Plus: $10 monthly.
- For growing businesses, upto 500 billable clients
$20 monthly.
Intuit Quickbooks 
QuickBooks, developed by Intuit, came in 2012 for small business owners. It aids businesses by easing the accounting and bookkeeping activities. Its advanced features are well-equipped to track daily managerial tasks, work on tax reports and finance billings, stock and other inventory management work, etc.
Yet, there can arise many technical errors and glitches in the accounting software. To resolve this, various tools namely QuickBooks Hub Tool, QuickBooks Component Repair Tool, etc. are in-built in this software. Moreover, it has all the advanced accounting features and has an easy-to-use interface. It is a gift for all the small firm owners looking for quick and error-free accounting and management work.
Advantages
- Easy calculations of Sales tax, returns, and tax payments.
- Easy Sorting of transactions into tax categories
- Tracking all the expenses in one place.
- Easy integration with financial institutions & also with PayPal, Shopify, Square, etc.
- Assists in the easy filing of quarterly and annual tax returns.
- Helps in exporting tax data.
- Scans receipts.
- Share reports easily with your accountant.
- Exports documents
- Work on creating customized reports.
- Cash flow tracking feature available on the dashboard.
- It has an easy user interface.
- Payroll and update services along with advanced support.
- Worldwide trusted by users & professionals.
- Effortless integration with third-party apps.
- Multi-device accessibility namely mobile-based software.
Cost & Pricing
After using 30-day free trial software, you can go for these 4 subscriptions:
- Simple – $12.50 per month (For business starters).
- Essentials – $20 per month (For growing businesses).
- Plus – $35 per month (For better organization and project management, inventory, and contractors).
- Advanced – $75 per month (For experienced businesses).
Sage Business Cloud Accounting
Sage Business Cloud Accounting, also called Sage One, is a worldwide famous accounting brand. It provides online accounting services for small firms & businesses. Founded in 1981 in Newcastle, England, it is software for developing and managing accounting operations of small businesses.
Presently, it is cloud-based and you can choose your industry type, company size, and requirements. It will put up a match with definite accounting solutions.
Over three million businesses have made this company a high-end accounting solution for everyone around the world. It can be easily set up for multiple users. You can also access the software for no fees under its trial period.
Advantages
- Create and customize invoices.
- Managing the payroll services.
- Cash flow management.
- Availability on multiple devices.
- Easy Integration with financial institutions and AutoEntry, Zync, etc.
- Management of business finances.
- Easy payments & transactions.
- Tax compliance featured tools.
- Easy share and access with your accountants.
- Human resource management features.
- Easy-to-use financial reports and other dashboard analyses.
- Inventory management.
Cost & Pricing
Sage offers a free 30-day trial software service coupled with a 50% off promotion bonus for the following 3 months.
- For entry-level accounting
Accounting Start: $10 monthly (Only Cash flow management services)
- For powerful cloud accounting
Accounting: $25 monthly (Cash flow management, invoicing, and actual entries)
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Xero
Xero is an accounting application for micro-business owners who want user-friendly accounting software and an easy interface.
Excluding other software, Xero has subscriptions subject to an unlimited number of users. Enables you to add as many fresh employees as you need at no extra expense. Thus, once your business is rising, you can easily add new and fresh users to your Xero account without spending an extra penny.
Advantages
- Availability of project tracking.
- A lot of reconciliation tools are present.
- Easily integrated with Gusto.
- Offers Smart Lists.
- Easy-to-use interface.
- Advanced support and online assistance.
- Good business views.
- Simple setup process.
Cost & Pricing
Xero provides a free month trial service coupled with a 50% off promotion bonus for the next two months. Xero has these given subscription plans below.
- A whole payroll service: Early: $9 a month.
- Growing: $30 a month.
- Established: $60 a month.
- Gusto gives a complete-service payroll option – An extra $30 a month and $6 extra an employee.
Zoho Books
Zoho Books is online accounting software for small firms. It aids in tracking your finances, creating invoices, and many more. It also involves customer relationship management (CRM), inventory management, and human resource system.
Advantages
- Client portal.
- Reports and schedules.
- Audit reports & tax compliance.
- Sales orders.
- Detailed invoicing.
- End-to-end accounting.
- Reconcile bank transactions
- Easy exporting of 1099 forms and sales tax reports.
- Auto tax calculations feature.
Cost & Pricing
- Basic: $9 monthly (Upto 2 users & 50 contacts).
- Standard: $19 monthly (Upto 3 users & 500 contacts).
- Professional: $39 monthly (Upto 10 users & 500 contacts).
Final Words
This article is a guide for all the small firm owners looking for the best accounting software to ease their management operations. We hope you found our research helpful and are able to pick the best accounting software as per your management and accounting needs. For any further guidance, you can visit us anytime.