Posted by Carlos
July 11, 2020

The Most Effective Accounting Software for Small Businesses

Share on facebook
Share on twitter
Share on linkedin
Share on email

Congratulations, you’ve started your own business and are already making big investments into your company. I’m sure you’re aware of what comes next. How do you plan on keeping record of all your company’s financial transactions?

Accounting has a reputation for being extremely challenging and grueling. Because it is so mentally demanding, many people tend to be hesitant on doing such work. Fortunately, there are software available to make the accounting process less difficult and tiresome.

Top Accounting Software Companies for Small Business

In this article, we will discuss four well known accounting software that cater towards small businesses and people who are new to financial tasks. Let’s dive right in.

Table of Contents

FreshBooks is a mobile-friendly accounting software that is primarily marketed towards small businesses.

Unlike some of their competitors, FreshBooks offers double-entry accounting. Double-entry accounting, or double-entry bookkeeping, is a system in which every entry to a given credit account must correspond with another entry to a debit account. This technique is vital because it helps improve accuracy of information and reduces fraudulent activity.

It also offers team collaboration tools, which are very useful for larger tasks that may require more hands on deck. FreshBooks also provides time tracking. With time-tracking, you can take note of how long it takes you or your employees to complete work. This can be extremely useful for business owner who are too busy to monitor their employees 24/7.

FreshBooks Plans And Pricing

FreshBooks offers three different payment plans: Lite, Plus, and Premium. The Plus plan, which is $7.50 a month, allows a maximum of 50 billable clients and is the most ideal for small business owners.

Not only does it consist of all of the Lite features, such as expense entries, online credit card expenses, time tracking, estimates, etc., but it also includes recurring invoices, double-entry accounting reports, payment reminders, and client retainers.

Integrations:

Pair up Freshbooks with small business’s cheapest and easiest HR software Gusto, and you have all the bases covered! 

Quickbooks is the leading accounting software for small businesses and can assist medium-sized businesses as well. It offers users the ability track income & expenses, track miles, receive tax deductions, manage cash flow, and etc. Like FreshBooks, Quickbooks also has double-entry accounting available and endeavors to provide optimal service for its users.

If you visit the Quickbooks website, you are greeted with an assuring “No need to be an accounting expert.” The software is purposely created in a way that is not difficult to operate. It features easy-to-read dashboards and reports in order to keep you from making poor accounting decisions. Sounds promising, doesn’t it?

98% of their customers agree with the fact that using Quickbooks is very simple and beneficial when it comes to managing business.

QuickBooks Plans And Pricing

Aside from offering potential users the opportunity to try the software free for 30 days, Quickbooks offers five different payment plans ranging from $6.75 to $67.50: Self-Employed, Essentials, a second Essentials, Plus, and Advanced.

While the Plus demands a monthly fee of $31.50, it allows businesses to include a maximum of five users on the plan and grants the ability to track project profitability and inventory. The Advanced Plan, which costs $67.50/month offers payment management, faster invoicing, smart reporting, and a maximum of 25 users on the plan.

Expensive? Yes. Is it worth it? Absolutely.

Integrations:

Quickbooks also integrates seamlessly with HR Software Gusto to provide you a one-stop shop for payroll, benefits, time tracking and more. Other integrations include, Shopify, Squarespace, Zoom, GSuite, Stripe, and more.     

Botkeeper is quite different than the previous two software. Instead of solely making the accounting process less strenuous, Botkeeper will take care of everything for you.

This software uses automated bookkeeping, which is machine-driven accounting that is done using artificial intelligence (AI) and the expertise of skilled accountants. This takes a lot of the weight off of your shoulders. Why hire a bookkeeper?

Botkeeper Plans and Pricing

Botkeeper offers three different packages for business owners: Basic (starting at $59/month), Pro (starting at $459/month), and Advanced (starting at $659). Be certain about your decision.

All three packages include all of Botkeeper’s services and features, however the Basic package does not feature any of the financial solutions that cover payroll, bill pay, invoicing, or tracking & reporting. The Pro covers three of the five solutions and the Advanced provides all.

TaxJar is an accounting software that helps businesses by handling their sales tax.

As far as sales tax comes, TaxJar’s AutoFile & API has you covered. When registered to TaxJar AutoFile, it will automatically submit your returns so you never miss a due date. TaxJar API also will not hesitate to provide you with trustworthy sales tax rates.

The software will also help you determine where you have economic nexus, which is the sales tax that is determined from your company’s economic activity. When you import your sales data into TaxJar, you will be able to see when you are reaching economic nexus in a state and when you have surpassed economic threshold in every state. On top of that, TaxJar will also provide guidance on complying with sales tax.

TaxJar Plans and Pricing

TaxJar offers three plans of payment: The Starter plan, starting at $19 per month, offers Email support, Simple CSV import, sales tax reporting, and up to 4 free AutoFiles per year. The Professional plan, which starts at $99 per month, provides all features of the Starter plan, but also includes API, a product tax code catalog, and 12 free AutoFiles per year. The Premium plan is negotiable and includes all Professional features plus white glove support, custom tax research, and an endless supply of AutoFiles.

Integrations: 
Chargebee, Connectedbusiness, Freestyle Solutions, Amazon, eBay, ecwid, Etsy, shopify, Square, Woo Commerce and custom integrations available. 

Summary

 

We understand how frustrating accounting can seem. However, these four products all have the capability of alleviating that frustration so you can attend to the other aspects of your business. Invest in accounting software today and begin to grow your business in an uncomplicated fashion.

Michael Deshield

Michael Deshield

Michael Deshield is a guest blogger for CuriousCheck and a Personal Finance writer based outside of Philadelphia, PA. He is the owner of Mercenary Insight, a freelance writing service. Contact Michael at michaelddeshield@gmail.com

All Posts