Top 5 Accounting Software for Small Businesses

We have done the research to find you, the small business owner, to find the perfect accounting software. But first, why do you need one?

Accounting software helps you manage your business’ finances by tracking everything. Money in, money out, who you owe, who owes you, and so on. Factors for a great accounting software? Affordable, user-friendly, cloud-based, and mobile capability to start.

“But, I’m old school – I don’t need a fancy-dancy accounting system.”

Here at Innes & Lotito, we aren’t afraid to mix a little old-school and “new” school together. We’ve found that, yes, computers work faster and more efficiently than humans! That being said, we also want to see an accounting software with automated bank feeds, online invoicing, and auto payment reminders. Below are our Top 5 Accounting Software Choices for Small Businesses.

Quickbooks Xero Zoho Books Freshbooks Wave
Logo Quickbooks Logo Xero Logo Zoho Books Logo FreshBooks Logo Wave Logo
Starting Price per month $10 $9 $9 $15 Free
Best for Small Business Overall Mac Computers Really Small Business Invoicing Free!
Limit on capability No limit 5 Invoices and 5 Bills per month 50 Contacts 5 active clients you can bill No limit
Time Savers
  • Recurring invoices
  • Payment Reminders
  • Sync date from bank and credit card
  • Bank reconciliations
  • Inventory
  • Recurring invoices
  • Payment Reminders
  • Auto-categorize bank
  • See documents without a preview
  • Faster payments with Stripe account connection
  • Recurring billing
  • Payment reminders
  • Electronic invoicing
  • Electronic invoicing
  • Convert sales orders into invoices
  • Edit invoices
  • Convert estimates and proposals to invoices
  • Convert estimates or quotes to invoices
Mobile App Yes Yes Yes Yes Yes
Customer Service Multiple platforms 24/7 Email or live chat Multiple platforms Multiple platforms Email-based
Payroll Available with higher tiered pricing Available with add-on of Gusto No No Add on Price

These facts are based off of the “base-model” package for each accounting software.

Our recommendation is going to be based off what we think you should use from a practicality standpoint.

Overall Winner

We recommend QuickBooks Online for their easy-to-use, universally known accounting system. Their pricing model is based on the number of users needing access to the program. We estimate that the $20-35 plan would be sufficient for most of our clients.

Best for Mac Users

We recommend Xero as the best accounting software for Mac users. Because it is web-based, you receive the same platform across all platforms. The nice thing with Xero is the ability to have unlimited users with full functionality. Because Xero is less popular than QuickBooks, less accountants know how to use the program. Here at Innes & Lotito, we are very familiar with the program and can ensure you that there is no issues with us understanding what is going on there! We estimate that the $30 plan would have the necessary tools for most of our clients.

Runners Up

While Zoho Books, FreshBooks, and Wave are nice programs, we feel that the features they provide do not outweigh their cost. With a growing business, it is essential to have rock-solid accounting system beneath you to ensure proper monitoring of daily, monthly, and annual activity. We feel that the best priced, most user-friendly programs are Quickbooks Online and Xero.

Need more than a software?

Innes & Lotito is a certified public accounting firm located in Macomb County, Michigan. We provide a broad range of services to help our clients reach their business and personal financial goals. Contact us online or call us at (586) 468-0200 to get started with a professional, experienced CPA.