Best Accounting App for Small Business in 2020
The main key to success for any business is profitability. You need to generate profit and compare it with your losses or expenses. You need to ensure your profits far outweigh the expenses. Wider gap between two parameters means more success. You need a comprehensive report of your cash flow. You need to know how much money you have in circulation and where it is going. A good quality accounting App does just that for your benefit. There are several softwares that claim to be the best. It becomes hard for a normal small business owner to decide which claim to believe. I hope following list would help you choose the best accounting app for small business.
Intuit has developed QuickBooks Online for accounting purposes. I think it is without a doubt the best accounting app for small business. There are three different versions available for QuickBooks for small businesses. All of these versions look and work similarly and offer a 30 days trial period to the users. Simple Start Plan costs $25 per month. It specifically targets microbusiness. A user can:
I) Track expenses and income.
II) Create and send invoices.
III) Create and send estimates.
IV) Connect to your bank accounts.
V) Run basic reports.
VI) Track sales tax. Etc.
Essentials Plan costs $40 per month. It offers all above services and adds:
I) Bill management support for up to 3 users.
II) Time Tracking.
Plus Plan costs $70 per month. It also offers above all services and adds;
I) Track Inventory.
II) Project profitability.
III) Allows access up to 5 users.
There is another Advance level plan available which allows access up to 25 users. It also includes numerous advanced features. However, this feature is more appropriate for larger business organizations.
There is also a version available for Intuit QuickBooks called Self-Employed Plan. It is geared towards freelancers and sole proprietors. It costs only $7. This version only includes basic barebones, such as:
I) Basic business and personal expense tracking.
II) Barebones invoicing.
IV) Automatic mileage tracking.
V) Estimations of quarterly income taxes.
There have been several updates and improvements done in QuickBooks. Now it has the option of mileage tracking, multilingual invoice generating and the ability to calculate project profitability. This plethora of services available in a single platform makes QuickBooks the best accounting app for small business in 2020.
FreshBooks is a direct competitor against QuickBooks for the title of Best accounting app for small business. It is a cloud-based software which has special time saving features for small businesses. It has features to facilitate one person startups and customers who only need invoicing capabilities. A small business owner who does not require complete accounting solution can choose the cheaper version of this software.
Through FreshBooks, you can:
I) Send unlimited number of invoices to your customers.
II) Track time.
III) Track payments.
IV) Track expenses.
V) Accept credit card payments online.
VI Automatically sync with your bank accounts.
FreshBooks is a little more expensive than other apps. It costs $10 more for every extra user. It also does not have a built-in inventory management feature. It offers following plans:
I) Lite Plan for $15 per month.
II) Plus Plan for $25 per month.
III) Premium Plan for $50 per month.
Xero is regarded as one of the best accounting apps in 2020 by many users. Xero can assist its clients to;
I) Send invoices.
II) Track time.
III) Track invoices.
IV) Manage inventory.
V) Create balance sheets.
VI) Create cash flow statements.
VII) Sync bank accounts.
VIII) Pay bills.
IX) Create reports.
X) Track purchase orders. And much more…
Xero integrates with more than 700 Apps. These integrated apps range from e-commerce apps to other point of sale products. Most importantly it offers unlimited number of users. It offers three plans;
I) Early Plan for $9 per month.
II) Growing Plan for $30 per month.
III) Established Plan for $60 per month.
This is the best accounting app for small businesses if the range of business is very limited. It is best for writers, graphic designers, independent computer programmers, web developers, photographers, hair stylists, personal trainers, cleaners, caterers etc. It is also one of the best accounting apps for students.
Users can get unlimited access to unlimited vendors and customers. They can track their income and expenses through smartphones; making it the best small business accounting app for android or iPhone. They can connect to their bank accounts, create financial reports and more. They can also add payroll and tax services for a small fee.
Wave also has several limitations. It cannot track inventory. It cannot track billable hours either. Wave is one of the best 100% free accounting apps for small business owners.
Zoho allows a user to automate all data entry processes. It lets you dictate more time and effort to your business and customers. It automatically tracks your banking information and creates payment reminders, creates recurring expenses profile and inventory tracking. Zoho costs as following;
I) Basic plan costs $9 per month for two users.
II) Standard Plan costs $19 per month for three users.
III) Professional Plan costs $29 per month for ten users.
Zoho’s cheap plans and wide range of services makes it one of the top accounting apps for small businesses.