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  • Vin Montes

10 Accounting and Bookkeeping Tools for Small Businesses

Businesses, whether big or small, need to have accurate accounting and bookkeeping records. Constant monitoring and recording of business expenses are essential for the business to discover more avenues for growth.


In today’s digital time, accounting and bookkeeping need not be difficult. There is plenty of accounting and bookkeeping software available online, and they are more accurate than the traditional method. In addition, many accountants and bookkeepers are using cloud accounting and are adapting whichever tools are applicable for them and their clients to be more precise and efficient.


Cloud-based softwares makes collaborations between the client and accountants easier, and everything is in real-time. Choose a software that can integrate with other systems and tools that you already have.


Here is a list of some of the best accounting and bookkeeping tools you can use for your business.


Profit Bank

PROFIT Bank is the first to blend banking & accounting software into one platform. PROFIT Bank is a digital bank for small businesses that provides bank accounts with accounting software that does bookkeeping for free. .

Features

  • Two Free Checking Accounts

  • Free Bookkeeping

  • Free Auto-Reconciliation

  • Free Real-time P&L Statements

  • Allows you to track income and expenses, send invoices and receive payments.

  • Free Auto-Receipt Collection

Price

FREE

Pros

  • Two free checking accounts

  • Free bookkeeping for small businesses

  • You can open an account online in 10 min.

  • No minimum balance required

  • No hidden fees

  • FDIC insured

  • You get assigned a dedicated Account Manager

Cons

  • No international transfers.


Intuit QuickBooks Online

Intuit Quickbooks online is one of the favorite tools in digital accounting. It is an efficient tool with programs set apart with elements like receipt capture and 24/7 customer support. It is one of the prominent accounting software for small businesses and has been around long enough to have gained trust from its users.


Features

  • Integration with Paypal, Shopify, and Square

  • Allows you to track income and expenses, send invoices and receive payments

  • You can run reports, send estimates, track sales and taxes, and capture and organize receipts.

  • Additional features allow users to track inventory, track time, and run full-service payroll.

Price

It starts at $12.50/month


Pros

  • New features every year

  • The dashboard provides quick insights.

Cons

  • Not easy to use, requires training.

  • Disorganized customer support.

  • Inability to revert to the previous version.

  • Expensive to maintain and add features.

  • Lack of transparency in pricing.


FreshBooks

Freshbooks is an all-in-one online accounting service that is useful for small businesses. It offers straightforward solutions which are more efficient for a small business. In addition, it has good features that are incomparable to other tools.


Features

  • Integrates with many business applications and provides a single dashboard to manage finances and accounting easily.

  • Regular secure backups are included.

  • The mobile app allows you to keep track of business transactions at all times.

  • Sends out recurring invoices, has tracking capability, and is suitable for businesses that run subscription models.

  • Lets you see the exact location where the invoice was opened

Price

It starts at $4.50/month


Pros

  • Can Track Expenses Easily

  • Pricing Plans are Flexible

  • Offers 30 days free trial

  • Country-Specific Tax Calculation

  • Best Service Agents

Cons

  • Missing features

  • Lack of Multi-Currency Support

  • Invoice Template and Manual Entry


Xero

Xero is another popular accounting software that is famous for small and medium-sized businesses. It is known to optimize financial processes from transaction tracking and cash flow reporting. It can also be used for inventory and payroll management.


Features

  • Reconcile bank transactions

  • Send invoices and quotes

  • Automatic currency conversion

  • It comes with integrated support to around 700 apps and addons

  • Expense claims management

  • Customizable dashboard

  • Payroll management

  • Financial reporting

  • Pay and Get Paid in Multiple Currencies

  • Create Accurate Accounting Reports

Price

It starts at $20/month

Pros

  • Cloud-based Service.

  • User friendly.

  • Reasonable Pricing.

Cons

  • No Automatic Recurring Payments.

  • may not be a good fit for a lot of monthly transactions.

  • Contacts lists have to be under 10,000.

  • Transactions limit per month needs to be under 2,000.

  • Up to 1000 Invoices and purchase orders only per month.


CloudBooks

CloudBooks is a user-friendly accounting application that can be used for invoicing by freelancers and small businesses. It is the tool that is most preferred by freelancers when sending invoices to their clients.


Features

  • Record expenses automatically.

  • Time tracking.

  • Stringent data security.

  • Efficiently manage multiple projects.

  • Monetize billable hours.

  • Set up custom expense categories.

  • Online payment.

  • Monitor your expenses.

Price

It starts at $2/month; also offered for free.

Pros

  • Easy access from all around the world.

  • Friendly customer service.

  • Cloud-based application allows for users to see invoices from anywhere.

Cons

  • Not very user-friendly.

  • limited the free account.

  • Invoice layout can be confusing.


Zoho Books

Zoho Books is helpful for small businesses that want to manage the cash flow and finances of the company. The software can automate workflow and work collectively across departments. It is one of the trusted tools used for inventory management, banking, time-tracking, and financial reporting.


Features

  • Can integrate all the elements of customer/prospect interaction.

  • Easy to find communications.

  • Can sync to other Zoho products and other external workflows.

  • add and configure third-party integrations.

  • Categorized Banking Transactions.

  • End-to-End Accounting.

  • Intuitive User Interface.

Price

It starts at $15/month


Pros

  • Intuitive User Interface.

  • a one-stop-shop for accounting needs.

  • Easy to build in a sales methodology.

  • Very affordable.

Cons

  • You need a clear understanding of your needs to identify which Zoho modules will meet them.

  • Needs functionality for bulk email or scheduling.

  • Integrating can be complicated and not completely consistent.


Wave

Wave is designed for freelancers, consultants, and new businesses. A cloud-based software with a solid set of accounting features that is efficient and suitable for small businesses. Surprisingly, Wave is a free tool to use.


Features

  • Contact Management.

  • Bank Reconciliation.

  • Expense Tracking.

  • Tax Support.

  • Chart of Accounts.

Price

FREE; Additional Monthly Cost if You Elect Payroll in Tax Service or the Self-Service States; Some Processing Fees Apply

Pros

  • User friendly.

  • Hassle-free Invoice management.

  • multi-currency is made simpler.

  • Except for the features like payments and payroll, this software is FREE.

Cons

  • Basic options for the reporting.

  • Lacks time-tracking features.

  • In some cases, linking a bank account is troublesome.

  • Does not keep track of inventory or schedule jobs.


Kashoo

Kashoo is an accounting tool that offers robust functionality for a very reasonable price. It is most sought after by businesses that want to have simple solutions. Offering straightforward functionality but effective.


Features

  • Automatic Reconciliation.

  • Invoicing with Payment Options.

  • Sales and Sales Tax Tracking.

  • Income & Expense Tracking.

  • One-click Financial Reports.

  • Third-Party Integrations.

Price

It starts at $20/month

Pros

  • Simple, secure approach to dealing with business bookkeeping.

  • Straightforward collaboration with employees, business partners, and accountants.

  • Cloud-based software that is compatible with any web browser and device.

  • Tracking expenses is easy.

Cons

  • The mobile app doesn’t have all the features of its web-based program.

  • Not the most comprehensive accounting software on the market.


NetSuite ERP

An all-in-one cloud business management system that is useful; for small businesses. It automates the core process and provides real-time visibility into operational and financial performance.


Features

  • Inventory Management.

  • Data Import/Export.

  • Financial Management.

  • Audit Trail.

  • Mobile Access.

  • Inventory Management.

  • Access Controls/Permissions.

Price

It starts at $99/month; Offer a free trial

Pros

  • Customizable and Scalable Features.

  • Strong Business Intelligence Backbone.

  • Strong Business Intelligence Backbone.

Cons

  • Pricing and Add-On Costs are expensive.

  • Limited customer support.

  • The solution better fits larger companies.


Zipbooks

Zipbooks is very useful for small businesses with modern accounting, invoicing and uses a time tracker. In addition, it helps manage businesses more straightforwardly.


Features

  • Online invoicing

  • Invoice maker

  • Time tracking

  • Online accounting

  • Recurring billing

  • Team management

Price

It starts at $15/month (when availing services of financial partners)

Pros

  • extensive feature set.

Cons

  • Poor customer service.

  • Lacking reporting features.

  • Mobile app problems.

  • Pricing is Miss-leading, Starts at $15 a month.

Summary and Conclusion

With the hustle and bustle of our daily lives, we have limited time to do everything, especially for a business. If you are a small business and have no time to do the accounting and bookkeeping of your business, your best option might be PROFIT Bank. We provide free bookkeeping for our clients. We automatically create and manage your P&L and reconcile all your transactions on PROFIT Bank. It doesn’t get easier or cheaper than that. Hopefully, the information presented has made it easier for you to navigate the accounting and bookkeeping software landscape.