Best Bookkeeping Software for Small Businesses in 2022

Best Bookkeeping Software for Small Businesses in 2022
Vlad Kovalskiy
October 29, 2021
Last updated: October 29, 2021

Proper bookkeeping might be tedious, but it is essential for any enterprise. Fortunately, there are numerous types of small business bookkeeping software to help you organize and present your books in a more efficient and accessible manner. Accounting software also makes it easier for you to plan your business activity in the future by analyzing the potential consequences of different executive decisions that you could make.

Business Management and Accounting Software

Accounting software becomes virtually indispensable for small businesses with limited resources. As a sole proprietor or director of a small company, you cannot employ a sufficiently big accounting department to manage your books and help you in your financial planning. Yet, you cannot just let your accounting go with the flow, hoping it will all take care of itself somehow.

You can solve the problem by investing in an efficient and reputable online accounting tool that will help you keep your business better organized and stay on track with the ongoing events. Using small business bookkeeping software, you will be able to free a lot of energy and time to concentrate on your enterprise more fully and regularly upgrade it to an increasingly more advanced level.

There are so many types of bookkeeping software for small business purposes on the internet these days that choosing the best one may seem like a daunting task. Keep in mind, however, that various bookkeeping apps focus on different business functions, so settling on an optimal one for you is a question of identifying what your business requires, first of all.

Once you know what you are looking for, you will have no problem choosing the most appropriate app for your enterprise. What follows is a list of the most popular and functional bookkeeping applications to date.

 

QuickBooks Online

Of all bookkeeping applications, QuickBooks is probably the most successful one commercially. Currently, it serves almost 30 million profiles, 80% of which are in small business operations. QuickBooks is optimal for small businesses ranging from a sole proprietorship to a company of up to 50 employees.

Essential Features

1. It combines perfect reliability with high functionality.

2. It provides easy and continuous access to your account to help you manage your taxes, invoices, and sales receipts.

3. It supports online integration with your bank accounts and payment systems, like Square, Shopify, Stripe, and PayPal.

4. It uses permissions and roles to ensure convenient control over your accounts.

5. It runs more than 50 built-in reports and creates custom reports.

6. It customizes your dashboard and reports.

7. It aligns your cash flow with the seller's payments.

8. It tracks your time and inventories.

9. It conducts full payroll accounting.

10. It provides an efficient ecosystem and multiple user-friendly mobile applications for different functions.

Advantages

Disadvantages

No transaction limits

Low limits on the number of users on one account

Comparatively popular, which makes it easier to find employees who know how to use it

Comparatively expensive at higher levels

Quick and easy to set up

Only supports a single entity

Affordable at lower levels

Payrolls require additional expenses

Multiple mobile apps

Cloud-based software

Free trial and helpful online training programs

Pricing

●      50% discount for the first three months

Typically, service-oriented enterprises are content with Simple Start.

Free trial

Simple Start

Essentials

Plus

Advanced

One month

12.5

25

40

90

* All prices are quoted in USD per month.

 

Xero

Xero is quite popular worldwide, especially in Australia, New Zealand, and the UK. The number of their North American customers is rapidly increasing too. Xero is particularly famous for its excellent integration abilities and mobile applications since virtually all its functionality is available from mobile devices.

Essential Features

1. It provides an optimal solution for business integration.

2. It customizes all your business performance in one dashboard.

3. It sends invoices via online payment systems and tracks money flow between your bank accounts.

4. It manages bills and receipts and provides financial reports on them.

5. It registers and analyzes profits and losses across several currencies.

Advantages

Disadvantages

Virtually complete automation

Poor Live Support

Versatile mobile apps

Limited options for Starter Plan

Over 700 available integrations

Additional fees for ACH transactions

Quick and easy to set up even without bookkeeping experience

Simple tools to manage your business transactions

Affordable

Unlimited number of users on one account

Pricing

Free trial

Starter

Standard

Premium

One month

20

30

40

* All prices are quoted in USD per month.

 

FreshBooks

FreshBooks provides better invoice customization than any other service on the internet. Moreover, it is very flexible, inexpensive, and easy to access. Freshbooks is an optimal accounting software platform for service-oriented independent contractors and freelancers.

Whichever pricing plan you sign up for, you will receive an invaluable and easily affordable assistance tool for efficient and safe business management, online and from your smartphone.

Essential Features

1. It generates proposals and sends invoices to clients, requests deposits, and receives payments.

2. It facilitates collaboration and tracks time on projects.

3. It automatically budgets business projects and provides comprehensive financial reports.

4. It integrates with multiple business applications on one dashboard.

5. It performs regular security checks and backups.

Advantages

Disadvantages

Integrated with numerous payment systems

No stock management

Cloud-based

Low scalability on some plans

Easy to set up and use

No quarterly income tax estimates

Convenient and simple interface

No payroll service

Supports multiple projects

Poor mobile functionality

competitive pricing plans

Advanced invoicing services

Excellent customer support

Pricing

Free trial Lite Plus Premium Selec

Lite

Plus

Premium

Select

One month

7.5

12.5

25

Available after a demo tour

* All prices are quoted in USD per month.

 

Bitrix24

Bitrix24 is unique accounting software as it provides the most comprehensive set of social integration, management, and communication tools for your enterprise, namely:

●      Customer relationship management

●      Human resource management

●      Social collaboration

●      Project management

●      Time management

●      Documentation management

Bitrix24 is available on Android, IOS, macOS, Linux, Windows, and all online browsers.

Essential Features

1. It automates sales and marketing processes.

2. It schedules business tasks and facilitates productive teamwork.

3. It analyzes employees' performance and provides progress reports.

4. It streamlines legal processes.

5. It applies an advanced contact management system to generate new leads.

6. It provides continuous live streaming of all organizational changes.

7. It integrates customer support across multiple correspondence channels.

8. It creates corporate and closed social networks and facilitates their operation via event scheduling, chats, and IP telephony.

9. It defines organizational tasks, supervises their execution, and provides final reports.

10. It uses Kanban and Gantt Charts to facilitate efficient project management.

11. It builds websites with unlimited hosting bandwidth.

Advantages

Disadvantages

Facilitates internal communication

Not easy to set up and use

Improves conversion rates

User-unfriendly interface

Provides functional and convenient mobile apps

Very expensive at higher levels

Runs a 24/7 live customer support chat free of charge

Pricing

Free

Basic

Standard

Professional

Unspecified

30

60

120

* All prices are quoted in USD per month and apply if paying for two years.

 

Wave

Wave differs from all other accounting software in that its bookkeeping services are 100% free. Apart from that, the platform focuses on being very easy to use and providing complete syncing. Wave is ideal for a sole proprietorship and small companies.

Essential Features

1. It links your bank accounts and credit cards.

2. It manages your invoices and transactions.

Advantages

Disadvantages

100% free

Lack of support for multiple users

Easy to set up and use

Low scalability

Convenient interface

Poor mobile functionality

Exceptional workflow automation

Poor mobile functionalityPoor services concerning project management, time tracking, and inventory tracking

Many users on one account

Professional and responsive customer support

Pricing

The accounting software is free. Wave makes money as a payment gateway, and it provides payroll services in North America at a very competitive price. The following are its payment transaction fees:

All credit cards, except for American Express

2.9% + 30¢

American Express

3.4% + 30¢

American Express

1% (minimum 1%)

 

Zoho

Zoho is a cloud-based bookkeeping software for small business purposes that provides the highest level of security available. It is one of the best tools for managing finances, and it is ideal for mobile business management, especially if the business is service-oriented.

Zoho provides top-class tools for inventory management, banking, time-tracking, and financial reports. The platform protects your accounts by using advanced SSL encryption and two-factor authentication and complying with the General Data Protection Regulation. 

Essential Features

1. It automates workflows across departments.

2. It provides complete ecosystem integration.

3. It automatically imports bank statements to your accounts.

4. It tracks bills and receipts, calculates general sales taxes, and provides automatic reports.

5. It automatically fetches a bank statement from the bank into your account.

6. It generates and automatically categorizes numerous financial reports.

7. It provides current stock numbers and invoice reminders.

8. It automatically charges customers for regular payments.

9. It analyzes task requirements and distributes assignments and responsibilities among employees.

10. It manages and coordinates business transactions across projects, tasks, and departments.

Advantages

Disadvantages

Cloud-based software

No fixed assets register

Convenient Mobile apps

Difficult to customize

Very user-friendly interface

Excessive feature sets for small business purposes

Easy to set up and use

Integrates with numerous payment systems

High-level security system

Excellent customer support

Competitive price list

Optimal for small businesses

Pricing

Free trial

Standard

Professional

Premium

14 days

20

(or 180 per year)

50

(or 480 per year)

70

(or 720 per year)

* All prices are quoted in USD per month.

** You qualify for a free trial only if your annual revenue is less than USD50,000.

 

Searching for an Optimal Application

When browsing bookkeeping software for small business purposes, there are several significant criteria to help you decide which accounting software you should use.

Your Precise Business Needs

It is the most important criterion of all, so you will do well to clarify it for yourself as precisely as possible before assessing a bookkeeping app's potential value in your particular case. Ideally, you would answer the question in strictly operational terms. Making a precise list of prioritized needs will simplify your search for optimal small business bookkeeping software for your case.

If possible, it is also a good idea to predict your future business needs. By analyzing the current state of your enterprise and realistically assessing its development, you will understand which additional accounting software features you might need in the short-term future.

The best strategy is to regularly analyze your business needs and compare various bookkeeping software for small business purposes to replace or complement the apps you already have with additional or better ones when the right moment comes. 

Accounting Software's Main Features

Various applications are particularly suitable for different purposes or combinations thereof. Some are excellent tools for preparing financial statements or tracking your invoices and receipts. Others are optimal instruments of sound payroll processing or realistic forecasting. Familiarising yourself with an app's essential features, you can decide if it suits the needs and purposes of your enterprise. 

Costs of Accounting Software

You should also decide if the price of a particular bookkeeping app is worth paying, considering the functions it performs. The most relevant questions are:

●      1. Does the app provider offer a free trial?

●      2. Is the price negotiable?

A free trial is an excellent way to check if a particular app is indeed what you need, and a good software company will most likely offer you one. Likewise, most software providers will give you a choice of several price packages to suit different accounting needs and budgets.

Convenience and Support

You want to invest in small business bookkeeping software to save time and energy for other pressing tasks and make your business analysis more convenient and intelligible. Therefore, you should also look at how user-friendly an app's interface is because it will be of little use if you have to spend a long time trying to decipher its output and orientate yourself in its data presentation format.

You might be slightly confused while learning how it works, but if you still feel lost after a couple of weeks, that app might not be a good solution for you personally. Plus, the bookkeeping app's interface should also be sufficiently easy and convenient for your employees and partners who will be using it with you.

Furthermore, a bookkeeping application should provide 24/7 access to friendly, professional, and responsive technical assistance and customer support.

Automation

Another relevant feature of a bookkeeping application is how much work it performs for you. It could ask you to enter information manually almost every time, for example, or access appropriate data files and fill the data in automatically. Besides, an optimal application must be compatible with other business software you will be using. In other words, it should integrate well. 

Number of Users

Applications of bookkeeping software for small businesses differ in the number of users who can access them concurrently. That is an important feature to consider as you might need the app to be available to more or fewer people, depending on the size and organizational complexity of your company. 

Security

Your bookkeeping application will have access to large sectors of your database, and all online too, so the question of confidentiality becomes crucial. Your accounting software operator must guarantee you maximum safety of your personal and financial information by providing a transparent protection policy as well as a high-level security technology based on the most advanced SSL encryption. 

Final Word

Choosing small business bookkeeping software might be an exhausting task, and it could take some time before you find the best one for you. But you can make it easier and quicker by remembering the fundamental criteria, following relevant accounting tips, and, most importantly, always knowing what you want.

Accounting software can help you organize your business and manage your books and accounts more efficiently and productively. It can also help you plan your future more constructively and creatively.

The bookkeeping applications we have mentioned here are all quite accessible, reasonably priced, and functional enough to facilitate any small business operation. We hope our article has helped you better understand your business needs and feel better prepared to choose an optimal bookkeeping application for your enterprise.

Free. Unlimited. Online.
Bitrix24 is a place where everyone can communicate, collaborate on tasks and projects, manage clients and do much more.
You may also like
What is a CRM Process?
25 Professional Voicemail Greetings to Help You Record the Perfect One
How to Manage Small Business Travel Like a Pro
6 Remote Leadership Tips For Your Business Success