Best Cloud Accounting Software of 2024

Xero is best for small businesses where multiple people need to access the accounting software. It’s also ideal for businesses that would make use of the lion’s share of its well-integrated features, and that need powerful reporting tools. Xero lets you track fixed assets, which is an unusual tool in the category of small business accounting software. While the user experience is not exactly on the cutting edge, it’s still fairly easy to learn. We don’t recommend Xero for sole proprietors or freelancers, even though it has a starter pricing level that would suit those budgets.

Accounting Services

• At the top right-hand corner of the screen, a grid-like button with a hover-over label that read “add widget” sat.
• As businesses grow they can take advantage of Wave’s low-cost payroll services.
• Overall, the dashboard seemed very basic compared to some competitors.
• A downside of Bench is that it specializes in cash-basis accounting, although there is a custom accrual accounting plan on the Pro plan.
• Wave is ideal for sole proprietors, freelancers, and consultants, as well as new business owners who have no idea how to record financial transactions.

Unlike clicking on other document types, such as receipts, I was unable to send the invoice directly from the platform or export it to send it through my own email inbox. Still, I could at least right-click on its listing in “unfiled” documents and move it to a folder of my choosing, allowing me to save it as an expense I could refer to later come tax time. This list was highly customizable, a theme I would experience while testing different features on the platform. For example, I could immediately use the search bar across the top of the screen to search my documents by keyword. And when I clicked “filter” at the top of the screen, a drop-down menu appeared that allowed me to filter the documents stored by date added, source, folder, keyword search, category or date.

Assign Transactions to Specific Accounts

Since Wave offers just one accounting plan, businesses can’t scale up to plans that include more accounting tasks for growing businesses. And Wave’s lack of inventory tracking makes it better matched to service-based solopreneurs and freelancers who don’t need both accounting and inventory software. For exactly $0, Wave presents you with a slick, user-friendly dashboard and a slew of features that rival those of paid accounting systems. Online bookkeeping services can save business owners both time and money.

• Overall, Xero offers a basic interface for completing key accounting tasks.
• It’s intuitive enough for novice bookkeepers to learn but supports all the elements that a larger business would need, including payroll.
• Set up auto-pay for your team and rest easy with taxes calculated for you.
• To navigate these challenges, small businesses may need to strengthen their financial profiles, build relationships with lenders and explore alternative financing options.

Compare the best bookkeeping software for small businesses

Accessing all included tools using the left-hand menu was easy, as it’s a menu that is always present no matter where I navigated on the platform. Once I clicked a menu tab, all the tools I needed to use to complete relevant tasks were included in the resulting page. We rate these applications primarily based on how easy they are to use, how much they do, and their price. We also consider anything we encounter during our hands-on testing. Keeping a tight grip on finances is critical for the success of small businesses and freelancers. The best small business accounting tools we’ve tested can help keep your company in the black.

• This cohesive approach ensures that as business complexities arise, NetSuite can adapt, providing a foundation that supports not just accounting needs but a company’s holistic operational demands.
• Zoho Invoice is completely free for life, so whether you end up trying Zoho Books or not, we definitely recommend giving Zoho Invoice a look.
• AccountEdge offers tools for customizing hundreds of reports using advanced reporting filters, fields and lists.
• You can find services for as little as $20 per month while others run thousands per month.
• Xero is best for small businesses where multiple people need to access the accounting software.

Virtual bookkeeping services can also save you money through tax preparation services and tax filing, providing peace of mind that you’re 100% compliant with all tax rules. However, if you want more advanced reporting and a more robust mobile experience, you’re better off looking at other solutions on this list. Billy/Sunrise also got some bad reps for its choices regarding customer loyalty when it was acquired. But if Wave doesn’t have client bookkeeping solutions the right features for your small business, you do have other free accounting options—ZipBooks, SlickPie, or another free accounting software provider could work better for you. Sure, QuickBooks could be the best software for your small business, or you might find its prices too high and its features too limited. Depending on what you need, another bookkeeping software pick like FreshBooks or Sage could be better for your business.

• The bookkeeper enters relevant data such as date, price, quantity and sales tax (if applicable).
• As a bonus, ZipBooks also offers intelligence reporting, which provides a more analytical view of your business.
• FreshBooks includes bank account connectivity, and speaking of connectivity, also connects with more than 100 apps in desired categories such as CRM, e-commerce, inventory management, and even tax preparation.
• Available as an on-premise application or on the cloud, AccountEdge Pro offers a level of flexibility frequently missing in small business accounting software applications.
• By following the guidelines outlined in this article, you can establish a solid foundation for your financial records, make informed decisions, and ensure the long-term success of your enterprise.
• Rising interest rates create multiple challenges for small businesses seeking credit line extensions.
• If so, make sure that the application you choose has a mobile app that will work with your phone.