You’re a small business owner, and Uncle Sam is calling. One of the two certainties in life apply to businesses as well.
Accounting and taxes have a way of complicating the way a business operates. In theory, as a small business owner, all you need to worry about is providing a product or service and turning a profit come year-end.
Of course, the taxman complicates things a bit. You may need to think about things like sales tax and import tax. Your tax obligations likely differ depending on whether you’re a sole proprietorship or an LLC. If you have employees, you’re going to need to set up payroll as well.
The moral of all of this is taxes are complicated, and while it might be nice to have an in-house accountant take care of everything, you, the small-business owner, are likely not afforded that luxury.
Lucky for you, there’s a mass of companies out there developing software to make small-business accounting a little easier for you.
These products typically allow you to take care of all your accounting needs relatively easily and all in one place. The goal for most of these products is to enable someone who maybe only took one accounting class in college manage all of their accounting needs.
Without further adieu, let’s take a look at 5 of the best small business accounting tools.
Quickbooks Desktop Pro
Desktop Pro is an all-in-one accounting solution designed specifically for small businesses. It keeps all of your relevant information in one place and notifies you of things like overdue items and bills to pay.
One great feature of this tool is it provides an easy to digest overview of your business. It’s intuitive UI allows you to easily see things like profit & loss, top customer lists, and more. This is a tool that excels because of its simplicity.
Like Desktop Pro, Freshbooks keeps everything in one spot, so it’s easy to get an overview of your small business’s financials. It’s a tool designed for client-based businesses like agencies and consultants and the pricing scales with client count, so it’s a great option for a growing business.
It combines functionality necessary for every client-based business like invoices, estimates, and time tracking. Since this is all done in one tool, it alleviates some of the headaches typically associated with accounting for an agency or consultancy.
Not all small businesses have a global reach, but for those that do, there’s Xero. This small-business accounting tool makes it easy to deal with so many of the complexities of running a global small business.
Xero offers features like multicurrency accounting, various payment options including PayPal and Stripe, and a dashboard that provides an at-a-glance view of your business. It also offers a mobile app, a great benefit for small-business workers always on the go.
Wave aims to provide a small-business accounting solution that’s not overly complicated. The easy-to-use tool enables you to track your income and expenses so you can be ready for tax time and constantly evaluate your business.
The tool is designed for non-accountants, so tasks like invoicing, payroll, and reporting are all relatively easy to manage.
Clean, simple, and endorsed by accountants. That’s what small-business accounting software Billy is going for. The tool lets you do everything from send invoices, accept credit card payments, and work with multiple currencies.
They offer three different feature tiers that cost from $15/month for the Silver package to $39/month for the Platinum package. It’s also a young company, so if you decide to invest in this tool, know that there will be some growing pains—but since you’ll be growing with the tool, you’ll likely have an impact on the development tool, as they will be looking to users for feedback. If you get through the growing pains, the dust might settle with this tool being the best for you.