4 Accounting Tools for Small Businesses | Fora Financial Blog
4 Accounting Tools for Small Businesses
June 04, 2018

4 Accounting Tools for Small Businesses

It’s a known fact: all businesses are dependent on accurate accounting for success. Good accounting can mean lowered tax liabilities, better client relationships, and less headache in the long run. In fact, New York Times lists poor accounting as one of the main reasons that small businesses fail.

As a small business owner, you can take advantage of accounting tools specifically designed for companies without a dedicated accounting department. Accounting tools for small businesses typically include automated invoicing, sales tracking, inventory, timekeeping, and financial reporting tools.

By pursuing top accounting tools, you’ll have everything you need to stay on top of your business’ financial wellbeing. Still, you’ll want to consider the cost of the software, the customer support offered by the platform, any training requirements, and how the accounting tool can integrate with other business tools that you’re already using.

The best small business accounting tools take a simplified approach to business accounting, while offering integration with third party applications and stellar customer support. To get you started on your search for good accounting software, we’re exploring four notable accounting tools for small businesses. Also, it’s important to note that these tools have an 8.0 rating or higher on TrustRadius, meaning they are top rated for their category.

Let’s jump in.

#1: QuickBooks Online

QuickBooks Online offers the QuickBooks product in a SaaS version. The software allows unlimited invoices and estimates, expense tracking, data backup and mobile accessibility. The accounting tool also allows importing from Excel and third-party integration, which means it can fit in well with your existing business tools.

QuickBooks Online starts at $15 per month for one user, which includes all the basic features. The Plus plan ($31 each month for up to 25 users) includes sales quotes, inventory tracking, and bill pay features.

#2: FreshBooks

FreshBooks is an accounting tool designed specifically with small businesses in mind. Users can send invoices, track time, and collect online payments using the same platform. FreshBooks simplifies both accounting and billing for small businesses, with automated reminders and reporting capabilities.

FreshBooks pricing is based on the number of clients rather than the number of users. Pricing starts at $15 a month for businesses with up to 5 clients. The SaaS product’s most popular version runs $25 per month, which includes up to 50 clients, recurring invoices, proposals and other extras.

#3: Accounting by Wave

Accounting by Wave is a cloud-based accounting platform offered specifically to small businesses with fewer than nine employees. At its core is unlimited invoicing, expense management, and financial reporting. The integration with payment process makes it a great option for freelancers and contractors.

The accounting service from Wave is offered completely free. It integrates seamlessly with other Wave products (like invoicing, payroll and payment processing), which is how the SaaS can stand alone as a free product.

#4: Xero

Xero is a SaaS accounting and personal finance product. The software allows basic double-entry bookkeeping, as well as invoicing, bank reconciliation, and expense and tax management. Reviewers of Xero on TrustRadius praise the tool’s capability to integrate with their CRM and other business apps.

Xero is a on a subscription model, priced at $9 per month for limited invoices and $30 a month for unlimited invoices and teams up to 5 people.

Which Accounting Tool is Right for Your Business?

Are you convinced that you need an accounting tool for your small business, but aren’t sure which software is right for you? Online reviews are a great place to get a better idea of the pros and cons of each tool. Take some time to do your research –  one of these top-rated accounting tools is sure to be a great fit for your small business!

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Brooklin Nash writes about the latest tools and small business trends for TrustRadius and WriterSquad. When he’s not writing, you can find him reading YA dystopian fiction (with guilty pleasure) and cooking.