10 best bookkeeping software for small businesses in 2023

As a business grows, its accounting needs may become more complex, and the need for accounting and bookkeeping software becomes more apparent.

Studies show that businesses that deploy bookkeeping software or tools in their operation, especially cloud-hosted solutions, reduce operating costs by up to 50% and increase revenue by up to 15%.

To choose the best accounting software options, we evaluated several accounting software and finance management software with functionality for small businesses based on their cost, scalability, and accounting features. Here are our top 10 picks for the best accounting software for small businesses and 6 essential tips for when shopping for bookkeeping software in 2023. 

Checklist for choosing the best bookkeeping software

When researching bookkeeping software for your small business, there are several important factors to consider, and these include the following:

1. How is the feature set?

The features your business needs depend on your industry, size, accounting needs, and budget. Most software offers basic features like invoicing, payroll, expense tracking, inventory management, bank reconciliation, and reporting. 

Additional features may include tax preparation, project costing, and advanced reporting. Determine the core features essential for your business and check if the software has these features.

2. Is it easy to use?

The bookkeeping software should have an intuitive interface, so you and your team can learn it quickly. If the tool wastes your time instead of improving your working efficiency, it's not worth the money. Look for an alternative.

Tip: Read reviews about the product to learn about other users' impressions and experience of the tool's usability or ease of use. 

Also, please read the reviews of other bookkeeping software to know how they compare, work, and can best suit your business needs.

3. How scalable is it?

As your small business grows, you want software that can meet your needs. So, consider how easy it is to upgrade to higher-tiered plans or add new users with the software. Growing businesses may need more robust features too. Selecting scalable software now will prevent having to switch later.

4. How does it integrate with other tools?

Integration with other business software is key for streamlining operations. Check and know what third-party applications and add-ons the bookkeeping software integrates with. Common integrations include e-commerce platforms, payroll services, payment processors, and tax software.

5. How accessible is it?

Cloud-based bookkeeping software accessible from mobile apps allows business owners and employees to manage finances remotely. If your team works outside the office, ensure mobile access is supported by the bookkeeping software you're considering.

6. How is customer support

No matter how intuitive the software is, questions will arise. So, always use software with solid onboarding, training resources, and ongoing support. Many also offer onboarding assistance and ongoing training webinars.

Recommendation: find out the software's customer support options available, like phone, email, live chat, knowledge bases, and user communities, and how effective, efficient, and responsive these support channels are to customers' needs and issues. 

The 10 best bookkeeping software and 1 must-have tool for small businesses

1. QuickBooks Online

QuickBooks Online is one of the most widely used small business bookkeeping software. Plans range from the Simple Start plan at $30/month to the Advanced plan at $200/month. Scalable pricing tiers and integrations make this a top choice as businesses grow.

Key Features:

1. Invoicing: Streamlines the billing process by allowing businesses to create, send, and track invoices, ensuring they receive payments on time.

2. Expenses: Tracks and manages all business expenses, providing a clear record for budgeting and tax purposes.

3. Time Tracking: Records the amount of time spent on tasks or projects, essential for accurate billing and understanding how time is used within the business.

4. Reporting: Generates detailed reports that provide insights into various aspects of the business, such as financial health, productivity, and more.

5. Project Costing: Helps in tracking the costs associated with individual projects, ensuring they stay on budget and identifying profitability.

6. Client Databases: Organizes important client information in one place, making it easy to access and manage client relationships effectively.

7. Mobile Apps: Provides the flexibility to manage business activities from anywhere, enhancing productivity and responsiveness.

2. FreshBooks

FreshBooks is a top-level accounting software that provides customizable, professional-looking invoices on over 4,389 websites worldwide. Its robust databases and project management features benefit service businesses. Plans begin at $17/month. 

Key Features:

1. Invoicing: Streamlines the billing process by allowing businesses to create, send, and track invoices, ensuring they receive payments on time.

2. Expenses: Tracks and manages all business expenses, providing a clear record for budgeting and tax purposes.

3. Time Tracking: Records the amount of time spent on tasks or projects, essential for accurate billing and understanding how time is used within the business.

4. Reporting: Generates detailed reports that provide insights into various aspects of the business, such as financial health, productivity, and more.

5. Project Costing: Helps in tracking the costs associated with individual projects, ensuring they stay on budget and identifying profitability.

6. Client Databases: Organizes important client information in one place, making it easy to access and manage client relationships effectively.

7. Mobile Apps: Provides the flexibility to manage business activities from anywhere, enhancing productivity and responsiveness.

3. Wave

Wave is free bookkeeping software making it accessible for early-stage and cash-strapped businesses. It offers income and expense tracking, invoicing, bank reconciliation, and reporting. Payroll and payment processing incur fees.

Key Features:

1. Income and Expense Tracking: Monitors money coming in and going out, providing a clear picture of a business's financial health.

2. Invoicing: Facilitates the creation and distribution of bills to customers, helping businesses get paid accurately and on time.

3. Bank Reconciliation: Aligns records in the accounting software with bank statements, ensuring all financials are current and correct.

4. Reporting: Generates detailed financial reports, offering valuable insights into business performance and aiding in decision-making.

5. Receipt Scanning: Allows users to digitize and store receipts, making expense tracking more organized and efficient.

6. Payroll (add-on fee): Manages employee payments, benefits, and taxes efficiently, though it may require an additional fee.

7. Payment Processing (fees apply): Enables businesses to accept digital payments through various methods, though transaction fees may apply.

4. Zoho Books

Zoho Books is one of the best accounting software for small businesses, with pricing starting at $9/month. The tool's features include invoicing, inventory management, expense tracking, and reconciliation. It integrates with other Zoho business apps.

Key Features:

1. Invoicing: Streamlines the creation, sending, and management of invoices, enabling businesses to bill clients promptly and professionally.

2. Expense Tracking: Helps businesses record and monitor outgoings, ensuring that all expenses are accounted for and budgeting is accurate.

3. Inventory Management: Assists in overseeing stock levels, orders, sales, and deliveries, which is crucial for businesses handling various products.

4. Bank Reconciliation: Simplifies the process of matching transactions recorded in the accounting software to those in the bank statement, ensuring financial records are accurate and up-to-date.

5. Time Tracking: Allows businesses to record the time spent on tasks or projects, facilitating accurate billing and productivity analysis.

6. Reporting: Offers detailed financial reports that provide insights into business performance, aiding strategic decision-making.

7. Integrates with other Zoho Apps: Enhances functionality by allowing the financial management platform to work seamlessly with other applications in the Zoho suite, ensuring a unified and efficient business workflow.

5. Sage Business Cloud Accounting

Sage Business Cloud Accounting is a small business accounting software that connects to a user’s bank account(s) to import transaction data automatically. The tool’s plans start at $10/month. It can generate cash flow forecasts and provide invoice tracking.

Key Features:

1. Invoicing: Enables the creation, customization, and dispatch of professional invoices, streamlining the billing process and improving payment cycles.

2. Expense Management: Facilitates the recording, tracking, and categorizing of business expenses, providing insights into spending patterns and aiding in budget control.

3. Bank Connections: Allows for direct integration with bank accounts, enabling real-time transaction updates and simplifying the reconciliation process.

4. Cash Flow Forecasts: Utilizes historical data to predict the inflow and outflow of cash, helping businesses anticipate future financial positions and plan accordingly.

5. Reporting: Generates comprehensive financial reports (like profit and loss statements, balance sheets, etc.), offering valuable insights for informed decision-making.

6. Invoice Tracking: Monitors the status of each invoice (sent, viewed, paid, or overdue), helping businesses manage their receivables more effectively.

6. ZipBooks

ZipBooks offers double-entry accounting and simplified reports starting at $15/month. It connects to bank accounts, synchronizes transactions, and can create invoices. ZipBooks doesn't have payroll features.

Key Features:

1. Invoicing: Enables the creation of professional, customizable invoices, with options for automated billing and reminders, helping to speed up payment collections.

2. Double-Entry Accounting: Ensures accurate financial records by automatically recording corresponding credits and debits for each transaction, providing a detailed financial picture.

3. Expense Tracking: Simplifies the management of business expenses by categorizing and monitoring outgoing funds, making it easier to control costs and forecast future expenses.

4. Standard Reports: Provides essential financial reports (like income statements and balance sheets), giving insights into business performance and aiding strategic decision-making.

5. Mobile App: Allows for on-the-go management of finances, offering features like invoice creation, expense recording, and real-time access to financial data, ensuring business continuity from anywhere.

7. OneUp

OneUp is affordable bookkeeping software starting at $10/month. It provides invoicing, expense tracking, and reporting and integrates with Stripe, Mailchimp, and PayPal apps. Like ZipBooks, OneUp doesn't have payroll functionality.

Key Features:

1. Invoicing: Enables the creation of professional, customizable invoices, with options for automated billing and reminders, helping to speed up payment collections.

2. Double-Entry Accounting: Ensures accurate financial records by automatically recording corresponding credits and debits for each transaction, providing a detailed financial picture.

3. Expense Tracking: Simplifies the management of business expenses by categorizing and monitoring outgoing funds, making it easier to control costs and forecast future expenses.

4. Standard Reports: Provides essential financial reports (like income statements and balance sheets), giving insights into business performance and aiding strategic decision-making.

5. Mobile App: Allows for on-the-go management of finances, offering features like invoice creation, expense recording, and real-time access to financial data, ensuring business continuity from anywhere.

8. AccountEdge Pro

AccountEdge Pro helps manage inventory-centered small businesses. Starting at $200, it provides users access to in-demand inventory solutions, like assembly tracking and matrix inventory services.

Key Features:

1. Inventory Management: Offers comprehensive tracking and control of stock levels, sales, orders, and deliveries, essential for maintaining optimal inventory levels and reducing holding costs.

2. Assembly Tracking: Monitors and manages the assembly of products with multiple components, ensuring efficiency in production lines and accuracy in cost calculations.

3. Matrix Inventory Solution: Simplifies the handling of items that have multiple variations (like size, color, and material), enabling easy tracking and management of such complex product lines.

4. Billing and Invoicing: Facilitates the creation of detailed, customizable billing statements and invoices, streamlining the revenue collection process and improving cash flow management.

5. Expense Tracking: Allows for meticulous recording and categorization of business expenses, aiding in budget management and cost reduction strategies.

6. Reporting: Provides a range of detailed financial reports, offering valuable insights into business health and assisting in data-driven decision-making processes.

9. SlickPie

SlickPie is one of the best accounting software for small business. It is easy-to-use bookkeeping software with plans from $19/month. Although SlickPie does not support payroll, the tool offers standard reports, custom invoices, expense tracking, and double-entry accounting. 

Key Features:

1. Invoicing: Enables the creation of professional, customizable invoices, with options for automated billing and reminders, helping to speed up payment collections.

2. Double-Entry Accounting: Ensures accurate financial records by automatically recording corresponding credits and debits for each transaction, providing a detailed financial picture.

3. Expense Tracking: Simplifies the management of business expenses by categorizing and monitoring outgoing funds, making it easier to control costs and forecast future expenses.

4. Standard Reports: Provides essential financial reports (like income statements and balance sheets), giving insights into business performance and aiding strategic decision-making.

5. Mobile App: Allows for on-the-go management of finances, offering features like invoice creation, expense recording, and real-time access to financial data, ensuring business continuity from anywhere.

10. Xero

If you’re looking for small business accounting software on a budget with extensive features, you might want to consider Xero. Xero is especially popular for its simple interface and robust features. Plans start at $13/month. It integrates with 700+ third-party apps. Automatic bank feeds and mobile apps add convenience.

Key Features:

1. Invoicing: Customizable templates and online payment options streamline billing. Automated reminders and direct online payments expedite collections.

2. Reporting: Real-time access to crucial financial reports, including profit and loss, balance sheet, and custom reports, providing insights into business health.

3. Expense Management: Easy recording and management of expenses and receipts, supporting multi-currency transactions.

4. Inventory: Real-time inventory tracking helps manage stock levels and purchasing decisions, with support for multiple locations.

5. Bank Reconciliation: Direct bank links simplify the matching of transactions with accounting records, ensuring accuracy and currency.

6. Mobile Apps: Access financial data on the go, with features for invoicing, expense recording, and bank transaction tracking.

7. Payroll Integration: Streamlined payroll processing with features for pay runs, tax calculations, and an online portal for employee access.

Special mention: Workee

While Workee is not solely a bookkeeping software. It can be categorized as a comprehensive business management platform with efficient finance and bookkeeping capabilities. Here's why:

1. Invoicing services: Workee provides features for creating, customizing, and sending invoices, which is a fundamental aspect of bookkeeping.

2. Account management: The platform allows users to track and manage their financial transactions, another key component of bookkeeping.

3. Tax management: Workee aids in setting up and calculating tax rates, a feature that is valuable for bookkeeping, especially for freelancers and small businesses who need to manage their tax commitments.

4. Multi-currency support: The ability to handle transactions in various currencies is crucial for businesses operating in an international context, and this feature is often found in bookkeeping software.

5. Payment integrations: With Stripe and PayPal integrations, Workee users can process payments, which is part of revenue tracking in bookkeeping.

Workee is a one-stop platform that streamlines bookkeeping and accounting tasks for freelancers and small business owners. It offers a unified solution to simplify and automate these activities. The pricing for Workee ranges from free to $29 per month, or $290 per year. Compare pricing plans here.

Workee is a game-changer in comprehensive business management

While Workee isn’t your standard bookkeeping software, it’s a powerhouse business management platform built with the modern entrepreneur in mind. Beyond its robust finance and bookkeeping capabilities, it integrates a suite of tools designed to streamline scheduling, client interaction, online presence building, and much more, all under one user-friendly interface. For independent professionals, startups, and small businesses juggling multiple applications for different operational needs. Get started now with workee to manage all your make your work and finances all in one place.