- 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.