Rated: Accounting Software for Small Businesses - October 2024

Choosing the right accounting software is one of the most important decisions SMEs and start-ups face. With an array of options, selecting the one that fits your specific business needs can often be overwhelming! This guide covers the top accounting software options in October 2024 based on pricing, scalability, features, and ease of use. We’ll also delve into compliance, payroll services, customer support, and the critical factors small businesses should consider.

What is Accounting Software?

Accounting software is a tool that helps businesses track income, expenses, and manage financial reporting, such as interim profit and loss statements and balance sheets. By automating tasks like payment tracking, and bank reconciliations, accounting software can save time and reduce errors.

Many software packages also offer additional features like quotes and estimates, inventory management, project management , and integration with other business tools such as CRM and e-commerce platforms.

Selection Methodology

To determine the best accounting software for small businesses, we considered several factors, but prioritised  three: Customer Support (Access to live chat, phone and e-mail support), Pricing (Monthly Fees) and User Reviews (A minimum TrustPilot rating of 4.0).

Top 4 Picks:

QuickBooks Online – Best Overall

Why It Stands Out: QuickBooks Online is widely regarded as the best choice for small businesses due to its comprehensive accounting features, scalability, and popularity among accountants. It offers robust tools for financial reporting, third-party app integrations, and a user-friendly mobile app. Despite its higher price, it’s perfect for businesses with complex accounting needs and plans for growth.

Benefits:

• Scalable and customisable

• Easy-to-use mobile app and extensive third-party integrations

• Comprehensive support and training resources

  
  

Drawbacks:

• Higher cost may not suit smaller businesses or freelancers

  
  

Ideal For: Small and medium-sized businesses (SMEs) that need advanced accounting tools and scalability.

FreshBooks – Best for Service-Based Businesses

Why It Stands Out: FreshBooks excels in providing invoicing, project management, and time tracking solutions, making it ideal for service-based businesses. Its intuitive design makes it easy for non-accountants to manage their finances, and its project tracking tools are particularly useful for businesses that bill based on hours worked.

Benefits:

• Powerful invoicing and project tracking tools

• Simple, intuitive interface

  
  

Drawbacks:

• Limited Inventory Management, making it less ideal for product-based businesses

  
  

Ideal For: Freelancers and small service-based businesses that require time and project management capabilities.

Xero – Best for Micro-Businesses

Why It Stands Out: Xero is a top choice for micro-businesses with fewer financial transactions. It’s affordably priced and offers excellent core accounting features, such as receipt capture and cash flow tracking. Xero also integrates well with various third-party apps, making it a versatile option for small operations.

Benefits:

• Affordable pricing and core accounting tools

• Strong app integrations for enhanced functionality

  
  

Drawbacks:

• Limited to 20 invoices per month on the lowest pricing tier

  
  

Ideal For: Micro-businesses and freelancers looking for a cost-effective solution for basic accounting needs.

Wave – Best Free Accounting Software

Why It Stands Out: Wave is the best free accounting software available, making it ideal for businesses that need to keep expenses low. Its free version includes essential accounting features like invoicing and expense tracking, although payroll and advanced tools come at an additional cost.

Benefits:

• Free access to most core accounting features

• Simple and easy-to-navigate interface

  
  

Drawbacks:

• Limited integrations and fewer advanced features

  
  

Ideal For: Freelancers and very small businesses with basic invoicing and accounting needs.

Final Thoughts

QuickBooks Online remains the top choice for its robust features and scalability, making it perfect for growing SMBs. FreshBooks is an excellent option for service-based businesses, while Xero provides cost-effective solutions for micro-businesses. Wave is ideal for those on a budget, offering essential accounting features for free, while QuickBooks also offers Solopreneur which caters to freelancers with simple expense tracking needs.

Ultimately, the best accounting software depends on the complexity of your business, the features you require, and your budget. Investing in the right software can streamline your financial processes, reduce errors, and set your business up to thrive.

For comprehensive assistance in meeting your accounting needs and ensuring your business is not only compliant but ahead of the game, get in touch with a member of the Oxus team below today: