How To Find the Best Accounting Software For Your Business

One of the first things you want to do when starting a business is figure out the finances. Finances are a tricky aspect of any business and can be overwhelming if you don’t enjoy keeping track of numbers, but no business can run without them. 

Luckily, there are different accounting software that can help you keep track of your finances and keep everything organized- something your Excel sheet probably isn’t doing. 

So, here are a few ways to find the best accounting software that your business (and your accountant) will love.

What to Consider

When looking for accounting software, there are five main features you want to consider before you commit. They are: 

• Cost
• Ease of Use
• Integration
• Payroll / Advanced features
• Professional Familiarity

Let’s break it down.

Cost

If your business isn’t bringing in a lot of income, you’ll want to look at affordable options that won’t break the budget. The free plan of most software should be enough to tide you over until you can make enough money to get the bells and whistles. 

Ease of Use

When picking your accounting software, you want something easy to navigate that doesn’t have confusing instructions or unnecessary steps. You also want something that’s as glitch-free as possible, has regular maintenance and updates, and runs smoothly. 

Integration

Another thing to consider is the integration. Does the software integrate well with your CRM? What about your bank? The integration with your bank is crucial because, even if it says it connects, there may be issues with it down the line. So, double and triple-check that the software you chose integrates well with the programs you need. 

Payroll / Advanced Features

Even if you don’t need payroll now, you might need it in the future. Therefore, try to start with the software that lets you add payroll as you need- otherwise, you risk wasting a lot of time and effort transferring your data into the software that will. Same with other advanced features, such as multi-currency. Even if it costs a little more, having everything in one place will save you time (and a massive headache) in the long run.

Professional Familiarity 

Finally, you should find software that other accounting professionals will recognize. That way, when you eventually hire an accountant, they can grab all your information directly from the source without wading through unfamiliar territory. Trust me- they’ll thank you for it! 

My Top Accounting Software (Ranked)

Now that you know what to look for, here are my favorite accounting software and how I rank them. 

Wave

Wave is a free financial tracker that lets you create unlimited estimates, send invoices, pay bills, and monitor your bookkeeping records. They also have the option to accept online payments, and you can even invoice on-the-go via the Wave app. Plus, you can manage your cash flow and customer relationships in one dashboard.

The downside is that you can’t integrate Wave unless you have a middleman (like Zapier), and only the PRO plans ($16 / Month) can integrate directly with their bank. Plus, payroll and other advanced features cost extra, even under the PRO plan. 

Therefore, I rank Wave a B. 

It’s great if you need the basics, but don’t count on it for anything beyond that without opening your checkbook. 

Freshbooks

Another option in accounting software is Freshbooks. It offers easy-to-use features for businesses of all shapes and sizes, and their Lite plan is only $9.50 / Month and gives a ton of features, including: 

• Five billable clients
• Client profiles
• Client credit
• Unlimited estimates
• E-signatures
• Unlimited, customized invoices
• Automations
• Late fees
• Online payments
• Online bank transfers
• Unlimited expenses
• Tax reports
• Business health reports
• And more!

The sad news is that their payroll system is a bit costly and adds another $40 / Month plus $6 / Month per employee on top of your base Freshbooks subscription. However, it does offer unlimited everything, so you might consider it if you decide to use Freshbooks indefinitely. 

It’s also why I give Freshbooks a B.

It has everything you need in one location and integrates with over 100 of your favorite business apps, but the pricing of their add-ons could make you reconsider. 

Quickbooks

Quickbooks is a household name in the accounting world- and with good reason!

With the basic plan ($15/month), you can:

• Access expert tax help with the new QuickBooks Live Tax
• Track your income and expenses
• Bank with 5.00% APY
• Enjoy bookkeeping automation
• Send invoices and receive payments
• Calculate tax deductions
• Generate reports
• Capture receipts
• Track mileage
• Regulate cash flow
• Calculate sales tax
• Manage your bills
• And more!

Unfortunately, payroll is a separate service that costs more, but you can bundle it with the basic plan and pay $37.50/Month. 

Therefore, I rank Quickbooks an A. 

It’s affordable, well-recognized, and has everything you need to run your business and keep your employees happy. 

Honorable mentions:

Xero

Xero is the basic of the basic when it comes to accounting software, but it gets an honorable mention for affordability, ease of use, and integrations. 

With a mere $6 / Month, you can:

• Send quotes and 20 invoices
• Enter and manage five bills
• Reconcile bank transactions
• Capture bills and receipts with Hubdoc
• Create a short-term cash flow and business snapshot
• Manage your W-9 + 1099s
• Calculate sales Tax
• Use Payroll with Gusto (an optional add-on) 

Or, you can pay their highest plan of $31.20 / Month and get all that, plus:

• The ability to bulk reconcile transactions
• Use multiple currencies
• Track projects
• Claim expenses
• And gain insight with Analytics Plus

Xero also integrates with over a hundred apps, which makes it one of the most affordable, versatile accounting programs.  

For these reasons, I rate it a B. 

It’s not my favorite, but it could help other small businesses get their footing and create a long-term plan that won’t break the bank. 

Final Thoughts

Even if you don’t have an accountant, you want to set up your accounting software as soon as possible. With the criteria above, you’ll be able to choose the right accounting software for your business and get your finances in order in no time. 

Trust me, your future (or current) accountant will love you for it.