Compare Accounting Software
Software | Starting price | Best features |
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Intuit QuickBooks Best accounting software Why it’s best overall: QuickBooks is widely regarded as the best online accounting tool available in the market, with stellar critic and user reviews across the board. | $7.50 per month |
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Xero Best for micro businesses Why it’s best for micro businesses: Xero is a lucid automation tool that provides all necessary accounting services. | $12 per month |
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FreshBooks Best for service-industry businesses Why it’s best for service-industry businesses: FreshBooks is a fairly affordable solution with an excellent mobile application built for easy use. | $6 per month |
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Sage 50cloud Best for small-scale businesses Why it’s best for small-scale businesses: Sage 50 cloud is a user-friendly solution with features that simplify accounting and are highly scalable. | $340 per year |
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Wave Financial Best free software Why it’s the best free software: With this efficient, easily-accessible service, you can build an à la carte type subscription according to my business needs. | Free |
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Zoho Books Best CRM for small businesses Why it’s the best CRM for small businesses: Zoho Books is a great solution for businesses looking to outsource everyday tasks and streamline workflows through intelligent data analysis. | Free |
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Kashoo Best for startups Why it’s best for startups: Kashoo markets itself as an easy-to-use cloud accounting service designed to simplify day-to-day operations for small business owners. | $30 per month |
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Patriot Best for accountants Why it’s best for accountants: | $20 per month |
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Deskera Best mobile application Why it’s the best mobile application: | $83 per month |
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Free Agent Best for novice accountants Why it’s best for novice accountants: | $12 per month |
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What You Need to Know about Accounting Software
What is accounting software?
Who uses accounting software?
What is the primary advantage of accounting software over manual accounting?
What are the drawbacks of using accounting software?
Some drawbacks to using accounting software may include:
- Service or data loss
- Inaccurate/incorrectly input information
- Difficulty configuring the system
- High cost
- Fraud
Do I need an accountant if I use accounting software?
How I Rated the Best Accounting Software
Digital accounting software is expected to automate various accounting-related tasks and help streamline business workflows to make them more cost-effective and time-efficient. Your chosen automation tools should help you leverage your business data to generate actionable insights. They should also generate a clear return on investment (ROI) that small to medium businesses can use to justify business costs.
I tested each accounting software by signing up and purchasing a plan to check out what each provider offers new users and how easy it is to navigate each brand’s dashboards and features. I also paid a great deal of attention to the support provided.
Some key features I looked for while researching providers are:
- Basic accounting functionality: A standard piece of digital accounting software is expected to provide: general ledgers, COAs, vendor payments and invoicing, bank reconciliation, tax filing, and preloaded tax, vendor invoice, and other important document templates.
- Automated billing and invoicing: billing and invoicing are the two most frequently conducted accounting operations in any business, and this data can help businesses generate actionable financial insights.
- Payroll integration: good accounting software allows third-party application integration, including payroll services. Payroll-related tasks like tax filing, 401(k) contributions, and institutional insurance are important to any business operation.
- Room for customization: A good accounting services provider should allow you to customize your dashboard according to your business needs.
- Accessibility: Digital business solutions, in general, are expected to be highly accessible, providing efficient mobile applications and mobile website user interfaces (UIs) that help you access relevant data anytime, anywhere.
Learn more about our review methodology.