As a business owner, keeping track of your finances is essential. Accounting software can help you streamline your bookkeeping process, save time, money and provide you with a clear picture of your financial standing. But with so many options available, choosing the right accounting software for your business can be overwhelming. In this article, we will discuss the best accounting software options available in the USA.
Introduction to Accounting Software
Before we dive into the best accounting software options, let’s start with a brief introduction to accounting software. Accounting software is a computer program designed to help businesses and manage their financial transactions such as invoicing, expenses, payroll and taxes. It helps businesses automate and streamline their accounting processes, saving time and reducing errors. Accounting software can be installed on a computer or accessed online, and can range from simple tools for sole proprietors to complex systems for large corporations.
Factors to Consider When Choosing Accounting Software
When choosing accounting software, there are several factors to consider, including:
Business Size
The size of your business will determine the type of accounting software you need. Small businesses may only need basic accounting software with simple features, while larger businesses may require more advanced software with advanced features and integrations.
Budget
Accounting software can range in price from free to thousands of dollars. Consider your budget and the features you need to determine how much you are willing to spend on accounting software.
Features
Consider the features you need in accounting software, such as invoicing, expense tracking, payroll, and tax preparation. Make a list of the features you need and compare them to the software options available.
Integration
Consider the other software tools you use in your business, such as a CRM or project management software. Look for accounting software that integrates with these tools to streamline your business processes.
Best Accounting Software Options in the USA
Now that we’ve covered the factors to consider when choosing accounting software let’s take a look at the best accounting software options in the USA:
1. QuickBooks
QuickBooks is a popular accounting software option for small businesses. It offers a range of features, including invoicing, expense tracking, and tax preparation. QuickBooks also integrates with many other software tools, including PayPal, Shopify, and Square. QuickBooks is available in several different versions, including a self-employed version and a version for small businesses.
Here are some of the pricing options and benefits of QuickBooks:
- QuickBooks Online Simple Start – $25 per month – This plan includes basic features like income and expense tracking, invoicing, and receipt capture.
- QuickBooks Online Essentials – $40 per month – This plan includes all the features of Simple Start, plus features like bill management and time tracking.
- QuickBooks Online Plus – $70 per month – This plan includes all the features of Essentials, plus inventory management and project profitability tracking.
- QuickBooks Self-Employed – $15 per month – This plan is designed for freelancers and includes features like automatic mileage tracking and tax calculation.
- QuickBooks Desktop Pro – $399.99 (one-time purchase) – This plan is a one-time purchase and includes features like invoicing, expense tracking, and report generation.
2. Xero
Xero is a cloud-based accounting software option that offers a range of features, including invoicing, expense tracking, and payroll. Xero is known for its user-friendly interface and excellent customer support. Xero also integrates with many other software tools, including PayPal, Stripe, and Hub spot.
Here are some of the pricing options and benefits of Xero:
- Early – $11 per month – This plan includes basic features like invoicing, expense tracking, and financial reports for a single user.
- Growing – $32 per month – This plan includes all the features of Early, plus features like bills management, multiple users, and project tracking.
- Established – $62 per month – This plan includes all the features of Growing, plus inventory management, multi-currency support, and payroll.
3. FreshBooks
Fresh Books is a cloud-based accounting software option designed for small businesses and freelancers. It offers features such as invoicing, expense tracking, time tracking, and project management. Fresh Books also integrates with many other software tools, including PayPal, Stripe, and Trello.
Here are some of the pricing options and benefits of Fresh Books:
- Lite – $15 per month – This plan includes basic features like invoicing and expense tracking for up to 5 clients.
- Plus – $25 per month – This plan includes all the features of Lite, plus features like time tracking and project management for up to 50 clients.
- Premium – $50 per month – This plan includes all the features of Plus, plus advanced reporting and team time tracking for up to 500 clients.
4. Wave
Wave is a free accounting software option that offers features such as invoicing, expense tracking, and payroll. Wave is a great option for small businesses and freelancers on a tight budget. Wave also integrates with many other software tools, including PayPal, Stripe, and Etsy.
Here are some of the pricing options and benefits of Wave:
- Free – $0 per month – This plan includes features like invoicing, expense tracking, and basic financial reports.
- Payroll – Payroll features are available at an additional cost, starting at $20 per month plus $6 per employee per month.
5. Zoho Books
Zoho Books is a cloud-based accounting software option that offers features such as invoicing, expense tracking, and project management. Zoho Books also integrates with many other software tools, including PayPal, Stripe, and Shopify. Zoho Books is known for its user-friendly interface and excellent customer support.
Here are some of the pricing options and benefits of Zoho Books:
- Basic – $9 per organization per month – This plan includes features like invoicing, expense tracking, and basic financial reports for up to 50 contacts.
- Standard – $19 per organization per month – This plan includes all the features of Basic, plus features like project management and vendor credits for up to 500 contacts.
- Professional – $29 per organization per month – This plan includes all the features of Standard, plus features like purchase order management and budgeting for an unlimited number of contacts.
Note: This table is not comprehensive and is intended to provide a general overview of some of the key features and differences between these accounting software options. Additional features and pricing options may be available.
Conclusion
Choosing the right accounting software for your business can be a difficult task, but it is essential to streamline your bookkeeping process, save time , money and provide you the clear picture of your financial standing. When choosing accounting software, consider your business size, budget, the features you needed and integration with other software tools. The best accounting software options in the USA include QuickBooks, Xero, Fresh Books, Wave, and Zoho Books, each with its own unique features and benefits.
No matter which accounting software you choose, make sure it meets the specific needs of your business and helps you to stay on top of your finances. With the right accounting software, you can streamline your bookkeeping process and focus on growing your business.
Frequently Asked Questions
- Is accounting software necessary for small businesses?
- Yes, accounting software can help small businesses save time and reduce errors in their bookkeeping process.
- Can I use accounting software for personal finance?
- Yes, accounting software can be used for personal finance as well.
- Which accounting software is best for freelancers?
- Fresh Books and Wave are both great options for freelancers.
- Can I use accounting software for tax preparation?
- Yes, most accounting software options offer tax preparation features.
- How much does accounting software cost?
- The cost of accounting software varies depending on the software and the features included. Some options, like Wave, are free, while others can cost thousands of dollars.
