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Top 5 Best Accounting Software In 2024
Today, businesses and professionals recognize the power of accounting software in handling complex financial processes. Some systems offer the basics like sending invoices, tracking payments, and generating reports in preparation for tax season. The best digital accounting solutions improve efficiency through automation and intuitive interfaces so users can focus on strategic initiatives rather than balancing books.
Accounting software contains the tools for organizing, tracking, and reporting financial data to keep the records organized and well-managed. It can automate repetitive tasks like data entry and calculation for faster reconciliation. The digital accounting solution improves cash flow management as it streamlines financial operations.
Businesses suffer from a lack of accounting accuracy. Discover five of the best accounting software in 2024 to keep financial records organized and up-to-date.
#1 FreshBooks Overview #1 FreshBooksOverview
FreshBooks is cloud-based software that is built for small business owners and accountants. At its core, FreshBooks is designed to simplify accounting and financial management, allowing owners to focus on what they do best – grow their business. With a focus on ease of use, automation, and powerful features, FreshBooks helps businesses streamline their accounting and financial operations. From invoicing to project management, FreshBooks is designed to be intuitive and user-friendly, making it a popular choice among entrepreneurs and teams who need reliable accounting software without complexity.
FreshBooks Plans
FreshBooks offers four flexible subscription plans designed to cater to different business needs: Lite, Plus, Premium, and Select. The Lite plan is perfect for freelancers or solo entrepreneurs, allowing them to send unlimited invoices, track time, and manage up to 5 clients. The Plus plan expands on this with additional features like team collaboration, project tracking, and support for up to 50 clients, making it ideal for growing small businesses. The Premium plan is designed for larger teams, and has more advanced features such as the ability to manage unlimited clients, and enhanced reporting and workflows. For businesses with more complex needs, the Select plan offers custom pricing and enterprise-level features, including dedicated account support and personalized solutions. These tiered plans allow businesses to scale their FreshBooks usage as they grow.
FreshBooks makes it easy to access client details and manage bookkeeping with just one click. Designed with simplicity in mind, it's perfect for professionals who may not be tech-savvy but still want powerful tools to run their business smoothly. FreshBooks also offers dedicated support, client discounts, referral opportunities, and more to help owners grow their practice. And with award-winning customer support, FreshBooks provides a seamless and supportive experience every step of the way.
FreshBooks Features
Advanced Accounting Features
FreshBooks is a double-entry accounting application that makes financial management easier for small businesses and accountants. With tools to track income and expenses, generate detailed financial reports, and automatically calculate taxes, FreshBooks helps users stay organized and make informed decisions.
For businesses that work with accountants, FreshBooks provides essential tools to work efficiently and collaboratively. Access real-time data and collaborate in a single source-of-truth platform to ensure compliant books and timely financial insights. Key initiatives to support accountant-client workflows include the introduction of Collaborative Accounting™, which enhances the advisory capabilities of accountants, and the Accountant Hub, which streamlines client management and bookkeeping. FreshBooks also offers an Accounting Partner Program fostering a vibrant community and support for accountants' professional growth.
Invoicing and Payments
FreshBooks offers digital billing and invoicing with a built-in invoice generator that creates professional-looking invoices and allows users to add tracked time and expenses. The accounting software can automatically follow up with clients, sending reminders or charging late fees, so users can focus on higher-priority tasks. FreshBooks also helps users get paid upfront, providing essential working capital to cover immediate costs.
FreshBooks Payments offers diverse payment options and leverages Stripe's latest technology for an intuitive, and client-centric payment solution. This seamlessly integrates billing, payment acceptance, and accounting, so business owners can confidently manage their operations. With FreshBooks Payments, clients can pay through multiple payment methods like credit cards, debit cards, and Apple Pay. The platform keeps owners up-to-date with automated notifications and logs of each transaction. Users can also offer clients flexible payment options to accommodate their needs like partial payments and payment schedules.
Teams & Projects ValueWhether it's for teams of 2 or groups of 10 or more, FreshBooks empowers owners, teams, and accountants to streamline client work and business operations. From managing projects and running payroll to organizing books and preparing for tax time, FreshBooks provides the essential tools including time tracking, proposals, estimates, and customizable roles and permissions for any business's team.
#2 QuickBooks OverviewQuickBooks automates the key accounting processes from the general ledger to financial statements and reports. It auto-tracks transactions to keep users informed of where the money goes. The platform also contains powerful tools for digital accounting like real-time inventory updates and capturing receipts.
QuickBooks operates on the cloud and works on multiple devices so users can access financial information and collaborate with clients remotely. It uses industry-recognized security safeguards to secure data and maintain compliance. It also offers free user support to help accountants improve their digital accounting practice and provide better services to clients.
QuickBooks drives efficiency and saves time by automating accounting tasks. It gives real-time access to client files anytime, anywhere with one login to track all financial data. It also provides detailed insights through graphical reports. The accounting system also boasts an extensive optional app library that can supercharge the workflow and a mobile accounting app for tracking expenses on the go, even capturing receipts.
QuickBooks charges more for its subscription plans but it offers special discounts for accountants. The Plus plan can only accommodate five users, including the accountant, which can be disadvantageous for mid to large-scale businesses. The platform excels in account reconciliation thanks to its tracking capabilities and bank connections.
Features Automatic Payment RemindersQuickBooks ensures the invoices get paid with automatic payment reminders. The accounting system verifies the payments match the corresponding invoices, maintaining financial accuracy and transparency.
VAT and Expense TrackingAccountants can get their clients ready for tax season and make the most of their deductions as QuickBooks organizes all expenses in one place and into tax categories. The accounting software also takes sales tax into account so clients know how much they owe during tax time.
Bank ConnectionsQuickBooks can provide a full picture of finances and transactions through bank connections. Connecting the accounting software to bank accounts can save clients time tracking cash flow and reconciling accounts.
Inventory ManagementQuickBooks can help businesses keep up with customer demand by providing real-time inventory updates. Business owners can use the accounting software to run reports on best-selling items, total sales, and total taxes to understand stock trends and minimize oversells, stockouts, and markdowns.
Multi-currency SupportQuickBooks features multi-currency support so users can send invoices, record transactions, and adjust reports in different currencies. Businesses with an international customer base can assign currencies to various customers.
#3 AccountEdge OverviewAccountEdge, a product of Priority, is full-featured accounting software catered for small-to-medium-sized businesses. It presents a simple but outdated-looking interface to help users run and report on all business aspects, from banking and sales to payroll and inventory. It also supports state and federal payroll tax tables and forms, helping businesses determine their tax liabilities with ease.
This accounting software may present a learning curve for non-tech proficient users. It complicates the setup due to the high amount of manual entries to be made for customization. Its subscription plans cost a bit higher than other digital accounting solutions but its Network Edition plan allows simultaneous company file access so multiple users can access financial records at any time.
Its AccountEdge Connect and Hosted may not appeal to small businesses as the price ranges from $15 to $50/user per month. Features like payroll and banks are also sold separately, which only increases costs for businesses with limited budgets.
Features Time BillingAccountEdge can track the work of each employee through time sheets or activity slips. Businesses can use the logged information when processing payroll. They can also set custom billing rates based on fixed or custom rates per activity so they can charge different rates based on the difficulty of the task or experience levels of the employee.
Data ManagementAccountEdge can accommodate unlimited company files which users can manage easily. It provides a simple field mapping tool for importing/exporting transaction records, filters for searching any record, etc. It has integrated assistants to help users set up their company files and configure the features they use to create a custom workflow.
Contact ManagementAccountEdge provides a customer portal where customers can view transactions and make easy secure payments. It can also display the client and vendor engagement history where users can see the last payments, highest balances, etc. These contact management features help businesses maintain good relations with leads, customers, employees, and other vendors.
#4 Xero OverviewXero presents a standard modern-looking interface for digital accounting. The platform organizes everything in one place and connects with other apps. It also imports bank transactions securely so users can see an up-to-date picture of the cash flow. Multiple users can collaborate in real-time as account owners can send invites and grant access controls.
Features Accounting DashboardXero provides an accounting dashboard where all account balances and reconciliations are visible. It contains tools that allow users to follow up on outstanding invoices like filters and summaries. It can also generate charts and graphs that show a wide range of business metrics which help users track business performance. The dashboard can also provide deeper insights like the tangible net worth and current liabilities so users can make informed decisions to improve the financial health of the business.
Automated Sales TaxAsset Management
Businesses can use Xero can to track assets like vehicles, machinery, hardware, and office equipment. The accounting software automatically calculates the depreciation on these assets which can lead to substantial tax savings due to depreciation deductions. Account owners can set up the method and rate for the depreciation.
Project TrackingXero also contains tools for recording time and tracking costs. It has a built-in time tracker and location-based job tracker on mobile. These tools provide businesses with an accurate record of billable hours as they can see where project time is being spent and if the assigned jobs are profitable or overrunning the project. The accounting software also displays the staff time in the Project Staff report.
#5 Zoho Books OverviewZoho Books provides a secure location for managing accounting tasks and organizing transactions. It has a clean and simple dashboard that gives immediate insight into financial health. The accounting software also connects across multiple platforms. It has an effortless setup and import. The service offers a freemium version for businesses that earn less than 50K USD annually and subscription plans that range from 15 to 240 USD/per month.
Features Projects AccountingBusinesses can use Zoho Books to optimize projects. It can generate a profitability report that helps users identify high-profit projects and optimize resource allocation, boosting sales and efficiency. The accounting software contains a timer to measure time spent which factors in the bill calculation, alongside total cost, tasks performed, and expenses incurred for the project.
Workflow AutomationBusinesses can save time by automating high-volume tasks. Setting up triggers on Zoho Books reduces administrative tasks like converting quotes, creating bills from purchase orders, or sending payment reminders for overdue bills.
Comprehensive ReportsBusinesses can make more informed decisions after understanding business performance from key business reports. Zoho Books contains 70+ built-in customizable reports that cover all business operations and provide insights.
ConclusionFrom monitoring cash flow to automating invoices, using a robust accounting system assists businesses and professionals manage their financial transactions and record their accounting activities. It minimizes the risk of human error, resulting in more accurate financial statements and reports. Choose five of the best accounting software and overcome the drawbacks of traditional spreadsheets.
Accounting Software: A Buyer's Guide
Utilizing accounting software can help you save time, prevent errors, and gain critical insights into your company's financial performance. — Getty Images/Jirapong Manustrong
Almost 40% of business owners surveyed by Intuit QuickBooks said, "Managing finances and accounting is a top challenge." However, the right accounting software can streamline back-office workflows by automating administrative tasks and reducing manual data entry. As a result, you can save time, prevent errors, and gain critical insights into your company's financial performance.
Online accounting tools should be easy to use and affordable. But how do you choose the best system for your needs? In this buyer's guide, we'll cover the top factors to guide your decision, the average cost of accounting software, benefits, features, and popular platforms for small businesses.
Factors to consider when choosing accounting softwareAccording to Incfile, 46% of small business owners said "they do their own accounting," whereas 40% have an employee handle it, and roughly 14% outsource bookkeeping. So, looking at your current situation is the best place to start your decision-making process. How much time do you or your staff spend on accounting monthly?
Think about the accounting activities you or your team do, from the mundane, like reconciling transactions, to the complex, like running job costing reports. Then, consider who needs access to the accounting program. Many bookkeeping platforms use a tiered pricing model; higher-priced plans allow more users. Some vendors let your accountant access the system for free.
Lastly, write down any software that needs to sync with your bookkeeping program. Integrated accounting systems simplify workflows. For example, any time you update a contact in your customer relationship management (CRM) or point-of-sale (POS) system, it also updates the accounting platform, ensuring you have the correct contact data for billing.
Other current or future integrations may include:
Online payroll services, like Gusto or OnPay.
A human resources information system (HRIS), like BambooHR.
E-commerce or marketplace platforms, like Shopify or Amazon.
Enterprise resource planning (ERP) tools, like NetSuite or Microsoft Dynamics 365.
Expense management software, like Expensify or Airbase.
[Read more: A Guide to Small Business Accounting]
Benefits of online accounting software for small businessesOne QuickBooks survey revealed that "small business owners spend more than 21 hours a week on accounting tasks." CPA and Freshbooks freelance contributor Janet Berry-Johnson reported that manually entering data for one invoice takes two minutes versus 18 seconds with cloud accounting software. Depending on how many invoices you send monthly, you could easily save hours on just this one task.
What about business receipts? With online accounting apps, recording expenses is as easy as snapping a photo of your receipt and uploading it through the mobile app. Aside from saving time, bookkeeping software benefits small businesses in many ways.
Switch to a cloud-based accounting system to:
Boost productivity company-wide: An integrated accounting system automatically updates connected programs, ensuring your sales, marketing, and customer service teams have the latest account data without rekeying duplicate information.
Prevent mistakes: Accounting software features and integrations reduce the number of unrecorded or overlooked transactions (errors of omission). Also, it applies policies to limit errors of principle, like putting an equipment purchase under operating expenses.
Improve financial performance: Detailed financial reports and online dashboards increase visibility into business trends, potential issues, and opportunities. Leaders can use analytics to set goals and make informed decisions.
Ensure compliance: Accounting systems generate accurate balance sheets, cash flow statements, and other financial documents. The built-in templates are easy to use and share with investors, stakeholders, or regulators.
Aside from saving time, bookkeeping software benefits small businesses in many ways.
Bookkeeping software pricing and feesOnline accounting software is relatively inexpensive, with paid subscriptions starting at $10 monthly. Providers discount the services for businesses that prepay annually. Most vendors offer several plans, with more expensive versions allowing additional users and providing advanced features. Free accounting tools may have fewer features than paid software but work well for freelancers or startups.
Some accounting software providers charge fees to set up your account, integrate with third-party applications, or add users. Others have a lengthy list of add-ons, which can increase your monthly cost if you need multiple packages.
[Read more: 17 Accounting Terms To Know (Even If You Have an Accountant)]
Core accounting software featuresAccounting software maintains your company's general ledger and tracks costs and revenues. However, the best accounting software for small businesses offers automation features and real-time financial data. Indeed, 47% of respondents to a QuickBooks survey indicated that they wanted to automate running financial reports.
When choosing accounting software, consider the following features:
Number and types of integrations.
Operating system and device compatibility.
Number of users.
Multi-currency support.
Billing and invoicing.
Customer support channels and availability.
Expense tracking.
Project management and job costing tools.
Reports, graphs, and charts.
Budgeting and forecasting.
Tax compliance.
Accounts payable and accounts receivable.
Inventory and asset tracking.
Security options like role-based permissions and audit trails.
A dashboard for tracking financial key performance indicators (KPIs).
In the United States, QuickBooks Online holds the largest market share (49.3%), according to Codat. BusinessDIT estimated that about 26.56 million U.S. Businesses use QuickBooks. Xero is also a popular accounting service, with over 3.7 million subscribers worldwide. Yet, small companies have many options, so it's best to compare multiple solutions before choosing.
Explore accounting software providers, such as:
FreshBooks: It has plans for freelancers, self-employed entrepreneurs, businesses with contractors, and companies with employees. FreshBooks provides client billing and payment options and unlimited time, mileage, and expense tracking.
Xero: Its three plans include online invoicing, bill payment, and bank reconciliation. Xero integrates with Gusto Payroll, and upper-tier packages add project and expense tracking.
Zoho Books: Companies with $50,000 per annum can use Zoho Books for free; otherwise, it offers five paid versions. Features include multilingual invoicing, custom reports, and expense and mileage tracking.
Oracle NetSuite: This feature-rich platform provides cash, fixed asset, tax, and payment management tools. Oracle NetSuite handles account receivables and payables. It charges an annual license fee and a one-time implementation fee.
QuickBooks Online: Track income, expenses, mileage, and tax deductions with QuickBooks Online. It offers receipt capture, general reports, invoicing, and payments.
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Best Free Accounting Software: Ranked And Reviewed In 2024
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Based on our testing, the best free accounting software is Wave. It includes support for unlimited users and invoices – which gives it a huge leg up over other free solutions – and lets you track and manage an unlimited number of invoices and payments. Other options may be right for your organization, however, such as ZipBooks and its wealth of features, or Akaunting and its support for a whopping 45 languages.
In this guide, you can learn about the best free accounting software choices with an easy-to-follow breakdown of each. At the same time, you can consider the benefits of making a small financial commitment to get even more from your accounting software. If you're willing to pay just a few dollars a month, we have a guide to the best accounting software worth paying for.
To make sure you get the most bang for your buck, you can also check out the latest accounting software deals and discounts.
If you're committed to a free accounting software plan, we recommend prioritizing three factors: Ease of use, features, and ability to scale up to a paid plan down the road. For a comprehensive breakdown of the various software to choose between, read on.
The Best Free Accounting Software in 2024You can trust our research for both free and paid accounting software, as it's done by industry experts with years of experience. Like you, they're looking at not only which solutions have the most features on paper, but which ones have the best real-world benefits for businesses and are easiest to use.
You also want to be sure you're getting good value from your accounting software, should you choose to upgrade, so this guide also considers the pricing of advanced tiers. With this information in mind, here are the best free accounting software options for small businesses in 2024:
Only 1 user with 1 bank account
Only 1 user and 1 accountant
Must have fewer than 5 employees
Starts at $16/month
Starts at $15/month
Starts at $8/month
Starts at $8.25/month
1. Wave – Best overall free accounting softwareWho Can Use Wave for Free? Everyone, but online payment processing will charge a fee.
Wave is a comprehensive accounting solution that offers an impressive array of free features. You'll get unlimited expensing, income tracking, users, and customizable invoices. You'll also get access to reports on topics from overdue invoices and bills to profit and loss summaries, and thanks to its dynamic dashboard, you're also able to use the platform to spot new trends.
If Wave's free features fall short, you're also able to upgrade to its Wave Pro ($16 per month) for additional automatic bank transaction imports, unlimited receipt scanning, and advanced customer support. The provider's advanced tier also has no user limit, making it a great option for growing teams.
Our research found that Wave is ideal for freelancers and accountants alike. The only cited downsides were the lack of support (there's no phone or chat support) on its free tier, and the fact that learning the software can take a bit of time.
Check out our full Wave review for more information
Best for unlimited users, invoices, and bank connectionsPros
Cons
Wave's fully free software includes accounting, invoicing, and US-only banking software. However, the company also offers paid options, which you may also be interested in using. Here's the list of paid options to consider:
Wave's paid version offers impressive accounts receivable and payroll features as well. This combined with Wave's useful add-ons make it a good choice for businesses whose needs may evolve in the future.
Check out our Wave vs Quickbooks guide for more information
2. ZipBooks – Best for Large Feature CatalogWho Can Use ZipBooks for Free? One user, with one bank account.
ZipBooks is one of the larger-scale software on this list. There's a lot on offer when you open the ZipBooks platform for the first time, and our research found that its sheer number of features means it's likely to provide what most users need from free accounting software. You'll get unlimited invoices, and can manage unlimited vendors and customers. Supported digital payments include Square and PayPal, and you'll get basic reports and one bank account.
The platform is easy to use, with customer service provided by the company.
Best for large feature catalogPros
Cons
As far as optional payment goes, ZipBooks offers two paid plans beyond the free one.
Who Can Use Akaunting for Free? One user and one accountant.
Akaunting is one of the more popular free accounting software options, due to it being available in 45 languages. The free plan is capped at one user, with one additional accountant allowed access to the data.
Akaunting has its own app store, allowing you to download or buy add-ons or widgets that might suit your niche, like shipping trackers or inventory management. You'll be able to connect up to four apps for free, although you'll have to pay for more apps beyond those four.
Features include unlimited invoices, bills, customers, and vendors (but no estimates), as well as support for multiple currencies to go with all those languages. However, our research team didn't find Akaunting to be the most intuitive platform. We didn't find it particularly user-friendly, and the customer support isn't too helpful either. Still, it performs its primary functions well and offers good language capabilities, both of which still make it a fair pick.
Best for language supportPros
Cons
Akaunting used to only offer the free plan, but it has since expanded and includes three paid plans, all with extra capabilities.
Akaunting may offers deals that drop those prices as much as 60%. Still, if you're interested in paid accounting software and still want to cut down on costs, FreshBooks' 50% off deal from $7.50 per month may be your best bet.
4. GnuCash – Best for Simple, Standard ServiceWho Can Use GnuCash for Free? Everyone.
GnuCash is one of the older accounting software options on our list, but that doesn't mean it's outdated, at least when it comes to its features, which received generally favorable reviews from our research team. These features include invoicing, billing, double entry (ensuring a debited account matches a credited account to the cent), automatic recurring transactions, cash flow categories, statement reconciliation, and multiple currencies.
However, GnuCash is probably the most antiquated-looking software on this list. In comparison to Wave and Zipbooks, GnuCash was one of the least intuitive platforms tested — the mobile support isn't great, and the interface was pretty hard to navigate.
Best for simple, middle-of-the-road servicePros
Cons
There are no paid add-ons for GnuCash. It's all one free software, with nothing locked behind paywalls. While this won't be an issue if you only need to manage simple accounting processes, if your needs are likely to evolve overtime we wouldn't recommend using GnuCash.
5. NCH Express – Best for Rare Free FeaturesWho Can Use NCH Express for Free? Small businesses with less than five employees.
NCH makes many different kinds of software, one of which is their free accounting software, NCH Express. Our research found that NCH Express fares pretty well as a free accounting software, although you'll have to install it yourself and it's only free for businesses with fewer than five employees.
Features include quotes and estimates, automatic recurring orders and invoices, 20 different reports, sales tracking, income statements, and purchase orders. The software lacks in the customer service field, and we found the interface to be a bit abrasive when compared to other systems like Wave, but overall, we found the features to be respectable for a cost-free option.
Best for rare free featuresPros
Cons
If you're looking to expand your NCH software, you can upgrade to a more feature-rich version, the Express Accounts Plus Quarterly Plan, for $32.49 quarterly, or $10.83 per month. You can also opt for the Basic package for $99 per annum or $8.25 per month.
Accounting Software Free Trials – the Middle GroundIf you don't love the look of any of the free accounting software we've listed, but you're also not thrilled about the idea of paying for something without knowing what you're committing to, a free trial might be just what you need.
A free trial can give you a good sense of what you'll be getting out of accounting software, without you needing to commit to a full subscription or purchase. Here are some paid accounting software that offer free trials.
GoDaddy Online Bookkeeping
It's free, no trial needed
Strong automation features
A broad range of accounting features, professional look and feel, helpful and free trial period
Tracks money owed at a low cost
60% off for six months on all plans
Save 90% for seven months
QuickBooksQuickBooks Online pricing offers a free trial for all of their main plans. These plans are the Simple Start, Essentials, Plus, and Advanced plans, as well as the limited Self Employed plan. You can sign up for any of them using their free 30-day trial. These plans offer the following:
While these plans are obviously tiered, you're able to try any one of them for 30 days, so you can spring for Advanced and see everything it has to offer. Keep in mind though, you'll obviously need to pay the highest rates to keep any features you get used to, so if you know you're only looking for lower end functionality, maybe try the Simple Start or Self Employed trial.
Compare QuickBooks vs FreshBooks in more detail
FreshBooksFreshBooks is another paid accounting software. Like QuickBooks, they offer three tiers of service. These tiers are Lite, Plus, and Premium. There is a fourth option, the Select option, where you can customize your plan based on what you want and don't want, but you aren't able to get a free trial of a Select plan.
While none of their tiers are free beyond the trial, FreshBooks first tier is very cheap at only $17 a month (currently on offer for $8.50). In fact, even Plus, the second tier, is only a little more than a lot of the paid tiers found in free software, so if you're looking to avoid spending a lot of money, both of these systems would offer you great features without breaking the bank.
There are a lot of features that are only available through a custom plan, like data migration services or secure card storage, but again, you won't be able to try a free trial of a custom plan. We recommend getting a free trial, and seeing if you like the features offered by FreshBooks. Only then should you look into a Select plan.
XeroOur final stop on our free trial quest is Xero. Like our other two options, Xero offers three tiers, all with an option for a free 30-day trial. These tiers are:
You can see that Xero offers a smaller array of features than QuickBooks and FreshBooks. However, one of their biggest benefits is the fact that even the simplest plan can allow you to add unlimited users to your account, meaning you won't have to pick and choose who in your company has access to your books.
Keen to learn more? Compare QuickBooks vs Xero
Hidden Costs: Is Free Accounting Software Really Free?Free software sounds great on paper. However, in reality, these free accounting services often incur hidden charges and limitations, making them less of a good deal than they initially seem. To avoid getting caught out, here are some warning signs you should be aware of before pursuing free options.
Free services offer a great opportunity to test out new software or provide much-needed features for a small business or self-employed individual in the short term, but ultimately, you get what you pay for. If you're considering a paid option, you can always test them with a free trial, a service offered by many paid accounting software, like Zoho Books, FreshBooks, or Xero.
Learn more about solutions tailored to your specific needs with our guide to the best accounting software for the self-employed
Businesses that switch to cloud-based accounting software see, on average, a 15% revenue bump – but can you do it at zero cost? If you're looking for any of the following services, you might have to want to take advantage of paid accounting software.
Here are some of the benefits of paying for accounting software.
1. Payroll and Tax CapabilitiesIf you're looking for software that can automatically take the money you owe out of your pot and give it to the correct recipients, you might have to pay for that. If you elect for a software like QuickBooks, that can handle payroll and taxes, your taxes and wages will be automatically distributed to the deserving parties, giving you one less thing to worry about.
2. Sophisticated Reports"Sophisticated reports" is a bit of a broad term, but mainly refers to the nitty gritty details of your income and outcome. If you decide to fork out for a paid accounting software, they will be able to offer you more comprehensive information, like data visualization, customizable invoices, or a number of other details that can help you get a more accurate grip on your business.
3. ForecastingIf you want to know not just where your business has been, but where it's going, forecasting can help you out. It will take the numbers and data of the past and use that to project possible trajectories, allowing you to prepare for drier sales periods, or get excited about an upcoming influx of customers. And considering 95% of organizations with effective forecasting make quotas, compared to only 55% without, it's safe to say this kind of tool can make a big difference.
4. Inventory and Order TrackingIf you're selling physical products, you might want to have some software to stay on top of your inventory. Some paid accounting software can keep tabs on your stock, as well as tracking any orders as they're sent, both of which are crucial if you're hoping to run a smooth business.
5. User and Invoicing CountIt's common among free accounting software that they can limit the amount of users per account (typically capped at five users). Some software will also cap the amount of customers you can invoice or the amount of invoices you can send per month. If your small business is growing fast, you might want to look at a paid service that allows you to handle higher numbers.
See our guide to the Best Invoicing Software for Small Business
How Did We Research the Best Accounting Software?We take our impartial research and analysis seriously, so you can have complete confidence that we're giving you the clearest, most useful recommendations.
Based on years of market and user needs research, we've established an accounting software testing methodology that scores each product in four main categories of investigation and 24 subcategories; this covers everything from the features and functionality to pricing, and much more. We break down the four main categories below:
Then, we rule out all providers that don't offer a free version, so we're only left with the best accounting software on the market with complementary plans. This leaves us with the list we've outlined on this page, cited in order of st
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