Kristin Pruis • April 6, 2020
This month particularly, there is so much going on related to finances that I thought it was only fitting to make the whole month of April focused on all things about money in your business.
I think we can all agree that managing your finances isn’t really sexy, but when staying organized and on top of your cash flow means more money in your pocket, it’s something you need to be committed to for the success and growth of your business. That’s just one of the reasons why I am giving my finances some special attention in 2020.
This year, I have some of my biggest goals yet for revenue but I know I won’t be able to meet those if I don’t have a handle on my numbers. A big part of staying financially organized in your business is using an accounting program to help you keep track of all the things. So I wanted to give you a quick breakdown on some of the best accounting software and programs out there for small businesses.
Before I get too much further into this post, I do want to say upfront that I am by no means an accountant. My recommendations are purely based on experience in business for the past 6 years and a little research. If you are a finance professional, I welcome your opinions on the best accounting software and expertise in the comments. Feel free to weigh in!
That being said, let’s get started!
01. QuickBooks – Bookkeeping Software
If you are a small business owner, you have more than likely have heard of Quickbooks. It’s the industry leader in self-accounting software that many business owners use to balance their books and manage their financing. QuickBooks has two main products: the desktop version and the online version.
Their online version has 3 monthly plan tiers depending on the functionality you need and their desktop version has a one-time fee plus a monthly payroll add-on option. Their basic plan for $25/mo. allows you to:
- Track expenses and income
- Track mileage
- Run reports
- Send estimates and invoices
- Collect payments
- Track sales
- Capture and organize receipts
- Manage 1099 contractors
I’ll be honest, I’ve used a trial of QuickBooks before, and as a creative brain, I didn’t love it. The interface was not intuitive and it just didn’t feel like a good fit for my needs. That doesn’t mean it won’t work for you, though. Most CPAs rave about and recommend QuickBooks so if you are a numbers person, this might be just what you are looking for. Right now QuickBooks is running a promotion on all their plans so hop on over to their site to get started!
02. Freshbooks – Small Business Invoicing and Accounting
I think of Freshbooks like the easier-to-use, more fun version of QuickBooks. It may not be quite as robust in functionality, but it has all the key elements that most small business owners need. And for the functions it doesn’t have, it has a ton of integrations with other softwares to extend it’s capabilities. I’ve been a die-hard Freshbooks fan since I started my business because it is so easy to use and work in.
Freshbooks has 3 main product tiers which start at $15/mo for 5 clients. If you have over 500 clients you can request custom pricing. Their basic plan includes:
- Unlimited customized invoices
- Manage expenses
- Accept online payments and ACH transfers
- Automated sync of your bank account
- Unlimited invoices and estimates
- Time tracking and reporting
- Tax reporting
- Add on Team Members ($10/person)
If you’ve been looking for an easy to use accounting and invoicing program, I highly recommend Freshbooks. You can even use this special link to start a free trial or if you are ready to sign up today and skip the trial, you can get your first 6 months for 60% off. This is a pretty amazing deal but it only lasts until April 15, 2020 so if you are interested, don’t wait to check it out.
03. Xero – Accounting Software for Small Business
Xero is another big contender in the online accounting space. They also have 3 main pricing tiers including their Early plan which starts at $9 a month. Their lowest-tier plan has pretty limited features so I wouldn’t be surprised if you needed to start out with their mid-tier plan at $30/mo. however, here’s what is included for their Early plan:
- Send 5 invoices and quotes
- Enter 5 bills
- Reconcile 20 bank transactions
- Capture bills and receipts with Hubdoc
I haven’t used Xero so I can’t speak to its interface or ease of use, but based on the information I’ve found, if you are a service-based business that needs a very basic accounting solution, it might be just what you are looking for. Their Early plan is pretty affordable if you send only a few invoices a month. Just a quick note, all Xero pricing plans will be increasing by $2/mo starting in July 2020, but it’s still competitive to what other softwares are offering. You can start a free trial today.
Do you have a favorite accounting program? Let me know which program you think is the best accounting software in the comments and why you love it! Or if you have questions about Freshbooks, I’d love to tell you more about why I love it. Just shoot me a message.