Business

Guide to Best 4 Accounting Software for Small Business in 2022

Small business entrepreneurs can profit most from the accounting software as it facilitates tracking the account’s payables and receivables. Small businesses must have a proper understanding of their profitability position and they must always be tax ready. As a result, businesses can track the inflow and outflow of the cash which in return assists the business owners in planning.

In the accounting software world, a small business can invest in software that has customizations and advanced in-built capabilities. When your business grows, the accounting process is quite complex to manage and requires an ERP or enterprise resource planning software also. Hence to meet these requirements choosing the best accounting software becomes a foremost priority.

Today there are many accounting software available in the market that can cater to different industry-specific needs. From a wholesaler, and retailer to a freelancer, everyone can choose the accounting software of their choice with specific functionalities. 

Here is a list of all the top accounting software that we have come across as an ideal choice for small businesses for 2022 and years beyond.

Table of Contents:

  • QuickBooks Online
  • FreshBooks
  • Xero
  • Wave

QuickBooks Online

For small businesses, QuickBooks accounting software is an ideal choice. It does a major portion of the work for accounting professionals and small businesses. With the help of QuickBooks, you can get access to endless in-built capabilities and help resources to utilize whenever you are stuck at any point in the software. Due to online power, every accounting feature is accessed through a single platform and it makes the bookkeeping more effective and productive.  

Since its introduction in 2006, QuickBooks Online has been the most widely and extensively used accounting software. It is used by small, mid-size businesses and professionals majorly CPAs for their tax and bookkeeping work for themselves and clients too. Alongside, users can access it online through the web browser and mobile applications seamlessly. Consequently, this 

With each plan, you can manage inventory, track time, add users, and budget. If your small business relies primarily on service, you will find that Simple Start fits all your needs. Besides, if your small business relies heavily on products, Essentials or Plus will provide more inventory options and customization opportunities.

All plans allow third-party integration. There are more than 200+ QuickBooks integrations that you can seamlessly use with the program for productive results.

Pros:

  • Online Access
  • Remote Access
  • Mobile Application
  • Integration with third-party applications
  • Automatic Backup
  • 30-Days Free Trial

FreshBooks

FreshBooks is cloud-based accounting software that allows you to send, receive, print, and pay invoices, request deposits, collect client retainers, track time, and receive payments.

As FreshBooks has evolved into a full-featured, double-entry, online accounting app for small businesses, it has added new features every year as well as enhanced existing ones. It began as an invoicing solution.

The customization factor makes the software apart from the several software available in the market. It can seamlessly manage your business bookkeeping needs. The program has a service-based application that can send invoices, and proposals, request deposits, track time, receive payments, and project management.

FreshBooks is an invoicing software founded in 2003 with over 500 employees. There are four plans: Lite, Plus, Premium, and Select.

The Lite, Plus, and Premium plans all allow a certain number of clients to be billed per month. The Select plan adds unique features and allows charging clients directly from their credit card.

Besides, invoices can be highly customized and stylized for a professional look and feel with third-party integrations such as Stripe, Shopify, Gusto, G Suite, and more. FreshBooks integrates with a wide range of third-party apps that allow for integrations like Shopify, Gusto, Stripe, G Suite, and others. Using FreshBooks to budget projects, send estimates or proposals, and collect payments is a great idea.

Pros:  

  • Cloud-based
  • User-friendly interface
  • Third-party app integration
  • Affordable
  • Advanced invoicing features

Xero

It has a simple interface, integrates with a third-party payroll service, collects payments online, and can integrate with a third-party payroll service. Xero is considered one of the best accounting software for small businesses.

Xero offers three monthly subscription options and a full-service payroll add-on for $39 per month plus $6 per employee.

The Early plan allows for five invoices or quotes, five bills, and reconciliation of 20 bank transactions per month. On the other hand, Growing and Established plans offer unlimited invoices, bills, and transactions.

All three plans offer Hubdoc, an easy-to-use bill and receipt capture solution. The only difference between the two is that the Established plan adds multiple currencies and expense management.

Activate your account and provide your business details to Xero after starting the free 30-day trial. Once you’ve connected your official bank account and uploaded your logo, you must consider if you’d like to connect a payment service that facilitates electronic payments using online invoices.

Pros:

  • Cloud-based
  • Mobile app
  • Payroll integration with Gusto
  • Third-party app marketplace
  • Simple inventory management
  • Automated bill & receipt capture
  • Best for SMBs
  • Double-entry accounting

Wave

Wave is a complete free accounting software that helps to manage the finances of the business. It has several features that small businesses need, including income and expense tracking, financial reporting, invoicing, and scanning receipts. Wave updates the features on a regular basis to enhance the efficiency.

It charges a fee of 2.9% plus 30 for credit card processing, 3.4% plus 30 for American Express, and 1% for ACH processing, with a $1 minimum.

Wave provides you with two exceptional payroll plans as their add-on service. The first plan is $20 per month plus $6 per employee or contractor, and the second is $35 per month plus $6 per employee or contractor.

Pros:  

  • Free accounting, bookkeeping, payments
  • Invoicing and receipt generation and scanning
  • No limits on transactions or billing 
  • Run multiple businesses all with your one account
  • Unlimited users can access the platform
  • Mobile app

Conclusion

In a nutshell, accounting software is used by many businesses to organize their accounts and prepare financial statements. It helps to reduce the amount of time spent on data entry and allows users to sync their business bank accounts and credit cards with the software.

To sum up, we have evaluated 4 of the top small business accounting software that is economical, productive, and facilitate easy bookkeeping tasks for you. Always consider the accounting software that has ease of use, accessibility, third-party integrations, powerful invoicing, and inventory management.

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