Exploring The 7+ Best Bookkeeping Software For Your Business

February 12, 2024

Bookkeeping software is a computer program used to process and document all transactions essential to a business’s operations. Also called accounting software, it is a useful tool that makes calculating and managing finances more organized and hassle-free.

Choosing the most suitable accounting software brings multiple advantages to your business and budget plan. That is why, in this article, we’ll offer the most highly rated bookkeeping software options, along with their key features, pros, and cons.

Let’s begin!

Key Takeaways

Bookkeeping software is a must-have tool for freelancers, entrepreneurs, and small businesses looking to enhance their financial management processes.
Some of the best and most reliable accounting software options at present include FreshBooks, Zoho Books, Sage 50 Accounting, Xero, QuickBooks Online, Wave, AccountEdge Pro, and ZarMoney.
When choosing a bookkeeping software, keep in mind your budget, existing resources, and business needs.
Using an efficient tool for improving your accounting processes lets you dig deep into your current financial standing, keep your financial data well-protected and organized, generate comprehensive financial reports, and boost your payroll processing.

7+ Best Bookkeeping Software to Use

If you’re having trouble finding the perfect software for your business needs, we’ve listed and discussed 8 of the most suitable bookkeeping software for a small business below. Let’s have a look:

#1. FreshBooks

FreshBooks is one of the most popular bookkeeping software programs for small businesses. Its features are tailored to make accounting easier and more time-saving for sole proprietors, small businesses, and even freelancers.

It is an ideal companion for small businesses looking to improve their money management practices and track their revenue and costs without breaking the bank. Freshbooks also offers subscriptions covering more complex and advanced tools for larger companies.

Best For	Sole proprietors, freelancers, and startups
Pricing and Discount	30-day free trial 60% off for 6 months with a 30-day Money Back Guarantee Lite—$7.60/month Plus—$13.20/month Premium—$24.00/month Custom pricing
Key Features	CRM integration Double Entry Online payments Multi-currency Financial reporting Mobile access Time tracking Live Support
Pros	Time-saving Seamless reporting and project monitoring User-friendly Excellent customer support
Cons	Duplicated contacts when merging contacts from other platforms with Freshbooks Interface and inventory tracking could be improved Additional costs for additional team members

#2. Zoho Books

Zoho Books is known for simplifying and automating business transactions and expense tracking. It’s best suited for businesses in the IT and accounting industries, with over 59% of its market comprised of small businesses.

This cloud accounting bookkeeping software also helps save time and energy handling repetitive accounting tasks, such as issuing payment reminders and organizing financial reports.

Best For	Startups or small businesses
Pricing and Discounts	14-day free trial for the Premium plan Starting price at $15 per organization/month Free plan for CRM software available Standard—$90 per organization/year Professional—$190 per organization/year Premium—$290 per organization/year Elite—$1290 per organization/year Ultimate—$2490 per organization/year
Key Features	Auto-pilot invoicing, billing, and other repetitive transactions Acquire daily transactions in real-time through Bank Feeds Advanced Inventory Tracking Payment reminders Easily syncs customers and vendors Sets up triggers for smoother bookkeeping workflow
Pros	Subscription tools available across all mobile platforms Available in multiple languages Does not require manual synching between businesses and clients Hassle-free connection with CRM, Inventory, and other business processing tools
Cons	Advanced features are limited to premium subscriptions A maximum of 10 users can use the platform Limited integration

#3. Sage 50 Accounting

The bookkeeping software Sage 50 Accounting is best known for its impressive inventory tracking feature. Also called Sage Business Cloud Accounting or Sage Accounting, the platform merges low-cost and competitively priced accounting solutions for small businesses.

It is the perfect partner for businesses that regularly process multiple orders and generate several invoices for different clients.

Best For	Startups and micro-businesses
Pricing and Discounts	70% off for the first six months Pro Accounting—$58.92/month Premium Accounting—$96.58/month Quantum Accounting—$160/month
Key Features	Detailed transaction forms and records User-friendly and impressive dashboard Microsoft 365 integration Superb inventory management Extensive financial reports Remote data access
Pros	Comprehensive accounting program that highlights small business structures Supports customized accounting and data management needs Easy collaboration among team members
Cons	Does not support mobile app integration Limited for Windows users UI elements could use some updating No portal for customers and vendors

#4. Xero

Xero is said to be an all-around bookkeeping platform because its features cover a broad range of accounting needs for startups.

From double-entry bookkeeping and advanced reporting and analytics to AI-powered connectivity, bills, sales, and purchase management solutions, small businesses can maximize Xero’s carefully tailored features to enhance their operations.

Best For	Small and larger businesses
Pricing and Discounts	30-day free trial Early—$3.75/month Growing—$10.50/month Established—$19.50/month
Key Features	1099 support Double-entry Monitor fixed assets Automated accounting for finances and sales taxes Meticulous contact recording Easily track and accept payments and bills Seamless bank connectivity Bank reconciliation Automatic and online file and data storage
Pros	Supports multi-currency accounting Has live support Easy to install Aptly takes advantage of AI to improve its existing features
Cons	Not suitable for freelancers and sole proprietors Does not have inventory assemblies Personalized customer assistance is limited to emails New users need time to fully understand and adapt to the platform’s interface

#5. Wave

The biggest edge that Wave has over other bookkeeping software is its efficient invoicing solution. As such, micro-businesses can handle multiple invoices while also attending to other key aspects of regulating their expenses and revenue.

While many of its features call for a much-needed update to suit modern client demands, Wave’s bookkeeping features are specially crafted to support specific small business needs.

Best For	Small businesses and users on a budget
Pricing and Discounts	Starter Plan—Free Pro Plan—$16/month
Key Features	ACH payment processing Access controls Activity dashboard Accounting integration Credit card processing Invoice creation and processing Online invoicing Third-party integration Time-tracking Expense tracking Customizable templates Purchase order and finance management Reports and statistics
Pros	Add-on features are available for Starter and Pro plans The majority of Wave’s features are free Impressive and cost-efficient invoicing solution Supports multiple currencies Smart and carefully tailored features for small business requirements
Cons	Does not have a dedicated time-tracking tool Uploading and scanning receipts charge additional fees Although templates are customizable, they are still very limited Inventory management could be enhanced Mobile access is not fully inclusive

#6. QuickBooks Online

QuickBooks Online rivals FreshBooks with its reputation for being one of the most user-friendly accounting software available on the market. It also uses simple and easy-to-understand terminologies, making it an ideal tool for startups and users with limited background in all things accounting.

Best For	Self-employed individuals, most business sizes
Pricing and Discounts	50% off for the first three months 30-day free trial Annual QBO subscriptions come with a 60-day moneyback guarantee Self-employed—$15/month Simple Start—$30/month Essentials—$55/month Plus—$85/month Advanced—$200/month
Key Features	Impressive mobile app In-depth transaction forms Comprehensive contact records Multiple add-ons available for different projects and payroll structures Generate multiple customizable reports Mileage tracking Sales tax monitoring Tax support
Pros	Suits freelancers and a broad range of business sizes and types Easy to understand, even for users with limited bookkeeping knowledge Customizable and budget-friendly Offers multiple practical features and add-on solutions
Cons	Advanced subscription plan may be too expensive for startups Prone to system crashes Limited number of users Limited transaction processing at a time The invoice design framework could be improved

#7. AccountEdge Pro

AccountEdge Pro is bookkeeping software that’s compatible with both Mac and Windows. It boasts several features, including integrated payroll processing, contact and inventory management, time billing, and seamless regulation of purchases and sales.

The extensive array of features makes AccountEdge Pro a must-have for different types of businesses.

Best For	Startups, small businesses
Pricing and Discounts	30-day free trial, one-time fee AccountEdge Pro for Windows—$20 to $40/month AccountEdge Pro for Mac—$20 to $40/month
Key Features	Contact management Data management Complete inventory management Customized transaction IDs Progress billing Time billing Quotes and invoice processing Customer management Accounts receivable tracking UPS integration Payroll processing
Pros	Supports both Mac and Windows desktop User-friendly interface One-stop shop platform for all business types Easily generates multiple reports
Cons	Every upgrade requires form customization The platform may take time to load at times The accounts receivable feature needs updating

#8. ZarMoney

ZarMoney’s flexible, competitive pricing and integrated bookkeeping platform surpass those of its more popular competitors. Specifically, ZarMoney offers warehouse inventory management and an efficient tracking feature for stocks.

It also provides an all-around solution for a variety of financial management demands and facilitates real-time collaboration.

Best For	Small businesses
Pricing and Discounts	Entrepreneur—$15/month Small Business—$20/month Enterprise—$350/month
Key Features	General ledger Invoice customization Automated audit trail for transactions Accounts receivable and collections automation Accounts payable automation Tagging feature with customizable dimensions Payment processing Purchase order monitoring and management Inventory management, costing, pricing, and reporting Payroll Reporting and analytics Customizable and enhanced workflow
Pros	Flexible and all-inclusive features Utilizes historical data to forecast finances Seamless data importing Pricing packages range from single users to companies with over 30 users Progressive planning for long-term financial goals Excellent bookkeeping software for B2B transactions
Cons	Reporting feature may be a bit too basic for some business structures Some users report issues when opening the software on their mobile devices More complicated dashboard compared to other bookkeeping software for small business Not available internationally

5 Benefits of Using Bookkeeping Software

Below are the different advantages of having trustworthy bookkeeping software to back you up:

#1. Syncs Financial Data.

Keeping your business’s expenses and revenue organized is tricky if your financial records are all over the place. Reliable bookkeeping software lets you store all your financial data and reports in one place and prevents losing key insights into your finances.

#2. Generates Accurate and Time-Sensitive Financial Reports.

Calculating gains and losses from several projects can potentially yield multiple and repetitive errors. With bookkeeping software, you can handle simple to complex financial reports without compromising the data’s accuracy and quality. You can also generate quarterly and annual reports and even prepare invoices for your small business.

#3. Offers Deep Insights Into Your Financial Standing.

There are also free bookkeeping software options for home use or personal use available at present. You can maximize these free tools to get an in-depth look into your current financial health. Consequently, you get to forecast and plan your savings and monetary goals better.

#4. Streamlines Payroll Processing.

Startups typically struggle to keep up with the periodic tax regulation and pay stub requirement updates. These updates tend to make payroll more complex for a company with limited manpower. Efficient bookkeeping software for accountants enables businesses to simplify and enhance their payroll processing to consistently meet employee and industry demands.

#5. Effectively Tracks All B2C and B2B Transactions.

Accounting software effectively reinforces the invoice payment terms of freelancers, startups, and enterprises. At the same time, an advanced bookkeeping tool aids in following up on outstanding customer payments to ensure smooth-flowing transactions at all times.

How to Choose The Right Bookkeeping Software

The key to choosing the right bookkeeping software is to have a checklist that outlines what your business or finances need. Below are some steps suggested by our resident accounting experts to help you choose the best bookkeeping software that will suit your needs perfectly:

#1. Allot a Budget

Setting a budget narrows down your options and ensures you don’t overspend on software that hardly meets your business requirements. The idea is that the software should supplement your existing operations without draining your wallet or negatively affecting your expenses.

#2. Compare the Prices And Offers

Each accounting software varies not just in terms of the features offered but also when it comes to their rates and discounts. Don’t be satisfied just because the first software ticked a couple of boxes on your checklist.

You may encounter bookkeeping software offering services for free, but it may not have sufficient features that can help secure improved financial health or your business in the long run. Conduct extensive research on other available software and look for one that not only meets your expectations but also fits your budget.

#3. Review Your Business Needs

Aside from your budget, your existing knowledge and skills in accounting allow you to scrutinize your financial progress and take a closer look at where your revenue management practices could use a little help and improvement.

Sit with your finance department or consult with an accounting or payroll expert to assess and understand how you can maximize your funds and minimize your potential losses.

#4. Weigh Existing Resources Vs. Add-on Features

Knowing what resources you already have helps determine whether an accounting software’s extra features are necessary. Some add-on features worth checking out include enabling online payments and compatibility and easy integration with other software.

If your bookkeeping software of choice does not offer add-on features, you can pair it with other relevant and useful online tools instead to boost your business’s efficiency.

Paystub.org is a great example—our invoice generator lets you generate invoices for every client or transaction in an instant. All you have to do is choose an invoice template, fill in the blank fields, preview the document, and then download or print the invoice.

You can use our generator to accommodate and track new purchases from customers while you use your bookkeeping software to keep your expenses and revenue in check.

Final Thoughts

There are several bookkeeping software options that you can choose from these days, and the secret to choosing the perfect platform for your needs is to understand the strong and weak areas of your financial plan as a whole.

Take the time to review the repetitive trends in your revenue and losses, and set concrete and realistic short and long-term targets for your finances.

More importantly, find software that meets your expectations while also making room for attainable and sustainable monetary growth.

Bookkeeping Software FAQ

#1. What is the best bookkeeping software for a small business?

The best bookkeeping software for a small business depends on your specific workflow needs and financial goals. If you’re looking for a budget-friendly pricing plan, Zoho Books and Wave are excellent choices.

If you want an extensive array of bookkeeping features, ZarMoney, QuickBooks Online, and AccountEdge Pro offer impressive solutions. If you want a platform with an easy-to-use interface, check out FreshBooks.

For bookkeeping software that offers advanced and flexible features, try Xero and Sage Accounting.

#2. Is there free bookkeeping software?

Yes. Some of the top-rated and free bookkeeping software products include Zoho Books and Wave, which are perfect for small businesses and freelancers. Some accounting software also offers 14-day or 30-day free trials and discounted rates depending on your subscription.

#3. Can I do my own bookkeeping?

You can definitely do your own bookkeeping, especially if you are a freelancer or a sole proprietor. However, if you own a business, it would be best to hire accounting professionals and pair their expertise with reliable accounting software.

#4. What is the cheapest bookkeeping software?

The cheapest bookkeeping software includes Freshbooks, Zoho Books, and Wave. Meanwhile, ZarMoney also offers pricing packages for single users or entrepreneurs and businesses with over 30 users.

#5. What bookkeeping software is the easiest to use?

According to reviews, the easiest-to-use bookkeeping software includes FreshBooks, QuickBooks Online, and AccountEdge Pro. Meanwhile, Sage 50 Accounting enables hassle-free collaboration among teams.

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