Online accounting software programs have become increasingly popular among small businesses in recent years. These programs offer a range of features that can help small business owners manage their finances more effectively and efficiently. With so many options available, it can be difficult to determine which software program is the best fit for a particular business.

In this article, we will highlight the 20 best online accounting software programs for small businesses in 2023. These programs have been selected based on their features, ease of use, customer support, and pricing. Whether you are a sole proprietor or a small business with multiple employees, there is sure to be a software program on this list that will meet your accounting needs.

What is Accounting Software?

Accounting software is a type of computer application that helps businesses manage their financial transactions and records. It automates many of the tasks that were once done manually, such as bookkeeping, invoicing, and payroll.

Accounting software is designed to be user-friendly and accessible to people who may not have a background in accounting. It typically includes a range of features that can be customized to meet the specific needs of a business. Some common features include:

• General ledger
• Accounts payable and receivable
• Inventory management
• Budgeting and forecasting
• Payroll processing
• Tax preparation
• Financial reporting

One of the main benefits of using accounting software is that it can save time and reduce errors. By automating many of the tasks associated with financial management, businesses can free up time to focus on other areas of their operations.

Another benefit is that accounting software can provide real-time visibility into a business’s financial health. This can help business owners make informed decisions about how to allocate resources, manage cash flow, and grow their business.

Overall, accounting software is an essential tool for small businesses that want to stay organized, efficient, and financially healthy. With so many options available, it’s important to choose a software program that meets the specific needs of your business.

Benefits of Using Online Accounting Software for Small Business

• Small business owners have a lot on their plate, from managing employees to marketing their business to handling finances. Accounting is a crucial aspect of running a business, but it can be time-consuming and overwhelming, especially for those who are not trained in accounting. Fortunately, online accounting software can help small business owners streamline their financial management and provide numerous benefits.
• One of the main benefits of using online accounting software is that it saves time. With traditional accounting methods, small business owners have to manually enter data, reconcile accounts, and create financial statements. Online accounting software automates many of these tasks, making it easier to manage finances and freeing up time to focus on other aspects of running a business.
• Another benefit of using online accounting software is that it provides real-time financial data. Small business owners can see their financial information in real-time, which allows them to make informed decisions about their business. They can also generate reports quickly and easily, which helps them keep track of their financial performance and identify areas for improvement.
• Online accounting software also provides a secure and reliable way to manage financial information. Small business owners can access their financial data from anywhere, as long as they have an internet connection, which makes it easy to work remotely or collaborate with others. They can also rest assured that their financial data is secure, as online accounting software providers use advanced security measures to protect sensitive information.
• In addition, online accounting software is often more affordable than traditional accounting methods. Small business owners can choose from a variety of pricing plans, which allows them to find a plan that fits their budget and their business needs. They can also avoid the costs associated with hiring an in-house accountant or outsourcing accounting tasks.
• Overall, online accounting software provides numerous benefits for small business owners. It saves time, provides real-time financial data, is secure and reliable, and is often more affordable than traditional accounting methods. By using online accounting software, small business owners can streamline their financial management and focus on growing their business.

Choosing the Best Online Accounting Software Programs for Small Business: Criteria for Evaluation

Small businesses need to manage their finances efficiently to stay afloat and grow. With the rise of online accounting software programs, it has become easier for small businesses to track their finances, prepare invoices, and manage their expenses. However, with so many options available in the market, it can be overwhelming for small business owners to choose the best accounting software program for their needs.

The criteria for selecting the best online accounting software program for small businesses can vary depending on the business’s size, industry, and specific needs. Some of the critical factors to consider include the software’s ease of use, features, cost, customer support, and security. Small business owners should also consider the software’s compatibility with their existing systems and the ability to integrate with other software programs. By evaluating these criteria, small business owners can choose the best online accounting software program that meets their needs and helps them manage their finances more efficiently.

Key Features to Look For

When evaluating online accounting software programs for small businesses, it is essential to consider the key features that will meet the specific needs of the business. Here are some of the essential features to look for:

User-Friendly Interface

A user-friendly interface is crucial for small businesses that do not have dedicated accounting staff. The software should have an intuitive design, easy-to-use navigation, and simple data entry. It should also provide clear and concise financial reports that are easy to understand.

Integration Capabilities

Integration capabilities are vital for small businesses that use several software applications. The accounting software should integrate with other business tools such as payment gateways, inventory management systems, and customer relationship management (CRM) software. Integration will help to streamline business operations and reduce manual data entry.

Scalability

Small businesses need accounting software that can grow with their business. The software should be scalable and able to handle increased transaction volumes, additional users, and new features. Scalability will help to avoid the need to switch to a new accounting software as the business grows.

Security Measures

Small businesses need to ensure that their financial data is secure. The accounting software should have robust security measures such as two-factor authentication, data encryption, and regular backups. It should also comply with industry-standard security protocols such as Payment Card Industry Data Security Standard (PCI DSS) and General Data Protection Regulation (GDPR).

Customer Support

Small businesses need reliable customer support to ensure that their accounting software is running smoothly. The software should provide various support options such as phone, email, and live chat. It should also have a comprehensive knowledge base and user community to help users troubleshoot common issues.

20 Best Online Accounting Software Programs for Small Business 2023

1. QuickBooks Online

QuickBooks Online is a household name in the world of accounting software, catering to millions of businesses worldwide. This cloud-based solution offers an array of features suitable for small businesses of all types.

Features:

• Invoicing and Billing
• Expense Tracking
• Financial Reporting
• Bank Reconciliation
• Payroll Management

Pricing: QuickBooks Online offers various plans starting from $15 per month, with scalable options to meet your business needs.

Pros:

• User-Friendly Interface
• Integration with Numerous Third-Party Apps
• Robust Mobile App for On-The-Go Accounting
• Automatic Backup and Data Security

Cons:

• Costly for Advanced Features
• Limited Users in Lower-Tier Plans

2. Xero

Xero is a powerful cloud-based accounting software designed to simplify financial management for small businesses, freelancers, and accountants alike.

Features:

• Invoicing and Quotes
• Inventory Tracking
• Bank Connections
• Project Tracking
• Multi-Currency Support

Pricing: Xero offers plans starting from $11 per month, making it an affordable choice for small businesses.

Pros:

• Excellent Interface and User Experience
• Seamless Bank Reconciliation
• Comprehensive Integration Options
• Mobile App for Remote Access

Cons:

• Limited Customer Support in Lower Plans
• Occasional Glitches with Bank Feeds

3. Zoho Books

Zoho Books is a popular accounting software solution known for its user-friendly interface and feature-rich functionalities.

Features:

• Sales and Purchase Management
• Inventory Management
• Time Tracking
• Project Billing
• Automated Banking

Pricing: Zoho Books offers cost-effective plans, with starting prices at $9 per month.

Pros:

• Easy-to-Use and Intuitive Interface
• Affordable Pricing Tiers
• Seamless Third-Party Integrations
• Excellent Customer Support

Cons:

• Limited Reporting Capabilities
• Occasional Lags in Loading Data

4. FreshBooks

FreshBooks is tailored to suit the accounting needs of small service-based businesses, freelancers, and consultants.

Features:

• Time Tracking and Invoicing
• Expense Management
• Project Collaboration
• Automated Expense Import
• Client Portal

Pricing: FreshBooks offers multiple pricing plans, starting at $6 per month.

Pros:

• Simple and Intuitive Interface
• Efficient Invoicing and Time Tracking
• Client Collaboration Tools
• Excellent Mobile App

Cons:

• Limited Inventory Management
• Fewer Features Compared to Competitors

5. Wave Accounting

Wave Accounting is an excellent option for small businesses looking for a free accounting solution.

Features:

• Invoicing and Billing
• Expense Tracking
• Bank Reconciliation
• Personal Finance Tools
• Payment Processing

Pricing: Wave Accounting is entirely free, making it a budget-friendly choice for startups.

Pros:

• Free Forever Plan with Essential Features
• User-Friendly Interface
• Suitable for Sole Proprietors and Micro-Businesses
• Integrates with Wave’s Payment Processing

Cons:

• Limited Advanced Features
• Occasional Customer Support Delays

6. Sage Business Cloud Accounting

Sage Business Cloud Accounting, formerly known as Sage One, is a robust accounting solution for small businesses with a variety of useful features.

Features:

• Invoicing and Quotes
• Expense Tracking
• Cash Flow Management
• Bank Reconciliation
• Tax Management

Pricing: Sage offers affordable plans, with pricing starting at $10 per month.

Pros:

• Excellent Cash Flow Management Tools
• Easy-to-Navigate Interface
• Seamless Bank Reconciliation
• Multi-User Access

Cons:

• Limited Reporting Options
• Some Users Find the Interface Outdated

7. Intuit Online Payroll

Intuit Online Payroll is a top-notch accounting and payroll software, ideal for small businesses with employees.

Features:

• Payroll Management
• Tax Calculations and Filing
• Employee Benefits Tracking
• Time Tracking
• Workers’ Compensation Management

Pricing: Intuit Online Payroll plans start at $45 per month, with options for different business sizes.

Pros:

• Seamless Integration with QuickBooks
• Accurate Payroll Calculations and Filing
• Employee Self-Service Portal
• Robust Security Measures

Cons:

• Higher Pricing for Advanced Payroll Features
• Occasional Software Glitches

8. Kashoo

Kashoo is a straightforward and user-friendly accounting software option, suitable for small businesses and freelancers.

Features:

• Invoicing and Billing
• Expense Tracking
• Bank Reconciliation
• Financial Reporting
• Multi-Currency Support

Pricing: Kashoo offers a single pricing plan at $16.65 per month, making it easy for users to access all features.

Pros:

• Simple and Intuitive Interface
• Robust Mobile App
• Excellent Multi-Currency Support
• Bank-Level Security

Cons:

• Limited Customer Support
• Some Users May Miss Advanced Features

9. ZipBooks

ZipBooks is a cloud-based accounting software designed to streamline financial tasks for small businesses and freelancers.

Features:

• Invoicing and Estimates
• Expense Tracking
• Time Tracking
• Project Management
• Automated Reports

Pricing: ZipBooks offers a free plan, with premium plans starting at $15 per month.

Pros:

• User-Friendly and Attractive Interface
• Efficient Time and Expense Tracking
• Project Collaboration Tools
• Customizable Reports

Cons:

• Limited Customer Support in Free Plan
• Some Users May Need More Integrations

10. GoDaddy Online Bookkeeping

GoDaddy Online Bookkeeping, formerly known as Outright, is a simple accounting tool designed for freelancers and small business owners.

Features:

• Income and Expense Tracking
• Tax Estimation and Organization
• Invoicing and Payment Tracking
• Sales Tax Reports
• Profit and Loss Reports

Pricing: GoDaddy Online Bookkeeping offers a single plan at $4.99 per month, making it a cost-effective option.

Pros:

• Easy Setup and Navigation
• Tax Time Made Simple
• Integration with GoDaddy Products
• Mobile App for Easy Access

Cons:

• Limited Advanced Features
• May Not Suit Larger Businesses

11. Billy

Billy is a straightforward and user-friendly accounting software that caters to small business owners and freelancers.

Features:

• Invoicing and Billing
• Expense Tracking
• Bank Reconciliation
• Financial Reports
• Automated Reminders

Pricing: Billy offers affordable pricing starting at $15 per month.

Pros:

• Intuitive and Uncluttered Interface
• Automated Payment Reminders
• Excellent Customer Support
• Suitable for Freelancers and Small Businesses

Cons:

• Limited Integration Options
• Some Users May Miss Advanced Features

12. LessAccounting

LessAccounting is a minimalist accounting software ideal for small businesses with straightforward financial needs.

Features:

• Expense Tracking
• Invoicing and Estimates
• Bank Reconciliation
• Time Tracking
• Financial Reports

Pricing: LessAccounting offers a single plan at $20 per month.

Pros:

• Simplistic and Easy-to-Use Interface
• Suitable for Non-Accountants
• Great for Expense Tracking
• Accessible from Anywhere

Cons:

• Limited Advanced Features
• May Not Suit Complex Businesses

13. Sunrise

Sunrise is a user-friendly accounting software designed for small businesses and entrepreneurs.

Features:

• Invoicing and Estimates
• Expense Tracking
• Bank Reconciliation
• Multi-Currency Support
• Time Tracking

Pricing: Sunrise offers a free plan, with premium plans starting at $9 per month.

Pros:

• Modern and Attractive Interface
• Multi-Currency Support
• Time Tracking for Projects
• Useful Integrations

Cons:

• Limited Customer Support in Free Plan
• Some Users May Need Advanced Features

14. OneUp

OneUp is an all-in-one accounting software with features designed to simplify business operations for small businesses.

Features:

• Invoicing and Billing
• Expense Tracking
• Inventory Management
• Bank Reconciliation
• Customizable Reports

Pricing: OneUp offers plans starting from $9 per month.

Pros:

• Comprehensive Accounting and Inventory Management
• Seamless Bank Reconciliation
• Multi-User Access
• Customizable Reports

Cons:

• Some Users May Find the Interface Overwhelming
• Occasional Syncing Issues

15. Invoicely

Invoicely is a versatile invoicing and accounting software solution for small businesses, freelancers, and consultants.

Features:

• Invoicing and Billing
• Expense Tracking
• Time Tracking
• Automated Reminders
• Multi-Currency Support

Pricing: Invoicely offers a free plan, with premium plans starting at $9.99 per month.

Pros:

• User-Friendly Invoicing Tools
• Efficient Expense and Time Tracking
• Customizable Invoice Templates
• Seamless Multi-Currency Support

Cons:

• Limited Reporting Options in Free Plan
• Some Users May Need More Advanced Features

16. SlickPie

SlickPie is a cloud-based accounting software designed to meet the needs of small businesses and freelancers.

Features:

• Invoicing and Estimates
• Expense Tracking
• Bank Reconciliation
• Financial Reports
• Automated Data Entry

Pricing: SlickPie offers a free plan, with a Pro plan starting at $9.95 per month.

Pros:

• Easy-to-Use Interface
• Automated Data Entry for Receipts
• Suitable for Freelancers and Small Businesses
• Excellent Customer Support

Cons:

• Some Users May Find the Interface Basic
• Limited Integrations

17. Pandle

Pandle is a cloud-based accounting software designed for small businesses and entrepreneurs looking for simplicity and affordability.

Features:

• Invoicing and Billing
• Expense Tracking
• Bank Reconciliation
• Tax Management
• Multi-Currency Support

Pricing: Pandle offers a free plan, with a Pro plan starting at $7.50 per month.

Pros:

• User-Friendly Interface
• Suitable for Non-Accountants
• Multi-Currency Support
• Customizable Reports

Cons:

• Limited Advanced Features
• Some Users May Prefer More Integrations

18. BigTime

BigTime is an accounting software solution designed for small businesses and professional services firms.

Features:

• Time and Expense Tracking
• Invoicing and Billing
• Project Management
• Resource Planning
• Financial Reporting

Pricing: BigTime offers scalable pricing, starting at $10 per user per month.

Pros:

• Efficient Time and Expense Tracking
• Robust Project Management Tools
• Integration with Popular Apps
• Excellent for Professional Services Firms

Cons:

• May Not Suit Simple Businesses
• Some Users May Prefer a Simpler Interface

19. FreeAgent

FreeAgent is a cloud-based accounting software that caters to freelancers, small businesses, and accountants.

Features:

• Invoicing and Estimates
• Expense Tracking
• Time Tracking
• Bank Reconciliation
• Tax Management

Pricing: FreeAgent offers plans starting from $12 per month.

Pros:

• Easy-to-Use and Attractive Interface
• Comprehensive Time Tracking
• Suitable for Freelancers and Small Businesses
• Integrates with Bank Accounts

Cons:

• Limited Customer Support in Lower Plans
• Some Users May Miss Advanced Features

20. AccountEdge Pro

AccountEdge Pro is a feature-rich accounting software designed for small businesses, offering both desktop and cloud-based options.

Features:

• Invoicing and Billing
• Expense Tracking
• Payroll Management
• Inventory Management
• Financial Reports

Pricing: AccountEdge Pro offers a one-time purchase, starting at $149.

Pros:

• Comprehensive Accounting and Inventory Management
• Powerful Payroll Features
• Desktop and Cloud-Based Options
• Suitable for Retail and Service Businesses

Cons:

• Higher Initial Cost Compared to Subscription-Based Apps
• Learning Curve for Beginners

FAQs

1. What is the best accounting software for small businesses in 2023? In 2023, the best accounting software for small businesses would depend on your specific needs. QuickBooks Online, Xero, and Zoho Books are among the top choices, offering a range of features and pricing options.

2. Can I use online accounting software for my startup? Absolutely! Online accounting software is an excellent choice for startups as it offers cost-effective solutions and scalability as your business grows.

3. Are there any free accounting software options available? Yes, some accounting software like Wave Accounting and Invoicely offer free plans suitable for small businesses with basic accounting needs.

4. How can accounting software help with tax preparation? Accounting software automates data entry, expense tracking, and tax calculations, making tax preparation easier and more accurate.

5. Can I access accounting software on my mobile device? Most modern accounting software comes with mobile apps, allowing you to access your financial data and manage tasks on-the-go.

6. Is cloud-based accounting software secure? Cloud-based accounting software providers employ robust security measures to protect your data, often using encryption and regular backups.

Conclusion

In conclusion, choosing the right accounting software is crucial for small businesses to manage their finances effectively. Each of the 20 best online accounting software programs for small businesses in 2023 has its unique features, pricing, pros, and cons. Consider your specific business needs, budget, and growth plans when making your selection. Embrace the power of digital accounting tools to streamline your financial management, save time, and make informed decisions for your business’s success.