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Top 3 Bookkeeping Applications for Small Businesses

August 22, 2021

The Top 3 Bookkeeping Applications for Small Businesses

The benefit of on-the-shelf accounting and bookkeeping software is undeniable for small business owners. It gives them the benefit of tracking accounts receivables, accounts payables, cash flow overview, and so much more. Understanding the profitability of your small business is vital for its growth and on-the-shelf accounting software helps you with that since your small business accounting and bookkeeping needs won’t require extensive customization right off the bat. However, as your business grows, its bookkeeping and accounting needs will become more complex, and a custom Enterprise Resource Planning (ERP) system will be needed.

There is a plethora of different accounting and bookkeeping software out there that cater to the needs of small business owners, each has its own unique capabilities and pricing plans. Typically, the type of industry and number of employees your business has are the main two factors that can help you choose the appropriate software for your need. To visualize, a freelance photographer won’t need the same features that a hardware store owner would usually need.

We’ve scoured the market and identified five of the best bang for your buck accounting and bookkeeping software.

At Number 1 we have the ubiquitous

QuickBooks Online

QuickBooks Online has positioned itself as the best accounting software for small businesses across the globe. This is widely used by accounting and bookkeeping professionals due to its scalability, integration, with third-party applications, and user interface friendliness. Since it is widely used, there is an endless amount of online training resources and support forums to be found all over the internet when you need it most. All relevant accounting and bookkeeping features can be conveniently accessed on its main dashboard, making your bookkeeping easy and efficient.

The great thing about this software is that it offers a free 30-day trial so that you can test if the shoe fits. Once the trial ends and you find that its features fit your needs, it offers various subscription plans that would vary depending on the main needs of your business. Each plan offers advanced features like inventory management, time tracking, additional users, and budgeting.

All of their plans allow the integration with third-party applications such as Stripe, Paypal, and others. If your business is looking for payroll service software, QuickBooks Payroll also fully integrates with QuickBooks Online.

Number 2:

Xero

Xero is the new kid on the block that aims to dethrone the ubiquitous QuickBooks Online. The company was founded in New Zealand and is quite popular in its home turf, Australia, and the United Kingdom.

This is the best for micro-businesses that are eyeing a very simple accounting software. The Xero software has a minimalist clean interface and Xero also integrates with a third-party payroll service, mainly Gusto. It also features integration with payment service providers like Stripe and GoCardless.

Xero has three levels for its pricing plan and a full-service payroll addon; Early at $11 per month, Growing at $32 per month, and Established at $62 per month. The full-service payroll option is offered through Gusto and it would cost you an additional $39per month, plus $6 per employee.

So, if you’re business sees high-ticket transactions, but only a few per month. In the likes of a consulting or small service provider, then Xero would be the best fit for you.

Last but not the Least:

FreshBooks

Yes, it sounds a lot like QuickBooks, but trust me they are completely different. FreshBooks was founded in 2003 in Toronto, Canada. It first started simply as an invoicing software. Over time, more and more features were added to the version of the FreshBooks we know now.

FreshBooks is perfect for most service-based businesses since it specializes in invoicing. The software’s forte is to send, receive, print, and pay invoices. But that’s not all, it’s robust enough to handle your business’ basic bookkeeping needs.

FreshBooks offers four pricing plans namely; Lite at $6 per month, Plus at $10 per month, Premium at $20 per month, and Select, which is a custom service with custom pricing. The primary difference between the plans is the number of different clients that can be billed per month.

Lite Plan – 5 Clients can be billed per month
Plus Plan – 50 Clients can be billed per month
Premium Plan – Unlimited clients can be billed per month.

It also features a lot of third-party application integrations, such as Shopify, Gusto, Stripe, G Suite, and more. What makes FreshBooks unique is that it gives you the ability to stylize and customize invoices to your liking.

Before you go down the road looking for an accounting and bookkeeping application; ask yourself first if you have the time and energy after a long day of work if you can still spare an hour or two doing your books and taxes daily. If not, then don’t worry! We are here to help you.

Get in touch with us today and we’ll do the after-hours heavy lifting while you relax with your family and loved ones!