5 Best Accounting Software for Small Business in 2022

COVID-19 has been having an effect on small businesses for nearly two years. 

You can build smarter, more informed plans for your future as you battle with the current status of your business.

In addition to handling accounts receivable and payable, accounting software allows small business owners to keep track of their profitability and prepare for tax season.

Accounting software can be used out-of-the-box by small businesses without requiring major modifications. The accounting requirements of a company increase as it grows, necessitating its use of an enterprise resource planning (ERP) system.

According to the research, accounting software is utilized by 64.4 percent of small business owners, which is encouraging given that 60% of small business owners claim to have no financial or accounting skills.

Check out our list of the best accounting software for small businesses if you don’t have a good understanding of accounting or even if you do and you want to save time.

We selected them based on features, functionalities, ease of use, pricing, and other factors that are relevant to small businesses.

Accounting Software for Small Businesses in 2022: Top 5

Here is the list of 5 best accounting software for your small business that is listed below:- 

1. QuickBooks

QuickBooks Online, marketed by Intuit, is an accounting program. Its most recent cloud-based update came in 2019, however, it also sells and downloads individual desktop versions. 

Its solutions are primarily aimed at small and medium-sized businesses, and the software is used by over seven million of them.

Because it is simple to use for business owners with little accounting knowledge, we chose it as our runner-up for the best overall accounting software for small firms. 

It’s also simple to set up, inexpensive, and has tools and features that are beneficial to small-business accounting. As a result, it maintains everything in one place and ensures that your company is tax-ready throughout the year.

Features:-

• Financial institution integration 
• User manuals can assist you in filing quarterly and annual tax returns.
• Data on taxes can be exported.
• Sort transactions and costs into tax categories automatically.
• Track expenses 
• Scan receipts
• Share export documents
• Create customized reports 
• Cashflow tracking
• Track miles with your smartphone’s GPS

Pros:                                                                      Cons:

✅ Cloud-Based                                                        ❌ Limited Invoicing   

✅ Track Mileage                                                       ❌ Limited Reporting           

✅ Syncs with TurboTax                                                           

✅ Mobile app

2. Sage Business Cloud Accounting

Small businesses can access online accounting and business services through Sage Business Cloud Accounting.

You can customize it to fit your sector, business size, and requirements. It is now cloud-based. More than three million organizations use it to connect to specific accounting solutions.

Features:-

• Approval Process Control
• Budgeting/Forecasting
• Cash Management
• Forecasting
• General Ledger
• Income & Balance Sheet
• Multi-Company and Currency
• Time & Expense Tracking

Pros:                                                                                Cons:

✅ Exceptionally sophisticated features                                 ❌ A bit tricky   

✅ Great Customizability                                                              

✅ In-depth contact and item records                                             

✅ 24*7 Support

3. Wave

Wave Accounting is a small business software and financial services provider that was created in Toronto in 2010. This program provides billing and accounting as well as credit card processing and payroll. 

It’s cloud-based, simple to use, and even business owners with no accounting or bookkeeping background may use it.  Moreover, all data is backed up, and you can sync your bank accounts to sync your expenses at any time and from anywhere.

It is, nevertheless, ideal for young enterprises, particularly those that use an accountant or other software.

Features:-

• Income and expense statements, as well as cash flow reports
• Unlimited income and expense tracking
• Double-entry system
• Track sales tax on income and expenses
• Multiple users
• Dashboard with easy-to-read financials
• Organize income and expenses into tax categories

Pros:                                                                                 Cons:

✅ Free accounting invoice and receipts                                 ❌ Limited integration   

✅ No transaction billing limits                                              ❌ Limited Payroll           

✅ Unlimited number of users                                               ❌ No Inventory

✅ Mobile app

4. FreshBooks

FreshBooks is a well-known cloud-based accounting service that targets small business owners. Besides the ability to manage invoices, expenditures, time, and even accept credit card payments, the software features a user-friendly interface designed for non-accountants.

Despite its simplicity, this piece has a lot of complexity. You can use the system on your desktop or through its free iOS and Android apps, and because it’s a cloud-based system, you don’t have to worry about backups.

Features:-

• Payment reminders
• Recurring invoices 
• Online Credit Card Payments
• Multi-currency and language billing
• Automatic Tax Calculations 
• Tax-friendly Expense 
• Bank deposits
• Auto bills with bank integration

Pros:                                                                         Cons:

✅ Cloud-Based                                                           ❌ No Payroll Service   

✅ User-Friendly Interface                                            ❌ No Inventory management           

✅ Affordable                                                               ❌ Limited apps

✅ Third-party Integration

5. Zoho Books

Zoho Books is a single portion of a much larger company situated in India that provides a wide range of services to everybody and everyone. 

While Zoho Books has a strong desktop presence, it also has a strong app presence, making it a viable mobile bet. 

Furthermore, the basic plan includes a restricted number of contacts (the maximum number of customers or vendors for which you can generate transactions), two users (you and your accountant), and five automatic workflows.

Above all, Standard is the most common package, which includes up to 500 contacts, three users, and ten automatic workflows. 

Features:-

• Tax compliance and Audit reports
• Invoicing
• Sales orders
• End-to-end accounting
• Client portal
• Automatic tax calculations
• Reports and schedules
• Reconcile bank transactions

Pros:                                                                      Cons:

✅ Manage sales tax collections                                 ❌ Cannot Transfer Income 

✅ 24X7 Support                                                      ❌ Additional Charge

✅ Track time and expenses                                      ❌ Cannot calculate tax 

✅ Track project Profitability

To Sum Up!

In conclusion, we recommend QuickBooks and Sage if you want full-featured accounting software with a great app, a simple interface, and low pricing. These are the most suitable applications for bookkeeping and accounting for small businesses kinds, from freelancers to LLCs, based only on their features and affordability.

Furthermore, finding the best online accounting software for your small business can make a huge difference in your day-to-day operations. With less time spent on data entry, you’ll have more time to focus on the aspects of small-business ownership that you enjoy the most, such as getting to know your customers and creating goods you’re proud of.