84% of small businesses agree that using accounting software has saved them time, helped them keep track of their finances, and better prepared them for tax season. Running a small business is already a daunting task and with so many options available, it can be difficult to choose the best accounting software for your business.
To make things easy, the team at Metric has done the research for you and compiled a list of the 5 best accounting software for small businesses in 2023.
Best Accounting Software for Small Businesses in 2023
QuickBooks Online
QuickBooks Online is a popular accounting software among small and medium-sized businesses and freelancers. It offers a range of features to manage finances, such as invoicing, tracking income and expenses, third-party integration applications, tracking GST and VAT, and payroll management.
It comes at a starting price of $7.50 (for the first three months), then goes up to $15 per month. The software offers a 30-day free trial to new users. QuickBooks is available in both desktop and app versions, making it ideal for multiple needs.
Pros
- User-friendly interface
- Integrates with third-party applications
- Great mobile app
- Great customizable reports
Cons
- Expensive after the first three months
- Frequent upgrades cost workflow interruption
- Limited customer support
Wave
Small businesses are at the heart of Wave and this is why it is one of the most loved accounting software among them. Another reason for its popularity is that it is absolutely free unless you want payroll and payment features.
It offers a range of features to small businesses and freelancers, which include invoicing, expense tracking, financial reporting, and the ability to integrate with your bank to import transactions that help save time.
Wave is also a preferred choice among small businesses because of its user-friendly interface and ease of navigation — even if you’re new to using accounting software. You don’t need to be tech-savvy or a financial expert to use it.
Pros
- Completely free for those who don’t need payroll and payments
- User-friendly interface
- Connects with banks for importing transactions
- Supports multiple currencies
- Excellent dashboard
- Has a mobile app
Cons
- Payroll features only available in 14 states
- Integration only through Zapier
- Invoice customization could be better
FreshBooks
Freshbooks is a cloud-based accounting software designed for small businesses. It offers a range of features to help manage finances, such as invoicing, expense tracking, time tracking, and project management.
It offers different pricing packages depending on the business needs but the prices start at $15 per month for up to five clients. FreshBooks even offers a 30-day free trial to new signups.
One of the reasons why Freshbooks is popular among small businesses is its user-friendly interface. It’s easy to navigate, even for those who are not familiar with accounting software. Plus, it offers mobile apps for iOS and Android, which makes it easy to manage finances on the go.
Pros
- User-friendly interface
- Mobile apps for iOS and Android
- Excellent customer support
- Offers a range of features for managing finances
- Integrates with several third-party applications
Cons
- Limited customization options
- Inadequate features for inventory management
- Can be expensive for larger teams
Metric
Metric is a real-time financial intelligence app designed for business founders. It aggregates data from all transactions added to the app and provides key metrics and financial insights important for businesses to grow.
It is designed with simplicity in mind and is the most founder-friendly app, keeping in mind the founders of small and medium-sized businesses with little or no accounting background.
The app is built for businesses at any stage, from day one to year one or more, and businesses from different sectors can track metrics, monitor financial health, and gain insights.
It offers a range of pricing plans starting from a completely FREE one to a Startup Plan that is priced at $29 per month, a Growing Plan that costs $79 per month, and an Enterprise Plan that comes at customized pricing.
Pros
- Designed with simplicity in mind
- Provides real-time financial insights and key metrics important for businesses to grow
- Can be used by businesses from different sectors
- Offers a free plan
- Free trials for all subscriptions
Cons
- Relatively new app and may not have all the features of more established accounting software yet
- No web app
Dubsado
Dubsado is an all-in-one cloud-based accounting software designed for small businesses that helps manage multiple aspects of their workflow, including client management, project management, and invoicing. It aims to give “more business, less busywork” to small businesses.
It offers a range of pricing options, depending on the user’s needs, but is entirely free until you decide to go for a planned package. The prices for basic packages start at $20 per month and $200 per year.
One of the reasons why Dubsado is popular among small businesses is its comprehensive nature. It offers a range of features to help manage various aspects of the business, from lead capture to client management to invoicing.
The software also offers high levels of customization, which can be appealing to businesses with specific needs. You can customize your workflow, email templates, and even the branding of the software to match your business.
Pros
- Comprehensive features for managing various aspects of the business
- High level of customization options
- Great customer support
- Integrates with several third-party applications
- Offers a portal for easy communication with clients
Cons
- Limited mobile app functionality
- Some features may not be relevant for all businesses
- Difficult to use for some businesses
Benefits of Using an Accounting Software
There are plenty of benefits of using accounting software, but here are some of the many:
- Save time and increase efficiency by automating financial tasks
- Reduce errors and improve accuracy in financial reporting
- Get real-time access to financial data to make informed business decisions
- Easy tracking of income and expenses, making it simpler to file taxes and manage cash flow
- Get an all-in-one location for all financial information, reducing the need for paper records
- Easy collaboration with accountants or bookkeepers
- Better financial planning by getting insights into revenue, expenses, and profitability
Final Thoughts
Accounting software is the need of the hour for small businesses, as it enables them to efficiently manage their finances and make informed business decisions. The top five accounting software that we’ve highlighted, each offer a range of features and pricing options to fit different needs and budgets.
From the user-friendly interface to the comprehensive nature of these platforms, there is an accounting software option for every small business. By investing in the right accounting software, small businesses can streamline financial processes, save time, and ultimately, grow their business.