Maintaining proper accounting and bookkeeping processes is vital to ensure the accuracy and prosperity of businesses. Today, accounting technology has been gaining traction for its ability to streamline business bookkeeping and decrease the time and effort spent on related tasks.
To help you navigate the packed accounting software market, we’ve created a list of software tools that we have identified as the optimal accounting solutions for businesses in 2023. This article takes an in-depth look into these seven best accounting solutions and their ideal use cases.
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Consider the software comparison chart below to identify the best accounting software solution for your business. This chart compares how the solutions covered in this article approach prominent accounting software features and their differing price points.
| Starting price | Expense tracking | Invoicing capabilities | Financial reporting | User limits | ||
|---|---|---|---|---|---|---|
| QuickBooks Online | $30/mo. | Yes | Yes | Yes | 25 | Try QuickBooks |
| Zoho Books | $0 for businesses with an annual revenue below $50K USD | Yes | Yes | Yes | Unlimited | Try Zoho |
| FreshBooks | $17/mo. | Yes | Yes | Yes | Unlimited | Try FreshBooks |
| Xero | $13/mo. | Limited to the highest-cost plan | Yes | Yes | Unlimited | Try Xero |
| Wave Accounting | $0 | Yes | Yes | Yes | Unlimited | Try Wave |
| Everlance | $0 | Yes | No | Yes | Unlimited | Try Everlance |
If you’re searching for a top accounting software solution for your business, you have likely heard of QuickBooks Online. This accounting software solution, created by Intuit QuickBooks, is a favorite of ours for its robust features, wide range of integrations and transparent pricing.
As a cloud-based system, QuickBooks Online offers plenty of capabilities for its users, including bank account reconciliation, customizable invoicing, income and expense tracking and more. Some noteworthy features include built-in time-tracking capabilities and cash flow forecasting.
QuickBooks Online is also a fan favorite among small businesses for its ease of use and price tiers, including different features for organizations of various sizes — including freelancers. That said, it comes at a higher price than some other options on this list, so businesses should take their budget into account when considering QuickBooks Online.
New QuickBooks customers have the option of either locking in 50% off for their initial three months of use or signing up for a 30-day free trial of the software.
For more information, read the full QuickBooks Online review.
Zoho Books is another top solution we had to include on this list for its comprehensive features and capabilities. Businesses that choose this software for their accounting needs can streamline their workflows through its automation features and manage each of their financial aspects through this all-in-one tool.
Zoho Books enables users to manage multiple areas of their business finances, taxes, sales, purchases and everything in between. Businesses can also use Zapier extensions or built-in connections to integrate with third-party applications, making it a single source of truth to support each of their financial processes.
A stand-out feature of this software is the collaborative customer portal. This increases transparency between businesses and clients to support straightforward business processes and positive customer relations.
Zoho Books offers a free version of their software for smaller businesses with an annual revenue below $50,000 USD. The paid plans are billed either month to month or yearly at a discounted rate.
The base price of each plan includes a specific number of users; however, businesses can purchase additional users at $3 per user billed monthly or $8 per user per month billed annually.
For more information, read the full Zoho Books review.
An important aspect of accounting software is invoicing, and businesses should choose solutions that will allow them to process sales appropriately. That said, FreshBooks’s invoicing features make it an excellent software choice for freelancers and small businesses that provide services.
Its unlimited allowance of automated invoices and estimates means that services can be easily tracked and managed through this convenient tool. FreshBooks also includes features to facilitate on-time payments, including automated upcoming payment reminders and automatic late fees once the invoice becomes overdue.
Other significant aspects of this system include its built-in time-tracking and project-tracking tools that help to ensure error-free payment processes. And with four differently priced plans aimed towards freelancers, small businesses, midsize businesses and enterprises, any sized organization can find an option to meet their needs.
For more information, read the full Freshbooks review.
For busy users on the go, we have to suggest Xero. Xero offers tools and apps to help users process their accounting from anywhere. This software’s convenience is also supported partly by its intuitive and user-friendly interface that’s easy for users to navigate.
Xero’s software helps businesses streamline their accounting with automatic data capturing and documentation management, so users don’t miss a thing when tracking and reporting their finances. The solution’s multicurrency support also facilitates easy reporting of international business activity.
Finally, it’s worth mentioning that what this software lacks in built-in features, it makes up for through its integrations. Xero supports 1,000+ prebuilt connections with various accounting, e-commerce and payroll systems. Popular integration options include Hubdoc for document scanning and Gusto for payroll.
All plans allow the addition of unlimited users for no additional fee.
For more information, read the full Xero review.
Wave Accounting is an entirely free income and expense tracking software that’s an excellent option for businesses on a budget. However, the system’s economic price point isn’t the only aspect that makes it a great choice. It also provides excellent tools for users looking to optimize their financial tracking and reporting.
Businesses can easily maintain up-to-date transactions and financial snapshots within the system by connecting their bank accounts to Wave Accounting software. Expense management is streamlined and simplified through the receipt scanning feature that automatically categorizes business expenses.
Although Wave Accounting offers users optional add-on services, the base software is forever free. Cost-effective tools such as Wave Accounting’s receipt scanner can be especially beneficial for small businesses and freelancers who want to stay on top of their financial management without breaking the bank.
For more information, read the full Wave Accounting review.
Everlance is a nifty tool for accounting businesses looking to streamline their expense tracking automatically. Everlance manages expenses by connecting to banks, integrating credit cards and processing expense reports.
Businesses can also track their data efficiently through the Everlance mobile app, automatically tracking drivers’ mileage using GPS. These features make it easy to submit, review and approve mileage and expense reports directly within the app so users can maintain accurate records.
Self-employed users and companies alike will enjoy the software’s work expense tracking features, making processing reimbursements a breeze. The integrated solution is also beneficial come tax season, providing features to help with processing employee taxes, taxability reporting and managing compliance.
Everlance offers its software to individual users and businesses through various pricing plans.
Plans for companies:
Plans for individuals:
A fundamental rule in business is that you must spend money to make money. Accounting solutions with expense tracking features help businesses manage their expenditures and ensure that their spending aligns with the company’s goals. These tools allow businesses to track and categorize expenses, sync their spending data, and create expense reports. This feature enables them to keep track of their spending data and gain insights into how their spending impacts their financial health.
Accounting software solutions offer features that facilitate the generation and processing of invoices. These tools can help businesses create customizable invoices, submit them to their clients and monitor their payment status. Many accounting solutions even allow users to send automatic reminders to clients with overdue invoice payments. These features are helpful in terms of tracking income finances and ensuring that the business is appropriately compensated.
A robust accounting software system will provide tools and resources to support users in generating financial reports based on their business data. These reporting capabilities often include features for developing cash flow statements, balance sheets, income statements and other reports that reflect the business’s financial standing. These reports are also often customizable, allowing users to create fine-tuned reports on their unique business scenarios.
Business operations can occur anywhere and at any time. Mobile applications can enhance the flexibility of accounting solutions, allowing users to perform timely accounting actions while on the go. Using these systems through mobile applications can enable businesses to access their financial data and carry out expense tracking, invoicing and other financial management processes from anywhere.
A business’ accounting software should be able to integrate seamlessly with the other solutions in their software stack. Systems with built-in connections with popular third-party business applications and software tools are best, as they can support data syncing between systems and help ensure accuracy in the information used for financial reporting.
Although QuickBooks Online is an impressive solution, there may be better options for your business’s accounting needs. To identify the best accounting software solution for your business, consider the factors necessary for your organization’s financial management and reporting. This can involve aspects such as the number of people that will need to use the software, the type of reports your organization would need to generate and any third-party integration needs.
For example, a business that offers local deliveries may benefit from the mileage tracking features included in Everlance. On the other hand, a solo entrepreneur who performs services could have more luck with an invoice-centric solution such as FreshBooks.
These requirements can help you narrow down the tools that can offer the most valuable features for your business. From here, you can consider your budget and scalability needs and choose a plan that will align with these requirements.
This review is a technical piece based on compiled literature researched from relevant databases. The information provided within this article is gathered from vendor websites or based on an aggregate of user feedback to ensure a high-quality review.
