5 Best Accounting & Invoicing Software for Small Businesses 2021

Nov 25, 2020 | Tools | 0 comments

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Every online business needs the best accounting and invoicing software to track their financial activities.

As an entrepreneur, you might find accounting a boring part of your business. Unfortunately, it is an important aspect that you have to deal with meticulously. Yet, you don’t have to do it on your own because there are accounting or invoicing software to help you.

Why use accounting or invoicing software?

An accounting or invoicing tool helps you keep track of the money in your every operational activity. If you want your startup to survive and flourish into a business you can be proud of, you need to be on top of your business budget. By doing so, not only do you ensure continuous operation, but you also have the financial means to scale up your business.

An invoicing tool is one of the first business tools that you need to buy when you start an online business. Any money-making niche you choose like affiliate marketing, blogging, consulting, digital marketing, eCommerce, or freelancing could need the help of the best invoicing software. To avoid the hassles of choosing the wrong accounting software, make sure that you pick the right tool that will serve you in the months to come.

The best accounting & invoicing software

The abundance of accounting tools today can make the selection a bit challenging. For this reason, we put together a list of the best accounting tools for startups and small businesses. Take a look at these tools to improve the financial management processes of your business.

1. FreshBooks – Best accounting tool for freelancers & startups

One of the most popular accounting tools today, FreshBooks will help you save time with its features. You can integrate the software with your bank accounts and multitudes of business tools. It lets you process payroll and business payments and does other financial activities in one place.

Best Accounting Tools - FreshBooks

FreshBooks is a simple, intuitive accounting with the following features:

  • Customize and auto-schedule invoicing
  • Supports multiple languages and currencies
  • Accepts credit card for faster payments
  • A mobile app version for both iOS and Android devices
  • Track expenses
  • Project management and time tracking
  • User role assignments based on access levels
  • Integrations to nearly 80 applications

Freshbooks accounting software has great functionalities making it more suitable for a service-based business. If you have a freelancing, consulting, or digital marketing business that requires sending invoices to clients regularly, this is the best invoicing software for you.

Though support is not available 24/7, there are plenty of resources to show you how the tool works. These include a free webinar, searchable knowledgebase, free e-books, and a blog full of useful tips.

The lowest plan costs $6/month for professionals with basic needs. FreshBooks is currently offering a 60% discount for three months plus 10% off if you pay yearly. You can try out the tool for 30 days for free. Just sign up to their website to take advantage of this offer.

2. Wave – Best free accounting software

Wave accounting software offers a solid set of features ideal for freelancers and startups with a small budget. It is easy-to-use, has time-saving features, and a mobile app version to let you accomplish accounting tasks wherever you are. However, they charge fees if you accept invoice payments online.

Best Accounting Tools - Wave

A free Wave account gives you the following accounting and invoicing capabilities:

  • Unlimited income and expense tracking
  • Integrations with hundreds of apps including email marketing services
  • Add unlimited partners, collaborators, or accountants
  • Track sales tax on income and expenses
  • Monitor your business performance on your dashboard
  • Generate powerful reports such as sales tax reports, balance sheets, and more
  • Unlimited receipt scanning with the free mobile app even when you’re offline
  • Run multiple businesses in one account
  • Automatic backups of your data in the cloud

Wave does not provide phone or live chat support. But you can email them your issue anytime. It makes up for the lack of customer service channels by providing several resources for resolving issues. These include FAQs, video tutorials, getting started guides, how-to articles, and a blog.

Sign up on Wave’s website to use one of the best accounting software for freelancers and startups for free.

3. QuickBooks – Best accounting software for small businesses

Quickbooks is one of the best accounting tools in the world. With an affordable pricing plan and advanced features to help you save time in doing accounting for your business, Quickbooks make things easier for you.

Best Accounting Tools - QuickBooks

The tool syncs with your bank account and credit cards so you will have an up to date financial data. If you have an accountant to take care of your financials during tax season, you can easily share your QuickBooks account with him or her.

Quickbooks has all the classic accounting features that you need. It has an invoice generator, customizable financial reports, payroll processing, online payment receipts, and the capability to turn receipt photos into a business expenses catalog.

Other features of the accounting software include:

  • Automation of recurring invoices, payment reminders, and bill payments
  • Automatic backups to keep your data safe and up to date
  • Integrates with hundreds of third-party business tools
  • Mobile apps for both iOS and Android devices
  • Free support

Quickbooks is easy to use and has the best business invoicing tool. You can use the demo or the 30-day free trial to have a better understanding of the tool’s features. However, you will forfeit the 50% off for three months offer if you avail of the free trial. Their paid plan starts at $7.50/month.

Quickbooks is the best accounting software with affordable pricing and elite features. But if you’re looking for a small business accounting software that is free, pick Wave instead.

4. Xero – Best invoicing software for growing businesses

Many of Xero’s features overlap with FreshBooks and QuickBooks. They both have bank account syncing, invoice creation, standard and customizable reports, and business expense and payroll processing.

Best Accounting Tools - Xero

However, Xero lets you add as many users as you like for free. It is a big advantage if you have three or more employees. If you decide to switch from QuickBooks to Xero, you can easily do it free of charge.

Xero offers inventory management tools that let you know in real-time how many products you have in stock. You can identify your bestselling and most profitable products using the software. If you need more advanced inventory management tools, it also supports integrations with third-party apps.

Xero has the best invoice app for iPhones and iPads. It helps you takes care of financial matters while on the go.

Though they provide 24/7 customer support, you can only reach them by email. They compensate for the lack of live chat or phone options with self-help guides, articles, podcasts, and videos.

Xero offers a 50% discount for three months when you sign up for their Starter plan that costs $10/month. You can try out any of their subscription plans for 30 days without paying anything.

5. Zoho Books

If you are looking for the best accounting software for freelancers, sole traders, or small businesses, then check out Zoho Books. It is a cost-effective solution for anyone who wants to expand their business operation.

Best Accounting Tools - Zoho Books

In addition to its desktop version, Zoho Books has an impressive mobile app that lets you take care of financial processes wherever you are. This accounting software provides the following features you need in running your business:

  • Automate workflows such as tracking expenses, bill payment notification, and more
  • Generate invoices based on sales orders or estimates
  • Connects with many payment gateways for online payments
  • Availability of time-tracking and project management tools
  •  Offers email, live chat, and 24-hour phone support five days a week

Zoho Books has a user-friendly interface, one of the easiest in the market. Although webinars and tutorial videos are available for you to learn about this software, it’s best to avail of the 14-day free trial. By doing so, you will have a better understanding of its usability.

The Basic plan costs $9/month with two users and up to 50 contacts. You have two weeks to try out any of the pro plans for free.

Conclusion

There you have it, our list of the best accounting tools to suit every business size and needs.

Having an accounting tool to help with your financial management tasks saves you time and energy. The best accounting software will take care of the tedious part of your business so you can focus on developing and growing your business. Use this list of accounting software so you can manage your time efficiently.

However, if time is very precious to you, a business that runs on autopilot has many benefits. To learn more about it, I recommend you get access to our 4 Hour Agency course. Once you have chosen your niche, you wouldn’t want to switch to anything else.

Also, make sure to read our other useful articles on growing a business and make money online fast.

About Jeff Tay

About Jeff Tay

Jeff Tay is the founder of Freedomholic, a blog about making money online in order to achieve financial, time, and location freedom. He has more than 80,000 followers on social media, runs a digital marketing agency and trains people on how to start, grow, and scale a 6-figure agency.

The 4-Hour Agency

How I Started, Grew & Scaled a 6-Figure Agency

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