Accounting software reduces the amount of time spent on data entry. It allows users to synchronise their business bank accounts and credit cards with the software. Once synced, transactions will flow into the accounting software, where they can be categorized into various accounts.

While most accounting systems are easy to use, a general understanding of accounting principles is needed to ensure that financial reports are prepared correctly. For this reason, many businesses hire bookkeepers or accountants to maintain or review their books.

Cloud-based online accounting software makes it convenient for businesses to access their books at the same time as their bookkeeper or accountant.

Small business owners benefit from accounting software because they can track accounts receivable and payable, have a clear understanding of profitability, and prepare for the tax season. In the world of accounting software, small businesses are companies that can use out-of-the-box software without extensive customization. As your business grows, its accounting needs become more complex and often require custom enterprise resource planning systems.

There are many different types of small business accounting software with different features and price tags. Industry type and number of employees are two factors that help small business owners choose the right accounting software.

QuickBooks Online is the best small business accounting software outlined. Many small business accounting professionals not only use QuickBooks Online, but also have endless online training resources and forums to get help as needed. All accounting functions are conveniently accessible from the main dashboard, making accounting smoother and more efficient.

Pros

Commonly used by accounting professionals.
Integration with third-party applications.
Cloud-based.
Mobile app.
Cons

Upgrade required for more users.
Occasional syncing problems with banks and credit cards.
Intuit�s QuickBooks Online has been the most common accounting software used by small businesses and their bookkeeping and tax professionals. The software is cloud-based and can be accessed through a web browser or through the mobile app.

After the 30-day free trial, the four options for subscription plans include: Simple Start at �18.62 per month, Essentials at �29.79 per month, plus at �52.13 per month, and Advanced at �111.70 per month. Typically, there is a significant discount offered for the first few months, and some?accountants are able to offer wholesale pricing to small businesses, as well.

The most crucial accounting need for most service-based businesses is invoicing. FreshBooks offers more customizations for invoicing compared to other accounting software. Its primary function is to send, receive, print, and pay invoices, but it can also take care of a business� basic bookkeeping needs as well. This accounting software makes it easier for service-based businesses to send proposals and invoices, request deposits, collect client?retainers, track time on projects, and receive payments.

Pros

Cloud-based.
User-friendly interface.
Third-party app integration.
Advanced invoicing features.
Cons

No inventory management.
No payroll services.
Mobile apps have limitations.
FreshBooks started as just an invoicing software. Over time, more features have been added and FreshBooks now has over 500 employees.?There are four different plans, and businesses can get a 10% discount if they choose to pay yearly, rather than monthly. Additionally, FreshBooks offers a 60% off discount per month for six months. The four plans are: Lite at �4.47 per month, plus at �7.45 per month, Premium at �14.89 per month, and select, which is a custom service with custom pricing.

Xero can easily be the best in our review for microbusinesses that are looking for very simple accounting software. This software has a clean interface and fully integrates with a third-party payroll service. Businesses can collect payment online from customers through Xero�s integration with Stripe and GoCardless.

Pros

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

Limited reporting.
Fees charged for ACH (Automated Clearing House) payments.
Limited customer service.
Xero offers three monthly subscription options and a full-service payroll add-on: Early at �8.19 per month, growing at �23.83 per month, and established at �46.17 per month. The full-service payroll option is offered through Gusto and is an additional �29.04 per month, plus �4.47 per employee. The company offers a 30-day free trial and a promotion for 50% off for two months.

A phone calculator on top of accounting documents

The Sage Accounting System is a computerized package with many features for processing financial information. The system collects and categorizes your information and aggregates the data in an accessible way so that users can easily view their financial information.

Pros

Ability to print out invoices.
Updating customer and supplier records.
Making payments.
Automatic update of the general ledger.
Automatic altering of stock levels.
Automatic calculation of payroll.
Summarises customer accounts with overdue balances.
Valuation of stock.
Analyse sales.
VAT returns.
Cons

Very difficult and time-consuming to set up. Each business needs to find a Sage expert to get the most out of the program.
Not easy to use so staff will need training. Users that are not accountants tend to have a hard time navigating the system.
A lot of the features are over-complicated.
The homepage can become cluttered, making the system seem imposing, if not customised.
Lack of Efficiency when it comes to Journal Entry.
Security concerns as financial data are stored within the cloud.
Costly and geared towards larger businesses.
Lack of documentation and support.
Poor customer service (takes time and can be met with unhelpful advisors).
Sage offers three types of pricing plans: Accounting Start (�89.27 per annum, 5% discount), Accounting Standard (�162.79, 5% discount) and ultimately, Accounting Standard PLUS Payroll (Bundle price starting from �166.05).

The first two come with an option of trying out a free trial. The different between second and third is not that huge.It is suggested going for the third option because it is all inclusive. You get payroll features which handy when you are a business owner with a substantial number of employees. The system can send out emails of wages and has other useful features. These are all base prices � you can add features on your subscription that are tailor made for your business needs.

Zoho Books is an accounting system that is perfect for a small business with 1-10 employees. It is flexible enough and quite inexpensive compared to other products on the market.

Zoho Books can pull off accurate Cash Flow Statements, P&L and balance sheets, and a number of custom reports that can allow you to use it in accordance with your business details. It integrates pretty well with other Zoho products. Which allows a small business to build an integrated infrastructure at a reasonable budget, by mixing Books, CRM, survey, PayPal, OneDrive, Google Drive, Worldpay, etc. It is definitively the easy option for anyone who is still at their rudimentary stages of a business venture.

Pros

Unlimited payments from all locations.
Easy financial management adjustments.
Automates a lot of billing systems.
Helps in forecasting every (or most) financial aspects of the business.
It also comes in at least 10 different languages.
Cons

Plan restrictions based on user.
No payroll services.
Limited integration options when compared to its competitors.
Zoho Books, like most accounting systems, offers a free trial period of one month and then with follows a four-pricing plan strategy:

Free plan (Free per month, up to 2 users and an option of adding �1.86 per user).
Standard Plan (�14.89 / organisation per month, up to 2 users + business accountant).
Professional plan (�37.23 / organisation per month, up to 5 users),
and Enterprise plan (�52.13 / organisation per month, up to 10 users).
The more money you pay, the better the package you will get.
Depending on the sector that your business operates in, all the accounting systems are efficient. They are all effective business tools It is a matter of what you want, how much you are willing to part with and/or compromising on � in terms of business needs.

We prefer �Sage� above all. Whilst one can recommend �FreshBooks� because of its user-friendly layout, an argument about the overall functionality and professional feel between �FreshBooks� and �Sage� is a debatable matter. From generating meaningful reports to the analytical capabilities of their business intelligence features.