Our Accounting Software Ratings Methodology

Of course, you always have the option to find and hire an in-house bookkeeper, who will work directly with your business on a day-to-day basis. In many cases, professional services may be a better option than DIY bookkeeping and accounting. A professional bookkeeper can save you even more time than software and ensure the level of accuracy you need to keep your small business running smoothly. Its simplicity and scalability make it one of the best online accounting software options available.

• Additionally, we regularly check for updated pricing information and maintain contact with the companies we review.
• Only the very best, industry-specific bookkeeping, accounting and tax professionals, vetted based on proven results.
• If you’ve fallen behind your books, Bench’s catch-up bookkeeping service will update your books even if they’re several years behind.
• Desktop accounting software can go as high as more than $1,000 per month, depending on the number of users included in the plan.
• We weighted each category equally to derive our star ratings, along with our accounting expert’s opinion and advice.

Best Free Accounting Software

Launched in 2015, ZipBooks offers solid bookkeeping and accounting functionality, including a free plan that offers basic bookkeeping options. ZipBooks is a good choice for contractors and sole proprietors, especially those who need to track and bill time. We looked at 19 accounting software companies with specialized products for small businesses before choosing our top five software options. We considered cost, scalability, ease of use, reputation, and accounting features. Investopedia collected and analyzed scores of key data points from leading accounting software providers to identify the most important factors for readers choosing accounting software for small businesses. Investopedia launched in 1999 and has been helping readers find the best accounting software for small businesses since 2020.

Best for Micro-Businesses & Freelancers

Many business owners will have everything they need in the reporting module already. Our favorite QuickBooks Online features that we tested are its customizable dashboard, comprehensive reporting tools, and accountant and bookkeeper integrations. Additionally, many outsourced bookkeeping companies use proprietary in-house software to keep their customers‘ books. Want to learn a little more about bookkeeping and accounting before you dive into our top reviews? Most of our top accounting software picks include a free trial, so don’t be shy about trying a few different brands if you don’t hit on your favorite right away.

QuickBooks Live

• But since Wave Accounting has just one plan, it’s not necessarily ideal for growing businesses that might need a heftier accounting tool in the future.
• The most basic purpose of accounting software is to track revenue, expenses, assets, and liabilities and produce a balance sheet and profit and loss (P&L) statement.
• When you work with Ignite Spot Accounting, you’ll get bookkeepers certified in a variety of popular programs, such as QuickBooks and TSheets.
• Still, another button labeled “column” gave me the option to add or remove columns from the list of documents, such as document notes, categories, descriptions or date added.
• You’ll add income and expense accounts, clients and vendors, and begin tracking income and expenses.

Xero, Sage Business Accounting, and Zoho Books have stellar reports at a lower starting price than QuickBooks. And if you want straightforward finance tracking without in-depth analytics, Wave Accounting can help you with the basics. Answer a few questions about your accounting software needs and we’ll send you up to five customized recommendations. There is no need to download QuickBooks Online because it is connected to the cloud, which means you can access online accounting from any device with an internet connection.

The Best Business Accounting Software Services of 2024

It’s also beneficial to seek feedback from current users to gauge the software’s effectiveness and reliability. After looking at 13 different accounting software companies, we used factors like cost, usability, integration options, and reputation to narrow our list down to the five best software programs. We also specifically researched free software versus paid software and determined the best free software for personal use and for business use, in addition to the best paid software for each. Value consists of 32% of an accounting software’s total Blueprint rating.

Alternative Accounting Software Platforms to Consider

• These tools are indispensable to helping a small business grow, and with our firsthand insights and guidance below, you’ll be able to easily select the best accounting software for your needs and your budget.
• In contrast to most accounting software, Xero includes unlimited users at no additional cost.
• Users say the software is comprehensive in its accounting features and easy to use.
• However, avoiding accounting can be a mistake, especially for businesses that have grown beyond the „micro-business“ stage.

In 2023, she was named the No. 2 Most Influential Financial Advisor in the Investopedia Top 100. To determine the best accounting software, we meticulously evaluated numerous providers across specific categories. Each software was scored based on its performance in these areas, and these scores were calculated to determine the product’s total score, with a potential maximum of five stars.

• Many also offer free tutorials and support, so you can get help when you need it.
• Two, Wave (free except for a $8 per month charge for scanning receipts) and TrulySmall Accounting ($20 per month), are best for microbusinesses, like independent contractors, freelancers, and sole proprietors.
• Finally, ease of setup and ease of use is about what we expect for a desktop program, but much harder than cloud-based software.
• Implementing new accounting software can be a major project—even for a company with only a handful of employees.
• If your business is service-based, you may need project management tools.

Most service-based small businesses will find that Simple Start meets all of their needs. For product-based small businesses, Plus will have more options for inventory and customizations. Many of the accounting software platforms we reviewed included a direct line to professional bookkeepers and accountants, giving business owners additional support when managing their books. Wave Accounting is one of the most fully featured free accounting software options for small businesses. Its user-friendly dashboard, low learning curve, and easy expense tracking make it ideal for freelancers and small-business owners who don’t mind finding another app to manage inventory.

She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for client bookkeeping solutions many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs).