--- title: "Best Small Business Accounting Software - 2026 Reviews & Pricing" description: "Find the best Small Business Accounting Software for your organization. Compare top Small Business Accounting Software systems with customer reviews, pricing, and free demos." source_url: "https://www.softwareadvice.com/category/506-small-business-accounting/" page_type: "category" language: "en" --- [Home](https://www.softwareadvice.com/) / Small Business Accounting Software Software Advice offers objective insights based on verified user reviews and independent product and market research. When our advisors match you to a software provider, we may earn a referral fee. # Best Small Business Accounting Software of 2026 Updated October 27, 2026 On this page 1. FrontRunners 2. Popular Comparisons 3. Buyers Guide Filter products 311 results ### Compare Products Showing 1 - 25 of 311 products #### Company Size - Self-Employed - 2-10 - 11-50 - 51-200 - 201-500 - 501-1000 - 1000+ #### Pricing Options - $$$$$ - $$$$$ - $$$$$ - $$$$$ - $$$$$ ### Compare Products Sort by **Recommendations**: Sorts listings by the number of recommendations our advisors have made over the past 30 days. Our advisors assess buyers’ needs for free and only recommend products that meet buyers’ needs. Vendors pay Software Advice for these referrals. **Reviews**: Sorts listings by the number of user reviews we have published, greatest to least. **Average Rating**: Sorts listings by overall star rating based on user reviews, highest to lowest. **Alphabetically (A-Z)**: Sorts listings by product name from A to Z. ### [Sage 50 Accounting](/accounting/sage-50cloud-profile/) - Overall rating: 4.0/5 - Reviews: 630 - Starting price: $124.42/month - Best for: On the rise - Free trial: Available - Free demo: Not available #### Overview Sage 50 Accounting is an accounting solution designed to cater to the needs of small and medium-sized businesses. It offers a suite of tools that streamline financial management, [Read more](/accounting/sage-50cloud-profile/) ##### What users love - Comprehensive financial management tools - User-friendly and intuitive interface - Tailored for small businesses ##### To take in mind - Inconsistent and limited support options - Limited and cumbersome reporting features - Expensive and rising subscription costs #### Features ##### Best rated features - "What If" Scenarios: 5/5 - Order Management: 5/5 - Customizable Templates: 5/5 - Financial Management: 5/5 [See all features](/accounting/sage-50cloud-profile/#key-features) #### Pricing ##### Pro Accounting - Price: $124.42/month - This plan is also available at an annual subscription of $625. Pricing for single user. ##### Premium Accounting - Price: $169.33/month - This plan is also available at an annual subscription of $1043 and is designed for small businesses ##### Quantum Accounting - Price: $253.42/month - This plan is also available at an annual subscription of $1780 and provides industry specific [See full pricing details](/accounting/sage-50cloud-profile/#pricing-and-plans) --- ### [Xledger](/accounting/xledger-profile/) - Overall rating: 4.5/5 - Reviews: 29 - Starting price: $750.00/month - Free trial: Not available - Free demo: Not available #### Overview Xledger, True Cloud Finance Software Built For Modern, Multi-entity Organisations Xledger is a true-cloud finance management platform built for organisations needing more than [Read more](/accounting/xledger-profile/) #### Features ##### Best rated features - Access Controls/Permissions: 5/5 - Audit Trail: 5/5 - Multi-Location: 5/5 - General Ledger: 4.9/5 [See all features](/accounting/xledger-profile/#key-features) --- ### [Connected](/accounting/accountek-profile/) - Overall rating: 5/5 - Reviews: 3 - Starting price: CA$649.00 - Free trial: Available - Free demo: Not available #### Overview Connected is a hybrid integrated accounting and enterprise resource planning (ERP) that caters to small and midsize businesses across various industry verticals and helps them to [Read more](/accounting/accountek-profile/) #### Pricing ##### Basic - Price: CA$649.00 [See full pricing details](/accounting/accountek-profile/#pricing-and-plans) --- ### [AccountMate](/accounting/accountmate-profile/) - Overall rating: 4.3/5 - Reviews: 25 - Starting price: $4,000.00one time - Free trial: Available - Free demo: Not available #### Overview AccountMate is a hybrid accounting solution that caters to small and midsize businesses and offers them tools and functionalities, which help them to manage their financial [Read more](/accounting/accountmate-profile/) #### Features ##### Best rated features - Collaboration Tools: 5/5 - Multiple Projects: 5/5 - Purchase Order Management: 5/5 - Project Planning/Scheduling: 5/5 ##### Worst rated features - Task Management: 4/5 - Billing & Invoicing: 4/5 [See all features](/accounting/accountmate-profile/#key-features) #### Pricing ##### Basic - Price: $4,000.00one time [See full pricing details](/accounting/accountmate-profile/#pricing-and-plans) --- ### [Beyond Software](/psa/beyond-profile/) - Overall rating: 4.7/5 - Reviews: 7 - Starting price: $6,120.00/year - Free trial: Not available - Free demo: Not available #### Overview Beyond Software is a project accounting and management software system available for small to mid-size companies. The system allows organizations to manage and execute around their [Read more](/psa/beyond-profile/) --- ### [Sage Intacct](/accounting/intacct-accounting-profile/) - Overall rating: 4.3/5 - Reviews: 718 - Best for: Mid-size businesses - Free trial: Not available - Free demo: Not available #### Overview Sage Intacct operates within the Sage Business Cloud portfolio as a comprehensive cloud-based financial management software, expertly designed to bring rich financial and [Read more](/accounting/intacct-accounting-profile/) ##### What users love - User-friendly and intuitive interface - Comprehensive accounting functionality - Robust, customizable reporting capabilities ##### To take in mind - Complex and inflexible report customization - Slow and unresponsive support experience - Expensive and rising costs #### Features ##### Best rated features - Quotes/Estimates: 5/5 - For Nonprofits: 5/5 - Vendor Management: 5/5 - Customer Statements: 5/5 [See all features](/accounting/intacct-accounting-profile/#key-features) --- ### [BudgetPak](/accounting/budgetpak-profile/) - Overall rating: 4.8/5 - Reviews: 24 - Starting price: $10,000.00/year - Free trial: Available - Free demo: Not available #### Overview BudgetPak by XLerant is a cloud-based Accounting solution that offers stand-alone Budgeting and Forecasting, as well as integrated Financial Reporting. It’s suited for midsize to [Read more](/accounting/budgetpak-profile/) #### Features ##### Best rated features - Budgeting/Forecasting: 5/5 - Data Import/Export: 5/5 - General Ledger: 5/5 - Profit/Loss Statement: 5/5 [See all features](/accounting/budgetpak-profile/#key-features) #### Pricing ##### Basic - Price: $10,000.00/year [See full pricing details](/accounting/budgetpak-profile/#pricing-and-plans) --- ### [NetSuite](/accounting/netsuite-financials-accounting-software-profile/) - Overall rating: 4.2/5 - Reviews: 2,082 - Best for: Enterprise businesses - Free trial: Not available - Free demo: Not available #### Overview NetSuite is an AI-powered cloud-based business management suite that incorporates ERP, financial management, CRM and eCommerce functionalities into a unified platform, helping [Read more](/accounting/netsuite-financials-accounting-software-profile/) ##### What users love - Deep system tailoring options - Comprehensive and scalable functionality - Centralized financial operations platform ##### To take in mind - Steep learning curve and complexity - Complex and rigid reporting tools - Slow and inconsistent support experience #### Features ##### Best rated features - Aging Tracking: 5/5 - "What If" Scenarios: 5/5 - Vendor Master Data Management: 5/5 - For B2B: 5/5 [See all features](/accounting/netsuite-financials-accounting-software-profile/#key-features) --- ### [Striven](/project-management/striven-profile/) - Overall rating: 4.8/5 - Reviews: 130 - Starting price: $35.00/month - Best for: Small businesses - Free trial: Available - Free demo: Not available #### Overview Striven is a cloud-based, all-in-one business management ERP platform built for small and midsize companies tired of duct-taping popular accounting tools, a CRM, a project tool, [Read more](/project-management/striven-profile/) #### Features ##### Best rated features - Routing: 5/5 - Document Storage: 5/5 - Milestone Tracking: 5/5 - Percent-Complete Tracking: 5/5 ##### Worst rated features - API: 1/5 [See all features](/project-management/striven-profile/#key-features) #### Pricing ##### Standard - Price: $35.00/month - The plan is based on the number of users. ##### Enterprise - Price: $70.00/month - The per-user price decreases as the number of users increases. [See full pricing details](/project-management/striven-profile/#pricing-and-plans) --- ### [Vena](/bpm/vena-profile/) - Overall rating: 4.5/5 - Reviews: 139 - Best for: Budgeting/Forecasting - Free trial: Not available - Free demo: Not available #### Overview Vena is a financial planning and analysis (FP&A) platform. It is designed to work with Microsoft 365 apps, cloud technology, and AI. It helps organizations in various industries, [Read more](/bpm/vena-profile/) #### Features ##### Best rated features - Commission Management: 5/5 - Fixed Asset Management: 5/5 - Statistical Analysis: 5/5 - Dynamic Modeling: 5/5 ##### Worst rated features - Customizable Dashboard: 3/5 - Exception Reporting: 3/5 - Asset Lifecycle Management: 3/5 - Self-Service Reporting: 3.5/5 [See all features](/bpm/vena-profile/#key-features) --- ### [Deltek Ajera](/bi/deltek-ajera-profile/) - Overall rating: 3.6/5 - Reviews: 62 - Free trial: Not available - Free demo: Not available #### Overview Deltek Ajera is a project management and project-based accounting system that helps small architecture and engineering firms get paid faster, keep projects profitable, and see [Read more](/bi/deltek-ajera-profile/) #### Features ##### Best rated features - Budget Management: 5/5 - Multiple Projects: 5/5 - Invoice History: 5/5 - Project Planning/Scheduling: 5/5 ##### Worst rated features - Timesheet Management: 4/5 - Collaboration Tools: 4/5 [See all features](/bi/deltek-ajera-profile/#key-features) --- ### [ExpensePoint](/accounting/expensepoint-profile/) - Overall rating: 4.8/5 - Reviews: 354 - Starting price: $10.50/month - Best for: Value for money - Free trial: Not available - Free demo: Available #### Overview ExpensePoint is an expense management platform that helps midsize and large businesses streamline expense reporting, compliance, and analysis. It includes automated mileage [Read more](/accounting/expensepoint-profile/) #### Features ##### Best rated features - Time & Expense Tracking: 5/5 - Secure Data Storage: 5/5 - Booking Management: 5/5 - Bank Reconciliation: 5/5 ##### Worst rated features - Reminders: 2.5/5 [See all features](/accounting/expensepoint-profile/#key-features) #### Pricing ##### Per User - Price: $10.50/month ##### Per Report - Price: $10.50 ##### Enterprise or Site Subscription - Price: Custom - Pricing available upon request [See full pricing details](/accounting/expensepoint-profile/#pricing-and-plans) --- ### [Deltek Costpoint](/project-management/deltek-costpoint-profile/) - Overall rating: 3.9/5 - Reviews: 215 - Free trial: Available - Free demo: Not available #### Overview Deltek Costpoint is an ERP for government contractors that gives firms the speed, clarity, and control to manage complex contracts from pursuit through closeout. It connects [Read more](/project-management/deltek-costpoint-profile/) #### Features ##### Best rated features - Compliance Management: 5/5 - Collaboration Tools: 5/5 - Task Management: 5/5 - Project Planning/Scheduling: 5/5 [See all features](/project-management/deltek-costpoint-profile/#key-features) --- ### [M3 Accounting Core](/accounting/m3-profile/) - Overall rating: 4.7/5 - Reviews: 11 - Free trial: Not available - Free demo: Not available #### Overview M3 Accounting Core Software is a cloud-based accounting solution that helps streamline financial operations for small to large businesses in the hospitality industry. The software [Read more](/accounting/m3-profile/) #### Features ##### Best rated features - Expense Tracking: 5/5 - Transaction Management: 5/5 - Accounts Payable: 5/5 - Billing & Invoicing: 5/5 [See all features](/accounting/m3-profile/#key-features) --- ### [Deltek Vantagepoint](/reporting-tools/deltek-vantagepoint-profile/) - Overall rating: 4.0/5 - Reviews: 490 - Free trial: Not available - Free demo: Not available #### Overview Deltek Vantagepoint is an AI-powered, project based ERP that helps architecture, engineering, and consulting firms manage projects and financials in one application — so teams gain [Read more](/reporting-tools/deltek-vantagepoint-profile/) ##### What users love - Comprehensive project oversight tools - Flexible and adaptable customization options - Efficient time and task tracking ##### To take in mind - Complex and unintuitive reporting tools - Outdated interface and update issues #### Features ##### Best rated features - Employee Management: 5/5 - Activity Dashboard: 5/5 - Customizable Invoices: 5/5 - Project Accounting: 5/5 [See all features](/reporting-tools/deltek-vantagepoint-profile/#key-features) --- ### [Fraxion](/scm/fraxion-profile/) - Overall rating: 4.4/5 - Reviews: 130 - Best for: Customer support - Free trial: Not available - Free demo: Not available #### Overview Fraxion provides a complete procure-to-pay solution for purchasing, expense, and AP automation with advanced spend analytics. The all-in-one procure-to-pay suite [Read more](/scm/fraxion-profile/) #### Features ##### Best rated features - Document Imaging: 5/5 - Contract/License Management: 5/5 - Quotes/Estimates: 5/5 - Fixed Asset Management: 5/5 ##### Worst rated features - Mobile Access: 2/5 - Fraud Detection: 2.4/5 [See all features](/scm/fraxion-profile/#key-features) --- ### [MIP Accounting](/product/121198-MIP-Accounting/) - Overall rating: 4.1/5 - Reviews: 69 - Starting price: $0.01 - Free trial: Not available - Free demo: Not available #### Overview MIP is the leading accounting software designed for mission-driven organizations, including nonprofits, schools, healthcare, associations, and government entities. It provides [Read more](/product/121198-MIP-Accounting/) #### Features ##### Best rated features - General Ledger: 5/5 - Income & Balance Sheet: 5/5 - API: 5/5 - Accounts Payable: 5/5 ##### Worst rated features - Payroll Management: 1/5 - Grant Management: 1/5 [See all features](/product/121198-MIP-Accounting/#key-features) --- ### [Versa Cloud ERP](/accounting/versaccounts-profile/) - Overall rating: 4.8/5 - Reviews: 23 - Starting price: $0.00/month - Free trial: Not available - Free demo: Not available #### Overview Versa is Modern all-in-one Cloud ERP software created for fast growing inventory heavy manufacturing, distribution, and e-commerce businesses moving to the next level. Versa [Read more](/accounting/versaccounts-profile/) #### Features ##### Best rated features - Reporting/Analytics: 5/5 - Search/Filter: 5/5 - Inventory Control: 5/5 - Inventory Management: 5/5 [See all features](/accounting/versaccounts-profile/#key-features) --- ### [Procurify](/accounting/procurify-profile/) - Overall rating: 4.6/5 - Reviews: 208 - Best for: Value for money - Free trial: Not available - Free demo: Not available #### Overview Procurify is the agentic procurement platform for finance and operations teams that understands your vendors, budgets, and policies. It delivers complete spend control across [Read more](/accounting/procurify-profile/) #### Features ##### Best rated features - Quotes/Estimates: 5/5 - Customizable Reports: 5/5 - Warehouse Management: 5/5 - Audit Management: 5/5 [See all features](/accounting/procurify-profile/#key-features) --- ### [Phocas](/bi/phocas-profile/) - Overall rating: 4.7/5 - Reviews: 136 - Starting price: $150.00/month - Best for: Features - Free trial: Not available - Free demo: Not available #### Overview Phocas is a SaaS platform designed to help mid-market businesses in manufacturing, wholesale distribution, and retail make data-driven decisions. Combining business intelligence [Read more](/bi/phocas-profile/) #### Features ##### Best rated features - Real-Time Analytics: 5/5 - ETL: 5/5 - Key Performance Indicators: 5/5 - Data Management: 5/5 ##### Worst rated features - Data Cleansing: 3/5 - Collaboration Tools: 3.5/5 [See all features](/bi/phocas-profile/#key-features) --- ### [BQE CORE Suite](/accounting/bqe-core-accounting-profile/) - Overall rating: 4.5/5 - Reviews: 796 - Best for: Small businesses - Free trial: Available - Free demo: Not available #### Overview BQE CORE is a cloud-based accounting and invoicing software designed for architecture, engineering, and consulting firms. The platform enables users to streamline operations and [Read more](/accounting/bqe-core-accounting-profile/) ##### What users love - Responsive and knowledgeable support team - Intuitive and adaptable interface design - Flexible and efficient invoicing tools ##### To take in mind - Limited and confusing reporting options - Challenging migration and workflow issues - Frequent lag and slow loading times #### Features ##### Best rated features - Budgeting/Forecasting: 5/5 - Percent-Complete Tracking: 5/5 - Real-Time Data: 5/5 - Client Management: 5/5 ##### Worst rated features - Gantt/Timeline View: 1/5 - Cost Estimating: 2/5 - Forecasting: 2/5 [See all features](/accounting/bqe-core-accounting-profile/#key-features) #### Pricing ##### Foundations - Price: Custom - Pricing available upon request [See full pricing details](/accounting/bqe-core-accounting-profile/#pricing-and-plans) --- ### [Symphony](/accounting/integratouch-symphony-profile/) - Overall rating: 5/5 - Reviews: 1 - Starting price: $1,000.00 - Free trial: Not available - Free demo: Not available #### Overview An Inc. 5000 fastest growing private company, recognized by Gartner as a top viable vendor for Integrated Revenue and Customer Management solutions via its Symphony [Read more](/accounting/integratouch-symphony-profile/) --- ### [Plooto](/accounting/plooto-profile/) - Overall rating: 4.3/5 - Reviews: 245 - Starting price: CA$9.00/month - Best for: Ease of use - Free trial: Available - Free demo: Not available #### Overview Plooto is an all-in-one platform that enables businesses to automate their domestic and international accounts payable and accounts receivable functions by unifying payments, [Read more](/accounting/plooto-profile/) ##### What users love - Streamlined accounting connections - Clean and accessible design - Simple and intuitive experience ##### To take in mind - Delays and workflow limitations - Unresponsive and limited assistance #### Features ##### Best rated features - Multi-Period Recurring Billing: 5/5 - Accounting Integration: 5/5 - Receipt Management: 5/5 - Recurring Invoicing: 5/5 ##### Worst rated features - Credit Card Processing: 1/5 [See all features](/accounting/plooto-profile/#key-features) #### Pricing ##### Go - Price: CA$9.00/month - Manage low client payment volumes and set up basic approval workflows. This plan is only available ##### Grow - Price: CA$32.00/month - Trial period includes 10 free domestic transactions. After this, domestic payments can be sent and ##### Pro - Price: CA$99.00/month - Implement complex payment operations with advanced controls. [See full pricing details](/accounting/plooto-profile/#pricing-and-plans) --- ### [Aplos](/nonprofit/aplos-profile/) - Overall rating: 4.4/5 - Reviews: 189 - Starting price: $79.00/month - Best for: Customer support - Free trial: Available - Free demo: Not available #### Overview Aplos is a dedicated accounting solution engineered specifically for the unique financial demands of nonprofit organizations. We understand the complexities of managing restricted [Read more](/nonprofit/aplos-profile/) #### Features ##### Best rated features - Financial Analysis: 5/5 - Customizable Templates: 5/5 - Reporting/Analytics: 5/5 - Customizable Reports: 5/5 [See all features](/nonprofit/aplos-profile/#key-features) #### Pricing ##### Lite - Price: $79.00/month ##### Core - Price: $129.00/month ##### Advanced - Price: Custom - Pricing available upon request [See full pricing details](/nonprofit/aplos-profile/#pricing-and-plans) --- ### [Focus X](/product/3600-focus/) - Overall rating: 3.8/5 - Reviews: 119 - Starting price: $60.00/month - Free trial: Not available - Free demo: Not available #### Overview Focus X is an all-inclusive enterprise resource planning (ERP) system that helps you connect every aspect of your business operations. From production to supply chain, customer [Read more](/product/3600-focus/) ##### What users love - Robust and flexible reporting tools - Flexible system adaptation options ##### To take in mind - Slow and unreliable support response #### Features ##### Best rated features - Project Accounting: 5/5 - Online Payments: 5/5 - Scheduling: 5/5 - Mobile App: 5/5 ##### Worst rated features - Fraud Detection: 1/5 [See all features](/product/3600-focus/#key-features) --- 1 [2](https://www.softwareadvice.com/category/506-small-business-accounting/?__ai_markdown=true&page=2)[3](https://www.softwareadvice.com/category/506-small-business-accounting/?__ai_markdown=true&page=3)[4](https://www.softwareadvice.com/category/506-small-business-accounting/?__ai_markdown=true&page=4)[5](https://www.softwareadvice.com/category/506-small-business-accounting/?__ai_markdown=true&page=5) ... [13](https://www.softwareadvice.com/category/506-small-business-accounting/?__ai_markdown=true&page=13) ## Popular Comparisons [ QuickBooks Online vs QuickBooks Enterprise ](https://www.softwareadvice.com/compare/49801-qb-desktop-enterprise/vs/393202-QuickBooks-Online/)[ Xero vs FreshBooks ](https://www.softwareadvice.com/accounting/freshbooks-profile/vs/xero/)[ Sage Intacct vs NetSuite ](https://www.softwareadvice.com/accounting/intacct-accounting-profile/vs/netsuite-financials-accounting-software/)[ Zoho Invoice vs Wave ](https://www.softwareadvice.com/compare/18767-Wave-Apps/vs/435103-zoho-invoice/)[ Limble vs MaintainX ](https://www.softwareadvice.com/cmms/limblecmms-profile/vs/maintainx/)[ Odoo vs Cin7 Core ](https://www.softwareadvice.com/scm/dear-systems-profile/vs/odoo/) ## Your Guide to Top Small Business Accounting Software, September 2022 Software Advice uses reviews from real software users to highlight the top-rated Small Business Accounting products in North America. [Learn how products are chosen](https://www.softwareadvice.com/legal-page/frontrunners-methodology/) #### Explore FrontRunners - [Agiled](https://www.softwareadvice.com/project-management/agiled-profile/) - [HoneyBook](https://www.softwareadvice.com/crm/honeybook-profile/) - [abcoa Deal Pack](https://www.softwareadvice.com/accounting/abcoa-deal-pack-profile/) - [Patriot Accounting](https://www.softwareadvice.com/accounting/patriot-profile/) - [Ramp](https://www.softwareadvice.com/product/115155-Ramp/) - [Elorus](https://www.softwareadvice.com/accounting/elorus-profile/) - [MoneyMinder](https://www.softwareadvice.com/accounting/moneyminder-profile/) - [BQE CORE Suite](https://www.softwareadvice.com/accounting/bqe-core-accounting-profile/) - [Striven](https://www.softwareadvice.com/project-management/striven-profile/) - [Synder](https://www.softwareadvice.com/accounting/synder-profile/) - [ZarMoney](https://www.softwareadvice.com/accounting/zarmoney-profile/) - [Pilot](https://www.softwareadvice.com/product/80712-Pilot/) - [FreshBooks](https://www.softwareadvice.com/accounting/freshbooks-profile/) - Deskera Books - [Workday Financial Management](https://www.softwareadvice.com/accounting/workday-financial-management-profile/) - [SAP Business One](https://www.softwareadvice.com/accounting/sap-business-one-profile/) - [Zoho Books](https://www.softwareadvice.com/accounting/zoho-books-profile/) - [Wave](https://www.softwareadvice.com/product/18767-Wave-Apps/) - QuickBooks Desktop Premier - [Accounting Seed](https://www.softwareadvice.com/accounting/accounting-seed-profile/) - [Plooto](https://www.softwareadvice.com/accounting/plooto-profile/) - [TallyPrime](https://www.softwareadvice.com/accounting/tally-profile/) - [Xero](https://www.softwareadvice.com/accounting/xero-profile/) - [Sage 100](https://www.softwareadvice.com/distribution/sage-100cloud-profile/) - [QuickBooks Desktop](https://www.softwareadvice.com/accounting/quickbooks-pro-profile/) “Usability” includes user ratings for Functionality and Ease of Use. “Customer Satisfaction” includes user ratings for Customer Support, Likelihood to Recommend and Value for Money. Reviews analysis period: The reviews analysis period spans two years and ends the 15th of the month prior to publication. ## Send me a copy of this list to my inbox ### Get a copy of this list with pricing info sent to your inbox so you can pick up where you left off when convenient to you. ## What is small business accounting software? Small business accounting software is software used by small businesses to track incoming and outgoing financial transactions as well as financial statements and cash flow. While traditionally small businesses have tracked financial information on tools such as spreadsheets, these manual methods are time-consuming and less accurate. Spreadsheets also do not offer the automation and notification capabilities of a dedicated tool. With small business accounting software, users can eliminate the need to create a spreadsheet and manually enter each transaction detail. Instead, they gain the flexibility of integrating with third-party tools such as point-of-sale software to automatically input data. These tools can also generate branded invoices, send notifications upon certain financial transactions or milestones, and provide an overview of the business’ budget. Given all this, it can be tricky for small businesses to identify the right accounting software for their needs. We developed this guide to help buyers understand exactly what these products offer, so they can select the solution that is the best fit. ## What are common reasons small businesses seek accounting solutions? Thousands of small businesses contact us every year looking for help selecting the accounting solution best suited to them. Some of these buyers are just getting started, while others are looking to replace an outdated or problematic system. Small businesses most commonly purchase an accounting system because they are: - Seeking to upgrade to a software system with more advanced features. - Seeking to automate functions that were previously done manually. - Looking to [generate better financial reports](https://www.softwareadvice.com/accounting/financial-reporting-comparison/). - In need of specific features (e.g., project or job accounting). - Frustrated with their current accounting software (e.g., it is not user-friendly). ## Common Features of Small Business Accounting Software There are several different applications for buyers to choose from, which can be purchased either as a standalone application or along with other related applications, as part of an integrated software suite (more on this below). Make sure the system you purchase covers all the functionality you’re going to need. Here are some of the most common small-business accounting applications: | Column 1 | Column 2 | Column 3 | | --- | --- | --- | | Application | Function | Best for... | | Accounts payable / accounts receivable (AP/AR) | The fundamental bookkeeping application, which tracks what is owed to a company by its customers (accounts receivable) as well as what the company owes its suppliers, also known as its liabilities (accounts payable). | All small businesses (especially those without a dedicated bookkeeper); this is an essential accounting function. | | Financial reporting | Reporting applications allow businesses to export data from their accounting system in a structured manner that communicates financial history as well as financial projections. Some may include compliance-related functionality for government or industry audits (e.g., in banking and financial services). | Any small business with seasonal or otherwise dynamic cash flow that needs to be tracked closely. Also, businesses that need to provide financial reports to stakeholders or to regulatory institutions for compliance. | | Budgeting & forecasting | Budgeting applications allow small businesses to model potential financial outcomes and to compare actual profit and loss to planned budgets, which helps with decision-making about workforce, spending and growth. Some systems have dashboards that display information visually. | Small businesses that are currently growing or considering expanding. | | Fixed asset accounting | Fixed asset applications focus on tracking assets that aren’t easily converted to cash: For a small business, assets will typically be “tangible,” such as land, buildings or equipment. These applications calculate the value of such assets over time, allowing for depreciation due to wear and tear. | Small businesses with substantial tangible assets, or any business that, for tax purposes, may benefit from reporting depreciations to assets. | --- ## How is small business accounting software priced? Most small businesses will want to consider cloud-based accounting solutions. Because these systems are hosted online by the vendor, they eliminate the need for you to have a dedicated IT team for managing and maintaining your own server. Conversely, an “on-premise” deployment means the software is hosted locally, on your company’s own servers (which you are responsible for maintaining). Choosing a Web-based system drastically reduces upfront investment and installation costs. In addition, these systems typically offer monthly subscription pricing, which makes them scale well for fast-growing companies that need to add additional user licenses or features down the road. On-premise systems, on the other hand, come with a steeper, one-time fee to use the software in perpetuity. At present, some businesses may still see savings with an on-premise system, especially if they already have the necessary hardware to host the software on-site. While on-premise solutions usually require purchasing an expensive perpetual license up front, this may still be the cheaper option if you use the same system over an extended period of time. However, keep in mind that with on-premise solutions, you might also pay additionally for upgrades, customizations and maintenance. ## What should you consider when purchasing accounting software for your small business? With so many options and feature sets to choose from, selecting the right accounting solution can quickly become an overwhelming task. To narrow things down, here are three key factors for small businesses to keep in mind while evaluating different products: **Best-of-breed vs. integrated suite options.** Because accounting encompasses so many functions, from fund accounting to [billing and invoicing](https://www.softwareadvice.com/accounting/billing-invoicing-software-comparison/), many entry-level products are actually “best-of-breed” solutions. This means they focus on only one of the core applications listed in the table above. “Integrated suites,” meaning solutions combining multiple applications in one software package (often billed as “professional” or “enterprise” editions), have much greater functionality, but are also are much more expensive. So before you begin shopping, start with a clear assessment of exactly which functions you need. The “Best for...” column in the chart above provides recommendations as to which applications are best for which types of businesses. **Automation capabilities.** Many small businesses we speak with say they’re replacing their accounting system in order to reduce the inaccuracies that come with manual entry and to automate more of their processes. Small businesses should pay particular attention to the degree of automation that a system provides as they evaluate accounting software for small business. If your company is growing, it's especially important to track everything in a system that can verify entries for accuracy and automate recurring functions to ensure that nothing slips through the cracks. **Integration with other programs.** While small businesses may not have as many integration requirements as larger companies, your accounting software’s ability to sync with other programs could still be a factor. Consider whether your desired accounting system can integrate with any of your company’s current stand-alone applications—for example, if you have a [payroll system designed to support small businesses](https://www.softwareadvice.com/hr/small-business-payroll-comparison/), or a [retail point-of-sale (POS)](https://www.softwareadvice.com/retail/) system that will need to integrate with restaurant accounting software functionality. Moreover, integration with banking institutions and credit cards can make it much easier to keep track of your company financials in real-time. Accounting software can sync with your online accounts automatically, so you don’t have to enter transaction information manually.