The 5 Best Accounting Software For Small Business Of 2021

Just a handful of features that NetSuite cloud accounting offers include payment and expense tracking, cash flow management, invoicing, accounts payable and receivable, tax management, and payroll. NetSuite also offers in-depth analytics to help you track your business’ performance so you can stay on top of everything. The Simple Start option comes with the ability to track your income and expenses, invoice and accept payments, and run basic reports. If you jump to the Essentials option, you’ll be able to manage your bills and allow multiple users to access your account, as well as track time. The top-notch Advanced version offers project and inventory tracking and the ability to manage 1099 contractors. The best affordable accounting software for small businesses offers tiered pricing with entry-level plans that include core bookkeeping features for recording income, expenses, sales, and purchases.

And that’s all in addition to the barcode scanning, inventory tracking, and order fulfillment features you’d expect from your inventory solution. Connecting business bank and credit card accounts to your accounting software keeps everything reconciled in one place. Transactions upload in real-time or through scheduled imports in just a few clicks rather than demanding manual entry. Investing in the right accounting software can be a game-changer for small businesses, offering efficiency, accuracy, and peace of mind. Whether you’re a freelancer, a retailer, or an SME, this list of top accounting software ensures you find a solution tailored to your needs. In 2021, Neat transitioned to a full-fledged bookkeeping software to help small business owners spend minutes, not hours, doing their books.

The 5 Best Accounting Software For Small Business Of 2021

It lets you prepare accurate tax filings and make important business decisions. The early plans allow users to enter 5 invoices or quotes, five bills, and 20 bank transactions but only for few months. However, growing and established offers unlimited invoices, bills, and transactions. The only difference between them is that established offers multi-currency, expense management, and project costing features.

• It’s also secure, malware free, cost-free, and the team behind it has consistently released new features since the project was first launched in 1997.
• While most accounting software is easy to use, a general understanding of accounting principles is needed to ensure that financial reports are prepared correctly.
• It’s widely used and trusted, making it a solid option for most U.S.-based small businesses.
• It even classifies transactions automatically to guarantee you’re consistent and has inherent subcategories assuming that you need nitty gritty reports.

There are three monthly payment methods that Xero offers with three monthly subscriptions and a full ad on payroll services. A good Bookkeeping services firm will use top accounting softwares for 2021. Explore the top small business accounting services and an in-depth guide to choosing bookkeeping software for your budget, business model, and needs. FreshBooks is perfect for service professionals who need great invoicing and time tracking, while Kashoo is ideal for solo owners who want straightforward, automated categorization. If you work in a regulated industry or need advanced data governance, platforms like NetSuite, Sage, and QuickBooks stand out.

Accounting Seed

For example, Microsoft Office Home & Student 2021 keeps it lean and cool and with Microsoft Word, Microsoft Excel, and Microsoft PowerPoint being the only apps included. It also supports inventory management and sales tracking, making it appealing for product-based businesses. It’s about picking the tool that fits how you work, where you’re growing, and what you need to stay in control. They’re used by thriving businesses, trusted by financial teams, and backed by consistent high ratings and real-world results. FreshBooks started out as an invoicing program, so no wonder it’s called the best invoicing software. Small businesses can use FreshBooks for many other accounting tasks like entering and paying bills, accepting deposits or retainer payments, and more.

Steps To Create Great Estimates For Your Projects

• If you don’t need a ton of bells and whistles, then Kashoo may be right up your alley.
• Using the right invoicing tool can cut these problems and make your business run more smoothly.
• With the many choices available it can be hard to know which one is right for you.
• All functions are completely coordinated, which means you can send quotes from the CRM, convert the statement to a receipt, and track sales proficiency so you’re making upgrades dependent on hard data.
• Zoho Books offers automation and customization that can support more complex workflows as you scale.

These tools help make estimates, speed up payment, and reduce admin work, whether you’re a contractor, freelancer, or service business owner. Explore the top invoicing software options for small businesses in 2025 to improve billing efficiency, automate payments, and support business growth. QuickBooks offers both cash-based and accrual accounting and is ideal for small-to-medium businesses who want to be able to manage their accounts from anywhere and everywhere.

What accounting software is best for a small business?

When it comes down to it, the best inventory management software depends a lot on your business size, model, and product type. And if you’re in need of a quality inventory system on a budget, inFlow Inventory is a top pick too. For small business owners without formal accounting training or large finance teams, leveraging software here is invaluable. Automation eliminates manual data entry errors while simplifying analysis. Instead of just tracking expenses and income, modern accounting provides forward-looking insights based on historical trends.

Reasons to Choose Online Invoicing Software

Xero is an affordable cloud-based accounting software system that is highly rated among small businesses. Its simple solution for tracking income and expenses makes it easy to use for those without accounting skills. Top features for every plan include the ability to create and send invoices, track time and project profitability, claim expenses, bulk reconcile transactions and accept multiple currencies. Starting at £50 a month, which goes down to £5 per month for the first three months during the current promotion, QuickBooks offers four subscription plans ensuring users only pay for the features they need. Its basic plan, Simple Start, allows users to track mileage, create invoices, process payments, capture receipts, manage cash flow, get tax estimates, run reports and manage contractors. FreshBooks offers four plans starting with the Lite plan at £15 per month (£7.50 per month during the current promotion).

BigTime has everything necessary in one place to streamline the whole process and help you save money, as you can invest in a single solution instead. MYOB Essentials has a mobile application that lets you scan documents and receipts for error-free data entry. The app automatically fills out forms and matches transactions to the right expenses category. There is no need to send your documents to Bench Accounting by mail and risk them getting lost or being stolen.

Scalability was the next most important consideration because as a company grows, its accounting needs grow as well, and transferring financial information to new software can be tedious. Finally, ease of use and collaboration for business owners, employees, and accountants was considered because it’s important for all users to be able to access and review the financials at the same time. Wave is an ideal accounting software platform for a service-based small business that sends simple invoices and doesn’t need to track inventory or run payroll. For many freelancers or service-based businesses, Wave’s free features will cover The 5 Best Accounting Software For Small Business Of 2021 all of their accounting needs and is the best free software in our review.

First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. In today’s digital world, there are a lot of options for businesses looking for accounting software. With the many choices available it can be hard to know which one is right for you. In this post we’ll review some of the best accounting software and help you make an informed decision about which system will work best with your needs as a small business or solopreneur.

Reports and financial statements provide clarity without you needing an accounting degree or background to interpret the data. That‘s why choosing the right accounting software is critical for any small business owner. With the proper system in place, you can automate routine financial tasks, gain clarity into your finances, and set your business up for success. Small businesses in 2025 will benefit from tools that not only handle accounting tasks but also provide insights into financial performance and future trends.

Check out our guide on how to use Excel to manage inventory to learn more. While no system proves perfectly ideal for every single user, one likely aligns closely to your workflows, business model, and budget. Starting with accounting automation tailored for little guys puts your entrepreneurial growth on the fast track by eliminating cumbersome financial headaches. Rather than abruptly switching overnight, many small businesses find value running legacy spreadsheets/software parallel to modern accounting solutions through transitional quarters. Understandably, Wave‘s free platform has inherent limitations once businesses reach a certain scale.