Best Small Business Accounting Software: 5 Best Accounting Software for Small Businesses

Speaking of “Best Small Business Accounting Software” small businesses that are just starting off online tend to benefit from accounting software.

This is because it helps them keep track of accounts both receivable and payable, and also have a clear understanding of their profitability.

In this article, we shall be looking at some of the best small business accounting software with their features, integrations, and other necessary factors.

Best Small Business Accounting Software

There are many kinds of accounting software available for small businesses that also come with varying price tags.

However, when it comes to selecting the best accounting software for small businesses, two major factors that are at play are the type of industry and the number of employees.

Read Also >>> How to Set Up Google Classroom – How Does Google Classroom Works – Set Up Google Classroom

These factors help you to make the right choice regarding which accounting software you should use for your business.

Best Small Business Accounting Software | 5 Best Accounting Software for Small Businesses

Below are some of the best small business accounting software.


It’s safe to say that Xero is the best accounting software for micro-businesses that are looking for just simple accounting software.

Xero really stands out when it comes to its clean interface, also, the software is fully integrated with a third-party payroll, which allows businesses to collect payment from customers through Xero’s integration with GoCardless and Stripe.


  • Mobile app
  • Cloud-based
  • Third-party app marketplace
  • Simple inventory management
  • Payroll integration with Gusto


  • Fees charged for ACH payments
  • Limited reporting
  • Limited customer service


Some people consider this the best accounting software for small businesses based on reviews, which could be arguable.

Notwithstanding that QuickBooks is the accounting software used by the majority of small businesses, the endless online training resources available even make it more understandable and user-friendly.


  • Scalable
  • Cloud-based
  • Integration with third-party applications
  • Commonly used by accounting professionals
  • Mobile app


  • Occasional synching problems with credit cards and banks
  • The upgrade is required for more users


This software offers more customization for invoicing than most of its counterparts. The major function of FreshBooks is to send, receive, pay, and print invoices.

This software makes it easy for a serviced-based business to send proposals, requests, deposits, and other payment activities.


  • User-friendly interface
  • Affordable
  • Advanced invoicing features
  • Cloud-based
  • Third-party app integration


  • No inventory management
  • Limitations in the mobile app.
  • No payroll service.

Check Out >>> Free Accounting Software: Best Free Accounting Software To Decide From


This accounting software is used mostly by service-based businesses and freelancers. It basically sends simple invoices and doesn’t need to keep track of inventory or payroll. Wave’s features are one of the highest-rated and reviewed accounting software.


  • No transaction or billing limit
  • Unlimited number of users
  • Free accounting, invoicing, and receipt scanning
  • Run multiple businesses in one account
  • Mobile app


  • Higher fees for credit cards and ACH payments
  • No inventory management
  • Limited third-party app integrations
  • Full-service payroll is limited to only 14 states


If you are an independent contractor or a part-time free-lancer who basically wants to track income and expenses for tax returns this software is the best choice for you.

QuickBooks Self-Employed does all the heavy lifting when it comes to digging through credit card statements to add up the income and expenses at the end of each year, which you know, could be really stressful.


  • Track mileage
  • Cloud-based
  • Mobile app
  • Syncs with Turbo Tax
  • Differentiates between businesses and personal expenses


  • Limited invoicing functionality and customization
  • Limited reporting
  • Data cannot be easily transferred to their accounting software

These are the top picks for the best accounting software for small businesses, their functionality, features, and scalability are all highlighted as above.

Make sure you do your research properly, considering what kind of businesses you’re running before going ahead to make a choice.

Other Related Posts


Please enter your comment!
Please enter your name here