While accounting principles can be universally applied in nearly any business setting, small business owners have unique needs that must be considered. In the age of cloud-based computing, it’s easier than ever for entrepreneurs and investors to find personalized accounting solutions. Knowing the best small business accounting software options can help you select the right program for your business.

Understanding Small Business Accounting Software

Accounting software is technology that allows you to record your financial transactions and manage your accounting tasks. Small business accounting software is a specialized form of accounting software designed specifically with local businesses in mind.

What Is Small Business Accounting Software?

Small business accounting software is accounting technology designed to meet the needs of small business owners, which are distinctly different from larger organizations or corporations.

According to TatvaSoft, the key features included in small business accounting software include:

• General Ledgers.
• Invoicing Capabilities.
• Tax Management.
• Accounts Payable.
• Accounts Receivable.
• Payroll.
• Financial Reporting.

Importance of Using Accounting Software for Small Businesses

Small business owners are responsible for a wide range of tasks, and many are not experts in accounting. Small business accounting software can help streamline their tasks, minimize accounting mistakes, improve their overall efficiency and reduce liability.

Benefits of Using Accounting Software

The benefits associated with using accounting software include:

• Reducing time spent on administrative tasks.
• Reducing the risks of errors.
• Increasing revenue and profits.
• Improving overall organization of financial records.

Factors to Consider When Selecting Accounting Software

With many cloud-based accounting programs to choose from, you will want to consider the following factors when selecting your accounting software:

• Business Size.
• Complexity of Operations.
• Budget Constraints.
• Scalability.
• Growth Potential.

Key Features to Compare Between Programs

As you are comparing programs, it may be difficult to make an apples-to-apples comparison, as a number of accounting software programs offer a diverse range of features. To narrow your options and make the most effective comparison, you should focus on these key features:

• Invoicing and Billing Capabilities.
• Expense Tracking Management.
• Reporting and Analytics Tools.

Ease of Use and User Interface

The vast majority of small business accounting software programs are created with non-accounting professionals in mind, so they are generally known for being user-friendly. However, it’s important to select a program that feels intuitive for you, and that offers cloud-based accounting, as this gives you the power to manage your accounts across all devices and platforms.

Customer Support Quality

While you are likely going to select a user-friendly small business accounting software program, you may encounter technical challenges or issues along the way. As a result, it’s imperative to select a program that offers unparalleled customer support. Being able to speak to live representatives at any time will give you the confidence you need to manage your business from any location.

Security Measures and Data Protection

You are going to be inputting an extensive amount of private financial and business data into your accounting software program, so it’s critically important to select a program that offers enhanced security measures and advanced data protection. Not only are you protecting your own financial records, but also the private information and records of your customers as well.

Integration Capabilities With Other Business Tools

Selecting a small business accounting software that integrates with other business platforms and tools allows you to streamline your operations and maximize your efficiency as a small business owner. In some cases, you will find that small business accounting software programs also offer a range of project management tools, allowing you to consolidate the number of programs that you use for your business.

10 Top Accounting Software Options for Small Businesses

With so many options to choose from, selecting the right accounting software for your small business can be daunting. As you consider the best small business accounting software options, keep in mind the needs of your individual business and the needs of those who will be using the software on a daily basis.

QuickBooks Online

QuickBooks Online is very well-known and is considered to be the preferred software for accountants. With features that range from business funding and tracking income to accepting payments and providing invoicing and estimates, it’s a comprehensive program that offers reliable service.

Xero

Designed as an all-in-one solution for businesses of all sizes, Xero is an excellent accounting software for small businesses. Its features allow you to pay your bills, claim expenses, connect to your bank, accept and make payments, reconcile your bank statements, capture data, manage payroll and create reports, to name a few.

FreshBooks

FreshBooks is an intuitive accounting software that also offers project management tools, allowing you to utilize this program in all aspects of your business. Its features include accounting, invoicing, estimating and client communication tools, giving you the power to operate your entire business from one convenient platform.

Wave

Accounting can be overwhelming, particularly for small business owners who may not have studied advanced accounting principles and techniques. Wave is an online small business accounting software that makes the process of managing your small business finances as simple as possible. In addition to offering accounting, payroll, invoicing and payment processing, this program also offers expert guidance at any time you need it.

Zoho Books

Designed with automation in mind, Zoho Books allows you to take your business management into the cloud. Zoho Books automates business workflow while making it easy for you to manage your accounting tasks, ultimately giving you more time to focus on doing what you love.

Sage Business Cloud Accounting

Often described as an accessible and intuitive cloud-based accounting program, Sage Business Cloud Accounting offers all of the key accounting features you require while also allowing you to create customized reports and track key metrics. It also offers insight into tax compliance, ensuring that you can adapt accordingly.

Intuit QuickBooks Self-Employed

Designed specifically for entrepreneurs who are self-employed, Intuit QuickBooks Self-Employed offers more than just basic accounting features. This software program is designed to help you to understand your cash flow as well as keep business and personal accounts separate, ensuring that you can maximize your financial success as a solopreneur.

Kashoo

Self-described as the world’s simplest accounting software, Kashoo is ideal for business owners who want to streamline their tasks and focus on the larger picture. Kashoo offers a variety of accounting technology solutions for business owners, allowing you to select the features best for your business. From automated accounting solutions to invoice processing solutions, Kashoo has everything you need to improve your overall efficiency.

TrulySmall Accounting

Recently ranked as one of the best small business accounting software programs by PCMag, TrulySmall Accounting is a favorite platform among self-employed entrepreneurs. Offering invoicing, reporting and digital payment features, TrulySmall Accounting gives you the power to take full control over your entrepreneurial endeavor.

ZipBooks

ZipBooks is an accounting software solution that aims to transform any business owner into an accounting professional. Featuring all of the standard accounting features you expect, including accounting, billing, invoicing and payroll, this technology also offers smart insights that allow you to leverage your position as a business owner.

Consider the Business Type for Accounting Software

As you are considering your options for accounting software, you will want to keep in mind the type of business that you are operating. A brick-and-mortar shop owner in a small downtown area will likely have different accounting needs than a freelance graphic designer who works remotely.

Freelancers and Solopreneurs

Freelancers, often described in the gig economy as solopreneurs, are individuals working as independent contractors and managing their own business endeavors. They require an accounting software program that offers automation, invoicing and payment services.

Small Retail Businesses

Small retail businesses are either online or brick-and-mortar businesses that sell products, such as a bakery located in the heart of your city’s downtown area. Small retail businesses need comprehensive accounting platforms that allow them to streamline operations and reduce time spent on administrative tasks.

Service-Based Businesses

Service-based businesses are small businesses that may operate out of a brick-and-mortar location, or they may be run remotely by a small business owner. These businesses require comprehensive accounting software programs that allow them to automate tasks, improve invoicing and collect payments.

Startups and Growing Enterprises

Startups and growing enterprises are typically small businesses that intend to grow into larger organizations. They require accounting software that offers smart insights that will help them make strategic steps toward growth.

How Small Businesses Benefit From Accounting Software

Accounting software allows small businesses to operate as if they have the same resources as large corporations. By streamlining tasks, reducing accounting errors, managing small business loan payments and ensuring that the business is always compliant, small business accounting software makes life infinitely easier for small business owners.

Prepare for a Professional Career in Accounting at Johnson & Wales University

Regardless of your career goals or aspirations, accounting is a valuable skill that can provide you with a competitive advantage in the job market. Whether you are looking for the best small business accounting software for your entrepreneurial endeavor or you would like to pursue a career as an accountant, you will find that our online bachelor’s in Accounting and online master’s in Accounting will equip you with the skills and knowledge needed to succeed in the business world.

For more information about completing your degree online, complete the Request Info form, call 855-JWU-1881, or email [email protected].