Business Finances: The Top Accounting Software Programs of 2022

• Accounting software can help a business manage their finances and keep everything in order, allowing them to grow and avoid errors.
• Available software ranges in the level of complexity it can handle, with the price general scaling as capabilities grow.
• The top five software options are discussed, helping you determine which one might be the best fit for your small, medium or large business.

Accounting software is vital to the success of businesses of all sizes. Managing finances manually is time-consuming and and may lead to costly errors. Software programs can save time, labor, and money while increasing accuracy and efficiency and storing sensitive data safely. It allows you peace of mind to focus on growing your business, budgeting for the company’s future and ensuring your business’ taxes are done correctly and on time.

This article addresses some of the top accounting software products for business so you can make an educated decision on which one meets your company’s needs.

Shutterstock

Accounting Management

Accounting management refers to the financial processes within a company and how to strategically plan, organize, direct, and control them. It is required to maintain a stable cash flow. Estimating the needs of the company and determining the structure, creating investment opportunities, establishing financial policies, and helping make financial decisions are some of the tasks associated with financial management.

Accounting Software

Accounting software is designed for businesses to manage their various accounts and simplify financial operations. Available software ranges from simple programs mostly used for individual record-keeping to much more advanced systems. Software can help manage tasks from employee salaries to invoices, accounts receivable/payable, the company’s assets, and much more.

Shutterstock

General Features of Accounting Software

There are many accounting software systems on the market today, all with their own strengths, weaknesses, and pricing. However, there are some general features that the best programs offer. These include:

• Financial forecasting tools to estimate revenues and expenses
• Billing and invoicing management to help create, manage, and send invoices
• Bank reconciliation to ensure the accuracy of your accounts and statements
• Financial reporting to generate digital reports in multiple formats
• Purchasing and sales management to manage necessary transactions
• Asset management to calculate depreciation automatically and accurately

Shutterstock

Top Software Options

1. QuickBooks Online

QuickBooks Online is very popular and one of the most common accounting softwares for small businesses.

Pricing: There are four subscription plan options:

• Simple Start: From $25/month
• Essentials: $40/month
• Plus: $70/month
• Advanced: $150/month

Simple Start is recommended for most service-based small businesses. Essentials or Plus is better suited for product-based small businesses.

Shutterstock

2. Xero

Xero is a good fit for micro-businesses who need very simple accounting software.

Pricing: There are three monthly subscription options and a full-service payroll add-on including:

• Early: $11/month
• Growing: $32/month
• Established: $62/month
• Full-service payroll option: Additional $39/month, plus $6 per employee

The Growing and Established plans (with additional features of multi-currency, expense management, and project costing) may be more useful for small businesses better because of the unlimited invoices, bills, and transactions allowed, as opposed to the Early plan, which has usage limits.

Shutterstock

3. Freshbooks

FreshBooks offers more customization and advanced invoicing features for invoicing than any other accounting software. It can help with basic bookkeeping, budgeting for projects, sending proposals and estimates, and collecting payments from customers.

Pricing: Four different plans, which differ mainly in the number of clients allowed to be billed monthly, including:

• Lite: $6/month (bill up to five clients)
• Plus: $10/month (bill up to 50 clients)
• Premium: $20/month (bill unlimited clients)
• Select: Call for custom pricing

Shutterstock

4. Wave

Wave is a good match for service-based businesses to send simple invoices. If you don’t need to run payroll or track inventory, the free version may be sufficient for your small or freelance business.

Pricing: Two payroll plans are available for add-on services:

• $20/month plus $6 per contractor or employee: Payroll processing and preparing payroll tax calculations
• $35/month plus $6 per contractor or employee: Full-service payroll

Screenshot: Wave

5. Quickbooks Self-Employed

QuickBooks Self-Employed is a good fit for part-time freelancers and independent contractors who need to track their income and expenses for taxes. It’s designed for business owners who file a Schedule C on their individual tax returns.

Pricing: Three plan options are available:

• Self-Employed: $15/month
• Self-Employed Tax Bundle: $25/month
• Self-Employed Live Tax Bundle: $35/month

All bundles include a TurboTax subscription for income tax filing and the Live Tax Bundle also provides access to a CPA to answer questions and perform a final review of your tax return before filing.

Screenshot: QuickBooks

Other Considerations

We have talked about the importance of choosing accounting software based on a company’s needs, number of employees, accounting features, and budget. Other factors to consider include reputation, scalability, and ease of use. Each of the above-mentioned software programs has been around long enough to work out the initial glitches. They are also scalable so as the company grows, the software can be upgraded to meet new business needs. The programs are all also easy enough to use so users can gain confidence and become proficient quickly.