Best accounting software for small businesses

Having the right accounting software for your business can make it easier to manage your company cash flow, reconcile payments and file your taxes. It’ll free up your time, so instead of balancing the books, you can invest in activities which really help your company flourish.

This guide covers the best small business accounting software, including a rundown of free account software options, and some ideas about what to look for when selecting the right product for your company.

Wise - cut international payment costs, and integrate with your favourite accounting software

As a business owner you’ll be looking for ways to grow sales and increase profits. If you’re selling to customers overseas, or working with international suppliers, Wise Business can help you by cutting the costs of international business payments.

Open a free account online today, to benefit from currency conversion at the mid-market rate and with low, transparent fees, as well as business friendly perks like batch payments and integration with Xero accounting software. More on that, later.

What should you be looking for in accounting software?

The market is full of accounting software for small businesses. Doing some research before selecting the right one for you is a sound investment. Here are a few things to think about.

• Do you want a free accounting package, or are you happy to pay for the right product? Ensure you understand any one off and ongoing fees before you choose the one for you

• How many people need access to your accounting system? Does your chosen software support this, and are there additional charges if your team grows?

• If you’re planning on using the product for payroll management, how many people are included in the basic package, and what does it cost to add more?

• Is the software accessible from your normal devices, including mobile access?

• What third party integrations are available? Think about both the integrations you use now, and others you might need to add as your business progresses

• Consider which functionality is essential, what’s desirable and what doesn’t really matter - do you need just basic accounting, or expense tracking and tax preparation, for example?

Some different options

Here are a few of the most popular accounting software options available, to help you along with your research.

Xero

Xero offers smart online accounting, secure data protection and reliable data to help you manage your books¹. The product features you can access vary according to the plan you choose - which means you’ll always be able to get what you want, and you won’t need to pay for anything you don’t use. Xero offers integration with the Wise multi-currency account for business, which makes it easier than ever to cut the costs of international transactions while avoiding unnecessary admin.

Here are the account types you can choose from². In addition to these 3 accounting packages, there’s a payroll only option for up to 4 employees - priced at $10/month.

Intuit QuickBooks

Intuit QuickBooks has an opening offer which means you pay only half the monthly fee for the first 3 months of use. Choose from any of the 3 packages available according to the functionality you need - all accounts include secure data storage, mobile access and customer support. You can also add additional payroll to your package for $4 per person/month if you need additional capacity³.

Here’s a rundown of the key features of each package available⁴:

Rounded

Rounded is an Australian company, which has launched to support freelancers and the self employed, with efficient friendly customer service, and a range of support geared towards sole traders⁵.

Let’s take a look at the packages on offer⁶:

Sage

Sage Business Cloud Accounting provides accounting software with integrated payroll, which you can access from anywhere. The basic package comes with a good range of features, but you can also buy a number of other bolt-on functionalities, to make your accounting package do exactly what you need it to do⁷.

Here’s how it works⁸:

Zoho

Zoho allows users to manage everything from invoicing and expenses, order tracking and online payments, all in one place. Get a full end to end service with one of the packages available, and you’ll also be able to add on the extras you need to suit your business as it grows⁹.

Here’s what Zoho has to offer¹⁰:

Is free accounting software available?

If you’re not sure whether or not accounting software is right for your business, you might be tempted to try out one of the free accounting software products available.

This is a good way to get a feel for the type of service and product available - but it’s worth noting that free small business accounting software is usually not as robust as a paid product. You may find you don’t have all the functionality you need in a free product - so don’t give up if a free product doesn’t suit your needs. Many of the paid software products offer free trials which can be a good way to test them out for no fee.

If you’re looking for a free online accounting product for small businesses, try Wave¹¹ or Zipbooks¹². The Wave software is free to use - Wave makes money from processing online payments, instead. Zipbooks, on the other hand, offers a free product, which you can then choose to upgrade to a paid account if you like the service offered.

If you’re just starting out in business, and looking for the right accounting software for your needs, investing some time in research is important. Check out a few different free and paid products to find the one which suits you.

And while you’re investigating ways to protect your profits and grow your company, don’t forget to also look at other smart ways to save, like the free Wise multi-currency account for business. Get low cost international transfers using the mid-market exchange rate, so you can connect with customers and suppliers all over the world.

Sources:

All sources accurate as of 19 June 2020