accounting systems business plan

Accounting Business Plan Template

Written by Dave Lavinsky

Accounting Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their accounting firms. 

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an accounting business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is an Accounting Business Plan?

A business plan provides a snapshot of your accounting business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Accounting Firm

If you’re looking to start an accounting firm or grow your existing accounting business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your accounting business to improve your chances of success. Your accounting business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Accounting Firms

With regards to funding, the main sources of funding for an accounting firm are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for accounting firms.

Finish Your Business Plan Today!

How to write a business plan for an accounting firm.

If you want to start an accounting business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your accounting business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of accounting business you are running and the status. For example, are you a startup, do you have an accounting business that you would like to grow, or are you operating an established accounting business you would like to sell? 

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the accounting industry. 
• Discuss the type of accounting business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of accounting business you are operating.

For example, you might specialize in one of the following types of accounting firms:

• Full Service Accounting Firm: Offers a wide range of accounting services. 
• Bookkeeping Firm: Typically serves small business clients by maintaining their company finances. 
• Tax Firm: Offers tax accounting services for businesses and individuals. 
• Audit Firm: Offers auditing services for companies, organizations, and individuals. 

In addition to explaining the type of accounting business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, or the amount of revenue earned. 
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the accounting industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the accounting industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your accounting business plan:

• How big is the accounting industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your accounting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your accounting business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, organizations, government entities, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of accounting business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r accounting firms. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes CPAs, other accounting service providers, or bookkeeping firms. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of accounting business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for multiple customer segments?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a accounting business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f accounting company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide auditing services, tax accounting, bookkeeping, or risk accounting services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your accounting company. Document where your company is situated and mention how the site will impact your success. For example, is your accounting business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your accounting marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your accounting business, including answering calls, scheduling meetings with clients, billing and collecting payments, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your accounting business to a new city.  

Management Team

To demonstrate your accounting business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing accounting businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an accounting business or bookkeeping firm.   

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 clients per day, and/or offer discounts for referrals ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your accounting business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a accounting business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of your most prominent clients.    Summary Writing a business plan for your accounting business is a worthwhile endeavor. If you follow the accounting business plan example above, by the time you are done, you will truly be an expert. You will understand the accounting industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful accounting business.  

Accounting Business Plan Template FAQs

What is the easiest way to complete my accounting business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your accounting business plan.

How Do You Start an Accounting Business?

Starting an accounting business is easy with these 14 steps:

• Choose the Name for Your Accounting Business
• Create Your Accounting Business Plan
• Choose the Legal Structure for Your Accounting Business
• Secure Startup Funding for Your Accounting Business (If Needed)
• Secure a Location for Your Business
• Register Your Accounting Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Accounting Business
• Buy or Lease the Right Accounting Business Equipment
• Develop Your Accounting Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Accounting Business
• Open for Business

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  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.   Other Helpful Business Plan Articles & Templates

Accounting Business Plan Template

Written by Dave Lavinsky

Accounting Business Plan

You’ve come to the right place to create your Accounting business plan.

We have helped over 5,000 entrepreneurs and business owners create business accounting plans and many have used them to start or grow their accounting firms.

Below is a template to help you create each section of your Accounting business plan.

Executive Summary

Business overview.

DeSanta & Co is a new accounting firm located in Indianapolis, Indiana. We provide a full suite of accounting services to local businesses, including bookkeeping, accounting, and tax services. Our combined decades of expertise and client-focused service ensures that we will become the #1 accounting firm in the next five years.

DeSanta & Co is run by Michael DeSanta. Michael has decades of accounting experience and has gained a loyal clientbase from providing his services through competing firms. His expertise, reputation, and loyal clientbase will ensure that our firm is successful.

Product Offering

DeSanta & Co will offer its clients a full suite of accounting services. These services include bookkeeping, accounting, tax services, and auditing. The company will employ a large and diverse staff of professional accountants to ensure we can offer as many services as possible.

Customer Focus

DeSanta & Co will serve small and medium-sized businesses located in the Indianapolis, Indiana area. Most of these businesses will have less than 1000 employees and earn a revenue less than $10 million per year. We will also offer limited services to individuals, such as tax prep and help.

Management Team

DeSanta & Co’s most valuable asset is the expertise and experience of its founder, Michael DeSanta. Michael has been a certified public accountant (CPA) for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to DeSanta & Co once the company is established and running. Michael’s combination of skills, accounting knowledge, and loyal following will ensure that DeSanta & Co is a successful firm.

Success Factors

DeSanta & Co will be able to achieve success by offering the following competitive advantages:

• Michael DeSanta will initially help the clientbase that he has built carefully over the past twenty years.
• The company will emphasize providing client-focused service so that our clients feel valued.
• The company will provide our accounting services at an affordable rate.

Financial Highlights

DeSanta & Co is currently seeking $400,000 to launch. The funding will be dedicated to the office build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Office design/build: $100,000
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for DeSanta & Co.

Company Overview

Who is desanta & co.

DeSanta & Co is a new accounting firm located in Indianapolis, Indiana that provides local businesses with a full suite of accounting services. We are a small firm but have considerable experience, so we can offer better quality of services than our competition. We expect that our most popular services will include bookkeeping, accounting, and tax services. Our combined decades of expertise and client-focused service ensures that we will become the #1 accounting firm in the next five years.

  DeSanta & Co is run by Michael DeSanta. Michael has decades of accounting experience and has gained a loyal clientbase from providing his services through competing firms. After working for several accounting firms around town, he surveyed his clientbase to see if they would be willing to switch to his new company once launched. Most of his clients responded positively, which motivated Michael to finally launch his business.

DeSanta & Co History

Upon surveying his clientbase and finding a potential office, Michael DeSanta incorporated DeSanta & Co as an S-Corporation in April 2023.

The business is currently being run out of Michael’s home office, but once the lease on DeSanta & Co’s office location is finalized, all operations will be run from there.

Since incorporation, DeSanta & Co has achieved the following milestones:

• Found an office space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

DeSanta & Co Services

DeSanta & Co will provide the following services to its clients:

• Bookkeeping
• Tax services
• Advisory services
• Investment services
• Management consulting
• Valuation and planning

Industry Analysis

The accounting industry is essential to the success of other businesses and industries. Accountants record and track financial transactions, which helps businesses ensure they are making a profit. As such, accounting services are always in demand and the industry often sees great growth.

There are several essential services that accounting firms can provide to businesses and individuals. The most popular services include bookkeeping, tax services, advisory services, and valuation and planning. Though most businesses employ their own accountants, many businesses are switching to hiring accounting firms to save on costs.

The accounting industry is expected to grow over the next several years. According to The Business Research Company, the accounting industry is expected to grow at a CAGR of 4.2% from now until 2027. This growth is due to the increasing demand for accountants worldwide. This increase in demand and industry growth ensures that DeSanta & Co will achieve success.

Customer Analysis

Demographic profile of target market, customer segmentation.

DeSanta & Co will primarily target the following customer profiles:

• Local small businesses
• Medium-sized businesses
• Individuals

Competitive Analysis

Direct and indirect competitors.

DeSanta & Co will face competition from other companies with similar business profiles. A description of each competitor company is below.

Perkins & Smith

Perkins & Smith is a small accounting firm that has intentionally remained small so that they can have stronger relationships with their clients. Since they opened in 1960, Perkins & Smith has been one of the leading accounting firms in the Four State Region. They offer a wide range of services including accounting, bookkeeping, payroll services, tax prep and planning, and advisory services. They have built up a loyal clientele and maintained a strong, positive reputation since their opening decades ago.

Premiere Accounting

Premiere Accounting is a large accounting firm that specializes in helping large businesses with accounting, taxes, and similar services. Since opening in 1995, they have acquired a loyal client base, including several multi-billion dollar companies. They employ over a hundred professionals who all have diverse backgrounds. This helps serve their diverse clientele and ensures they are meeting the specific needs of every business that works with them.

Jackson Brothers Accounting

Jackson Brothers Accounting is a privately held accountant practice that has been popular in the area since 1985. They offer a wide variety of services including, tax planning and preparation, payroll processing, financial planning, and small business accounting. Though they are open to helping nearly all businesses and sectors, they primarily focus on local small businesses and startups.

Competitive Advantage

DeSanta & Co will be able to offer the following advantages over the competition:

• Client-oriented service : DeSanta & Co will put a focus on customer service and maintaining long-term relationships. We aim to be the best accounting firm in the area by catering to our customer’s needs and developing a strong connection with them.
• Management : Michael has been extremely successful working in the accounting sector and will be able to use his previous experience to help his clients better than the competition.
• Relationships : Having lived in the community for 25 years, Michael DeSanta knows many of the local leaders, newspapers and other influences.

Marketing Plan

Brand & value proposition.

DeSanta & Co will offer a unique value proposition to its clientele:

• Client-focused financial services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for DeSanta & Co is as follows:

Targeted Cold Calls

DeSanta & Co will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting individuals in areas and occupations that are most likely to need accounting services. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

DeSanta & Co understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

DeSanta & Co will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

DeSanta & Co will invest heavily in developing a professional website that displays all of the company’s services. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.

The fees and hourly pricing of DeSanta & Co will be moderate and competitive so clients feel they are receiving great value when utilizing our accounting services.

Operations Plan

The following will be the operations plan for DeSanta & Co. Operation Functions:

• Michael DeSanta will be the Owner of DeSanta & Co. In addition to providing accounting services, he will also manage the general operations of the business.
• Michael DeSanta is joined by a full-time administrative assistant, Jessica Baker, who will take charge of the administrative tasks for the company. She will also be available to answer client questions and will be the primary employee in charge of client communications.
• As the company builds its client base, Michael will hire more accounting professionals to provide the company’s services, attract more clients, and grow our business further.

Milestones:

DeSanta & Co will have the following milestones completed in the next six months.

• 6/2023 Finalize lease agreement
• 7/2023 Design and build out DeSanta & Co
• 8/2023 Hire and train initial staff
• 9/2023 Kickoff of promotional campaign
• 10/2023 Launch DeSanta & Co
• 11/2023 Reach break-even

Though he has never run his own business, Michael DeSanta has worked as an accountant long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting client base that he served while working for other accounting firms. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

DeSanta & Co’s revenues will primarily come from charging clients for the accounting services we provide. We will charge our clients an hourly rate that will vary depending on the services they need.

The notable cost drivers for the company will include labor expenses, overhead, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of clients:
• Year 4: 100
• Year 5: 125
• Annual Rent: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, accounting business plan faqs, what is an accounting business plan.

An accounting business plan is a plan to start and/or grow your accounting business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Accounting business plan using our Accounting Business Plan Template here .

What are the Main Types of Accounting Businesses? 

There are a number of different kinds of accounting businesses , some examples include: Full Service Accounting Firm, Bookkeeping Firm, Tax Firm, and Audit Firm.

How Do You Get Funding for Your Accounting Business Plan?

Accounting businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Accounting Business?

Starting an accounting business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Accounting Business Plan - The first step in starting a business is to create a detailed accounting business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your accounting business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your accounting business is in compliance with local laws.

3. Register Your Accounting Business - Once you have chosen a legal structure, the next step is to register your accounting business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your accounting business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Accounting Equipment & Supplies - In order to start your accounting business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your accounting business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful accounting business:

• How to Start an Accounting Business

How To Write a Winning Accountant Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for accountant businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every accountant business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is an Accountant Business Plan?

An accountant business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Accountant Business Plan?

An accountant business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Accountant Business Plan

The following are the key components of a successful accountant business plan:

Executive Summary

The executive summary of an accountant business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your accountant company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your accountant business , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your accountant firm, mention this.

Industry Analysis

The industry or market analysis is an important component of an accountant business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the accountant industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an accountant business may include small business owners, individuals with complex financial situations, or other businesses that need accounting assistance.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or accountant services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your accountant business via word-of-mouth or referrals from satisfied customers.

Operations Plan

This part of your accountant business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an accountant business include reaching $X in sales. Other examples include adding new products or services, expanding to new markets, or opening new locations.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific accountant industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Accountant Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Accountant Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup accountant business.

Sample Cash Flow Statement for a Startup Accountant Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your accountant company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

The goal of any business plan is to provide a roadmap for the future. A winning accountant business plan does this by providing a detailed overview of your company, its operations, and its financials. If you are seeking funding, your business plan should also include an appendix with your full financial projections and supporting documentation.  

Finish Your Accounting Firm Business Plan in 1 Day!

Small Business Trends

How to start an accounting business.

Accounting firms play a very important role in the business world by providing key financial services such as bookkeeping, tax preparation, auditing, and consulting, helping businesses manage their finances effectively. If you are looking to start a business in this segment, we’ll take you through all the steps on how to start an accounting business.

Starting an Accounting Business

Of course, there are certain foundational aspects you need to establish before launching your business. For instance, before starting an accounting business, you should get the education and testing you need to become a certified public accountant.

Understanding the Accounting Industry

Before starting an accounting firm, it’s vital to comprehend what accounting is and the dynamics of the accounting industry, including market trends, client needs, and potential competition. Many firms offer both accounting and bookkeeping services. So research the difference between bookkeeping and accounting , along with any other services you might offer.

Developing a Business Plan for Your Accounting Firm

A comprehensive business plan outlines your firm’s mission, target market, services offered, marketing strategies, financial projections, and growth plans, providing a roadmap for success. You’ll also need to choose what type of business structure is best for your business as a separate legal entity. For most firms, the business structure chosen for the CPA firm is the Limited Liability Company, or LLC.

Legal Requirements and Business Registration

Ensure compliance with legal requirements by registering your accounting firm with the appropriate government authorities, obtaining necessary licenses, and adhering to tax regulations. You’ll need an employer identification number or EIN.

Setting Up a Business Bank Account

Open a dedicated business bank account to separate personal and business finances, facilitating easier accounting, tax reporting, and financial management.

Choosing an Accounting Niche

Consider specializing in a specific accounting niche such as tax preparation, forensic accounting, or small business accounting to differentiate your firm and target specific client needs more effectively.

Business Insurance for Your Accounting Firm

Protect your firm from potential liabilities and risks by obtaining appropriate business insurance coverage, including professional liability insurance, general liability insurance, and property insurance.

How to Start an Accounting Business From Home

The obvious advantage to running an accounting business from your home is financial. You’ll save money by not having to pay rent for a commercial space.

Before you do that, however, make sure your local zoning laws allow for a home-based business. There may be restrictions and requirements, such as your allowed hours of operation and having a certain number of parking spaces. Here’s a guide for how to start a business offering accounting services from home.

Designing Your Home Office for Productivity

Designing a home office for productivity involves creating a dedicated workspace with ergonomic furniture, adequate lighting, and minimal distractions.

Consider setting up a designated area free from household distractions to maximize productivity while working from home.

Invest in ergonomic furniture to promote comfort and proper posture, ensuring long hours of focused work.

Additionally, optimize lighting to reduce eye strain and enhance concentration. Organizational tools such as filing systems and storage solutions can also help maintain a clutter-free environment, fostering a conducive atmosphere for efficient work.

Technology and Software for Accounting Firms

Utilizing technology and software is not just an option but a necessity for accounting firms aiming to streamline their operations and boost efficiency. The integration of cloud-based accounting software, document management systems, and communication tools not only enhances collaboration among team members but also supports remote work environments, which have become increasingly prevalent.

In the context of the digital era, the adoption of technology is crucial for accounting firms to maintain their competitive edge and meet the evolving demands of their clients effectively:

• Cloud-based Accounting Software : Platforms such as QuickBooks, Xero, and Sage offer cloud-based solutions that provide accountants with access to financial data in real time. These tools come with features that automate routine tasks like invoicing, payroll processing, and financial reporting, thereby reducing the chance of human error and freeing up time for more strategic activities. The ability to collaborate online with clients on the same platform ensures transparency and enhances the decision-making process. Some of the best free accounting software options even offer advanced features that professionals may find useful.
• Document Management Systems : Tools like Google Drive, Dropbox, and SharePoint are essential for the secure storage, sharing, and organization of documents. These systems facilitate easy access to files from anywhere, at any time, ensuring that all team members are on the same page. The improved organization and accessibility lead to better workflow efficiency, quicker response times to client inquiries, and a reduction in the use of paper, contributing to environmental sustainability.
• Communication Tools : Applications such as Slack, Microsoft Teams, and Zoom have transformed how teams communicate, allowing for instant messaging, video conferencing, and project collaboration. Whether team members are working remotely or from the office, these tools ensure that everyone can stay connected, share updates, and resolve issues promptly. This constant connectivity fosters a collaborative work environment and enables firms to deliver superior client service.

Integrating these technological solutions into the daily operations of an accounting firm brings numerous benefits:

• Enhanced efficiency through automated processes and reduced manual tasks
• Improved accuracy and reduced risk of errors in financial data
• Seamless collaboration and communication within teams and with clients
• Greater flexibility and scalability to adapt to changing business needs
• Increased security and compliance with data protection regulations

By embracing these technologies, accounting firms can not only optimize their internal processes but also provide more value-added services to their clients, ultimately contributing to the firm’s growth and success in the competitive market.

Marketing Your Accounting Services

As with all new and existing businesses, you need a marketing strategy that leverages both digital and traditional marketing methods. New clients are reached by various strategies.

Building an Online Presence

Building an online presence involves creating a professional website, engaging in social media marketing, and leveraging online networking platforms to showcase expertise and attract potential clients.

Establishing a strong online presence is crucial for reaching a wider audience and attracting potential clients in today’s digital landscape. Create a professional website highlighting your firm’s services, expertise, and client testimonials.

Next, engage in social media marketing to share valuable content, interact with followers, and build brand awareness. Utilize online networking platforms like LinkedIn to connect with industry professionals, join relevant groups, and showcase your expertise through thought leadership articles and posts.

Consistently maintaining and updating your online presence helps build credibility, trust, and visibility, ultimately driving client acquisition and business growth.

Networking and Building Client Relationships

Networking and building client relationships involve attending industry events, joining professional organizations, and offering exceptional customer service to foster trust and loyalty.

Networking is a vital aspect of growing an accounting business, as it provides opportunities to connect with potential clients and industry peers. Attend industry conferences, seminars, and networking events to meet other professionals and exchange insights. Join professional organizations like the American Institute of Certified Public Accountants (AICPA) or local chambers of commerce to expand your network and access potential client referrals.

Building strong client relationships requires delivering exceptional customer service, actively listening to client needs, and providing timely, personalized solutions. For example, some clients may require you to walk them through some generally accepted accounting principles or explain concepts like what is accounting profit. By nurturing these relationships, accounting firms can cultivate trust, loyalty, and long-term client partnerships, leading to business sustainability and referrals.

Launching Your Accounting Firm

Launching an accounting business involves finalizing business offerings, setting competitive fees, and implementing marketing strategies to attract clients.

Before launching the business, finalize the range of services your firm will offer, ensuring they align with client needs and market demand.

Conduct market research to determine competitive pricing strategies that reflect the value of your services while remaining attractive to potential clients.

Develop a marketing plan that includes online and offline strategies to promote your firm’s brand, such as a website startup guide , social media marketing, email campaigns, and networking events.

Additionally, establish efficient business processes and systems to deliver high-quality services consistently. By carefully planning and executing these steps, accounting firms can successfully launch their businesses and position themselves for long-term success and growth.

FAQs: How to Start an Accounting Business

What are the key financial considerations for new accounting firms.

Financial considerations for accounting firms include managing cash flow effectively, budgeting for operational expenses and investments, monitoring profitability ratios, and ensuring compliance with tax obligations. Additionally, prudent financial planning involves setting aside funds for emergencies, investing in professional development, and evaluating the firm’s financial performance regularly to make informed business decisions.

How can new accounting businesses stand out in a crowded market?

A new accounting business can stand out from the competition by offering specialized services tailored to niche markets, providing exceptional customer service, leveraging technology for efficiency and innovation, and building a strong brand identity through effective marketing and networking efforts. By offering the best accounting services for small business users and demonstrating expertise, reliability, and a client-centric approach, accounting firms can differentiate themselves and attract clients seeking tailored solutions and personalized attention.

What role does technology play in the modern accounting firm?

Technology plays a crucial role in modern accounting firms by facilitating efficient workflow management, automating repetitive tasks, enhancing data accuracy, and improving client communication and collaboration. Cloud-based accounting software , document management systems, and communication tools streamline processes, enabling accountants to focus on value-added services and strategic insights. Embracing technology also fosters agility and adaptability, allowing accounting firms to stay competitive in a rapidly evolving digital landscape.

How can accounting firms build lasting partnerships with small businesses?

Accounting firms can build lasting partnerships with small businesses by understanding their unique needs and challenges, providing proactive advice and support, delivering personalized solutions, and fostering open communication and trust. By demonstrating a deep understanding of small business operations, offering strategic guidance for growth and financial management, and consistently delivering value, accounting firms can establish themselves as trusted advisors and long-term partners for small businesses looking to hire an accountant . Regular communication, responsiveness, and a collaborative approach further strengthen the partnership and contribute to mutual growth and prosperity.

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Home > Finance > Accounting

The 9 Best Small-Business Accounting Software of 2023

Data as of post date. Offers and availability may vary by location and are subject to change. *Only available for businesses with an annual revenue beneath $50K USD **Current offer: 50% off for 3 mos. or 30-day free trial †Current offer: 50% off for three months or 30-day free trial ‡Current offer: 75% off for 3 mos. Available for new customers only

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

The bottom line:  Xero is our favorite accounting service for small businesses. With free unlimited users, it's an excellent pick for collaborative businesses like multi-partner LLCs. Its low starting price and excellent app also make it a prime fit for freelancers, contractors, and other sole proprietors.

Wave Accounting is a good free accounting option for budget-cautious freelancers and small-business owners.  QuickBooks Online works well for business owners who value solid reporting and tax tracking. Zoho Books affordably automates key tasks that can suck up business owners’ time. FreshBooks is a good alternative for business owners who want unlimited invoices.

• Wave : Budget pick
• Zoho Books : Best features
• Xero : Best overall accounting software
• QuickBooks : Most user-friendly
• FreshBooks : Best invoicing

If you're searching for accounting software that's user-friendly, full of smart features, and scales with your business, Quickbooks is a great option.

Compare the year's best accounting software

Wave is the most affordable accounting software.

Data as of post date. Offers and availability may vary by location and are subject to change.

For exactly $0, Wave presents you with a slick, user-friendly dashboard and a slew of features that rival those of paid accounting systems. For instance, Wave Accounting includes multi-currency support, expense tracking, unlimited invoicing, unlimited bank account connections and double-entry accounting —a more accurate method of accounting that FreshBooks' basic business accounting plan notably lacks.

Wave also lets you juggle multiple businesses with the same account. If you're an Amazon or eBay seller who also manages a small team of contractors, you can track both sets of finances without paying anything.

Even though Wave has a useful payroll tool , its accounting software isn't necessarily right for businesses with dozens of employees. Since Wave offers just one accounting plan, businesses can't scale up to plans that include more accounting tasks for growing businesses. And Wave's lack of inventory tracking makes it better matched to service-based solopreneurs and freelancers who don't need both accounting and inventory software.

Zoho Books is the most comprehensive accounting software

Data as of post date. Offers and availability may vary by location and are subject to change. *Only available for businesses with an annual revenue of <$50K USD. Paid plans start at $15.00 a month when billed annually.

Zoho Books  automates the most common (and, let's face it, boring) bookkeeping tasks —which means you can dedicate more time to your business and customers and less time to the tedious task of data entry. Most notably, it lets you set automatic customer payment reminders, create recurring expense profiles, and manage 1099 contractors.

Plus, Zoho Books is just one piece of software in the larger suite of Zoho products. Each Zoho product integrates easily with the rest, which means that along with accounting, you can use Zoho for project management , inventory management , and customer relationship management (CRM)—just for a start.

Here's the best part:  if you make under $50K a year, you can take advantage of Zoho Books' free plan . Otherwise, Zoho Books starts at $15 a month if you pay annually or $20 if you pay month to month. The cheapest plan includes three users, but you can also pay an extra $2.50 per month for each additional user. That’s a standout bargain, especially compared to FreshBooks' extra $10 per user per month. Zoho also offers discounts to nonprofits—one reason it's among our top financial management software picks for nonprofits that need true fund accounting .

Unfortunately, even though it’s a solid accounting tool, Zoho Books has one huge flaw: Zoho doesn't offer a payroll plan integration unless you live in California, Texas, or India. And it doesn't integrate with third-party payroll providers either. Instead, you have to manually update the payroll-related aspects of your books, which detracts from Zoho's primary perk of automation in a big way.

Similarly, Zoho Books’s cheapest plan doesn’t include automatic journal entry creation. Instead, whenever you debit or credit an account, you’ll have to manually create an entry. If you log more than a few transactions a month, the lack of automation adds major time and hassle—you’ll want the $40 a month (or $50, billed monthly) Professional plan instead.

Xero is the best overall accounting software

Data as of post date. Offers and availability may vary by location and are subject to change. *Current promotion: 75% off for three months. Offer available for new customers only.

We love Xero for its robust features and low starting price. For the regular price of just $13 a month, Xero lets you send custom invoices, reconcile bank transactions , capture receipts for easier record keeping, and track inventory.

But as a small-business accounting tool, Xero really stands out on the collaboration front. Unlike nearly every other accounting solution (including QuickBooks and FreshBooks ), all of Xero's accounting and inventory software plans include unlimited users. You don't have to pay extra to delegate responsibilities like bank reconciliation or expense tracking to another team member: time-saving collaboration is built into your price.

However, Xero's $13 a month plan limits you to entering only five bills and sending only 20 invoices a month. You can send unlimited invoices and quotes with only the Growing and Established plans, which start at $37 and $70 a month, respectively. Plus, you can only track expenses with the priciest plan. In contrast, both QuickBooks and FreshBooks offer small-business expense tracking up front.

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QuickBooks Online is the most user-friendly accounting software

Data as of post date. Offers and availability may vary by location and are subject to change. *30-day free trial or 50% off for three months. Price increases to $30.00/mo. after promotional period.

QuickBooks is easily one of the most popular financial, tax, and accounting software options in the world. And while QuickBooks Desktop (especially the fairly comprehensive, comparatively affordable QuickBooks Pro Plus) is still an option for those who prefer desktops, QuickBooks Online is Intuit’s cloud-accounting software solution.

The basic Intuit QuickBooks Online plan includes typical features like invoicing, billing, and receipt scanning along with more comprehensive tracking than many competitors:

• Mileage tracking
• Sales tax tracking
• Automatic tax deduction categorization
• 1099 contractor payment tracking
• Thorough reporting, including accounts receivable

QuickBooks also has the absolute best mobile accounting app you can find. The app can do basically everything the software can (a rarity for any software provider, no matter the industry). If you work on the go, QuickBooks's app, which includes mobile mileage tracking, might make it a good fit.

Intuit QuickBooks's online reporting and tracking features come at a price, though: its cheapest small-business plan starts at $30 a month and restricts you to one user plus an accountant. The priciest plan, which includes 25 users, starts at $200 a month.

At $15 a month, QuickBooks Self-Employed is a cheaper financial management option. However, QuickBooks Self-Employed targets freelancers with just a few clients and limited expenses. Instead, it's primarily an invoicing, mileage-tracking, and tax-tracking plan. That means it helps sole proprietors who file Schedule C forms maximize their tax returns, but it's not a fully featured bookkeeping or accounting app for other business owners.

FreshBooks is the best software for invoicing

Data as of post date. Offers and availability may vary by location and are subject to change. *30-day free trial or 50% off for 3 mos. Price increases to $17.00/mo. when promotional period ends.

FreshBooks’s combination of stellar features, customizable invoices, and well-reviewed mobile apps make it pretty much perfect—especially for freelancers. Unlike Xero , FreshBooks lets you send an unlimited number of invoices and estimates with every plan. Each plan also includes time tracking for easier, more accurate client billing. FreshBooks’s built-in small-business expense tracking helps you maintain a balanced budget. And, like QuickBooks Online, FreshBooks includes built-in mileage tracking—a must for freelancers who plan to claim mileage expenses on their year-end tax forms.

But while FreshBooks doesn’t limit your invoices, it does limit the number of customers you can bill each month. You can send your customers an unlimited amount of invoices, but the cheapest plan limits that client number to just five.

Additionally, FreshBooks doesn’t include bank reconciliation with its cheapest plan. Since bank reconciliation is an absolutely foundational accounting task, we can only recommend FreshBooks’s cheapest plan to freelancers or brand-new startups with just a few transactions a month.

Accounting software honorable mentions

Not sold on our top picks? Here are five more small-business accounting software options that could work better for you.

• Sage Accounting : Best user experience runner-up
• OneUp : Best for sales teams
• Kashoo : Easiest setup
• ZipBooks : Most affordable runner-up

Top feature comparison: Accounting software honorable mentions

Sage business cloud accounting: best user-experience runner-up.

Sage Business Cloud Accounting’s cheapest plan lets you create invoices, track amounts owed, and automatically reconcile your bank accounts . If you’re willing to pay a bit more ($25 a month), Sage Accounting adds unlimited users, quotes, estimates, cash flow forecasting, and purchase invoice management.

Unfortunately, Sage charges extra for receipt scanning, a feature competitors like Wave, FreshBooks, Xero, and QuickBooks include for free. And Sage’s pricier plan has built-in features than, say, Xero’s cheapest plan. (On the other hand, Sage's accounting system doesn’t limit your monthly invoice amount).

If you're looking for industry-specific accounting software, Sage some standout solutions beyond Sage Business Cloud Accounting. For instance, Sage 100 Contractor is a preferred accounting option for professionals in the construction business . And Sage Intacct is one of the best accounting services for nonprofits. 

Sage Business Cloud is currently offering new customers 70% off for their first six months of Sage Accounting—which typically costs $25 a month. With the discount, your price goes down to $7.50 for six months. If you're considering Sage, we highly recommend taking advantage of the discount to save more than $100. 

OneUp: Best for sales teams

All of OneUp's plans include customer relationship management (CRM) features, which makes it perfectly suited to sales teams that frequently follow up with customers. Plus, it's affordable: pricing for one user starts at $9 per month. If you’re a Mac user, though, you’re out of luck: OneUp works only for Windows users. And while every OneUp plan includes all of OneUp’s features, its plans limit your user numbers. Only the priciest plan, which starts at $169 a month, includes unlimited users.

Kashoo: Easiest setup

Got a minute to spare? You can set up Kashoo in 60 or so seconds, and the app immediately starts to categorize your expenses and learn your business spending habits. Like Zoho Books, Kashoo's automation is its selling point—and unlike Zoho Books, it syncs with SurePayroll , one of our top payroll providers . 

Kashoo's accounting software starts at $20 a month. If you’re looking for a cheaper solution, Kashoo offers an invoice-centric plan for $0.00. Along with sending invoices, you can use the free plan to track expenses, accept online payments, and send estimates. We're not sure if the free plan lets you track income and expenses or not—Kashoo's site gives contradictory answers.

Either way, though, it looks like Kashoo is  planning  on developing expense and income tracking for its free plan, if it doesn't include those two features already.

ZipBooks: Most affordable runner-up

If you don't need quite as many features as Wave offers, ZipBooks is a solid free accounting software alternative . Even though it's free, it doesn't limit the number of invoices you can send (like Xero) or clients you can bill (like FreshBooks) per month—you can access unlimited customizable invoices and accept payments too. ZipBooks' paid plan starts at $15 a month and offers better bookkeeping and automation features than its free accounting plan. But if you prefer your accounting tools on the go, look elsewhere. ZipBooks' iOS app has disappeared from the App Store, and it's never had a Google Play app worth mentioning.

The takeaway

If you want fully featured accounting software with an excellent app, clean dashboard, and affordable price, we recommend Xero . Based on its features and pricing alone, it's a great bookkeeping and accounting company for most business types, from freelancers to LLCs. 

All of our other picks have something to offer too, so if you find Xero isn't a good fit, try one of these alternatives: 

• QuickBooks Online is an extremely comprehensive accounting solution with one of the best accounting apps and most thorough financial statements you can find. With up to 25 users, its most expensive plan suits bigger businesses with large, collaborative accounting teams.
• FreshBooks easily offers the best invoicing of any provider on our list. Its invoice, estimate, and payment acceptance features make it ideal for on-the-go contractors and freelancers who frequently collaborate with clients.
• Zoho Books has about as many features as QuickBooks at a lower price and a low additional user fee. Its free plan is perfect for freelancers who want solid reporting and financial tracking without any overwhelming bells and whistles (for instance, QuickBooks' dozens of customizable reports). 
• Wave Accounting is the best free accounting solution for most freelancers, contractors, and other small-business owners. While it has fewer financial reports than other accounting systems, it's perfect if you juggle multiple businesses, want to add multiple users, or need unlimited expense tracking.

Finding the best online accounting software for your small business can seriously transform your working life. With less time spent on data entry, you have more time for the things you like most about small-business ownership, whether that's getting to know customers or making products you're proud of.

Most of our top accounting software picks include a free trial, so don't be shy about trying a few different brands if you don't hit on your favorite right away.

Need to pair payroll software with your new small-business bookkeeping and accounting software? Head over to our piece on the best payroll software for small businesses.

Still not sure which accounting provider is right for you? Answer some questions about your small business and we'll pair you with customized software options.

How to choose accounting software

We're going to walk you through the 10 best accounting software solutions below, but these are the best options out there—so how can you decide which one will work best for your business? First of all, you should talk to your accountant or financial professional for their input. Then work with your accountant to evaluate software based on the following criteria: 

• Price . Accounting software costs as little as nothing and as much as several hundred dollars a month. Free software usually offers fewer features than paid software, so we recommend it primarily to freelancers, solopreneurs, and businesses with few employees. Bigger businesses should plan on spending quite a bit more per month—or even on outsourcing to a virtual accountant .
• Accounting and bookkeeping features . At minimum, accounting software should sync with your business bank accounts to help you track each financial transaction. Even the most bare-bones financial software should include features like invoicing, expense and income tracking, bank reconciliation , and mileage tracking .
• Automation . Most paid accounting solutions will automatically generate journal entries for your chart of accounts every time you accept a payment or pay a bill. Some automatically reconcile your bank accounts, and still others automatically sync with your payroll software to keep your accounts in order. The more automation, the more time saved (hypothetically, at least)—but the more you'll pay for your software too. 
• User-friendly interface . If you can't figure out how to use your software, the amount of bookkeeping features it has doesn't matter. Before you commit to a plan, sign up for a demo or a free trial to get the hang of the software and find out if the interface simplifies your financial life or complicates it. 
• Number of users . If you're a sole proprietor, you probably don't need to worry about finding software that lets you add multiple users. (Typically, even the cheapest base plans should include access for both you and  an accountant for free.) But if you aren't the only person responsible for your business's finances, you'll want to look into software that lets you add multiple users, potentially with different permission levels.

Want to learn a little more about bookkeeping and accounting before you dive into our top reviews? Start out with our small-business accounting guide .

Accounting software FAQ

Xero offers fantastic accounting features at a reasonable starting price, but the best accounting software option for you depends on your business’s unique needs and budget. For instance, Wave works very well for freelancers on a budget, QuickBooks helps small-business owners who travel a lot for work, and FreshBooks’s customizable invoices are great for business owners who frequently collaborate with clients. Do you work off a Mac? Check out the best small business accounting software for Macs . 

QuickBooks Online  is definitely among the most popular accounting software for small businesses, and its thorough accounting features definitely make it the best accounting software for many users.

However, being popular isn't the same as being the best. Sure, QuickBooks could be the best software for your small business, or you might find its prices too high and its features too limited. Depending on what you need, another bookkeeping software pick like FreshBooks or Sage could be better for your business. Not sure what your other options are? Check out our list of the year's best QuickBooks alternatives to get started.

What is the easiest accounting software to use?

QuickBooks Online has a longstanding reputation as one of the easiest accounting software programs to use. The dashboard is well organized with clear graphics for each feature and easy-to-read reports that simplify finances for non-accountant business owners. 

That said, all five of the best accounting software for small-business owners on our list are impressively user friendly. We especially want to call attention to Xero and Zoho Books: Zoho Books' automation nicely complements its accessible dashboard, and Xero's integration with over 1,000 third-party apps simplifies business processes immensely.  

What is accounting software?

Accounting software is software that automates the most important bookkeeping tasks for small businesses. Depending on the type of accounting software you invest in, the software will help you create and send invoices, track projects and spending, and much more. 

Most small-business owners don't have an accounting background but need to carefully track their business's finances to make sure they're turning a profit. User-friendly accounting software was built specifically for non-accountant business owners, and it automatically tracks finances for you so you can spend your time on tasks you like more, such as finding customers and completing projects.  

Accounting software also generates financial reports for you, which is a crucial part of creating a small business that many first-time business owners aren't aware of.  You usually need to submit financial documents like profit and loss reports as part of your business taxes each year. Additionally, you need thorough documentation to secure a small-business loan or appeal to eventual shareholders. 

While you can  track data and create financial documents by hand, accounting software can do it for you—and while requiring less time, effort, and energy on your part.

What are the benefits of small-business accounting software?

The most important benefit of small-business accounting software is probably the time it saves. Once you sync your bank account and credit cards to your accounting program, the software automatically imports your financial transactions. This ensures you're always working with the most up-to-date numbers as you're making crucial business decisions. 

Most accounting software also streamlines traditionally time-consuming tasks like these: 

• Invoicing, including sending invoices and late-payment reminders 
• Automating bill payments
• Reminding you of quarterly tax deadlines
• Pre-filling some tax forms
• Generating common financial documents that help you (and related parties like lenders and shareholders) see where your business stands 
• Tracking mileage to simplify end-of-year tax write-offs
• Uploading receipts for easier categorization
• Automatic expense categorization

Most accounting software also syncs with payroll software so you don't have to transfer your paycheck data into your general ledger by hand.

If you don't use accounting software, you'll probably catalogue your financial transactions by hand using a spreadsheet . This method can be cheaper, but it means you're doing every financial task on your own. Not only will you spend hours of your time painstakingly entering and categorizing data, but you'll have a harder time catching mistakes.

In other words, doing accounting by hand is possible—but it's also more complicated, time consuming, and error-prone. 

How much does accounting software for small businesses cost?

Business accounting software can cost as little as $0. Free accounting software options like Wave Accounting and Zoho Books (which has a free plan for businesses that make less than $50K USD in revenue per year) remove the hassle of by-hand financial data entry without subtracting cash from your bottom line. 

If you want more features than just the basics, accounting software typically starts around $10 to $15 a month. Xero, for instance, charges $13 for its most basic plan while FreshBooks starts at $15. QuickBooks Online generally has the highest starting prices in the industry at $30 a month for a basic plan.

What accounting software do bookkeepers use?

Many bookkeepers and accountants use QuickBooks to track their clients' finances, including both QuickBooks Online and QuickBooks Desktop . However, while QuickBooks is still the most popular accounting software for small-business owners and bookkeepers alike, a growing number of CPAs use QuickBooks alternatives like Xero, FreshBooks, and Sage Business Cloud to collaborate with their clients. 

Additionally, many outsourced bookkeeping companies use proprietary in-house software to keep their customers' books.

What is the best free accounting software for small businesses?

Wave Accounting is one of the most fully featured free accounting software options for small businesses. Its user-friendly dashboard, low learning curve, and easy expense tracking make it ideal for freelancers and small-business owners who don't mind finding another app to manage inventory. It’s also a lot more comprehensive than most other free cloud-accounting software options.

But if Wave doesn’t have the right features for your small business, you do have other free accounting options— ZipBooks , SlickPie , or another free accounting software provider could work better for you.

Can I use accounting software with payroll software?

Most accounting software providers sync with one or more popular payroll providers (Zoho Books, which doesn’t sync with most payroll software, is a notable exception). Xero, FreshBooks, and QuickBooks all sync with Gusto , our favorite payroll provider for small businesses. At $39 plus $6 per user per month, Gusto is also fairly reasonably priced.

Of the accounting software providers listed here, only QuickBooks and Wave offer payroll plans in all 50 states. Of the two, we recommend Wave Payroll over QuickBooks Payroll , which is on the pricier end and doesn’t offer a tax-filing guarantee—a key industry standard you should expect from any payroll provider.

Methodology

To find and rank the best accounting software for freelancers and small-business owners, we carefully examined each accounting company's performance in a few crucial areas: 

• Bookkeeping and accounting features , such as bank reconciliation, journal entry generation, charts of accounts, receipt scanning, invoicing, and expense and invoice tracking
• Pricing , including the number of features with each plan, user limits, and additional fees
• Scalability for growing businesses , including the number. of plans and user limits included with each plan
• Customer support , including customer service hours, means of contact, and overall customer reputation on consumer review sites like Trustradius, Trustpilot, and the Better Business Bureau
• User-friendliness , including learning curve, mobile app access, dashboard functionality, setup tutorials, and overall interface design

We weighted each category equally to derive our star ratings, along with our accounting expert's opinion and advice. Star ratings are subject to frequent review and may change.

Related reading

• Wave vs. QuickBooks Online
• FreshBooks vs. Xero
• FreshBooks vs. QuickBooks Online
• Accounting 101: A Guide for Small-Business Owners

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Best Small Business Accounting Software of 2023

Table of Contents

• Best Small Business Accounting Software
• Things To Consider When Buying
• How We Chose

Small business owners have specific needs when it comes to accounting. In particular, small business accounting software needs to make it easy to manage income and spending without taking too much time away from running the business. Small businesses come in all shapes and sizes, meaning that small business accounting software has to be versatile and customizable – or at least fit your specific needs.

In creating this article of small business accounting software, we looked at the features that are most important to small businesses and consulted with experts in the field.

• Best Overall: QuickBooks Online »
• Best Budget: Wave Accounting »
• Best for Freelancers: FreshBooks »
• Best for Non-Profit Organizations: Aplos »
• Best for E-commerce Businesses: Zoho Books »
• Best for Micro-Businesses: Xero »
• Best for Service-Based Businesses: Sage Intacct »

Best Overall: QuickBooks Online

Sleek design

Great support resources

Easy to share information

Slight learning curve

A little pricey

For years, QuickBooks has been the trusted choice for accountants — and the end result is the best accounting software for small businesses. Intuit began transitioning from QuickBooks Desktop to QuickBooks Online a few years ago, establishing the latter as the frequently updated standard for many accounting professionals. With its intuitive dashboard and versatile widgets, QuickBooks Online boasts many features for small business owners. These include automation tools, the capacity to support up to seven users under one license, e-filing capabilities, and many more.

While the interface is well-designed and the software is packed with great accounting features, newcomers might face a learning curve. Also, QuickBooks Online can be a little pricey; it operates on a monthly subscription model with plans like EasyStart, Essentials, Plus, and Advanced. However, for those willing to invest a bit more in their accounting solution, QuickBooks remains unmatched due to its extensive features – and to be clear, it’s still not overly expensive.

Specifications:

• Pricing: Monthly subscription
• Features: Automated transaction sorting, recurring invoices and credit card payments, reporting
• Compatibility: Web-based, Android and iOS app
• Integration: Amazon Business, PayPal, Square, Etsy, many more
• Customization: Dashboards, reporting

Best Budget: Wave Accounting

Unlimited users

Great reporting

Limited third-party integrations

Some features cost money

What’s more budget-friendly than free accounting software? Wave Accounting is an excellent budget accounting software option for small business owners. If you use only basic accounting and invoicing features, you won’t pay a cent. Additional accounting features, like payments and mobile receipts, are charged either per use or a monthly rate, so consider how often you use these features before signing up for Wave. Additionally, Wave offers excellent reporting tools, and it allows for unlimited users – something that many paid accounting platforms don’t have.

As you would expect from free accounting software, there are some limitations. Notably, third-party integrations are very limited – although if you use Zapier, you’ll unlock a series of additional integrations. Also, as mentioned, some features do cost money, so if you want access to more advanced features you may need to budget for that. Still, basic users who don’t want to pay for accounting software should be able to get much of what they need from the free version of the software.

• Pricing: Free for accounting and invoicing, additional features like payroll and payments can cost per use or monthly.
• Features: I ncome and expense tracking, unlimited users, customized invoices
• Integration: Zapier
• Customization: Customizable reports and invoices

Best for Freelancers: FreshBooks

Mostly simple interface

Invoicing is very easy

Good customer support

Tax features are a bit limited

Not as customizable as others

FreshBooks is the best accounting software for freelancers who want a feature-rich platform without breaking the bank. Unlike some pricier alternatives, FreshBooks offers an affordable monthly subscription, with most of its plans priced lower than similar plans from competitors. It offers excellent automation features and great reporting tools, helping freelancers in their daily business operations.

However, there are a few downsides to consider. FreshBooks allows only one user by default, with additional users incurring extra monthly fees – though most freelancers won’t need to add extra users anyway, so that may not be a huge issue. Its tax compliance functionalities, while capable of tracking sales tax, don't support e-filing tax forms like some competitors do. And while the mobile app is useful for tasks such as tracking mileage and invoicing, it isn't as comprehensive as the desktop version of the software. Nevertheless, for the price point, many freelancers will find FreshBooks offers an excellent balance of features and affordability.

• Features: Automated tax documentation, income statements, cash flow statements
• Integration: Acuity, FreshCurrencies, Zapier, more
• Customization: Customizable invoices, customizable email templates and more available in higher-end plans

Best for Non-Profit Organizations: Aplos

Excellent interface

Additional features for non-profits

Only two users free

Invoicing features are limited

If you're in search of an accounting tool tailored for a nonprofit, including churches, Aplos is the best choice. It's specifically designed for churches and nonprofits, simplifying the handling of donations and even helping with certain tax filings specific to nonprofits. Besides these specialized features, Aplos boasts great general accounting tools such as customizable reports, compatibility with various third-party platforms, and an intuitive user interface.

By default, Aplos only allows two users; to add more, you’ll have to pay extra. Additionally, it doesn’t necessarily excel at some functions that typical accounting software emphasizes, like invoicing and income management. But if your primary goal is to streamline nonprofit accounting, Aplos is our pick.

• Features: Automatic payroll, some e-file features, donor activities
• Compatibility: Web-based only
• Integration: WePay, Gusto, PayPal, more
• Customization: User roles, invoices, reports

Best for E-commerce Businesses: Zoho Books

Free plan available

Excellent e-commerce features

Excellent reporting

Slightly limited integrations

Slightly limited number of users

For those operating an e-commerce business and in need of great accounting software, Zoho Books is the way to go. Notably, Zoho offers both Books and Zoho Commerce, the latter being an expansive e-commerce solution that integrates with the company's accounting software. Zoho Commerce boasts a range of e-commerce features, such as a full-featured website builder and inventory management. Zoho Books is equipped with great accounting functionalities tailored specifically for e-commerce, including integration with payment gateways.

However, while Zoho Books does have good integration with payment gateways, its third-party integrations in general aren't as extensive as some rivals. Further, although premium plans can accommodate up to 15 users, those on basic plans might have to pay for extra users. But given its integration with Zoho's e-commerce platform and its competent e-commerce accounting tools — even for non-Zoho users — Zoho Books is the best choice for e-commerce entrepreneurs.

• Pricing: Free plan, monthly subscription for premium plans
• Features: Automatic categorization, customizable reporting, sales tax calculation
• Compatibility: Web-based, Android and iOS apps
• Integration: G Suite, PayPal, Stripe, Square, more
• Customization: Customizable reports, reports, more

Best for Micro-Businesses: Xero

Well-designed interface

Great selection of integrations

Limited customer support features

Micro-businesses have specific needs when it comes to accounting software, and that’s why Xero is the best choice for those ultra-small businesses. Xero is a no-fuss software that offers unlimited users without having to pay an additional fee, plus it has a very simple user interface that most users will be able to pick up relatively quickly. That’s handy for those who run a micro-business, and who might not be running their business full-time – and thus have less time to spend managing things like accounting.

Xero has some limitations though. Xero is easy to use, but there are limited customer support options if you do have an issue with the software. Additionally, base plans have limits around how many invoices you can generate – and while that may not be an issue for micro-businesses, some will still need to upgrade to a higher-end plan. All that considered, Xero is the best accounting software for micro-businesses considering its no-fuss interface and the fact its base plan should be enough for most users.

• Features: Invoice creation, unlimited users, email notifications
• Integration: Stripe, Hubdoc, HubSpot, MailChimp, Shopify
• Customization: Invoices, reporting, dashboard

Best for Service-Based Businesses: Sage Intacct

Excellent reporting tools

Many third-party integrations

Range of features for service-based businesses

A learning curve

Very expensive

Sage Intacct is the best accounting software for service-based businesses. It delivers exceptional and adaptable reporting tools, ensuring you gain quick access to critical data when you need it. It's also compatible with numerous third-party services and equipped with features tailored specifically for service-oriented operations.

However, because Sage Intacct offers so many high-end tools, there's a steeper learning curve to using the software. In addition, the pricing is quite high and can be confusing, as potential users can't view costs directly on the company's website; reaching out to the company is necessary for a pricing quote. Nevertheless, for those in charge of a service-based business, Sage Intacct is the best choice.

• Features: Automated accounts payable, customizable reporting, tax calculation
• Compatibility: Web-based
• Integration: Tipalti, Expensify, Gusto, many more
• Customization: Customizable reports, dashboards, more

The Bottom Line

QuickBooks Online is the best solution for most small businesses, however, some accounting software might be better in certain scenarios. For example, Aplos is best for non-profit businesses, and Zoho is best for online companies. It's important to recognize the type of business you own and decide exactly how you'll be using the software before making a choice.

Things To Consider When Buying Small Business Accounting Software

Features:  Different software for small business accounting offers different sets of features that can vary widely. As you might expect, most of them can help you categorize transactions and issue payment reminders, but other features include things like the ability to e-file taxes, integrate with third-party software, and more. Usually, free options don’t offer all of these advanced capabilities, so if you need access to them you may need to get a paid product. Make a list of the features you need from accounting software before you subscribe or buy it, so you can make sure your accounting solution meets your needs.

Integration with other business software or applications:  If you use a range of software solutions for different aspects of your business, you may want software that can integrate with them. For example, you might want software that works with your company’s expensing service the payments platform you use to sell your goods. Not all accounting software offers a wide range of third-party integrations, so if that’s important to you, make sure that you find a platform that does. “Small businesses should look for an open platform that allows third-party integrations, so they can select from an ecosystem of third-party applications the tools they need to create best-of-breed technology,” says Ben Richmond, County Manager at Xero.

Reporting and analytics capabilities:  In-depth reports can be very helpful for small business accounting. Most accounting software offers some level of reporting, but different software offers different kinds of reports. You’ll likely want reporting for the various types of income and spending in your business, but you may also want deeper analytics tools that are easy to access. “Great accounting software should be easy to use, optimized so small business users can spend less time inputting data and more time looking at the data and insights to help inform real-time decisions,” Richmond says.

Mobile accessibility and remote access options:  Not every accounting platform works with a mobile app, so if that's something you need, be sure the software you're considering offers it. A mobile app can allow you to manage expenses and income wherever you are. Even if particular accounting software doesn’t have an app, you probably can still access your software through a web portal; most small business accounting software is web-based, rather than being a dedicated app on your computer.

Pricing structure:  Accounting software can range from around $10 per month to hundreds of dollars per month, though the more expensive options are often targeted towards large corporations rather than small businesses. Subscription-based pricing structures are common, and all of the paid platforms on our list are available as part of a subscription rather than at a flat rate. There are some free options, as well as free versions of paid software, that might meet your needs. However, if you want to do anything beyond basic accounting, you’ll likely be stuck paying a monthly fee.

How We Chose the Best Small Business Accounting Software

Our contributor Christian de Looper consulted a number of accounting software experts in the process of building this list of the best small business accounting software. These included Ben Richmond, County Manager at Xero, and Faye Wang, Regional Accounting Director, Tipalti. Christian then narrowed down the list of small business accounting software by looking at the most important features that small businesses generally need.

For each small business accounting software option, Christian looked at the range of features it offers, how much it costs, and the third-party integrations that are on offer. Ultimately, there should be an accounting platform for all different kinds of small businesses, even those with small budgets.

WHY SHOULD YOU TRUST US?

Christian de Looper is a technology expert who has spent more than a decade reviewing and testing both software. As such, has a deep understanding of what makes great a software platform. Christian has used accounting software for his own small business, and he consulted experts in the field in an effort to gain a deeper understanding of what the most important small business accounting software features are.

Accounting is only one aspect of running a small business, but it’s a pretty important one. It’s also time-consuming. Great accounting software can save you countless hours, allowing you to spend less time categorizing transactions for tax time, and more time actually running your business. Not only that, but accounting software could end up saving you money, by gaining a deeper understanding of how your business runs and what you spend business money on, and by helping you better categorize your spend on tax forms when tax time comes along.

“Accounting software is beneficial for companies of all sizes, but it’s an especially useful tool for small businesses with limited resources, whether that’s budget or a workforce,” Wang says. “[Accounting is] oftentimes a laborious and time-consuming function of an organization that is prone to human errors and fraud, ultimately costing the company money and clients.”

Small business accounting software tracks the money you spend and the money you make, helping you categorize those transactions so you have a better understanding of the kinds of things you spend money on and where your income is coming from. Small business accounting software also can generate reports that can help you discover new trends in how your business runs, which can increase your revenue over time.

Small business accounting software can vary radically in price, but most cost around $10 to $20 per month (although you can spend hundreds a month). Some small business accounting software is actually free, giving you access to basic tools without having to pay for them.

Most accounting software is web-based, so all you’ll have to do is log in to the online portal in order to access it. You may have to install an accompanying app on your phone if one is available. This will involve going to the Google Play Store or Apple App Store (depending on your phone), and downloading the app like you would any other app.

You’ll know it’s time to start looking for new small business accounting software if you start to find that your current software doesn’t offer the features that you need to run your business effectively. As your business grows, you may need more advanced features – and if that happens, you may need to switch to a new platform in order to get them.

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Setting Up Accounting for Small Businesses

Basic bookkeeping for small businesses, financial statements for small businesses, tax considerations for small businesses, software and tools for small business accounting, outsourcing accounting services for small businesses, best practices for small business accounting, what are the benefits of using accounting software for small businesses, what are the best practices for maintaining accurate financial records, what types of records do small businesses need to keep, the bottom line.

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Accounting for Small Businesses: A Comprehensive Guide to Financial Management

Accounting is an instrumental part of running a small business . Implementing systems and best practices for keeping track of expenditures and revenues is key to managing cash flow . Without these systems in place, it’s all too easy to lose track of funds or create the financial records necessary to file taxes and apply for small business financing, if necessary.

Proper accounting for small businesses encompasses a number of important tasks.

Key Takeaways

• Accounting is crucial for small businesses to effectively manage their finances.
• Setting up accounting systems involves opening a business bank account, choosing an accounting method, setting up a chart of accounts, and determining the fiscal year.
• Basic bookkeeping includes tracking expenses, recording transactions accurately, documenting receipts, and reconciling bank statements.
• Financial statements such as the income statement, balance sheet, and cash flow statement provide insights into a small business’s financial health.
• Small businesses need to understand their tax obligations, track deductible expenses, and file taxes on time.

Accounting as a small business owner begins with laying a proper foundation. That includes four key activities:

• Opening a small business bank account
• Choosing an accounting method (cash or accrual)
• Setting up a chart of accounts
• Determining the fiscal year for the business

Here’s a closer look at each step.

Opening a Small Business Bank Account

Opening a business bank account allows you to separate business and personal spending, which can be helpful when it’s time to file taxes if you plan to deduct eligible expenses. To open a bank account for a small business, you’ll generally need to have the following:

• Employer Identification Number (EIN) or a Social Security number if you operate as a sole proprietor
• Business formation documents
• Ownership agreements
• Business license, if your state requires one to do business

You’ll also need a minimum opening deposit if the bank requires one. Minimum deposit requirements can depend on the type of business account and whether you’re opening the account at a traditional bank, credit union, or online bank.

Remember to compare the fees, features, and benefits associated with different business bank accounts to find the one that best aligns with your needs.

Choosing an Accounting Method

Your accounting method determines how you report income and deduct expenses for the year. The Internal Revenue Service (IRS) allows you to choose between two options: cash and accrual . Here’s how they compare.

• Cash method . With the cash method, you report income in the year that you receive it and deduct expenses in the year that you pay them.
• Accrual method . With the accrual method, you would report income in the year that you earn it, regardless of when it’s received.

If you select one accounting method and then decide that you’d like to change it after filing your taxes, you’d need to complete IRS Form 3115 to formally do so.

Setting Up a Chart of Accounts

A chart of accounts is a list of all accounts available for recording transactions in your accounting software program if you use one or a general ledger if you don’t. To create this chart, you’d first organize your accounts into specific categories, then further break your organization down into relevant subaccounts.

Each category is assigned a range of numbers that are used to track individual accounts. For instance, if you have a category for business asset accounts, your organization might look like this:

• Asset: Checking account, 1005
• Asset: Savings account, 1015
• Asset: Money market account, 1020

You’d follow this system for all of the account categories that you have. Common categories include asset, liability, equity, revenue, and expense accounts.

Determining the Fiscal Year

A fiscal year is 12 consecutive months for which accounting activity is recorded. Small business owners can decide when their fiscal year begins and ends; the only rule is that it must be 12 consecutive months.

For instance, you might choose to start your fiscal year on July 1 and have it end on June 30 of the following calendar year. Or you may choose a more traditional approach and have your fiscal year follow the standard calendar year, depending on what works best for your business. If you operate a seasonal business, for instance, then you may choose to begin your fiscal year at the beginning or end of your peak sales season.

Basic bookkeeping for small business owners revolves around a core set of tasks, all of which are designed to help you keep track of where funds are going. The most important bookkeeping practices include:

• Tracking small business expenses
• Recording transactions accurately
• Documenting and filing receipts
• Reconciling bank statements

In terms of which expenses to track for a small business, the short answer is all of them. Anything that you spend money on—whether it’s your monthly lease payment, utilities, office supplies, or postage fees—should be recorded in your accounting system. And those transactions should be recorded accurately to ensure that you have the correct amounts when you’re ready to deduct business expenses on your taxes.

The IRS encourages small business owners to maintain proper documentation for expenses, such as receipts showing the amount spent, the date, the payment method, and what was purchased.

Taken separately, those tasks can be time-consuming. When utilizing a comprehensive bookkeeping software program, they become easier. The best bookkeeping software syncs with your business bank account and payroll systems so that you’re easily able to import and export transaction history. We’ll cover some of the best business bookkeeping software options a little later.

Financial statements can yield valuable insights into how well your small business is managing income and expenses. You’ll also need to present up-to-date financial statements to lenders if you plan to apply for small business financing at some point.

There are three financial statements that all small businesses should consider creating.

• Income statement (profit and loss statement) . An income statement shows a business’s expenses, income, losses, and gains over a set period. These figures are used to determine your net profit or net loss accordingly.
• Balance sheet . A balance sheet records a business’s assets, liabilities, and shareholder equity. In simple terms, this financial statement will tell you what your business owns and what it owes.
• Cash flow statement . A cash flow statement provides a snapshot of how cash moves in and out of the business. It can also tell you how well your business is equipped to pay its bills.

If you’re already using an accounting software program for small businesses, you may be able to generate these statements automatically using the expense and income information you’ve already entered.

Running a small business means you have to file a tax return and pay what you owe, if anything, to the IRS. Businesses will need to pay federal and state taxes, as well as any local taxes that may apply. There are five types of small business taxes at the federal level:

• Self-employment tax
• Estimated tax
• Employer tax

Your business structure determines which types of tax you must pay . Remember that if you have employees, you’ll also need to account for payroll tax . If you’re unsure about your tax obligations, you may want to talk to a professional accountant or tax expert for advice.

Small businesses that are required to pay estimated quarterly taxes but fail to do so may be assessed a penalty by the IRS.

Deducting Business Expenses

The IRS allows business owners to deduct a number of expenses. Deductions reduce your taxable income for the year. Some of the expenses you may deduct include:

• Business meals
• Business travel
• Business insurance
• Home office expenses
• Utilities and rent for business premises
• Inventory purchases
• Vehicle purchases or eligible vehicle expenses
• Employee benefits
• Retirement plan contributions

Again, you’ll need to keep track of all of these expenses and maintain the proper records for each one. Keeping accurate records serves two purposes:

• It ensures that you’re deducting the right amounts when you file your taxes.
• It allows you to prove your deductions should your business be selected for a tax audit.

If you’re using tax filing software , you may have the option to organize and store receipts electronically.

Software programs, apps, and tools can save your business time and potentially money if you’re able to ensure more accurate accounting. Using a software program can also eliminate the need to retain a full-time accountant, which can add to your business expenses.

Additionally, accounting software can help you to:

• Create cost predictions
• Run forecasts to determine the potential return on business investments
• Manage inventory
• Manage payroll
• Send and receive invoices
• Track accounts payable and receivables

There are numerous software options for small businesses, with QuickBooks and FreshBooks being two of the most popular. When deciding which software program to use for accounting, it helps to first consider what your business needs. You can then compare different programs to evaluate the range of features and benefits that are included, and the overall cost of using it.

While you could handle accounting for your small business on your own, you may consider outsourcing it to an accounting pro .

In terms of the advantages of doing so, letting someone else handle your accounting means you have one less thing to worry about. Instead of crunching numbers, you’ll be free to focus on other tasks that are necessary to run or scale your business. An accountant can also ensure greater accuracy and may be more knowledgeable about the tax code and reporting requirements.

The disadvantage is that outsourcing means your business’s financial information is being viewed by someone else, which you may or may not be comfortable with. Aside from that, you also have to consider what you might pay to hire an accountant on a full-time or part-time basis.

In terms of how to choose an accountant, you may ask other business owners you know for a referral. If you’re able to get a few names, you can schedule meetings with those that look promising. During your meeting with them, consider asking the following questions to get a better idea of how well they align with your business:

• How long have you worked in the accounting field?
• Are you a certified public accountant (CPA), or do you hold any other professional credentials?
• What type of small business owners do you typically work with?
• What’s the full range of services you provide?
• How much do you charge, and how are the fees structured?
• How often will we communicate, and what is your preferred communication method?

You might choose to work with a virtual bookkeeper if you’re comfortable connecting via Zoom call or email. The fees may be lower, but be sure to ask about their background and experience before entering into an agreement to contract their services.

Following best practices can minimize room for errors in your small business accounting and help you to keep better records. What those practices look like may vary from business to business, but at a minimum, it’s a good idea to include the following:

• Maintain separate bank accounts and credit cards for business and personal spending.
• Ensure accuracy in business record-keeping.
• Regularly review financial statements.
• Seek professional advice when needed.
• Back up and secure records.

Setting up a document management system can help with organizing your records so that they’re easier to review. There are different ways to organize files, depending on what you need to store.

You might choose to use document management software to keep track of key financial information and statements. You’ll want to periodically back up your files and ensure that you’re adhering to security protocols so your information isn’t compromised. For example, if you need to save a copy of a document separately from other files, you may put it in its own password-protected folder inside your document management software.

Using accounting software can allow you to save time when managing the books for your business. You can sync financial accounts to easily import transaction history, track expenses, double-check transactions for accuracy, and generate important financial statements.

Some of the best ways to ensure accuracy in financial records include keeping business and personal accounts separate, using an accounting software program to track cash flow, regularly updating financial statements, and conducting an annual audit to review your business’s financial history.

Small businesses need to keep accurate records relating to any expenses they incur, particularly for expenses they plan to deduct. It’s also important to keep records of any agreements with vendors and suppliers, bank statements, documents showing payment of estimated quarterly taxes, and annual tax returns.

The importance of accounting for small businesses can’t be underestimated. Whether you’re starting a brand-new business or you have some experience under your belt, creating a solid accounting plan can help you monitor and maintain your financial health.

U.S. Small Business Administration. “ Open a Business Bank Account .”

Internal Revenue Service Video. “ Lesson 1—Federal Taxes and Your New Business: Accounting Methods .”

Internal Revenue Service. “ About Form 3115, Application for Change in Accounting Method .”

Internal Revenue Service. “ Publication 538: Accounting Periods and Methods ,” Pages 2–3.

Internal Revenue Service. “ What Kind of Records Should I Keep ?”

U.S. Securities and Exchange Commission. “ Beginners’ Guide to Financial Statement .”

U.S. Small Business Administration. “ Pay Taxes .”

Internal Revenue Service. “ Estimated Taxes .”

Internal Revenue Service. “ Publication 535: Business Expenses .”

• Understanding Small Business Taxes: A Comprehensive Guide 1 of 21
• Tax Implications of Different Business Structures 2 of 21
• Accounting for Small Businesses: A Comprehensive Guide to Financial Management 3 of 21
• How Becoming an LLC Could Save Taxes Under the Tax Cuts and Jobs Act of 2017 4 of 21
• Self-Employment Tax: Definition, How It Works, and How to File 5 of 21
• Self-Employed Contributions Act (SECA) Tax: Overview and FAQs 6 of 21
• Is Now the Time to Restructure Your Business? 7 of 21
• Writing off the Expenses of Starting Your Own Business 8 of 21
• 5 Tax Breaks Overlooked by Small Business Owners 9 of 21
• 5 Ways Small Business Owners Can Reduce Their Taxable Income 10 of 21
• Top 10 Home Business Tax Tips 11 of 21
• Write-Off vs. Write-Down: What's the Difference in Accounting? 12 of 21
• How to Make Estimated Tax Payments 13 of 21
• Small Business Tax Obligations: Payroll Taxes 14 of 21
• 7 Ways to Avoid Self-Employed Tax Penalties 15 of 21
• Best Tax Software Programs for Small Business 16 of 21
• 16 Tax Deductions and Benefits for the Self-Employed 17 of 21
• The Small Business Healthcare Tax Credit 18 of 21
• Business Tax Credits: Meaning, How They Work, Example 19 of 21
• 7 Insurance-Based Tax Deductions You May Be Missing 20 of 21
• Indian Employment Credit (IEC): What It Was and How It Worked 21 of 21

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How to do accounting for small business: basics of accounting.

Accounting for small businesses is done by keeping a complete record of all the income and expenses and accurately extracting financial information from business transactions.

This is a necessary chore that helps small business owners track and manage their money effectively – especially during the early stages. Besides keeping you cognizant about your business’ past and present performance, small business accounting also helps in generating invoices and completing payroll.

What this article covers:

How Do You Do Bookkeeping for a Small Business?

How do i set up a small business accounting system, do you need an accountant for a small business.

NOTE: FreshBooks Support team members are not certified income tax or accounting professionals and cannot provide advice in these areas, outside of supporting questions about FreshBooks. If you need income tax advice please contact an accountant in your area .

Analyzing Financial Transactions

The process of accounting starts with analyzing financial transactions and entering the ones pertaining to the business entity into the accounting system . For example, loans taken for personal reasons are not included in the business documents

The first step of the accounting process involves the preparation of source documents. A source document or business document serves as the foundation for recording a transaction.

Journal Entries

Business transactions are recorded in a journal (also known as Books of Original Entry) in a chronological order using the double-entry bookkeeping system. The journal entries include two accounts – debit and credit .

To make this process easier, accountants use a special journal to record recurring transactions such as purchases, sales, cash receipts etc. the transactions that cannot be included in the special journals are recorded in the general journal.

The general ledger is a collection of accounts that display the changes made to each account based on past transactions, along with the current balances in each account. It is also known as the Books of Final Entry.

Unadjusted Trial Balance

A trial balance is prepared to test if the total debits equal total credits. The accounts are extracted from the ledger and arranged in a report. The balances of the debit and credit columns should be equal.

If not, the trial balance contains errors which need to be located and rectified with correcting entries. It’s important to note that some errors may exist despite the debits equaling credits, such as errors caused by double posting or due to the omission of entries.

Adjusting Entries

At the end of the accounting period, the accountant must prepare the adjusting entries to update the accounts that are summarized in the financial statements. For example, income earned but not recorded in the books.

Adjusting entries are made for accrual of income and expenses, depreciation , allowances, deferrals and prepayments.

Adjusted Trial Balance

Once the adjusting entries are made, an adjusted trial balance must be prepared. This is done to test if the debits match the credits after the adjusting entries are made. This is the final step before the preparation of the business’ financial statements.

Financial Statements

The financial statements which include the income statement , statement of changes in equity, balance sheet , statement of cash flow and notes are the end products of the accounting system.

Also Read: How to Make Financial Statement for Small Business

Closing Entries

To prepare the system for the next accounting, temporary accounts that are measure periodically, including the  income, expense and withdrawal accounts, are closed. The balance sheet accounts also called the permanent accounts, remain open for the next accounting cycle.

The last step of the accounting cycle is to prepare a post-closing trial balance to test the equality of the debits and credit amounts after the closing entries are made. This trial balance contains real accounts only as the temporary accounts are closed this accounting cycle.

If you want to learn more about bookkeeping and the correct methods, follow our guide titled How to Become a Bookkeeper .

Open a Business Bank Account

When you start a business, open a separate bank account that will keep your business finances separate from your personal ones.

Choosing an Accounting Method

When setting up a small business accounting system, you need to choose a method of recording financial transactions. There are basically two methods of recording income and expenses – the cash basis and the accrual basis of accounting.

Under the cash-basis method of accounting, you record income and expenses when cash transactions are done. For example, you record revenue for a product only when the customer pays you for the product.

Accrual basis

While cash basis may be easier to use, most businesses choose the accrual basis accounting for recording transactions. Under this method, you record income when you make a sale and expenses when you incur them. This is irrespective of whether you received or paid cash for the product or service. You must use a double-entry accounting system and record two entries for every transaction.

Recording Transactions

As a small business owner , you have the option of hiring an accountant, recording transactions by hand or using an accounting software to record your business transactions.

Compile a Chart of Accounts

A   chart of accounts lists all business transaction and is used to compile statements, review progress and locate transactions. These charts have to be updated often to include various business transactions.

Determine your Payment Terms

Based on the nature of your business, you might decide to offer credit to customers. Instead of collecting payments at the point of sale, you may choose to invoice them at a later date.

If you decide to extend credit to customers, you will need a consistent system of creating and sending invoices.

If you’re a small business owner, hiring an accountant for your small business can save you a lot of time and money. Accountants can help small business owners with the following tasks:

• During the formation of your business, an accountant can help you write a business plan
• Advise you on your business’s entity structure
• Help you obtain appropriate licenses such as business licenses, sales tax permits and employment accounts
• Set up your accounting software and chart of accounts when you do not want to incur the bookkeeper’s services on a regular
• Deal with compliance and complex sales tax issues
• Handle complex labor costs including wage and labor compliance issues that can sink even the most profitable businesses.
• Help you meet the requirements for creditors or licensing agencies
• Maintain inventory records by dates purchased, stock numbers, purchase prices, dates sold and sale prices

Small business owners who cannot afford to hire a professional may in the meantime consider automating their small business accounting practices with one of the many cloud-based accounting software applications.

Most of these applications cover the basics of accounting from invoicing, payments and payroll. The software can assist you in keeping accurate records and create basic financial statements.

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Learn How to Craft a Successful Business Plan (Even with No Experience)

10 Minute Read

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Take the First Step in Learning How to Write a Business Plan, Even with No Experience

Antonio Del Cueto, CPA

May 8, 2024

Imagine your business as a spaceship blasting off into uncharted territory. It may sound exciting, but without a precise flight plan, that thrilling journey could end in a fiery crash. Similarly, most businesses don't fail because of bad ideas. They fail because they lack a clear roadmap.

This article will guide you through the process of crafting a business plan that's more than just numbers on a page. Learn the secret formulas that propel businesses from mere concepts to thriving realities.

Reimagining Traditional Business Plan Components

Executive summary with interactive elements.

Transform the executive summary into a dynamic experience using multimedia elements such as videos and interactive timelines. These components help demonstrate the business’s mission and goals, making it more attractive to would-be investors and potential customers.

Flexible Organizational Structures

Suggest designing an adaptable organizational framework that evolves according to strategic business needs and operational demands. This is especially beneficial for entrepreneurs who might need to navigate changes without a background in HR or traditional management.

Navigating Financial Management Without a Background

Simplified accounting tools.

For many new entrepreneurs, managing finances can feel overwhelming. Leveraging simplified digital accounting tools can significantly reduce this stress by automating most of the routine bookkeeping tasks. These tools are particularly beneficial for those without a financial background, making it easier to focus on other aspects of entrepreneurship.

• Automation : Choose tools that automate entries for sales, purchases, and payroll transactions, ensuring accuracy and saving time.
• User-Friendly Dashboard : Opt for software with an intuitive interface that simplifies financial tracking and report generation. This feature is essential for entrepreneurs who need to quickly access financial data without navigating complex menus.
• Integration Capabilities : It’s important to invest in software that integrates with other business tools (e.g., inventory management systems, e-commerce platforms) to streamline all financial processes.
• Scalability : As your business grows, you’ll need accounting software that can adapt to more complex financial demands without requiring a complete overhaul.

Further reading: Mastering Accounting for Tech Companies: The Ultimate Guide to Industry Accounting in the Technology Sector

Understanding business taxes.

A basic understanding of business taxes is essential for any entrepreneur, including those running a nonprofit or other types of organizations. Here are key elements your business plan should focus on:

• Fundamental Tax Responsibilities : Clearly outline what taxes the business is liable for, such as income, payroll, and sales taxes. This information should be specific to your business's location and structure.
• Maximizing Deductions : Include information on how to identify and claim relevant deductions to minimize tax liability. For example, if your business has significant equipment expenses or if you’re renting office space, you should know how these affect your taxes.
• Seeking Professional Advice : While basic tax guides are helpful, consulting with a tax advisor or strategist can provide tailored advice that ensures compliance and optimizes tax benefits. This step is integral for complex situations or where the tax implications could significantly impact business finances.

Further reading: Maximizing Your Small Business Tax Benefits: 2023 Tax Year Strategies & New Reporting Changes

Budgeting made easy.

Budgeting effectively is a core skill every business owner should develop to ensure financial stability and facilitate growth. Here’s how to incorporate straightforward budgeting strategies into your business operations:

• Expense Tracking : Start by categorizing expenses to track where every dollar is going. Categories might include rent, salaries, marketing, and web design. This clarity helps in making informed spending decisions.
• Financial Forecasting : Use historical data to predict future spending needs and income . This is especially important for planning major investments or when scaling operations.
• Regular Financial Reviews : Conducting regular reviews of your budget will help you stay on track and make necessary adjustments in response to financial performance or changing market conditions.
• Budgeting Tools : Recommend specific budgeting tools that are designed for small business needs. These tools should provide visual representations of financial data, making it easier to digest and act upon.

Each of these sections should be detailed in the business plan to demonstrate a thorough understanding and proactive management of financial aspects. This approach not only helps in securing funding (e.g., from banks or venture capital) but also in managing day-to-day financial operations efficiently.

Building Strategic Partnerships and Collaborative Networks

Cross-industry alliances.

Engaging in cross-industry alliances is a strategic move that can drive substantial business growth and innovation. These partnerships leverage complementary strengths and resources, offering a multitude of benefits:

• Innovation through Diverse Expertise : Combining knowledge and resources from different sectors can catalyze innovative solutions that neither partner could develop alone. For instance, a tech startup could collaborate with an established manufacturing firm to optimize production processes using advanced technology, resulting in a competitive edge in the market.
• Access to New Markets : Each industry has its unique customer base. By forming alliances, businesses can bridge their offerings to new audiences. A successful example could involve a collaboration between a software development company and a telecommunications firm to introduce a new tech product to a broader audience, utilizing the telecom firm's extensive customer network.
• Resource Sharing : Strategic partnerships allow for the sharing of critical assets such as technology, marketing channels, and expertise, leading to cost savings and enhanced product offerings. This might involve sharing R&D facilities or co-branding efforts for joint marketing campaigns.
• Enhanced Credibility and Brand Perception : Partnering with reputable firms in other sectors can significantly boost a company's credibility and strengthen its brand image, attracting more customers and potential investors.

Documenting cross-industry alliances in a business plan must specify the objectives, expected outcomes, and the nature of the collaboration. Include specific information on how these alliances align with the business’ strategy and how they contribute to achieving the company’s goals.

Customer Involvement in Product Development

Integrate customer feedback into the product development process for aligning products with market needs and enhancing customer satisfaction. This strategy not only improves product-market fit but also fosters customer loyalty:

• Direct Feedback for Better Products : Involving customers early in the development process ensures that the final product meets actual user needs and solves relevant problems. This can be achieved through methods like crowdsourcing ideas, beta testing new products, and incorporating user-generated content and suggestions into product design.
• Build Customer Loyalty : Customers who participate in the product development lifecycle are more likely to develop a deeper connection with the brand, increasing their likelihood of becoming repeat buyers and brand advocates.
• Agile Feedback Loops : Utilizing customer feedback during product testing phases allows for quick iterations and adjustments, greatly enhancing the product’s relevance and appeal upon launch.
• Unlocking New Ideas : Customers often see different uses for a product or identify missing features that can lead to significant innovations, helping a company stay ahead of competitors.

The business plan must include a dedicated section outlining how customer feedback will be integrated into product development processes. This section should also include pricing strategies informed by customer input to ensure market competitiveness.

For businesses seeking funding or partnership, a well-crafted business plan is essential. Including sections like Cross-Industry Alliances and Customer Involvement showcases a comprehensive approach to strategic planning and market engagement.

For simplicity and clarity, especially when presenting to potential investors, consider summarizing key strategies in a one-page overview within the larger business plan. This not only highlights the strategic vision but also ensures that readers can quickly grasp the core elements of your plan.

Key Takeaways

• Clarity is Key : Craft a clear, concise business plan to create financial projections and ensure a solid foundation.
• Know Your Audience : Tailor your plan to engage stakeholders, addressing related topics like brand awareness.
• Research Matters : Thorough market research strengthens your plan, supporting its solidity.
• Financial Focus : Develop realistic projections for revenue and expenses to fortify your business plan.
• Stay Adaptable : Flexibility is key to evolve strategies, including those for brand awareness, to maintain relevance.

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Tickmark, Inc. and its affiliates do not provide legal, tax or accounting advice. The information provided on this website does not, and is not intended to, constitute legal, tax or accounting advice or recommendations. All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. You should consult your own legal, tax or accounting advisors before engaging in any transaction. The content on this website is provided “as is;” no representations are made that the content is error-free.

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6 Best Financial Reporting Software for 2024

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• Best overall financial reporting software: QuickBooks Online
• Most comprehensive reporting: Sage Intacct
• Best for large enterprises: NetSuite
• Best for small businesses: Xero
• Best add-on tool: Spotlight Reporting
• Best automations: Zoho Books

To make evidence-based decisions for your business, you need financial reporting software that makes it possible to import and analyze your financial data and accounting statistics . However, the financial reports of a small business are very different from that of a large enterprise, which can make it tough to find the best financial reporting software for your needs.

To help you narrow down your search, we’ve rounded up the best financial reporting software for businesses of all sizes.

Top accounting software comparison

Besides price, there are many other features to consider when choosing a financial reporting software platform. This chart summarizes some of the main things to look for:

QuickBooks Online: Best overall financial reporting software

QuickBooks is known for its accounting and bookkeeping software, but it actually offers a very robust library of financial reports as well. The entry-level Simple Start plan already comes with dozens of reports, and the Plus plan provides access to more than 60 different reports to choose from. QuickBooks also comes with plenty of other advanced features, including time tracking and inventory management, depending on what plan you decide on.

QuickBooks Online offers four different pricing tiers to choose from:

• QuickBooks Simple Start: $30 per month with access for one user.
• QuickBooks Essentials: $60 per month with access for up to three users.
• QuickBooks Plus: $90 per month with access for up to five users.
• QuickBooks Advanced: $200 per month with access for up to 25 users.

First-time QuickBooks customers can choose to explore QuickBooks without committing to a plan by signing up for a 30-day free trial. You can also skip the free trial in favor of locking in 50% off for your first three months — but you can’t choose both.

• Automatic sales tax calculations are included.
• Bookkeeping automation cuts down on tedious manual work.
• Share your books and reports with your accountant easily.
• Automatically track mileage for reimbursement using the mobile app.
• More than 60 financial reports to choose from.
• Unlimited invoices and bills on each plan.
• Mobile receipt capture on each plan.
• Multiple pricing plans offer scalability as your business grows.
• More expensive than some competitors.
• Each pricing plan limits the number of users.
• Customer support is not well reviewed.

For more information, read our full QuickBooks Online review .

Sage Intacct: Most comprehensive reporting

Sage Intacct offers more than 150 pre-built financial reports to choose from, plus the ability to generate custom reports. This comprehensive financial reporting software tracks both financial and operational data and even allows you to combine data from multiple entities so you can look at the high-level numbers. You can also slice and dice data according to 10 pre-built dimensions or define your own to get granular and enhance your financial reports .

Sage Intacct does not publicly disclose its pricing information. You’ll have to contact their sales team for a custom quote.

• Create reports, graphs, dashboards and visualizations.
• Multi-entity analytics for complex businesses.
• Intelligent general ledger uses AI to scan for anomalies.
• Add user-dimensions for greater reporting detail.
• Designed for large, multi-entity businesses.
• AI and machine learning features help to automate work.
• Choose from more than 150 pre-built accounting and financial reports.
• Drag-and-drop dashboard creator.
• Pricing is not transparent.
• Learning curve can be steep due to the number of features.
• Too complicated for small businesses.

NetSuite: Best for large enterprises

NetSuite is a full business software stack solution that includes robust options for financial reporting. Since NetSuite was specifically designed for large enterprises, it includes reporting features that support their needs, such as combining financial, operational and statistical data into one report. You can also create custom versions of the same report to present to different audience, so you can highlight different aspects of the same data set.

NetSuite does not publicly disclose its pricing information. You’ll have to contact their sales team for a custom quote.

• Create multiple versions of custom reports to show to different audiences.
• Combine financial, operational and statistical data into one report.
• Identify trends as they happen with real-time analytics.
• Gain meaningful insights with industry standard KPIs.
• Comprehensive, complex financial reporting.
• Designed with enterprise needs in mind.
• Many different integrations available.
• Consolidate multiple types of data in one report.
• Higher learning curve.
• Interface can feel outdated compared to competitors.

For more information, read the full NetSuite review .

Xero: Best for small businesses

If you’re a small-business owner looking for simple financial reporting software, Xero is a great option to consider. This accounting software offers a limited selection of default reporting templates, such as profit and loss statements, assets and liabilities, and budget variances.

You can also create your own custom reporting templates and save them for later to make it easy to generate future reports. Xero also provides a good selection of other accounting features, such as invoice creation and expense management .

Xero accounting also three different pricing tiers to choose from:

• Xero Early: $15 per month.
• Xero Growing: $42 per month.
• Xero Established: $78 per month.

Xero also offers a 30-day free trial so that you can test drive the software before committing to a paid plan.

• Expense and mileage tracking available.
• Inventory management available on all pricing plans.
• Create quotes, send invoices and enter bills.
• Sync your bank accounts for automatic tracking and reconciliation.
• Unlimited users on all accounts.
• Affordable pricing plans.
• Low learning curve for beginners.
• Easy to navigate interface.
• Not as many financial reports as some other competitors.
• Must upgrade to Established plan to get many features.
• Invoices and bills are limited on the Early plan.

For more information, read the full Xero review .

Spotlight Reporting: Best add-on tool

If you already have the rest of your business software stack figured out and just need a financial reporting solution, then check out Spotlight Reporting. This advanced reporting software allows you to report on multiple organizations at once, even allowing you to generate consolidated forecast reports. Its robust capabilities mean it offers a higher learning curve, but the trade-off may be worth it if other financial reporting software isn’t complex enough for your needs.

Spotlight Reporting offers three pricing plans targeted towards business owners and Chief Financial Officers:

• Business: $35 per month for one organization, with additional organizations at $25 per month.
• Business 20: $295 per month for up to 20 organizations, with additional organizations at $12.50 per month.
• Franchise + Not For Profit: $295 per month for up to 20 organizations and a head office, and an upgrade is $5 per month per organization.

Spotlight also offers four pricing plans geared towards accountants, bookkeepers and advisors looking for a single license they can use for multiple organizations:

• Basic: $295 per month for up to 20 organizations.
• Super VCFO: $495 per month for up to 50 organizations.
• Super VCFO 150: $995 per month for up to 150 organizations.
• Enterprise: Contact sales team for a custom quote.

A free trial is available for all pricing plans.

• Easily import data from multiple sources.
• Drag-and-drop interface makes it possible to add and reorder pages.
• Quickly generate multi-page reports to show to clients or management.
• Can email the final report, download a PDF, present it online or publish to the web.
• Advanced reporting features
• More than 100 pre-built charts to choose from.
• Choose from industry-specific templates.
• Can consolidate multiple organizations in one report.
• Reporting only; no extra functionality.
• Higher learning curve due to the more advanced features.
• May be too complex for small businesses.

Zoho Books: Best automations

Zoho Books currently offers 24 accounting and financial reports to choose from, making it a worthy contender for your financial reporting software pick. The reports can be scheduled to automatically sent at specific time intervals and you can also configure role-based access to the reports. Zoho Books also offers four more ways to automate work — workflows, webhooks, email alerts and custom functions — to cut down on repetitive manual tasks.

Zoho Books offers six different pricing plans, which are billed per organization instead of per user. The base pricing plans are:

• Free: $0 for businesses with less than $50K USD per calendar year.
• Standard: $15 per organization per month billed annually, or $20 per organization per month billed monthly.
• Professional: $40 per organization per month billed annually, or $50 per organization per month billed monthly.
• Premium: $60 per organization per month billed annually, or $70 per organization per month billed monthly. A 14-day free trial is available for this plan.
• Elite: $120 per organization per month billed annually, or $150 per organization per month billed monthly.
• Ultimate: $240 per organization per month billed annually, or $275 per organization per month billed monthly.

Zoho Books also offers the following add-ons:

• Additional users: $2.50 per user per month billed annually, or $3 per user per month billed monthly.
• Advanced autoscans: $8 per month for 50 scans per month billed annually, or $10 per more billed monthly.

• Double-entry accounting software.
• Generate quotes, invoices and sales orders.
• Simple expense tracking included.
• Client port login makes it easy for them to manage payments.
• Six pricing plans offer excellent scalability.
• Multiple automations to choose from.
• More affordable than many competitors.
• Forever free plan available.
• Requires an outside integration for automatic sales tax calculations.
• Payroll add-on only available in 21 states currently (though access is expanding).
• Must set up free invoicing and inventory add-ons to get full functionality.

For more information, read our full Zoho Books review .

Key features of financial reporting software

Pre-built reports.

The best financial reporting software should already come with a library stocked full of common financial reports, such as profit and loss statements. These pre-built templates make it possible to generate a new report in just a few minutes.

Custom templates

In addition to the pre-built templates, the financial reporting software should also let you create and save your own reporting templates. You should be able to build your own from scratch as well as edit and save existing templates.

Data import

Financial reporting software should integrate with all your data sources, and most come with pre-built connectors to do just that. The software should also give you the option to manually upload data via an Excel sheet or another file format.

Report export

Once the final report is ready, you should be able to share it through multiple avenues. Some of the most common are downloading a PDF and emailing it to colleagues, but some financial reporting software also allows you to publish to the web or present it online.

Forecasting

In addition to generating reports for past data, the best financial reporting software will also be able to create forecasts for the future based on data-driven trends. This helps your business to make evidence-based decisions grounded in data.

How do I choose the best financial reporting software for my business?

To choose the best financial reporting software for your business, consider your needs as well as your budget. A small business will likely be satisfied with a handful of basic reporting templates at a lower price, while enterprises will be willing to pay more for advanced features like multi-entity reporting.

Make a list of your must-have features and prioritize those during your search. If you have a strict budget, you might have to be willing to compromise on some of them to keep costs low. Ask yourself if the lower costs are worth skipping the missing features or having to do time-consuming manual workarounds.

During your search for the best financial reporting software, take advantage of free trials, free accounts and free software demos. For the demo calls, come prepared with specific questions and requirements so you can confirm the software will integrate with the rest of your business software stack.

Methodology

To choose the best ecommerce accounting software, we consulted product documentation, demo videos and user reviews. We evaluated products based on pricing, customer service, user interface design and scalability. We also considered features such as reporting templates, data import, forecasting and integrations.

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Best accounting software in 2024

Alison Kilian

Sierra Campbell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 3:28 p.m. UTC April 23, 2024

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Accounting software products for small business owners do way more than crunch numbers. These modern technologies can handle all kinds of tasks, from inventory management to employee time tracking. With their multifaceted nature, these tools can help streamline your business operations and save time.

Functionality is a major consideration when selecting an accounting tool, but it isn’t the only thing to think about. We researched some of the top technologies on the market, looking at technical capabilities, value for money, customer support and reputation. Below, we review the top performers, so you can select the right accounting software for your unique business needs.

Featured accounting software offers

Via Xero’s website

Starting price

Reg. Price: $15 per month; Special Offer: 75% off all plans for 3 months until February 13.

Free trial available

Maximum users

Via Sage’s website

Via Melio’s website

Accounts payable & receivable

Accounting software sync

Pay by card

Intuit QuickBooks Online

On QuickBooks’ website

Starting monthly fee

$15 per month (for the first 3-months, then $30 per month)

Key Features

Expert help, Invoicing, maximize tax deductions, track mileage

Best accounting software

• FreshBooks : Best if you want to scale your business.
• Zoho Books : Most affordable.
• Intuit QuickBooks Online : Best if you’re managing a team.
• Sage Business Cloud Accounting : Best if you want to collect business data.
• Xero : Outstanding industry-specific features.
• AccountEdge Pro : Outstanding inventory management features.
• ZarMoney : Best if you aren’t great with technology.
• OneUp : Excellent automation features.
• Neat : Outstanding document management features.
• NetSuite : Best cloud tool.

Why trust our small business experts

Our team of experts evaluates hundreds of business products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.

• 18 companies reviewed.
• 1,120 data points analyzed.
• 100+ hours of research.

Best if you want to scale your business

Double-entry accounting

Payroll functionality, pros and cons.

• Clearly tiered pricing.
• Comprehensive functionality, even for lower-tier plans.
• Reasonable cost.
• Convoluted customer service.
• No purchase order functionality.
• No direct inventory management features.

Who FreshBooks is best for

The aim of any business is growth, right? More business means more customers, greater clout in the market and increased opportunities for innovation. FreshBooks includes features to support expansion, such as the ability to track loans and monitor unique income and expense categories. The tool’s reporting features can help you gain insights for future planning.

The FreshBooks double-entry accounting method also helps you stay organized as you expand, supporting compliance with tax and other regulations. If you bring on an accountant as you scale up, you can invite them to your FreshBooks account so that they can take the number-crunching off your plate.

Why is FreshBooks the best?

FreshBooks is a well-known name in accounting software and for good reason. The company offers clearly-tiered plans at varied price points. The array of features is comprehensive, covering essential entrepreneurial needs and then some. The company’s reputation is also relatively positive, as online reviewers on platforms like G2 and Capterra have given favorable feedback to its products.

That said, no product is perfect, and we’d love to see more direct customer support options.

Another reason we like FreshBooks for businesses that want to scale is thanks to its clearly defined pricing. If you’re just starting out, the Lite version, at $19 per month, will probably fulfill your needs.

As your entrepreneurial endeavors expand, you can scale up to higher-tiered plans at higher price points, like Plus ($33 per month) or Premium ($60 per month). Higher-tier plans have additional functionality, such as double-entry accounting. There is also a Select plan, with pricing available upon request.

FreshBooks’ plans are flexible, giving companies the option of paying monthly or annually and providing a discount for those paying annually. There is also a 30-day free trial available, which can be important for businesses that want to try out software before committing.

Functionality 

FreshBooks supports essential accounting needs, including managing accounts payable, creating balance sheets and calculating the cost of goods sold. The automated bank reconciliation allows you to import transactions straight from your business bank account, saving time.

The expense and invoice management tools are also excellent. You can upload bills, import expenses from your bank account and calculate sales tax. All of this saves you time on your accounting, so you can focus on more important things, like actually running your business and keeping your customers happy. One feature that isn’t included, which some competitors offer, is inventory management.

Let’s face it: if you aren’t a numbers person by nature, small business accounting can seem overwhelming. FreshBooks helps clients out with a comprehensive online support system. Step-by-step tutorials take you through the essentials, like how to create invoices, implement time tracking, set up bank account connections and generate financial reports.

If you’re still struggling, you can get help through the FreshBot virtual assistant. FreshBooks recommends logging into your FreshBooks account first and then using FreshBot, so that your query is linked to your account.

While we weren’t able to test this out for ourselves without a FreshBooks account, we learned that if you take this step, one of three things will happen, depending on your region and the time: you are given a region-specific phone number to call; you can live chat with a support agent; or, you will be asked to complete an email ticket that will be directed to the appropriate support specialist.

Our expert opinion

Our editorial team created our expert opinion scores. The expert score contributes to 10% of the data-focused methodology, which underpins our Blueprint rating for each company. The expert score combines first-person experience, subject matter expertise and extensive research to develop these metrics as another source of truth for readers during their decision-making process.

Most affordable

• It’s free (but you can upgrade to a paid plan).
• Excellent inventory management features.
• Training programs help users level up accounting skills.
• Purchase order functionality available only for Professional plans and up.
• E-commerce integrations require at least an Elite account.
• Budgeting dashboard for Premium and up only.

Who Zoho Books is best for

Starting a business can be a drain on your finances. After all the startup costs are taken care of, the last thing you want is to spend even more on is your accounting. Enter Zoho Books. The free version is recommended for businesses with revenue of less than $50,000 per year. Although the features are less comprehensive than Zoho’s pricier plans, it covers the essentials.

Even the Standard plan, the next level up from the free plan, comes in at an affordable $20 per month. It offers expanded functionality that the free version won’t give you, like the ability to manage up to 5,000 invoices per year instead of 1,000.

Why is Zoho Books the best?

Zoho Books gives you a great value for your money with its free option. Yes, the functionality is limited, but for entrepreneurs who are just starting out, it fulfills basic needs like generating invoices. You’ll even get access to email customer support. The more expensive plans offer expanded functionality, including additional support options (chat and voice).

It’s hard to argue with free when it comes to value. Zoho Books beats out the competition with its permanent freebie option, which offers an impressive slew of features, from invoice customization to customer portals and reporting.

Beyond the free version, Zoho Books offers five additional plans with prices to suit a diversity of budgets. These plans differ on points like the number of users they allow, available integrations and analytical capabilities. For example, the Standard plan allows three users; the Professional plan ($50 per month) allows five users; the Premium plan ($70 per month) and the Elite plan ($150 per month) allow 10 users; finally, the Ultimate plan ($275 per month) allows 15 users.

As is often the case, signing up for an annual plan will save you money. If you consider a paid plan, opt for the free 14-day trial first, so you can see if the software will fit your needs.

Zoho Books ticks the essential boxes when it comes to small business accounting needs. You can manage accounts receivables by creating invoices (and chasing them with payment reminders!) and accounts payables by uploading expense receipts and tracking payments you’ve already made.

Zoho’s time-tracking capabilities can further help you maintain oversight of projects and track hours, which is handy when billing clients. It’s also possible to track inventory levels, which is a big plus if you sell products.

Finally, the accounting tool’s reports feature lets you gather data for tax and other purposes. That said, lower-tiered plans have limited functionality. For example, purchase order functionality is available only for Professional plans and up.

The support you’ll get as a Zoho Books customer will depend on the type of plan you’re paying for. Free plans get email support only, while Standard plans and higher get email, chat and voice support.

The company clearly lists a toll-free phone number to contact for customer support, which we were able to reach during the given hours of 9 a.m. to 9 p.m. ET. Once we selected the type of support we needed via an automated dashboard, we were connected to a human operator. An email address is also clearly listed and functional. We were unable to find the chat option to contact Zoho Books, but this may be only available via an active customer account.

There is also a comprehensive online knowledge base where you can search popular query topics, covering everything from invoices to sales orders. If you’re looking for a fast answer and can’t wait to contact customer service during business hours, this can be useful.

Also available is the Zoho Books training program, which can help you learn cloud accounting and master the technology so you can get the most out of it. This online course is designed for everyone, from students to business owners.

Best if you’re managing a team

• Stellar team management functions, including clock-in/out reminders.
• Inventory management available.
• Industry-specific products.
• More expensive than a lot of the competition.
• Financial planning tools only for Plus plan and higher.

Who Intuit QuickBooks Online is best for

For business owners who also carry the title of “boss,” Intuit QuickBooks offers some useful features. The time tracking function allows you to track and approve team members’ hours on a desktop or mobile device, so you can see exactly who’s working and when, wherever you are. You can sync the time-tracking data with payroll to simplify invoicing and employee payments. You even have the option to set up reminders for team members to clock in or out.

Compared to the competition, Intuit QuickBooks stands out for these management features. That said, if you’re self-employed, that doesn’t mean Intuit QuickBooks isn’t for you. If you’re a solopreneur, QuickBooks Solopreneur is for you.

Why is Intuit QuickBooks Online the best?

Intuit QuickBooks is one of the more expensive providers we surveyed, so it’s not ideal if you’re on a budget. However, if you’re willing to spend, it offers excellent functionality. The inventory management and team management tools are especially noteworthy, as all providers don’t offer these assets.

Intuit QuickBooks also has comprehensive support. The highest tier plan will even give you 24/7 assistance.

Compared to some of the other providers on our list, Intuit QuickBooks trends toward the pricier side. The most affordable plan, Simple Start, starts at $30 per month. The Essential plan costs $60 per month, while the Plus plan costs $90 per month and the Advanced plan costs $200 per month. Adding payroll to any plan will cost extra.

There is no free plan available, but you can get a 30-day free trial of any of the paid plans. This is a generous trial when compared to other accounting software and will allow small business owners to take the time to learn if QuickBooks is for them.

Intuit QuickBooks is another all-arounder that spans the breadth and depth of any small business owner’s accounting needs. The most affordable account lets you log income and expenses, capture receipts and calculate sales and sales tax. You can connect to one sales channel (like Amazon, Shopify or eBay), which is a big plus if you sell online.

If you upgrade to a higher-tier plan, you’ll be able to connect up to three sales channels, manage multiple currencies and benefit from time tracking. The most expensive plans help you save time with perks like workflow automation and Excel data sync.

Intuit QuickBooks offers lots of training materials, so you can get the knowledge you need in a way that fits your learning style. Choose from in-person events, virtual conferences, videos or webinars. There’s also an online learning hub where you can get detailed information about specific topics and pose questions in a community forum.

If you still need help, you can log into your customer account to reach support; however, we were unable to test this directly without a QuickBooks account. To access support, QuickBooks asks users to first log into their account and then select “Help.” You can then either search the QuickBooks Online knowledge base or select “Contact Us” to start a chat with a support expert.

You can also request a callback and have the next available expert contact you. For Plus, Essentials and Simple Start plans, human support is available from Monday to Friday, 6 a.m. to 6 p.m. PT and Saturday 6 a.m. to 3 p.m. PT. Advanced plans supposedly can access support any time, any day.

Best if you want to collect business data

Sage business cloud accounting.

• Detailed financial reporting capabilities.
• Cloud-based tool accessible anywhere with internet.
• Sage Member Masterclass for new users.
• Low price can be misleading, as full functionality adds costs (e.g. time tracking is extra).
• Focused almost exclusively on number-crunching.
• Fewer entrepreneurial perks like purchase order creation.

Who Sage Business Cloud Accounting is best for

Getting data about your business can be useful for all kinds of things, whether you’re trying to identify areas for cost-cutting or preparing financial paperwork because you want to take out a bank loan or secure an investor.

Sage stands out for its rich financial reporting insights, presented in user-friendly dashboards that you can customize as needed. You can get data about ten core areas, including vendors, customers, employees, product lines and locations. The detailed financial dashboard also lets you create real-time reports, so you can respond to real-world issues (say, supply chain hiccups) quickly.

Why is Sage Business Cloud Accounting the best?

If you’re all about data, Sage Business Cloud Accounting is sure to appeal to you. The capabilities are focused primarily on straight accounting, supplemented by excellent financial reporting features.

That said, if you’re hoping for other functions to help support your business, like team management features, Sage probably isn’t for you. Overall, it’s a good value-for-money for strictly accounting.

Sage Business Cloud Accounting is one of the more affordable software products we surveyed, with prices starting at $10 per month. Even the higher-priced plans are reasonable, at $25 per month. That said, that seemingly affordable price can increase if you want full functionality. For example, time tracking is only available at an additional cost (whereas some providers include this in their plans).

Although cost-efficient, Sage Business Cloud Accounting does not offer a free version. The good news is that you can get a free trial of a paid plan, which is always worth doing, regardless of the provider.

In case the name didn’t give it away, Sage Business Cloud Accounting is an online, cloud-based tool. You can easily access it anytime, anywhere. You just need an internet connection. Sage is focused above all on financial capabilities, helping business owners with tasks like accounts payable and receivable management.

Higher-tier plans include functions like expense management, inventory management, invoicing and banking integrations. Sage also offers other business products, like Sage HR and Brightpearl by Sage, a retail operating system (ROS) tool. If you’re looking to streamline multiple processes under one umbrella, this can be a bonus.

Sage Business Cloud Experts can help you get set up with your software through a one or two-hour bespoke training session. You’ll get a full accounting tour, plus advice on reporting, guidance on automation and assistance importing customer and supplier records. The Sage resource center has a community hub where you can ask fellow users for advice, as well as a knowledge base with detailed how-to articles.

You can even take a Sage Member Masterclass via Sage University to make sure you’re getting the most out of your tool. If you need help with a specific problem, you can submit an online case, chat with Sage or join a Sage Q&A live. We also found direct customer support numbers you can call. If you dial these, you’ll get an automated message and be asked to enter your account number to proceed to open a support ticket. It’s unclear whether you can be connected directly with a human operator on this initial call.

Outstanding industry-specific features

• Industry-specific accommodations.
• Registered nonprofits are eligible for 25% off.
• Purchase order capabilities included.
• Customer portal through plug-in only.
• Basic plan caps monthly invoices, quotes and bills.
• 24/7 customer support requires you to raise a case online.

Who Xero is best for

Accounting software doesn’t need to be a one-size-fits-all solution. Xero knows that different businesses have different needs and accommodates these with customizable solutions.

For example, if you’re in real estate, it’s important to keep detailed client records. If you’re in e-commerce, it’s essential to integrate with online tools like Shopify. If you’re in a niche that Xero serves, from landlords to farmers, its tools are worth a look.

Pro tip: If your business qualifies as a nonprofit, you may be eligible for 25% off (you have to provide your registered charity number or certification for eligibility).

Why is Xero the best?

Xero offers good value and three clearly defined plans. The most affordable plan has strict caps on the number of invoices, bills and quotes you can send each month, which may make a mid-tier plan preferable. Overall, Xero’s financial functionality is comprehensive, covering everything from expense claims to 1099 reporting.

Zero offers three tiers of plans. The Early plan costs $15 per month. It allows you to send quotes and 20 invoices per month and enter up to five bills per month. The Growing plan ($42 per month) doesn’t cap quotes, invoices or bills. Also, it allows you to reconcile transactions in bulk.

The Established plan ($78 per month) offers further perks, like multi-currency management, project tracking and analytics. You can add payroll with Gusto to any plan for an extra cost. Overall, the pricing is transparent, offering a fair value for money when compared to other providers we surveyed. You can use a demo to test the product.

Xero’s user-friendly tool is all about helping business owners keep track of their money. You can use Xero to pay bills, claim expenses and accept payments. The job-tracking feature is convenient for budgeting, quoting and invoicing specific projects. With bank reconciliation, you can keep your account balances updated in real-time.

Xero also allows for integration with Hubdoc, so you can capture documents like receipts and bills and quickly upload that data to Xero. Finally, Xero offers financial reporting tools to help you improve your money management. You can even customize reports and use them for technicalities like 1099 reporting.

Xero helps new business owners master the software through webinars and events. Accountants and bookkeepers can even get Xero certification.

As a business owner, if you’re going to work with an accountant, you may want to make sure they have this credential and know the tool. Xero’s online topic catalog can help users learn how to use the tool for tasks like sending invoices or reconciling transactions.

There is also a community forum for answering and asking questions. If you cannot solve the issue on your own, there is reportedly an online customer support team available 24/7. You will find the button to reach them and raise a case at the bottom of any Zero support article. When you click “Contact Xero support,” you are taken to your Xero login page. We were unable to test the support options without a Xero account.

Xero purposefully doesn’t publish a phone number. However, it claims that you can provide your phone number and ask the company to contact you if needed.

Outstanding inventory management features

Accountedge pro.

Double-entry accounting supported

• In-depth inventory management features.
• Excellent customer training tools through AccountEdge University.
• Diverse add-on features, like web pay.
• Desktop-based, no cloud access for basic accounts.
• Payroll for an unlimited number of employees costs extra.

Who AccountEdge Pro is best for

AccountEdge Pro is a desktop accounting tool, which means that you can’t easily access it anytime, anywhere (as with cloud-based alternatives). However, if flexible accessibility isn’t an issue for you, there’s lots to like about AccountEdge Pro.

We especially like this tool for businesses that have to deal with a lot of inventory. It lets you track stock by location using serial codes, monitor inventory and set up stock alerts when you’re running low on an item. You can also create product variations, for example, depending on size, style and color.

Why is AccountEdge Pro the best?

AccountEdge Pro is great for product-based businesses that have a lot of inventory to keep track of. That said, it can be useful for any small business looking for a solid accounting tool. Even if you don’t use the inventory management functions, other features like the industry-specific financial reporting templates may be useful. The pricing is clear, even allowing you to pay for the level of customer service you want (phone versus email).

AccountEdge has three tiers of plans. AccountEdgePro is the most popular version and costs $20 per month for a single user. The AccountEdge Network Edition costs $30 per month and allows for two users. Finally, the multi-user AccountEdge Hosted plan ($40 per month) is a hosted desktop model, allowing you to use cloud technology to access your files.

If you want access from anywhere, you’ll automatically have to pay for the most expensive plan, which also comes with free technical support. The Pro and Network Edition plans come with free email support. You can try this software out with a 30-day free trial.

Let’s start with the basics. When it comes to accounting, AccountEdge Pro has you covered. You can manage your general ledger, maintain budgets and create financial reports using fully customizable templates. There are even industry-specific templates. You can also manage your payroll processing, issue paychecks and manage payroll taxes.

If you have a big team, you can pay $20 per month extra for unlimited employees. Other useful functions (on top of the inventory management we already mentioned) include invoicing capabilities, integrated bank feeds and contact management to help you manage your relationships with vendors, employees and customers.

AccountEdge Pro and AccountEdge Network Edition plans come with free email support. If you want telephone support, you can add this for $10 per month. You’ll then be able to reach the trained help reps from Monday to Friday, 9 a.m. to 5 p.m. ET. Although this added cost is annoying, it may be worth it if you regularly need assistance.

The company also publishes an introductory support number on its website and says that intro support is available for all new customers 30 days from enrollment. We tried this number during the posted business hours (9 a.m. to 5 p.m. ET, Monday to Friday) and it took us to an automated bot that requested our product ID number. Without a product ID number, we were unable to test the tool further.

We appreciate the clarity regarding the type of help available, as some providers are less transparent about their support offering. For example, a company may claim to offer 24/7 service, but only make this accessible through online support ticketing. In this case, the help isn’t as immediate as it might seem. AccountEdge also offers a clear and well-organized knowledge base, while AccountEdge University provides a good intro for beginners.

Best if you aren’t great with technology

• Accessible customer service, even for the cheapest plans.
• Small business-friendly integrations with tools like Stripe and Gusto.
• Project management capabilities.
• No mobile app.
• No receipt scanning.
• Payroll functionality requires a plug-in.

Who ZarMoney is best for

If you aren’t the most tech-savvy person, you might be worried about learning the ins and outs of an accounting tool. ZarMoney is here to help. This software company prides itself on its U.S.-based customer service, available even for the more cost-efficient plans.

And they won’t leave you stuck talking to a chatbot. You can call the support team directly from Monday to Friday, 9 a.m. to 5 p.m. PST. Chat and email support can be reached at any time.

Enterprise plans (the most expensive option) get a dedicated account rep and priority support. Entrepreneur and small business plans can get a free trial. If you’re interested in an Enterprise plan, you can request a demo.

Why is ZarMoney the best?

ZarMoney has a good selection of features, including both financial-specific tasks like invoice generation and non-finance-specific tasks like inventory management. The pricing is straightforward. One drawback is that if you want more than two users on your account, you’ll automatically have to pay for an Enterprise plan.

However, you will get dedicated account management and priority support if you go that route. We also generally liked their customer support offering.

ZarMoney offers three plans to choose from. The Entrepreneur plan ($15 per month) allows one user and unlimited transactions. The Small Business plan ($20 per month) includes two users and unlimited transactions, plus you can add additional users for $10 per person. Both of these plans have access to ZarMoney’s U.S.-based customer service.

The Enterprise plan includes 30-plus users, customer features and specialized training to make sure you’re getting the most out of your software product. You also get priority support and a dedicated account rep. Overall, we think the value for money is good, given the array of features included.

You can request a free trial for entrepreneur and small business plans; Enterprise plans can request a demo.

ZarMoney provides a lot of essential financial tools small business owners can use. You can create and send customized invoices, even including payment links, upload receipts, pay vendors and track the status of bills. It’s also possible to create and send quotes, automatically calculate sales tax and generate purchase orders.

One standout point is the advanced inventory tool, which can help reduce overstocks and minimize the risk of out-of-stocks using predictive analysis. We also like the plug-ins/APIs ZarMoney accommodates, including startup-friendly tools like Zapier, Gusto and MailChimp. If you’re already using these technologies, it’s a seamless connection.

ZarMoney’s transparent and accessible customer support offering stands out in a world where companies are increasingly shoving customer service to chatbots. Even the cheapest ZarMoney plan has telephone-based customer service, with a readily advertised phone number available.

You can reach the customer support team over the phone during regular business hours, Monday to Friday. We tried calling during the hours listed (Monday to Friday, 9 a.m. to 5 p.m. PST) and, after clicking through a quick series of automated prompts, we were in fact connected to a real life person.

Outside of business hours, email and chat are available. ZarMoney also has plenty of other resources to help those who aren’t tech-savvy, such as the ZarMoney academy, which includes tutorials on basics like “how to create and send an invoice” and “how to add new vendors.”

The ZarMoney help forum further lets you search for articles based on keywords.

Excellent automation features

Pro and cons

• Automation and synchronization capabilities to save time.
• User-friendly mobile app with identical features across all devices.
• App for Android only.
• Geared more heavily toward accountants than business owners.
• No payroll functionality.
• No support for the Self plan.

Who OneUp is best for

OneUp largely targets professional accountants, advertising itself as a tool that can help pros automate their work and reduce the monthly costs of managing accounting clients. That said, this tool can serve small business owners, too.

OneUp can save anyone time with its automation and synching capabilities. You can synchronize your bank account with the software, which then provides you with suggested bookkeeping entries based on your banking activities. All you have to do is validate the entries.

OneUp can also automate your inventory ordering, further saving time on admin, so you can focus on what really matters: your customers.

Why is OneUp the best?

OneUp is a logical choice for any business owner who wants to leverage the power of automation to save time. The accounting software can sync with your bank accounts to automate accounting or with your point of sales or e-commerce tools to automate inventory management.

OneUp’s plans offer good value for money, with even the cheapest plan covering all features. The main difference is in support availability and the number of users allowed. For Pro plans and up, OneUp promises one-on-one support.

OneUp has five plans to choose from. All plans include all features, with the main difference in cost being determined by the number of users allowed. The Self plan, intended for sole proprietors or independent contractors, is $9 per month for one user. Beware, it includes no customer support.

All other plans include all features and one-on-one support: the Pro plan is $19 per month for two users, the Plus plan is $29 per month for three users, the Team is $69 per month for seven users and the Unlimited plan is $169 per month for unlimited users. You can get a free unlimited-user trial for 30 days.

OneUp focuses on four main capabilities: invoicing, accounting, inventory and customer relationship management (CRM). The invoicing module lets you create customized invoices, send them to customers via the software’s built-in email system and send automatic reminders to customers when payments are due. The bookkeeping module works by syncing your bank account to collect transactions for your bookkeeping automatically.

The inventory module synchronizes with your e-commerce or point of sale (POS) to automate inventory. Finally, the CRM tool allows you to store customer data, send quotes and collect data to monitor your sales impact. One account gets you access to all of these features.

OneUp goes the extra mile to make set up easy, helping you get started by migrating your first account over for you. The company further promises live support and advertises one-on-one support for all of its plans except for the Self plan.

There is a comprehensive knowledge base where you can look up specific topics like Square integration and automatic accounting. At the bottom of the knowledge base main page, there is a link where you can submit a support ticket if you’re having specific issues you can’t solve with these tutorials.

When we clicked the submit a request button, we were taken to a simple online form to fill in, with the possibility to add an attachment. We were unable to find a direct email address or phone number to contact without having an active account.

Outstanding document management features

• Upload paperwork through a scanner or your mobile device.
• Detailed document organization according to specific categories.
• Automated insights into trends like spending and sales.
• No double-entry accounting.
• No tiered plans to choose from.
• More of a document management than an accounting tool.

Who Neat is best for

Staying on top of business finances is largely a question of document management. Receipts, invoices, purchase orders, bank statements – reconciling all that paperwork can be tricky. Enter Neat.

This tool’s priority is simplifying document management, saving you the trouble of manual data entry by allowing you to automatically upload receipts and other documents from your mobile device or scanner. It is especially useful for anyone looking to digitize their paperwork or to organize it better. For example, you can sort documents by categories from expense type to tax category. It can also help those who want to avoid wasting time on data entry.

Why is Neat the best?

Neat offers fantastic document management features, which can help make accounting processes easier. In addition to simplifying tasks like uploading receipts, Neat also lets you consolidate incoming and outgoing expenses with bank data, which can speed up accounting.

The integrations with accounting tools like QuickBooks enhance the overall functionality. While the $200 per year price seems fair, you’ll likely also end up paying for an accounting tool on top of it.

Neat only gives you one option: pay $200 per year. There is no possibility of monthly payments and there aren’t different levels of plans you can choose from. For smaller businesses or the more frugal, this can present problems.

There are more affordable options available that may better meet your needs. If the functionality Neat offers is a perfect fit, the price might be worth it to you. However, if Neat doesn’t check all the boxes and/or includes features you won’t use, then it’s a potential waste of cash.

That said, there is a 14-day free trial available, so you can check it out for yourself.

Full disclaimer: Neat is more of a document management tool than an accounting tool. However, it can still contribute to faster and easier accounting by simplifying the paperwork related to bookkeeping and tax preparation.

You can upload receipts quickly by snapping a photo with the Neat mobile app or using a compatible scanner and even break down receipts with line itemization. Your receipts can be consolidated with your invoices, bank transactions and email data in a single screen, making it easy to reconcile data.

All of this gets even easier with Neat’s integrations with QuickBooks, H&R Block and Quicken, to name just a few.

Neat promises unlimited email and chat support to all customers. It’s reportedly possible to access all support and contact options via the Neat app. However, you need a Neat account to sign into the app, so we weren’t able to test this functionality.

Unfortunately, there isn’t any indication that phone support is available. That said, Neat also has a comprehensive help center where you can view guides on specific topics from scanning to integrations.

The help center also has a webinar library with tips on how to enhance your use of Neat. Finally, we do like that you can get help via the Neat app, for example by opening a support ticket or starting a chat. The app is available for iOS and Android via the Apple or Google Play stores.

Best cloud tool

• Integrates with other Oracle NetSuite products for HR, e-commerce and inventory management.
• Automates repetitive tasks like reconciling account statements.
• Complies with multiple financial compliance regulations (ASC 606, GAAP, SOX).
• Lack of pricing transparency.
• Other NetSuite integration products incur added costs.
• No telephone support for the most basic customer support plan.

Who NetSuite is best for

If you’re looking for a cloud-based tool from a reputable provider, Oracle’s NetSuite is a solid bet. The company’s cloud accounting tool is in line with financial compliance regulations, like the Sarbanes-Oxley Act (SOX), which requires publicly traded companies in the U.S. to adhere to financial reporting standards.

The cloud tool keeps all your accounting in one place, allowing access anytime, anywhere. All you need is an internet connection. NetSuite also has an app available for iOS and Android, further simplifying access. That said, the company warns that some issues to ensure functional parity across platforms are still being worked on.

Why is NetSuite the best?

If you already use the Oracle suite of products, NetSuite is an obvious choice, as this tool integrates with other technologies for purposes like HR and inventory management. Even if you aren’t using Oracle’s NetSuite yet, this tool can provide you with comprehensive accounting support, from general ledger balancing to accounts receivable/payables management.

One thing we don’t like is the lack of transparent pricing.

NetSuite is unique from the other software products on this list, as there is no clear pricing data advertised on the website. You have to contact the provider for an estimate for an annual license fee (you won’t be able to get a monthly rate).

In addition to paying for the monthly license, you’ll also have to pay a one-time fee for setup. For smaller businesses on a budget, this is likely an inconvenient option. There doesn’t seem to be a free trial. However, you can request a free product tour to get a sense of the tool’s capabilities.

NetSuite’s accounting features are comprehensive. You can balance your general ledger, manage accounts receivable/payable and monitor cash flow to keep an eye on liquidity. The tool also allows for automatic reconciliation of accounts payable and receivable, bank and credit card statements and other balance sheet accounts.

Finally, for those who tremble in fear when tax season rolls around, NetSuite provides domestic and global tax management support. For example, you can use it to manage your VAT, general sales tax and consumption tax. In general, NetSuite’s functions prioritize automation and customization whenever possible. For example, with the general ledger tool, you can customize transaction and account types.

NetSuite has a variety of support services. The starting point for any query is SuiteAnswers, a database of searchable support articles, training videos and best practices. There is also a support community, where you can ask other users your queries.

Finally, NetSuite offers flexible service plans, so you can pay for the level of support you need. Basic support includes online support; Premium support offers toll-free help, including weekend support; and Advanced support provides ongoing one-on-one guidance to optimize your NetSuite system proactively.

Unfortunately any support contact information isn’t readily advertised, so we were unable to test this feature. Additionally, the prices for the support levels are not readily listed on the NetSuite website.

Best accounting software comparison

Methodology

We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.

We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint to the [name of best list] of 2024.

Expert score (10%): This score was calculated based on four categories: value for money, available features, responsiveness and third-party customer reviews. Each of these categories was broken down into additional detailed characteristics to consider with each one rated on a numerical scale.

Value (32%): When determining value, the factors that carried the most weight were starting price per month (if paid monthly) and annual price plan cost (paid annually). We also considered the price per month if paid annually. Other considerations included the availability of a forever-free version, the possibility of a free demo and the provision of a free trial (as well as the trial’s length).

Features (52%): Our team looked for general features that would help a small business owner with their accounting, including double-entry capability, time-tracking availability, payroll functionality, customer portal capacity and the possibility of secure document management. We also determined whether a mobile app was available and if the provider offered a satisfaction guarantee. Beyond these core features, we looked for additional perks that would further streamline accounting, including a budgeting dashboard, invoicing tools, mileage tracking tools and receipt scanning functionality.

Customer reviews (6%): Customer reviews from third-party platforms provide objective insights into the realities of using these tools. Our team looked at customer reviews on platforms like G2, Capterra and Trustpilot, checking overall scores and looking for red flags, like reports of a lack of customer service responsiveness.

What is accounting software, and how does it work?

Accounting software helps perform basic accounting functions, such as:

• Bookkeeping.
• Accounts payable.
• Accounts receivable.
• Maintaining a general ledger.

When it comes to processing invoices, accounting software can create and distribute these to any customers who might owe your business money. You can also enter any vendor invoices as well. If you receive an invoice from somewhere else, you will need to put it into your accounting software to keep track of it.

Accounting software can also help with tracking any income and/or expenses for your business. For example, if you have accrual accounting, then your accounting software should have the ability to track accounts payable and receivable. You can also track any unpaid invoices.

Organization is key to any business, no matter the size. With accounting software, you can keep everything organized from income statements to balance sheets. Reports can also be automatically generated and put in the correct place for you to easily find them later.

Overall, accounting software can help your business in many ways. Read below to learn more about the benefits of having accounting software for your business.

Benefits of accounting software

There are many benefits to having accounting software for your business, including the ability to automate certain processes and generate reports. You can also easily keep track and organize any records your business has when it comes to your finances.

• Automating processes. Using this software will help you automate several tasks, including invoicing, credit card payments and payment reminders. It can also help your business automatically import crucial data.
• Generating reports. Accounting software can help your business generate many different reports, including ones on your accounts receivable and account trial balances. This can make it easy to keep track of your finances.
• Organizing all records. Organization is key when owning a business, especially when it comes to financial records. With this software, you can organize receipts and invoices, among other records.
• Reducing errors. Finances are the one area where your business will want to avoid errors at all costs. Accounting software can help avoid mistakes like errors of omission and not reconciling the books.

Who needs accounting software?

Accounting software can be useful for solopreneurs and small business owners who want to streamline their finances. Depending on the tool, accounting software can help with tasks like generating invoices, issuing purchase orders, tracking expenses and collecting payments. Accounting software can also collect data about your business to generate financial reports, which you can use to make business decisions. For example, you can use information about your expenses to figure out where it’s possible to cut costs.

Many modern accounting tools also go beyond strictly number crunching. For example, accounting tools may provide additional features like inventory management and employee time-tracking. This multifunctional approach can be useful for business owners who want to streamline operations. For example, if your accounting tool can also handle employee time-tracking and payroll, it can make issuing paychecks more efficient.

A big part of accounting software is about saving time. Some accounting tools link directly to your business bank accounts, allowing you to automatically track income and expenses. This can be a lot more efficient than manually reviewing your bank statement and comparing it to your invoice and expense notes. If you work with an accountant, it can save them time as well, which means you’ll have to pay them less (that is, if they bill you by the hour).

How to choose the best accounting software

Accounting software can help with many things, including creating invoices, tracking inventory and generating reports. To choose the best accounting software, you will need to first assess the needs of your business. Then you can look out for some key features.

Key features to look for

Being clued in on what to keep an eye out for in accounting software is key, as it can make an impact on how your small business handles your finances. Some accounting software features to consider include: 

• Invoice creation. Having the ability to create invoices for a set number of clients is helpful for running your business. The ability to send recurring invoices and reminders can help you scale.
• Transaction categorizing. Expenses, income and other transactions, such as transfers and fees, should be easily categorized. Ideally, you should also be able to automate recurring expenses.
• Inventory tracking. If you’re a product-based business, you’ll want to be able to automatically keep track of inventory and the cost of goods.
• Report generation. Basic financial reports can help you get a birds-eye view of where your business stands financially, where it’s potentially headed and what steps to take to ensure it remains healthy.
• Third-party integrations. Having access to third-party apps that your small business currently uses and that might be helpful in the near future can help streamline your bookkeeping and accounting processes.

UX and ease of use

Choosing accounting software that’s fairly easy to set up and use can help you get up and running quicker and avoid costly hiccups. It’s even better if the provider helps you set it up for free. This can help streamline the process of completing accounting tasks, which can help free up time in other areas of your business.

How much does accounting software cost?

In our roundup of accounting tools, costs ranged from as low as $0 per month to $30 per month. However, not all the providers we surveyed publicly advertised their pricing models. Some require you to reach out to sales for an estimate, presumably because the provider will create a quote based on your unique needs. If you go this route, we suggest getting quotes from multiple providers to make sure you find the best deal.

In general, our data showed that you can save money on accounting software if you pay for an annual plan instead of a monthly plan. When deciding on a plan, you want to pick the option that meets your needs in terms of functionality without exceeding them. For example, if you’re a solopreneur, you don’t need team management tools. You don’t want to pay extra for capabilities that won’t serve you.

What we don’t recommend

Now you’ve got an idea of what to look for in an accounting tool, but what about what to avoid? First, avoid falling into the functionality trap. Just because a tool has all kinds of amazing capabilities doesn’t mean it’s the “best.” All you want is a tool that fulfills your business needs. For example, if your business is service-based and doesn’t sell products, inventory management may not be a function you need.

This also raises a pricing concern. Some companies may offer plans that seem cheap at first glance. However, always check the fine print regarding functions. In some cases, an affordable solution may have limited capacity. By the time you pay extra for the additional functions you need, you might end up paying even more than you would have with another provider. A “too good to be true” price tag may be a red flag.

We also recommend avoiding providers without transparent customer service guidelines. While some clearly state how they can be reached (by phone, email, chat), others are more cryptic. For example, a provider may claim 24/7 support, which makes it seem like you can get help at any moment. However, if that “support” requires you to fill out an online support ticket or write an email, you’ll still have to wait to get a response.

Frequently asked questions (FAQs)

Accounting software can help you stay on top of your small business’s day-to-day financial transactions. The capabilities and features of accounting software can vary. It can provide you with accurate, up-to-date records that you can use to:

• Properly file taxes.
• Make sure you have enough cash flow to cover your overhead.
• Make decisions for the growth of your company.

Accounting software can also prevent costly bookkeeping mistakes and can also work in tandem with payroll software .

The limitations of accounting software include inaccuracies due to incorrect information being input or put into the wrong category, the risk of data loss and the fraud risk.

You might also run into limited customization options to meet your business needs, technical issues and a learning curve. If you don’t also work with an accountant, you might have less insight and run into some errors.

User-friendly accounting tools for small business owners include FreshBooks, Zoho Books and Xero. To gauge the ease of use, consider points like the tool’s interface, training materials and customer support offering. Functionality is also a consideration. While you want to have your accounting needs met, you don’t want to be overwhelmed by features you don’t need.

Accounting software can help you organize and track your financial data and generate financial reports, but it won’t necessarily replace an accountant. You can use the data compiled in the tool to DIY your quarterly bookkeeping and annual tax filing, or you can hire someone else to do it. Many tools are designed to support, not replace, the work of professional accountants.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Alison Kilian has been working as a journalist and ghostwriter for over ten years. She has written for internationally recognized publications and brands, including Forbes Books, ABC News, U.S. News & World Report, and Axel Springer Media.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

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Accounting & Information Systems Awards

Acis outstanding senior.

• Charli Dietz (ACIS/ACCT)
• Tyler Dickson (ACIS/ACCT)

• International edition
• Australia edition
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Paper trail and judge’s warning: Trump trial key takeaways, day 12

Prosecutors pressed witnesses on the alleged falsification of business records to cover up the payments to Stormy Daniels

Donald Trump’s criminal trial in New York entered a new phase on Monday, as prosecutors moved on to the alleged falsification of business records to cover up hush-money payments to Stormy Daniels , after previously calling witnesses who described a conspiracy to kill the story.

The prosecutors in the Manhattan district attorney’s office started this week with the former Trump Organization controller Jeffrey McConney, the No 2 in the accounts department, who processed the former Trump lawyer Michael Cohen’s invoices seeking reimbursement for the hush money.

Here are the takeaways on day 12 of People of New York vs Donald J Trump:

1. Prosecutors argue Cohen’s ‘expenses’ were not processed as expenses

Prosecutors directly made the case that Trump essentially approved and directed an illicit reimbursement plan, whereby the money wired to Cohen was made to look like payments for bona fide legal work through sham invoices submitted by Cohen.

McConney ran through handwritten notes entered into evidence to confirm that the Trump Organization had doubled the amount Cohen was asking for, so that after being taxed at 50%, Cohen would be reimbursed the full amount for which he was out of pocket.

The thrust from prosecutors was that this was all unusual. In fact, McConney testified it was the only time in his 35 years at the company that something technically classified as an expense was “grossed up” – suggesting that they were actually not expenses.

McConney also testified that even though Cohen had written up an invoice that asked to be paid “pursuant to the retainer agreement”, he was not aware of any such retainer. Prosecutors used that to suggest it didn’t exist, and it was a cover for records purposes. 

2. Trump argues ‘legal expense’ was a dropdown label, not a falsification

During the cross-examination, Trump’s lawyer Emil Bove suggested that the alleged falsification of records was not a falsification at all, because the “legal expense” label on the general ledger was a catch-all label used on the Trump Organization’s internal system when entering payments to lawyers. 

McConney described the Trump Organization’s accounting software as an antiquated system, implemented around 1990, and “legal expense” was part of a dropdown menu of a number of different categories.

McConney affirmed that the “legal expense” label was used because Cohen was a lawyer and any payments to attorneys were just classified as a “legal expense”. In doing so, he appeared to credit the Trump defense theory that there was never any intent to mislead.

3. Trump warned of jail for further gag-order violations

Before McConney took the stand, Trump was warned by the presiding judge Juan Merchan that he could next face jail time given the $1,000 fines imposed against him for repeatedly violating the gag order did not appear to be having a deterrent effect.

“As much as I do not want to impose a jail sanction,” Merchan said, “I want you to understand that I will, if necessary, and appropriate.”

Trump was found in contempt again on Tuesday, this time for making inflammatory statements about the jury, after previously being held in contempt for nine earlier violations of the gag order that also prohibits Trump from attacking potential trial witnesses and fined a total of $9,000.

• Donald Trump trials
• Donald Trump
• Stormy Daniels

Most viewed

• Best for a detailed budget
• Best for tracking investment accounts
• Best for taxes
• Best for a hands-on approach
• Other apps that didn't make the cut and why
• Methodology

Frequently asked questions

Best personal finance management software of 2024.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

The Best Personal Finance Software

• Best for a detailed budget: Quicken Deluxe
• Best for tracking investment accounts: Empower Personal Dashboard
• Best if you like filing your taxes independently: TaxAct
• Best for a hands-on approach: Google Spreadsheets

Ready to get a better understanding of your finances? Personal finance software can be a great tool for building better money habits and learning how to budget in the long term.

If you'd like more guidance when making a budget, consider also downloading a budgeting app .

Here are four excellent options you might consider if you're searching for personal finance software.

Best for a Detailed Budget

Cost: Regular pricing is $5.99 per month

Why it stands out:  Quicken Deluxe is a desktop software program. It's available for download for Mac and Windows computers. 

With the program, you'll be able to connect and keep track of bank accounts, investment accounts, loans, and credit cards . You'll also be able to create a 12-month budget. Usually personal finance software programs only have monthly budget plans.

Quicken Deluxe also has a "what-if" tool that lets you see potential scenarios when you make certain investments or loan decisions to help you build a financial plan .

What to look out for:  Quicken Deluxe primarily focuses on basic finances and investments. If you have a business or prefer more robust features, like priority customer support, you may fare better with Quicken Premier or Quicken Home & Business.

Regular pricing for Quicken software plans varies from $3.99 per month to $10.99 per month.

Best for Tracking Investment Accounts

0.49% to 0.89%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free financial and wealth management tools; fees top that of traditional brick-and mortar-firms
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Investment selection includes stocks, ETFs, bonds, and private equities; portfolio management for employer-sponsored plans (e.g., 401(k)s or 403(b)s)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Socially responsible investment strategies and tax optimization strategies
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. One-on-one financial advisor guidance
• con icon Two crossed lines that form an 'X'. High management fees
• Promotion: None at this time.

Cost:  Free

Why it stands out: The Empower Personal Dashboard is another software tool that's available through a mobile app or website. You might find the Empower Personal Dashboard appealing if you want to use a well-rounded platform that also helps monitor investment accounts and retirement plans .

With the Investment Checkup feature, you can check your current portfolio allocation alongside an ideal target allocation to minimize risk and reduce volatility. It also has a fee analyzer tool that reviews hidden fees for mutual funds , investment accounts, and retirement accounts.

What to look out for:  Some tools are exclusively for Empower advisory clients. For example, clients will have access to a financial roadmap tool that can help them stick with major financial goals.

Sign up for Empower Personal Dashboard

Best for taxes.

$0.00 - $99.99 (+$39.99 or $59.99 for state return, depending on package)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Expert help is available with every filing package
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free federal and state filing covers student and child tax credits
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Pay less than H&R Block and TurboTax and get a comparable experience
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Efficient and streamlined interface
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Tax document upload and import for easy data entry
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Handy "double check" tool flags common errors
• con icon Two crossed lines that form an 'X'. State returns aren't free, even when you qualify for free federal filing
• con icon Two crossed lines that form an 'X'. Middle-of-the road option when it comes to cost

TaxAct gets the job done with fewer bells and whistles than H&R Block or TurboTax, though costs can still add up. It's best for someone who appreciates a simple, streamlined interface.

• 4 plans, including a free federal option
• Simple, intuitive interface
• Free, instant access to a tax expert at all plan levels
• Good middle-of-the road option on price and efficiency
• Option to have a professional file your taxes at an additional cost

Cost:  $0.00 - $99.99 (+$39.99 or $59.99 for state return, depending on package)

Why it stands out: TaxAct is one of our best tax software picks. TaxAct has four DIY online options: Free, Deluxe, Premier, and Self-Employed plans. You'll pay one price for a federal tax return, and if you have to file a state tax return you'll pay an additional fee. 

TaxAct stands out from other tax software companies because it offers free expert support, regardless of which DIY plan you have. If you have questions while filing your tax returns, all you'll need to do is submit questions, and an expert will reach out to you over the phone.

What to look out for: Other tax software companies do not charge a fee for state returns, and they have lower fees for filing federal tax returns (although, their features may not be as robust). 

File with TaxAct

Best for a hands-on approach, google sheets.

Why it stands out: Perhaps you don't want to link all of your bank accounts or credit cards, and you don't mind taking a more active approach to money management. Then, you might consider using Google Sheets for a straightforward way of analyzing your spending and savings goals . 

Even those who aren't as tech-savvy will find that Google Sheets has a simple, no-fuss setup process. All you need to do is set up a Google account and open the Google Spreadsheets tab. Then, you can select a general template for budgets or investment tracking and follow the steps listed on the spreadsheet.

Keep in mind that you'll have to update your spreadsheet regularly to have an effective spreadsheet.

What to look out for: Creating and maintaining your budget fully depends on whether you're willing to manually input all your data. Some may like having a closer, more hands-on approach to tallying expenses or tracking changes. But if you're worried that it might become too overwhelming to make updates every month, consider one of our other options. 

Other Personal Finance Software We Considered That Didn't Make the Cut and Why

• Tiller: Tiller might be worthwhile if you prefer tracking money in a spreadsheet, but don't want to update it manually. It links your bank accounts and credit cards to Google Sheets or Microsoft sheets so your transaction and balance information automatically update. It wasn't a top pick because Tiller only has a 30-day free trial, then costs $79 per year.
• YNAB App : You may use YNAB App through the web or on an app. While it could be a good choice if you struggle with your spending in specific categories, Quicken Deluxe have more robust features. It also has a 34-day free trial, then you'll have to pay $14.99 per month or $99 annually.
• Monarch Money : Monarch Money is a personal finance app and online platform. The plan costs $14.99 per month or $99.99 per year and allows you to track investment accounts or use customizable budget categories.
• GNU Cash : This is a free accounting software for personal and small business finances. You may download the program for Windows and Mac devices. With GNU Cash, you manage your finances through a traditional checkbook system. It could be worth considering if you have a business, but for those who don't, it likely won't be an easy-to-use interface.
• Quicken Simplifi : Simplifi by Quicken is a cloud-based software program, which means you'll need to have an internet connection to use its services. In comparison, other Quicken programs can be downloaded onto your computer. Simplifi by Quicken also isn't as robust as Quicken's desktop programs.
• Quicken Starter: Quicken Starter could be worthwhile if you want a basic overview of your finances. But if you want to be able to create a 12-month budget or keep track of investment accounts, Quicken Deluxe will be a more compelling option. 
• Rocket Money : Rocket Money has an app and online platform. Its premium plan has concierge services to review bills, premium customer support, unlimited budgets, and customizable budget categories. 
• TaxSlayer : TaxSlayer was featured as the best budget pick in our best tax software guide. However, to qualify for the Simply Free Plan, you must have taxable income under $100,000, and you won't be able to claim dependents. TaxAct's free plan allows you to claim dependents. It also offers expert help with all filing packages.
• H&R Block Tax Software : H&R Block is also featured in our best tax software guide. If you want to choose a more affordable option, you may prefer TaxAct, though.
• TurboTax : TurboTax is featured in our best tax software guide and might be worth considering if you have a complex tax situation. However, TurboTax Premium plan cost more than TaxAct options. 

Methodology: How did we choose the best personal finance software?

Research is an important part of choosing a personal finance software program that fits your needs. First, we compiled a list of 13 personal finance software programs. Then, we compared each program by analyzing the following criteria: platform accessibility, pricing, money management features, and user experience. With tax software programs, we only considered the DIY online filing options. We did not consider full-service packages where an expert helps with taxes.

The best personal finance software for you depends on your financial goals and habits. Someone new to money management will likely want different features than someone who is seasoned in making budgets or prefers filing their taxes.To help you figure out which personal finance software program could be a good option for you, we highlighted the benefits and limitations of each product. 

There are free personal finance tools that you may use online. For example, Empower, GNU Cash, and Google Spreadsheets are free. Rocket Money also has free option.

What personal finance software is easiest for you will largely depend on your needs and level of comfort with technology and finance. Google Sheets is by far the easiest to set up, but it won't help you with the finance side of things. Conversely, something like Quicken Deluxe might not be as easy to set up, but it is far more helpful for your finance needs.

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Fort Smith Board raises some water system fees, approves parking meter plan

by Tina Alvey Dale  ( [email protected] ) May 8, 2024 9:10 am 569 views  

The Fort Smith Board of Directors on Tuesday (May 7) approved raising a broad set of fees for everything from turning on service to insufficient funds charges. The board also voted to halt downtown parking meter use until Jan. 3.

City officials said early 2009 was the last time a broad fee increase was implemented.

The first ordinance, passed unanimously at the board’s regular meeting, raises fees for everything from turning on service to insufficient funds charges. The new charges are: • Account activation fee from $30 to $40 • Account ownership transfer fee from $30 to $40 • Connection/reconnection fee (inside the city) from $30 to $40 • Connection/reconnection fee (outside the city) from $30 to $50 • Same day turn on/off fee (inside the city) set at $50 (There was no fee prior to this ordinance.) • Same day turn on/off fee (outside the city) set at $60 from nonexistent • After-hours reconnection fee (inside the city) from $60 to $75 • After-hours reconnection fee (outside the city) from $60 to 90 • Disconnection notice fee $5 to $7.50 • Insufficient check return fee from $29 to actual cost to the city

City directors also passed an ordinance raising deposit fees by customer class that shall be assessed to and paid by all customers for water, sewer and solid waste utilities. The ordinance also changes the amount of time a deposit is held to 24 months from 12 months.

If an account becomes delinquent and the utility service is terminated for non-payment, the deposit will be applied to the account to cover any past due amount. A new deposit shall be required to reactivate an account for service previously discontinued for non-payment, the ordinance states.

Prior to the new ordinance, deposits for most classes were $50. Following is the new deposit structure. • Residential, owner occupied – $100 • Residential, renter – $125 • Commercial – $300 • Industrial – $1,000 • Irrigation, all classes – $100 • Builder-construction – $100

The ordinance also changes deposits for hydrant meters from $150 to $500. The ordinance passed with a vote of six to one with Director Kevin Settle voting against it.

“We are going from $80 to $140 for someone to set up and live in our city,” Settle said. “We are adding more and more layers to make it more difficult to set up living in Fort Smith.”

In other business, the board also approved a resolution waiving downtown parking meter use from Wednesday (May 8) to Jan. 3.

Joshua Robertson, Fort Smith’s deputy director of business administration, told the board at a study session April 23 the city has 315 total meters and 285 active meters. He said some meters were removed for permitted parking, and some meters are not working. Meter revenue has averaged just under $66,000 a year in the past three years, with revenue in 2021 totaling $70,197, 2022 revenue at $61,695, and 2023 revenue at $65,946, according to Robertson.

Some members of the Fort Smith Board of Directors wanted the meters removed, so the city waived downtown Fort Smith parking meter fees between Nov. 24, 2023, and March 31, 2024. The time without fees was intended to allow the Fort Smith Police Department to study the impact on parking, particularly the rate of turnover with parking spaces along Garrison Avenue, the main road in downtown Fort Smith.

“According to their findings from March 1 to March 29, the Police Department observed 792 vehicles. Of the 792 vehicles, 701 were parked for less than one hour, and 91 were parked for more than one hour. Of the 91 vehicles, the average time parked was two hours,” noted a summary provided to the Fort Smith Board for its Tuesday (April 23) study session. “During the entire time parking fees were waived, no parking complaints were received. Based on this data, parking meters may be removed with little to no impact to our businesses.”

Pamplin College of Business honors its 2024 Students of Distinction

• Jeremy Norman
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Pamplin College of Business recently paid tribute to its 2024 Students of Distinction. Among the honors bestowed were the Ut Prosim Excellence Awards, which are accolades from the college level. These honors included the Outstanding Pamplin Senior Award, H. H. Mitchell Outstanding Leadership Award, College Service Award, Diversity, Equity, Inclusion, and Belonging (DEIB) Excellence Award, Dean’s Advisory Board of Students President Recognition, as well as the First Honors Graduates.

The Outstanding Pamplin Senior Award goes to a student who exhibits leadership skills, is dedicated to extra-curricular activities and community service, achieves extraordinary grades, and is a well-rounded, accomplished individual. The 2024 honoree for the Outstanding Pamplin Senior Award was Jonathan Braun, a double-major in Finance, Insurance, and Business Law and the Blackwood Department of Real Estate .

Marketing students Taylor Fitchett and Elle Pickering were the recipients of the 2024 H. H. Mitchell Outstanding Leadership Award. Recipients of the H. H. Mitchell Outstanding Leadership Award exhibit leadership and service within the university and the broader community.

The College Service Award goes to students who have a minimum GPA of 3.4 and have a focus on service in Pamplin programs. Zarah King, a student in the Howard Feiertag Department of Hospitality and Tourism Management , and Diego Negron Jimenez, a Finance student, were the recipients of the 2024 College Service Award.

The DEIB Excellence Award is given to individuals whose contributions and services are assessed to be significant DEIB causes within Pamplin. The Diversity Excellence Award was given to Management student Meena Zaheen. Honorable mention for award was Andrea Amihere, also of Management.

The Deans Advisory Board of Students (DABS) is a Pamplin organization where a group of 20-25 students are selected to work with Dean Saonee Sarker to advise and be the eyes and ears of the business school. The goal of DABS is to create a more inclusive and accommodating environment inside of Pamplin so that all students can reach their full potential. Receiving the 2024 DABS President Recognition were Hudson Aikins, of Management, and Mariam Farzayee, an Accounting and Information Systems student.

First Honors Graduates are recognized for having a 4.0 overall GPA at Virginia Tech. For 2024, Pamplin had nine students with a perfect 4.0 GPA. They were: Rahul Bhatt, Management; Jonathan Braun, Finance and Real Estate; Anne Deegan, BIT and Management; Charli Dietz, ACIS; Alexandra Evan, BIT and Management; Rhea Nair, Management; Logan Rawlings, Finance; Dylan Recardo; Finance; and Samiksha Sarda, Management.

Pamplin’s Students of Distinction fosters Virginia Tech’s goal to demonstrate continued appreciation for the outstanding achievements of its students.

To see the 2024 Students of Distinction department award winners, or for more information on the Ut Prosim Excellence Awards, please visit the Pamplin College of Business Students of Distinction page .

Marc Kaplan

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President Biden touts Microsoft's Racine County 'comeback project,' contrasts it with Foxconn failure

Editors note: This story has been updated to correct the number of jobs that President Joe Biden said have been created in Wisconsin since he took office.

STURTEVANT - President Joe Biden on Wednesday touted Microsoft's planned $3.3 billion investment in its Mount Pleasant data center as a product of his administration's economic growth agenda, contrasting it with the unfulfilled promise of the neighboring Foxconn International Holdings development deal that was negotiated during Donald Trump's presidency.

Biden joined Microsoft President Brad Smith and Gov. Tony Evers Wednesday at Gateway College's Integrated Manufacturing and Engineering Technology Center to announce the expansion of Microsoft's data server complex, and the tech giant's plans to add about 2,000 permanent jobs over time. The new value of the development is more than three times what was announced a little more than a year ago when Microsoft signed its first deal to buy land in the village's Wisconsin Innovation Park.

Biden said the Microsoft development is a "comeback story," playing out across Wisconsin and the nation, that stands in contrast to the 2017 efforts of Trump and state Republican officials to bring Foxconn to Mount Pleasant. Microsoft is building its data center on land that Foxconn was initially expected to use for a $10 billion LCD manufacturing plant that Trump touted as the "eighth wonder of the world." Neither the investment nor the 13,000 jobs Foxconn promised materialized.

"Foxconn turned out to be just that," Biden said. "A con."

Visit comes as Biden, Trump locked in close race

Biden's stop in Sturtevant, his fourth trip to the state this year, comes as he is locked in a tight presidential race with presumptive GOP nominee Trump, who held a narrow, 51-49 percentage point lead among Wisconsin's registered voters and likely voters, according to the most recent Marquette Law School Poll . On economic issues, the poll found voters favored Trump 52-34.

Biden referenced Trump and Foxconn early in his 20-minute speech before an audience of about 200, using that experience to contrast with the 177,000 jobs that he said have been added in Wisconsin under his watch.

That growth, he said, stems from his " Investing in America " initiative, a package of bills passed in late 2021 and early 2022 that aims to encourage investments in domestic manufacturing and infrastructure, accelerate the nation's transition to clean energy, and create new, well-paying jobs.

"On my watch we make promises and keep promises," he said.

Microsoft workforce development efforts praised

Biden and Smith also highlighted Microsoft's expanded commitment to workforce development, business assistance and training and other initiatives designed to position the state as a hub for artificial intelligence-powered economic activity by helping workers and businesses adapt to working AI. That initiative includes a plan to help 100,000 workers learn new skills by 2030.

"What I want you to know is this isn't just about building a building. It is not just about manufacturing jobs today," Smith said. "More than anything, this project is about using the power of AI to fuel the future of manufacturing companies and jobs and skills across the state of Wisconsin and around the country. That is what we are building together."

The new value of the development reflects the torrid pace at which Microsoft has moved since it bought a 315-acre parcel in the business park in early 2023. It began construction of the first of two data center buildings just a few months later and by December had finalized a deal to acquire another 1,030 acres, for $176 million.

In April, Microsoft received preliminary approval from the village to begin grading land to the west of the construction site to prepare it for two additional buildings. In the near term, the construction project is expected to employ 2,300 union workers.

Smith in an interview said the fast movement was made possible with the cooperation of local, regional and state agencies who help smooth the permitting process and had premade large investments to develop the business park and ensure it was ready for construction. He acknowledged that preparation was done for Foxconn.

AI training for 100,000 workers promised

Microsoft's push in southeast Wisconsin isn't only focused on buildings. Smith said it will also make a multimillion-dollar investment in training programs that will teach business and technical leaders how best to adapt AI and transform work culture, support start up businesses, prepare hundreds of students for careers as data center technicians, and provide boot camp-style training for more than 100,000 people who need new skills to work in the artificial intelligence economy.

The effort builds on Microsoft's previous investments in business and workforce development in Wisconsin and brings in many of the same partners, including the University of Wisconsin-Milwaukee's Connected Systems Institute , the Green Bay Packers and the Titletown Tech business development center, the Madison startup accelerator gener8tor, United Way and Gateway Technical College.

To support it, the Wisconsin Economic Development Corp. will provide $500,000 to TitletownTech, the Green Bay-based Packers-Microsoft venture capital and business development partnership. The funds will help TitletownTech set up a Milwaukee office at UWM's Connected Systems Institute , a research and education center focused on advanced industrial processes. 

Microsoft also intends to open an  AI Co-Innovation Lab lab at the Connected Systems Institute to help Wisconsin manufacturers, entrepreneurs and other business connect with Microsoft AI experts for guidance on implementing AI technology to grow their businesses. WEDC will provide an additional $500,000 to cover capital expenses associated with the initiative.

"Looking to the future, we could not be more excited that Microsoft chose Wisconsin for its new and most important AI innovation." Evers said. "Located in UWM's Connected Systems Institute, the Wisconsin AI co-innovation lab will focus on bringing AI skills and capability to manufacturers to strengthen thus vital sector."

One of only three such labs in the country, the lab will be Microsoft's first east of the Rocky Mountains and the only lab that is both run in partnership with a university and also focused on manufacturing businesses. Staff at the lab are expected to work with at least 60 manufacturers a year.

Wisconsin Republicans accuse Biden of trying to 'hijack' credit for project

Local Republican officials walked a line between praising the Microsoft announcement and deriding Biden on a call with reporters ahead of the event.

“Microsoft's announcement of private-sector jobs in Racine is good for workers, and it's all the more important when workers and families find themselves falling further and further behind due to the reckless inflation brought on to us by the Biden administration,” said U.S. Rep. Bryan Steil, whose district includes the Racine area.

Steil also noted that data centers use a large amount of electricity, and said Wisconsin will need a “solid domestic source of energy” going forward. He pointed to We Energies’ plans for a new $1.2 billion natural-gas powered generating plant in Oak Creek as a positive step in that direction.

“It's imperative that we continue that investment in our infrastructure, in particular, transitioning the Oak Creek facility to natural gas, but in doing so, we're going to have to make sure that the pipeline of natural gas is actually built,” Steil said.

State Sen. Julian Bradley, R-Franklin, and Republican Party of Wisconsin chairman Brian Schimming echoed Steil’s thoughts. Bradley characterized Biden’s visit as an attempt to “hijack” an “awesome” announcement for Wisconsin workers because he’s “failing everywhere else.”

“Joe Biden is limping back to Racine today to look for a ‘Racine reset,’” Schimming said, noting that Republican former President Donald Trump carried Racine County in the 2016 and 2020 presidential elections.