Top 10 Good Accounting Software for Small Businesses to Boost Your Financial Management in 2025

1. QuickBooks Online

When it comes to managing your small business finances, QuickBooks Online is like that trusty tool you always reach for. It's got everything you need, from invoicing to expense tracking, all wrapped up in a cloud-based package.

Key Features

• Invoicing: Create and send professional invoices to your customers with ease. It's as simple as filling out a form and hitting send.
• Expense Tracking: Keep tabs on where your money is going. Categorize expenses for a clear picture of your spending habits.
• Bank Reconciliation: Automatically sync your bank and credit card accounts to ensure everything matches up.
• Inventory Management: If you're dealing with products, this feature helps track your stock levels and costs.
• Payroll: Handle payroll tasks, including calculating employee taxes and managing direct deposits.
• Reporting: Generate detailed financial reports to get insights into your business's performance.

Benefits for Small Businesses

QuickBooks Online is like having a financial advisor in your pocket. It simplifies tax season by automatically tracking income and expenses, making tax prep a breeze. Plus, it integrates with over 700 apps, so you can connect it to your favorite tools.

Pricing and Plans

Here's a quick look at the pricing options:

And right now, you can snag a 50% discount for the first three months or try it out free for 30 days.

Integration and Connectivity

One of the coolest things about QuickBooks Online is its ability to play nice with others. It integrates with platforms like PayPal, Square, and eCommerce sites like Shopify. This means you can manage everything from one place, saving you time and hassle.

If you're thinking about trying it out, remember that QuickBooks Online offers pricing and features suitable for small businesses, making it a solid choice for those looking to streamline their financial management.

2. FreshBooks Accounting

Alright, folks, let's talk about FreshBooks. It's like that trusty old friend who's always got your back, especially when it comes to managing your finances. FreshBooks is a cloud-based accounting software that's super handy for small businesses. Imagine having all your invoicing, expense tracking, and time management wrapped up in one neat package. That's FreshBooks for you!

When you're hustling with a small team or running a solo gig, having a tool that simplifies your accounting is a game-changer. FreshBooks offers a user-friendly platform for managing invoicing and expenses, featuring intuitive tools for time tracking that streamline the billing process.

Why FreshBooks Rocks:

• Automated Accounting: Say goodbye to manual entries. FreshBooks automates your invoicing and expense tracking, so you can focus on what really matters.
• Unlimited Time Tracking: Unlike some other software, every FreshBooks plan lets you track your time without limits. You can even start a timer from your phone!
• Access Anywhere: Whether you're at the office or on the go, FreshBooks is accessible from any device with internet.

Pricing Plans:

Here's a quick look at what FreshBooks costs:

FreshBooks is especially great for freelancers and service-based businesses. It's got everything you need to keep your business running smoothly, from invoicing to client management. Plus, if you're dealing with physical products, the inventory management feature is a lifesaver, helping you keep track of stock levels and reorder alerts.

So, if you're looking for an accounting solution that doesn't require a PhD to operate, FreshBooks might just be your new best friend. It's all about making things simple and efficient, and who doesn't love that?

3. Xero

Alright, let's talk about Xero. It's one of those accounting tools that feels like it was made for us small business folks. We love how it keeps things simple without skimping on features.

Why Xero Rocks:

• Unlimited Users: Every plan lets you add as many users as you need. No extra costs for adding your accountant or your buddy who helps with invoices.
• Awesome Integrations: It hooks up with over a thousand apps. So whether you're using Shopify or PayPal, chances are Xero's got you covered.
• Real-Time Data: You get updates on your financials as they happen. No more waiting around for monthly reports.

With Xero, managing your finances feels less like a chore and more like a smooth ride.

Key Features

1. Automated Sales Tax: Using Avalara, Xero calculates sales tax on invoices automatically. This saves time and reduces errors.
2. Cloud File Management: Store all your important docs in the cloud. Attach them to invoices, bills, or contacts. It's like having a digital filing cabinet.
3. Easy Payment Processing: Let your clients pay directly from the invoice using credit or debit cards. This speeds up the payment process and helps you get paid faster.

Pricing

Here's a quick look at what Xero costs:

Xero's a bit pricier than some, but the ease of use and features make it worth considering. Plus, you can try it out with a sweet deal: 95% off for the first three months.

Pros & Cons

Pros:

• User-friendly interface
• Strong reporting features
• Mobile app access

Cons:

• No live support, which can be a bummer if you need help fast

In the end, Xero offers a solid package for small businesses looking to streamline their financial management. It's not perfect, but it's definitely a strong contender.

4. Zoho Books

Alright, let's talk about Zoho Books. It's like that trusty friend who’s always got your back, especially when it comes to managing your business finances. Zoho Books is a user-friendly accounting platform that facilitates easy migration from other software, such as QuickBooks. Users have reported successful experiences with its features over extended periods.

Why Choose Zoho Books?

• Affordable Plans: Zoho Books offers a free plan for small businesses making under $50,000 annually. Plus, there are paid plans starting at just $20 a month, scaling up as your business grows.
• Comprehensive Features: It covers everything from invoicing to expense tracking, and even project management. You can handle your accounts payable and receivable, track time, and manage inventory all in one place.
• Tax Compliance Made Easy: Zoho Books simplifies the complex world of tax compliance. It helps track sales tax, manage exemptions, and even integrates with Tax1099 for easy filing.

Streamline Your Financial Management

Zoho Books streamlines daily business transactions, offers real-time financial reporting, and ensures compliance with local tax regulations. Its user-friendly interface enhances usability for effective financial management.

"With Zoho Books, we can access all the important features that can make our financial journey smoother."

Integration and Automation

• Seamless Integration: It integrates smoothly with other Zoho apps and even with platforms like QuickBooks and Xero, cutting down on duplicate data entry.
• Automate Workflows: Save time by automating repetitive tasks. Set up workflows for invoicing, payment reminders, and more.

Mobile Features

Stay on top of your business finances on the go. With mobile-first features, you can send invoices via iMessage or check overdue payments from your Apple Watch.

Pros and Cons

Pros:

• Less expensive than some competitors
• Rich feature set including excellent invoicing and inventory management
• Mobile app capabilities

Cons:

• Might be overwhelming for very small businesses due to its extensive features

Zoho Books is a great choice for businesses looking for a robust accounting solution without breaking the bank. It's flexible, full of features, and ready to grow with you.

5. Sage 50cloud

Sage 50cloud is like that reliable friend who's always there when you need them. It's a fantastic blend of desktop and cloud accounting, offering a perfect mix of traditional reliability and modern flexibility. If you're looking for a versatile accounting solution, this one's a keeper.

Key Features

• Customizable Cash Flow Settings: Manage your finances with more detail and precision.
• Invoicing and Expense Tracking: Easily create and track invoices, record transactions, and keep an eye on your expenses.
• Advanced Inventory Management: Keep tabs on costs and quantities with a robust inventory system.
• Payroll Capabilities: Includes options for direct deposit, pay cards, and tax collection.

Pricing Plans

Why Choose Sage 50cloud?

• Security First: Sage 50cloud is known for its high security standards, making it a great choice for small businesses without extensive IT infrastructure.
• Hybrid Solution: Enjoy the benefits of both desktop and cloud features, ensuring you have access anytime, anywhere.
• Industry-Specific Features: Tailored for sectors like construction and manufacturing, with advanced job costing and reporting capabilities.

Sage 50cloud is perfect for small businesses that are on the rise. It's built to grow with you, requiring minimal upgrades as your business expands.

Pros and Cons

Pros

• Advanced inventory tracking and job costing.
• Strong security features.
• Excellent customer support with phone and chat options.

Cons

• The lowest-tier plan lacks audit trails.
• Higher price point compared to some competitors.

For those who need a versatile accounting solution that combines the best of both worlds—desktop reliability and cloud flexibility—Sage 50cloud is definitely worth considering.

6. Tipalti

When it comes to handling international transactions, Tipalti is a rockstar. It's a user-friendly, cloud-based platform that helps businesses automate accounts payable processes and global payments. This means you can wave goodbye to manual data entry and say hello to efficiency.

Tipalti lets companies make payments to suppliers in over 190 countries, using more than 120 different currencies. That's a lot of flexibility! Plus, it integrates with popular accounting software and ERP systems, making it a seamless choice for many businesses.

Here's a quick look at what Tipalti offers:

• Supplier Management: Enjoy a self-service portal where suppliers can manage their own info, collect tax forms, and check payment statuses.
• Global Payment Capabilities: Pay suppliers in multiple currencies across 190 countries.
• Invoice Processing: Automate approvals to cut down on errors and speed up payment times.
• Compliance and Tax Management: Includes reporting and validation, with optional 1099 eFiling through partnered Zenwork Tax1099 software.

With Tipalti, businesses can streamline their financial processes, giving them more time to focus on growth and strategy.

If you're looking to explore essential features of small business accounting software, Tipalti should definitely be on your radar. It offers a comprehensive suite of tools that can help you keep track of your company's finances without breaking a sweat.

7. SAP Business One

When it comes to managing a small or mid-sized business, we know that having the right tools can make all the difference. That's where SAP Business One steps in. This modular ERP system is like the Swiss Army knife of business management software, offering both on-premise and cloud-hosted options. With support for SAP Business One version 10 ending in 2026, we can look forward to the anticipated release of version 11.

What makes SAP Business One stand out? It's the choice between SAP HANA or Microsoft SQL, allowing for faster data processing and greater power with SAP HANA's in-memory capabilities.

Key Features

• Financial management
• Sales and customer management (CRM)
• Purchasing and inventory control
• Production planning
• Business intelligence, analytics, and reporting

This system is especially great for small and medium-sized businesses (SMBs) looking for a comprehensive ERP solution that's available in many languages and countries.

SAP Business One is like having a business partner that never sleeps, always ready to help you streamline processes and make informed decisions.

For those exploring top bookkeeping solutions for small businesses, SAP Business One offers a robust solution that can adapt to your growing needs. From managing finances to handling customer relationships, this tool covers all bases.

Why Consider SAP Business One?

1. Flexibility: Choose deployment that suits your business needs, whether it's on-premise or in the cloud.
2. Scalability: As your business grows, SAP Business One grows with you, offering features that cater to expanding operations.
3. Global Reach: With multi-language and multi-country support, it's perfect for businesses with international aspirations.

In a nutshell, SAP Business One provides the tools needed to manage various aspects of your business efficiently. It's like having an all-in-one solution to keep everything running smoothly.

8. NetSuite ERP

NetSuite ERP is like that solid, reliable friend who’s always there when you need them. It's an ERP solution that's built to grow with your business. Whether you're in retail, eCommerce, or a service-based industry, NetSuite has got you covered. It's not just about managing your finances; it's about giving you a complete view of your business.

If you're looking for an ERP that can handle your small business needs today and scale as you grow, NetSuite is a great choice. It’s like having a crystal ball for your business, helping you plan for the future while managing the present.

Key Features

• Global Management: With NetSuite, handling operations across different countries is a breeze. It's got multi-currency and multi-language support, making it perfect for businesses with international ambitions.
• Financial Tools: From automating accounts payable and receivable to managing taxes and fixed assets, NetSuite simplifies your financial processes.
• Integration Heaven: NetSuite integrates seamlessly with a bunch of other software. Whether it’s CRM, inventory management, or HR, it’s all connected.

Pricing

Getting started with NetSuite isn't cheap, but it’s worth it. The base license starts around $999 per month, with additional costs for extra users. But remember, you're investing in a tool that's going to stick around and grow with you.

Why Choose NetSuite?

1. Comprehensive View: You get a 360-degree view of your business operations, which is super handy for making informed decisions.
2. Flexibility: It’s flexible enough to fit different industries and business sizes, from the small local shop to a growing global company.
3. Scalability: As your business grows, NetSuite grows with you, making it a long-term partner in your success.

For those who want to manage their finances without spending ages learning new tools, outsourcing could be the way to go. Explore top accounting software to make your choice easier.

9. Sage 100

Sage 100 is a solid choice for small to medium-sized businesses that need a reliable, customizable ERP system. It's not the most modern cloud software, but it does offer both cloud-hosted and on-premises deployment options, making it quite flexible for various business setups. If you're looking for an affordable solution that doesn't skimp on features, Sage 100 might just be what you need.

Key Features

• Accounting and Financial Management: Manage your books with ease using features like general ledger, accounts receivable, and accounts payable.
• E-Invoicing and Payments: Simplify your billing process with electronic invoicing and integrated credit card processing.
• Inventory and Supply Chain: Keep track of your products and streamline your supply chain with advanced inventory planning tools.
• Payroll and Time Tracking: Handle employee payments and time management efficiently.
• Customization and Scalability: Add modules for distribution and manufacturing or integrate third-party apps for business intelligence and automation.

Best For

Sage 100 is ideal for businesses that need a robust solution without the need for the latest cloud technologies. It's particularly well-suited for those who prefer a mix of on-premises and cloud-hosted options.

Sage 100 is all about giving you the tools you need to manage your business your way, without forcing you into a one-size-fits-all box.

User Experience

Users love the detailed financial reporting and the simplicity in handling daily accounting tasks. The system's flexibility in creating customized invoices is a highlight. Check out what others are saying about Sage 100's reporting capabilities.

In short, if you're after a system that's both affordable and packed with features, Sage 100 is worth a closer look.

10. DATEV

Alright, folks, let's chat about DATEV. If you're a small business in Europe or someone working internationally with tax consultants and auditors, this might just be your new best friend. DATEV is a powerhouse when it comes to handling complex financial tasks, especially for those in the legal and auditing fields.

Key Features

• International Reach: DATEV isn't just for local businesses. It's designed to help international tax consultants, auditors, and lawyers.
• Foreign Exchange (FX) Capabilities: Handy for businesses dealing with multiple currencies.
• Custom Solutions: Offers tailored software solutions for different business needs, ensuring compliance and efficiency.

Why Choose DATEV?

1. Security and Reliability: DATEV prides itself on its secure, reliable software that's been trusted across Europe for years.
2. Comprehensive Tools: From tax management to financial planning, DATEV covers all bases.
3. User-Friendly: Despite its robust capabilities, it's designed to be user-friendly, making it accessible even if you're not a tech wizard.

For European SMEs and international professionals, DATEV offers a unique blend of security, flexibility, and comprehensive tools that make financial management a breeze.

In a world where every second and penny counts, DATEV ensures that your financial operations are smooth and efficient. Whether you're a startup or a well-established company, this software is built to grow with you, adapting to your needs as they evolve. So, if you're looking to streamline your operations and keep your finances in check, DATEV might just be the right choice for you.

Frequently Asked Questions

What is accounting software used for in small businesses?

Accounting software helps small businesses keep track of money coming in and going out. It makes tasks like invoicing, tracking expenses, and preparing for taxes easier.

Can accounting software help with taxes?

Yes, accounting software can help with taxes by organizing your financial records and generating reports needed for tax filing.

Is accounting software easy to use for beginners?

Most accounting software is designed to be user-friendly, so beginners can learn to use it without a lot of training.