Best Accounting Software for Small Businesses

In the digital transformation age, manually keeping your finances on track can take time and effort. As a result, accounting software apps and plug-ins have become invaluable resources for every small business owner, offering a streamlined approach to managing expenses, tracking employee hours, saving sales tax information, securely storing passwords, and much more. 

From small businesses to midsize corporations, these tools provide an innovative way to keep business finances and financial reporting organized and updated. 

In this blog post, we will explore some of the top recommended accounting software for small businesses that is available today. Of course, you have already heard of some of them, but we will also discuss how to use them. We will also look at each software's features, benefits, pricing models, security features, customer support options, and more.

Get ready to explore the best accounting software solutions so you can make an informed decision on which app is suitable for your business needs.

Small business accounting software

Running a small business can be difficult and time-consuming without the right tools. Likewise, keeping accurate financial records is often daunting, but choosing the right software for your business’s accounting needs can make all the difference.

QuickBooks accounting software

QuickBooks, from Intuit, is one of the best overall accounting software. It's easy to set up and offers various accounting software features tailored to different companies.

This accounting software allows businesses to track expenses, create invoices, reconcile bank account transactions, generate reports and send payment reminders. These accounting features can be automated, saving time and reducing stress for business owners.

With integrated business bank accounts, QuickBooks makes managing money simpler. Businesses can easily reconcile accounts with just a few clicks. This comprehensive accounting solution helps businesses to save time on tedious accounting tasks that would otherwise be done manually, giving them more time to focus on other aspects of the business.

Additionally, this accounting software works in a way to store information securely so that you don’t have to worry about unauthorized access or manipulation of your data.

Try free accounting software for small business

Small businesses can benefit significantly from trying free accounting software. This provides a convenient way for them to learn the basics of accounting software without feeling overwhelmed.

It is a cost-effective solution and allows small businesses to save time on manual entries, streamline processes and create efficient reports. Zoho Books is an example of a free accounting software option that offers invoicing, billing, expense tracking, bank reconciliation, and more.

With its advanced accounting features and easy-to-use interface, the free version made Zoho Books quickly become one of the best free accounting software programs.

Xero online accounting software

Xero Accounting Software is another excellent choice for small businesses looking to manage their finances more efficiently.

It offers similar features as QuickBooks and has an intuitive user interface that makes it easier to utilize powerful accounting functions such as payroll processing, billing and invoicing, bank reconciliation, and cash flow management. 

This online accounting software can also be integrated with other third-party apps, allowing users to customize their workflow while keeping track of their financial data in real time. 

Additionally, Xero provides an online support community where small business owners can quickly get answers to their questions.

Benefits of small business accounting software program

With features like budgeting capabilities and accessible customer service options, these small business accounting software programs are sure to help make managing your money more effortless than ever! 

That is why when you look for accounting services, you should find a team that relies on those tools and, most importantly, knows how to take advantage of them to ensure your finances are in order.

Business management software

Businesses of all sizes need reliable and efficient tools to manage their finances.

Tools such as LastPass Password Manager, Expensify, and Evernote provide companies with an easy way to store, organize and track their financial reports. And those features can only make the accounting and bookkeeping process easier and more efficient. 

LastPass Password Manager

This business accounting software is an excellent tool for securely saving, storing, and managing passwords. Once you’ve created your account, you’ll only need to remember one password – your LastPass. 

LastPass prompts you to save new sites as you browse – so you’ll never lose another password. In addition, all your passwords are stored in a “vault” where you can edit, delete, and organize them. LastPass is free, but they offer Premium and Enterprise versions with additional features.

Expensify

The Expensify mobile app gives you a quick and easy way to track expenses, snap pictures of receipts and create expense reports. 

A couple of our favorite features are the SmartScan which allows you to snap a photo of your receipt with an automatic upload into your Expensify account, and the mileage button, which will enable you to record mileage expenses while on the road.

Evernote

This app is a handy tool to keep your notes, web clips, files, and images in one place and on every device and computer you use.

This tool is excellent if you do a lot of research and want to save the information for later use. The web clipper feature is convenient. You get the entire page: text, images, and links.

Benefits of business accounting software

Using these tools, accountants and bookkeepers can ensure accuracy and efficiency when dealing with finances. In addition, the seamless integration between these tools allows for greater control over finances, which can help businesses stay cost-effectively organized. 

Companies that use business accounting software options for their business processes save time and money in the long run. Besides, you can always invest in bookkeeping services by hiring an accounting firm that has used these tools for ages and knows how to use them to ensure the accuracy and efficiency of finances around your business. 

eCommerce Apps / Cloud Based Plug-Ins

The common fact is that ecommerce businesses are constantly evolving, and with that comes the need for apps or cloud-based plug-ins to help run your business easier.

Accounting tasks can be especially tricky in the ecommerce world, so it’s essential to find the right tools and technology to help you manage them. 

Cloud-based apps and plug-ins

Cloud-based apps and plug-ins have revolutionized the e-commerce industry, making it easier than ever for small businesses to stay on top of their finances. With cloud-based accounting software, businesses can track product sales, calculate sales tax, generate invoices and reconcile accounts, all in a straightforward accounting software solution.

By using cloud-based software, businesses no longer waste time logging into various programs or manually entering data into a spreadsheet. Instead, the process is automated and streamlined, allowing entrepreneurs to focus their energy on growing their businesses rather than spending time on tedious tasks.

For example, TaxJar and a2x are two cloud-based platforms that provide powerful tools for ecommerce accounting that can help automatize sales tax and extract accurate data. 

TaxJar

TaxJar automates the entire sales tax cycle across all your sales channels, from calculations and nexus tracking to reporting and filing.

TaxJar is a highly recommended accounting software app and plug-in for multiple businesses in the ecommerce industry. It provides an automated filing system that makes it easy to keep up with sales tax rates and reporting requirements, saving hours of manual labor.

TaxJar offers real-time sales tax rates and calculations, making it simple to determine the exact amount of taxes owed. It also provides economic nexus insights so you can track where your sales are applicable.

With AI-driven product classification, TaxJar evaluates all products and intelligently suggests the right product tax code, eliminating guesswork when trying to figure out which items should be taxed.

This helps small businesses stay updated with ever-changing sales tax regulations while ensuring they remain compliant with local laws.

a2x

A2x integrates with popular online marketplaces such as Shopify, eBay, Etsy, Amazon, and Walmart to automate the extraction of accurate data. This simplifies reconciling accounts by reducing manual entries, eliminating duplicate entries, and streamlining payments. 

A2X is a recommended accounting software app & plug-in that helps reconcile payouts from sales channels into QuickBooks, Xero, or Sage business cloud accounting in minutes instead of hours.

A2X allows small business owners to easily configure and apply accounting rules for every type of transaction and country so that taxes are accurately accounted for each time. Plus, it provides clear profit margins and COGS, which makes it easier to gain insights into channel performance and make sound business decisions.

TaxJar and a2x offer valuable solutions for businesses looking to simplify their ecommerce accounting processes and increase accuracy when dealing with more significant or complex transactions.

Benefits

Utilizing these cloud-based plug-ins can help any ecommerce business save time and money while staying on top of its accounting needs.

Suppose you have trouble mastering the usage of those tools. In that case, you can always look for an ecommerce service that streamlines your e-commerce accounting and bookkeeping systems, lower your taxes, and increase your profitability, so you have more time to focus on the work you love.

Impact of Accounting software apps and Plug-ins on small businesses  

Accounting software and plug-ins have become essential tools for small businesses to ensure accurate bookkeeping.

From small ecommerce stores to large multinationals, accounting software allows companies to accurately track data entry such as sales, expenses, and profits. This ensures that businesses can make sound decisions based on reliable financial information. 

Utilizing the latest technologies, accounting software, and plug-ins can help streamline processes, reduce manual errors and create cost savings. An up-to-date bookkeeping system can also provide insights into customer trends, optimize inventory management processes, simplify taxes, and improve cash flow visibility. 

The bottom line is that the impact of accounting software and plug-ins is far-reaching. These tools are critical elements in running a successful small business, from improved decision-making to increased efficiency in operations. 

By hiring an accounting firm well-versed in utilizing the best accounting software, enterprises gain access to a wealth of efficient experience in managing their finances. This enables companies to make informed decisions about accounting services that will positively impact their bottom line while helping them stay ahead of the competition.