How We Chose our Small Business Accounting Software List
Ability to Access from Anywhere
The best part about cloud-based accounting software is that you can manage your small business’s finances anywhere.
With cloud-based software, your data is hosted on a remote server, then processed and returned to you.
There’s no need to set up individual desktops with the software installed because anyone on the account can access it from their own devices.
Data backup is an essential bonus of cloud-based accounting software and makes for reliable recovery in the face of potential disasters.
Accountant Compatibility
One of the essential aspects of accounting software is whether or not your accountant can access it.
Some accounting software charges extra for accountant usage, but all of them on this list offer it in some way, shape, or form.
Most accounting firms have their system in place for tracking and managing finances, so make sure that the software you choose is compatible with theirs.
Features List
I know running a small business can come with a tight budget, so I want to ensure that any software I recommend comes with a vast slew of features to make that price worth it.
Whether you’re selling a service, running a restaurant, or offering eCommerce, your accounting software should have an extensive features list to cover any of your potential needs.
Cost for Small Businesses
Once again, running a small business can be tough on your wallet!
I made sure only to include accounting software that’s either highly affordable or comes with great value.
In either case, the strain on your budget shouldn’t be too severe.
Features to Look for in Accounting Software
Online Payment Collection
Online payment collection should be quick, simple, and secure for you and your customers.
Most accounting software allows integration with popular online payment services like PayPal or Stripe, making it easy to collect payments without leaving the platform.
Accounts Payable
Payables are two of the significant responsibilities of a small business.
You need to ensure you have these liabilities under wraps.
You can do this by opting for accounting software that can keep track of where your money is coming and going.
Accounts Receivable
You need to ensure you know how much money you’re owed for each pay period.
Any good accounting software should offer this data history as one of its main features.
Credit Card Syncing
Accounting is much easier if your credit card transactions sync automatically with your software.
This allows you to keep an eye on all your financial activity in one place.
This makes it easy to assess which items are bringing in the most revenue or cost the most money.
Invoicing
You’ll need an integrated invoice management system that’s easy to use and understand.
Most accounting software includes customizable invoices, automated reminders for outstanding invoices, discounts, taxes, and currency conversion rates.
All of this helps make the process super simple.
Financial Statement Prep
Financial statement prep is a must when it comes to accounting software.
This feature allows you to quickly and easily generate financial statements like income statements, balance sheets, and cash flow statements.
Having this visibility into your finances from your accounting software helps you make better decisions about where your business should be heading next.
Plus, having these statements at hand is an invaluable asset if you’re ever audited or need to show proof of financial stability.
Now You Decide
Remember, research is king, and you know your small business best.
I hope my recommendations gave you a significant next step in your small business journey.
Have you decided which accounting software for small businesses is right for you?
If not, look further into these options and beyond if that works.
As part of your research, check out this article on how to avoid severe accounting mistakes that could hurt your small business, as well as this article on avoiding hidden exchange rate fees.
Are you a small business owner? Do you have any questions about the best accounting software for small businesses? Let us know in the comments below!
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