No matter what type of small business you run, managing finances is obviously mission-critical to success. With so many available options to help you with your day-to-day tasks as well as long-term planning, it can be daunting to figure out which will fit your needs perfectly. In today’s article, we’ll discuss 4 of the best accounting software platforms and features to help you make the best decision for your business.
First on our list is QuickBooks, which is what I use to manage finances for all of my businesses. Quickbooks Online is cloud-based and has a mobile app, and offers a variety of features for small businesses. From invoicing and accepting payments, and tracking expenses to managing payroll and creating reports, QuickBooks can do it all. It’s also very user-friendly, making it easy for you to get up and running without any prior accounting experience. They also have a robust marketplace where you can add-on features, get access to capital for your business and connect with a certified bookkeeper to help if you have questions. After a free trial, Quickbooks does charge a small monthly fee but I find it more than worth the expense.
Then we have Xero, which is another popular option for small businesses. Xero is also cloud-based and has a mobile app. In addition to invoicing and tracking expenses, you can also use Xero to pay employees, manage inventory, and more. Xero is free to use but it does charge a fee if you have more than $20,000 in transactions.
Next is Wave Accounting, which is completely free to use. This platform is great for businesses that are just starting or that have a limited budget. Wave Accounting lets you create invoices, track sales, and expenses, pay employees, and more. Plus, there are tons of helpful tutorials available online if you need help getting started.
While Xero and QuickBooks offer similar features, there are some key differences. QuickBooks is more expensive per month than Xero, but it also offers more features. Wave Accounting doesn’t have as many features as either QuickBooks or Xero.
FreshBooks is one of the most popular accounting software platforms for small businesses. One of the major differences between FreshBooks and other accounting software platforms like QuickBooks or Xero is that Freshbooks does not charge a monthly fee. You only pay when you use the service, which makes it more affordable for smaller businesses. Additionally, FreshBooks is very user-friendly and easy to get started with.
One of the best features I like about QuickBooks, Xero, and Wave Accounting is that they all sync with your bank accounts and credit cards so there’s no double entry for tracking expenses or payments. (This feature isn’t available on Freshbooks).
Overall, all of these accounting software platforms are great options for small businesses and freelancers to use — especially with the free trial option so you can test them out before committing! However, QuickBooks might be best if you have more than $20,000 in monthly sales since their fees start at only $19 per month compared to $30 per month for both Xero and Wave Accounting. If money is tight or you need less robust features that aren’t available on any other platform (like profit margins), then FreshBooks will likely be your most affordable choice as it requires no monthly fee whatsoever.