The Best Accounting Software for Small Businesses: A 2023 Review

Managing a small business is no small feat, especially when you're knee-deep in financial tasks.

Tracking expenses, dealing with invoices, handling payroll and filing taxes can all seem like a herculean task.

So, what's the remedy?

Turn to accounting software.

You won't need an entire squad of accountants. The right software or a professional equipped with one can efficiently take care of your financial management needs.

But there's a catch.

The market is packed with accounting software options.

Choosing the best fit for your business can feel like looking for a needle in a haystack.

Don't fret. This guide comes to your rescue.

We've thoroughly explored the landscape of accounting software for small businesses. And we've condensed it into a list of options worth your time.

Ready to take the plunge? Let's start exploring.

10 accounting software solutions worth considering for small business needs

1. QuickBooks Self-Employed
2. FreshBooks
3. R365 Accounting
4. Zoho Books
5. Sage Intacct
6. Wave
7. QuickBooks Online
8. Alpos
9. Xero
10. Scribe

1.‎ QuickBooks Self-Employed—Best for freelancers and independent contractors

When you're a freelancer or independent contractor, you need an accounting solution that caters specifically to your unique needs. QuickBooks Self-Employed hits the mark. Tailored precisely for self-starters like freelancers, solopreneurs and sole proprietors, this dedicated Intuit product has provided efficient accounting solutions since its beta launch in 2014.

Key highlights:

• Track mileage: Automates mileage tracking via your phone's GPS and allows trip categorization with a swipe.
• Sort expenses: Imports and sorts business and personal expenses directly from your bank account.
• Quarterly taxes: Automatically calculates your estimated quarterly taxes.
• Organize receipts: Matches and categorizes expenses when you snap a photo of your receipt.
• File taxes: Transfers your financial data instantly with the TurboTax bundle for easy tax filing.

G2 rating: 4/5 (3126 ratings)

Pricing:

• Paid subscription starts from $15/ month without considering any discounts.

2.‎ FreshBooks—Best for professional services businesses

Professional services businesses need an accounting solution that is robust yet simple to use and FreshBooks delivers just that. Tailored with invoicing and accounting cycle tools specifically designed for your professional services business, FreshBooks offers a blend of efficiency and user-friendliness.

Key highlights:

• Automated invoicing: Streamlines billing with recurring invoices and automated payment reminders.
• Time tracking: Enables easy logging and invoicing of billable hours, with real-time reporting for up-to-date insights.
• Multiple payment options: Offers various payment methods, including checkout links, bank transfer (ACH) and credit cards.
• Transparent reporting: Provides straightforward dashboards for instant financial insights.
• Invite your accountant: Allows you to invite your accountant for thorough financial tracking.

G2 rating: 4.5/5 (665 ratings)

Pricing:

• 30-day free trial available.
• Paid subscription starts from $17/month.

3.‎ R365 Accounting—Best for restaurants

For restaurant owners seeking a comprehensive accounting and operations platform, R365 Accounting comes highly recommended. As a cloud-based, restaurant-specific solution, R365 Accounting offers industry-leading tools to help improve margins and scale your business without adding unnecessary overhead.

Key highlights:

• Asset tracking: Provides efficient management of all fixed assets like real estate, tech and kitchen equipment.
• Bank integration: allows secure, real-time tracking of financial transactions and facilitates smooth reconciliations.
• Budgeting and forecasting: Enables smart multi-location budgeting, progress monitoring and revenue forecasting.
• Financial reports: Delivers detailed financial insights and integrates with your POS for accuracy.

G2 rating: 4.3/5 (126 ratings)

Pricing:

• Paid subscription starts from $435/month/location, billed quarterly. Includes other modules of the platform as well, so overall pricing is higher than generic solutions.

4.‎ Zoho Books—Best for accounting on the go

Zoho Books stands out for businesses that require an effective mobile accounting solution.

With its comprehensive cloud accounting platform, you can manage your business finance from the convenience of your mobile device. This is particularly useful for entrepreneurs who need to keep their finances at their fingertips, no matter where they are.

Key highlights:

• iOS and Android widgets: Facilitates quick access to timers, invoice lists and total receivables, streamlining the accounting experience on mobile devices.
• Apple Watch integration: Enables viewing outstanding invoices, sending payment reminders and tracking project time right from your wrist.
• Quick receipt uploads: Allows you to capture and attach receipt images to recorded expenses directly from your phone.
• Instant insights: Offers a KPI dashboard for quick insights into business performance.

G2 rating: 4.5/5 (172 ratings)

Pricing:

• A freemium plan is available.
• Paid subscription starts from $15/organization/month when billed annually.

5.‎ Sage Intacct—Best for subscription and SaaS businesses

SaaS businesses seeking an efficient subscription billing and accounting solution would benefit from Sage Intacct. As a leading cloud financial management software, Sage Intacct provides reliable quote-to-cash, accurate revenue recognition and critical SaaS metrics to help streamline your financial processes.

Key highlights:

• Salesforce integration: Reduces days sales outstanding (DSO) by up to 30%, freeing up cash flow for hiring and acquisitions through automated quote-to-cash.
• Automated revenue recognition: Forecasts deferred and recognized revenue across unbilled, billed and paid. Manages both ASC 605 and 606 and IFRS 15 internationally.
• Flexible subscription billing: Handles various subscription billing types, including usage-based, user-based, tiered, minimums and overages.
• Growth-stage SaaS accounting: Generates critical SaaS Metrics, such as CMRR, CAC, Churn, CLTV and Cash Flow.

G2 rating: 4.3/5 (2340 ratings)

Pricing:

• Available on request.

6.‎ Wave—Best for ease of use

When it comes to user-friendly accounting software, Wave stands out. It offers a comprehensive financial tool suite for invoicing, accounting, payroll, payments, etc. It's not just the impressive broad feature set; Wave is free to start and built with the small business owner in mind.

Key highlights:

• User-friendly dashboard: Built for you, not just accountants.
• Quick setup: Create your account and access the platform instantly, anytime, anywhere. Your data is always available and backed up for extra peace of mind.
• High security: Employs robust 256-bit encryption and is PCI Level-1 certified for secure data handling.

G2 rating: 4.4/5 (286 ratings)

Pricing:

• A freemium plan is available that has the accounting features included.
• Paid subscription plans for additional modules like mobile receipts and payroll.

📌 Related Resource: Types of Start-Ups to Get You Started

7.‎ QuickBooks Online—Great for e-commerce businesses

QuickBooks Online is a robust solution for e-commerce businesses. Easy integration with your favorite e-commerce platforms simplifies your store’s accounting, helping you manage finances efficiently.

Key highlights:

• E-commerce integrations: Connect with e-commerce platforms like Shopify, eBay and Amazon for a comprehensive financial view.
• Accurate accounting: Separates your revenue from taxes and fees, mapping each to the right accounts.
• Clear financial insights: Provides a clear view of cash flow, generating accurate reports and insights into your revenue, expenses and profitability.

G2 rating: 4/5 (3126 ratings)

Pricing:

• 30-day free trial available.
• Paid subscription plans start from $15/month without considering any discounts.

8.‎ Alpos—Best for nonprofits

Alpos is a dedicated solution for nonprofits, offering powerful and integrated tools to promote efficiency and effective stewardship. With features tailored to the unique needs of nonprofits, Alpos simplifies the accounting process for over 40k clients.

Key highlights:

• Fund accounting: Easy tracking of funds like grants and special programs ensures readiness for financial reporting.
• Custom account charts: Craft a flexible chart of accounts that aligns with your nonprofit structure, correctly tracking funds and managing campaigns or projects.
• Donation management: Simplified identification of tax-deductible income, management of membership invoices and tracking of other income sources.
• Donation reports: Get detailed insights with features like pledge tracking and reports on donations by donors.

G2 rating: 4.6/5 (34 ratings)

Pricing:

• 15-day free trial available.
• Paid subscription plans start from $99/month.

📌 Related Resource: 6 Tips to Jumpstart Your eCommerce Operations

9.‎ Xero—Best for advanced features

Xero is an accounting workflow software built for small and growing businesses. It's known for its advanced features, providing detailed insights for power users and improving their accounting experience.

Key highlights:

• Multi-currency support: Manage transactions in over 160 currencies. Xero auto-converts foreign transactions and provides instant conversions, allowing for quick impact analysis on cash flow or profit.
• Fixed assets management: Track your assets online, manage depreciation and disposals and generate reports to display fixed assets and their value.
• Xero Analytics: Get a quick view of short-term cash flow, an overview of business performance and health checks. Xero Analytics Plus offers further customization and predictions.

G2 rating: 4.4/5 (554 ratings)

Pricing:

• 30-day free trial available.
• Paid subscription plans start from $13/month without considering any discounts.

10‎. Scribe—Best for documenting accounting processes

Finally, we have Scribe. An AI-powered tool that simplifies the documentation of accounting processes, making it easy to share with clients or your team. From financial procedures to internal controls and reporting guidelines, Scribe helps create professional, standardized manuals quickly.

Key highlights:

• AI-powered manual generator: Scribe leverages advanced AI to streamline the creation of accounting manuals, enabling your team to produce precise, comprehensive documentation easily.
• Consistency and reliability: By maintaining standardized formats, terminology and structures, Scribe enhances the quality and reliability of your manuals, minimizing errors and inconsistencies.
• Efficient collaboration and version control: Scribe facilitates teamwork on the same manual, ensuring efficient version control, streamlined document management and seamless collaboration.

G2 rating: 4.8/5 (63 ratings)

Pricing:

• A feature-packed freemium version is available. Try now.
• Paid subscription plans start from $12/seat/month when billed annually.

Conclusion: The best accounting tool is one that works for you

As we wrap up this comprehensive review, remember there's no one-size-fits-all solution.

Each accounting tool offers unique features tailored to different business types, sizes and needs.

Your ideal choice should tick off your specific requirements and budget constraints.

Use this guide as a roadmap to navigate the numerous choices.

Happy accounting and here's to smoother financial management!