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9 Best Small-Business Accounting Software for 2024

best small business accounting software

We understand the myriad of challenges that come with managing a company's finances. From tracking expenses and income to preparing for tax season, keeping the books in order can be a daunting task. That's why finding the best small business accounting software is crucial to the health and efficiency of operations.

In this article, we'll introduce you to the top 9 small-business accounting software for 2024 that can simplify your finances and give you peace of mind.

Table of Contents

  • Xero

  •  QuickBooks Online

  • FreshBooks

  • Zoho Books

  • Wave

  • Sage 50cloud 

  • NetSuite

  •  Kashoo

  • Bench

The importance of small-business accounting software

Spreadsheets and manual bookkeeping aren't sufficient for business. Small-business accounting software is a game-changer for several reasons.

  • It saves time by automating tasks and allows us to focus on growth.

  • Enhances accuracy by reducing human errors.

  • Provides a clear financial picture for informed decision-making.

  • Helps manage cash flow, outstanding invoices, and upcoming expenses.

  • Simplifies tax season with organized financial information.

  • Offers robust security features to protect sensitive financial data.

Top 9 small-business accounting software for 2024

As we head into 2024, the market has presented us with an array of small-business accounting software options, each boasting unique features and benefits. After extensive research and firsthand experience, we've compiled a list of the top 9 solutions that stand out in terms of functionality, ease of use, and value for money.

1. Xero

Cloud-based accounting software for small businesses

Moving on to Xero, a cloud-based accounting software that has been gaining popularity among small businesses. One of Xero's standout features is its user-friendly design. The dashboard provides a clear overview of your financial status, and the navigation is straightforward, making it easy to find the features you need.

Xero's real-time financial data is a boon for businesses that need up-to-the-minute insights into their cash flow. The software also boasts a vast ecosystem of app integrations, allowing businesses to create a highly customized accounting platform that fits their specific needs.

Additionally, Xero places a strong emphasis on collaboration. Multiple users can access the platform, which makes it easier for business owners, accountants, and bookkeepers to work together efficiently.


2. QuickBooks Online

A comprehensive accounting solution

QuickBooks Online has been a staple in the small-business accounting software space for years, and for good reason. It offers a comprehensive set of features that cover nearly every accounting need a small business could have. From invoicing and expense tracking to payroll and tax preparation, QuickBooks Online provides a full suite of tools that are both powerful and accessible.

The software is also known for its robust reporting capabilities, offering a variety of reports that help business owners make strategic decisions. Furthermore, it seamlessly integrates with numerous other business services and apps to extend its functionality even further.

Another point in its favor is the range of plans available, which allows businesses to select the level of service that best fits their needs. Whether you're a freelancer, own a small shop, or are scaling up, there's a plan that can work for you.


3. FreshBooks

Streamlined invoicing and expense tracking

For those who prioritize invoicing and time tracking, FreshBooks offers a solution that's both streamlined and feature-rich. FreshBooks started as an invoicing software but has grown into a comprehensive accounting solution that's especially well-suited for service-based small businesses and freelancers.

The interface is extremely user-friendly, and the invoicing features are some of the best in the industry. You can customize invoices, set up recurring billing, and even track the time spent on specific projects. FreshBooks also offers expense tracking, which automatically categorizes expenses, making it easier to see where your money is going.

Perhaps one of the most appreciated features is the client self-service portal, which allows clients to view their invoices, estimates, and payments online, facilitating a smoother transaction process.


4. Zoho Books

An all-in-one accounting platform

Zoho Books is part of the Zoho suite of online productivity tools and SaaS applications. It stands out as an all-in-one accounting platform, offering a comprehensive set of features that cater to the diverse needs of small businesses. With Zoho Books, you can manage your finances, automate business workflows, and work collectively across departments.

One of the most significant advantages of Zoho Books is its integration with other Zoho products, such as Zoho CRM and Zoho Inventory, providing an interconnected ecosystem for managing various aspects of your business. This integration extends to third-party apps as well, making it a versatile choice for many small businesses.

Zoho Books also excels in automation, with features that can automatically generate invoices, send payment reminders, and even reconcile bank transactions, which saves valuable time.


5. Wave

Free accounting software for small businesses

For those on a tight budget, Wave is a standout choice as it offers a completely free accounting software package that covers the basics most small businesses need. Wave's no-cost model doesn't skimp on functionality; you can create and send professional invoices, track expenses, and manage receipts without spending a cent.

The platform is funded by optional paid services such as payment processing and payroll services, which are available if you need them. Wave's interface is simple and clean, making it a great option for business owners who have no prior accounting experience.

Despite its free price tag, Wave also provides financial reports that can help you understand your business's performance. This is a great starting point for many entrepreneurs who are just setting out and need to keep overheads low.


6. Sage 50cloud

Robust accounting software for growing businesses

Sage 50cloud is a robust accounting software solution that's designed with growing businesses in mind. It combines the power of a desktop application with the flexibility of the cloud, offering a comprehensive feature set that includes advanced inventory management, project tracking, and industry-specific accounting tools.

A key feature of Sage 50cloud is its strong emphasis on compliance and security, ensuring that your financial data is both safe and in line with the latest financial regulations. This makes it an excellent choice for businesses that operate in industries with strict compliance requirements.

Sage 50cloud also integrates with Microsoft Office 365, which allows you to access your accounting information from anywhere, at any time, and on any device. This level of flexibility is crucial for business owners who are often on the move.

7. NetSuite

Scalable accounting solution for small to midsize businesses

For businesses that are scaling rapidly, NetSuite offers a scalable accounting solution that can grow with your company. It's designed to handle the complexities of larger small to midsize businesses, providing a suite of tools for ERP, CRM, and ecommerce in addition to its accounting capabilities.

NetSuite is a powerful platform that gives real-time access to financial data, helping you make timely decisions based on current business metrics. It can handle multiple currencies, consolidate financials for multiple business entities, and manage a range of financial processes, from order management to billing and revenue recognition.

Although NetSuite comes with a higher price tag compared to some other options, its comprehensive suite of services and scalability make it a worthwhile investment for businesses that are outgrowing more basic accounting software.

8. Kashoo

Simple and affordable accounting software

When simplicity is key, Kashoo shines as an affordable and straightforward accounting software option. It's perfect for small business owners who want to handle their accounting without a steep learning curve. Kashoo offers a clean interface, and its straightforward approach to accounting tasks makes it easy to use, even for those with little to no accounting background.

Kashoo's features include income and expense tracking, invoicing, and financial reporting. It also offers a unique feature: a single ledger, which allows for real-time collaboration with accountants. This can be a time-saver during tax season or whenever you need expert advice on your finances.

The software is also praised for its excellent customer support, which is an invaluable resource for small business owners who may need guidance or have questions about their accounting.

9. Bench

Online bookkeeping and accounting services

Lastly, for business owners who want to outsource their accounting entirely, Bench offers a unique service that combines software with professional bookkeeping. With Bench, you get a team of bookkeepers who use proprietary software to manage your books for you. This means you can offload the tedious task of bookkeeping and focus on running your business.

Bench is more than just software; it's a service that provides you with a monthly financial statement and year-end financials, making it easier to get a clear view of your business's financial health. It's also helpful come tax time, as Bench can work directly with your CPA or provide you with a tax professional to help you file.

While Bench is not a traditional accounting software, it is an excellent option for those who prefer a hands-off approach and are willing to invest in a bookkeeping service.


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