According to Yelp’s Economic Impact Report, it was discovered that business closures in the US had been on the rise due to the coronavirus pandemic’s economic toll. By August 31st, 2020, 163,735 businesses had closed. This had shown a 23% increase in the number of business closures since mid-July. The coronavirus pandemic’s economic toll affected most, if not all businesses, but some may have been able to ease its effects by utilising business accounting software tools.

Business accounting software assists businesses in performing a range of tasks, such as tracking inventory, reconciling credit card and bank activity, accounting for taxes, and utilizing double-entry accounting standards. This article will explore the top small business accounting software tools and compare their individual prices.

FreshBooks

FreshBooks is an accounting software firm that offers invoicing and bookkeeping tools. Their accounting software is suitable for business transactions, online or offline. FreshBooks offers a well-organized platform as well as visual dashboards, and this allows business owners to keep track of their money at all times.

FreshBooks offers four, affordable packages to potential clients, namely Lite, Plus, Premium and Select. The Lite package costs $7.50 monthly and has a range of benefits. A few of the benefits that the package offers are unlimited customized invoices for five billable clients, scheduled late fees and late payment reminders, as well as project budget and billing management.

The Plus package costs $12.50 monthly and has a range of benefits. A few of the benefits that the package offers, besides all features of the Lite package, are unlimited customized invoices for 50 billable clients, client retainers and double-entry accounting reports.

The Premium package costs $25 monthly and has a range of benefits. A few of the benefits that the package offers, besides all features of the Lite and Plus package, are unlimited customized invoices for unlimited billable clients, automated dynamic client emails, and project profitability management.

The Select package cost varies and has a range of benefits. A few of the benefits that the package offers, besides all features of the previously mentioned packages, are the removal of FreshBooks branding in client emails, lower credit card transaction fees and secure Card Storage for client profiles.

QuickBooks

QuickBooks Online is a software that handles well and is especially useful if a business has hired an accountant seeing that most accountants are familiar with how it works. This accounting software is best for small business owners who need premium business accounting software.

QuickBooks offer five packages to potential clients, namely Self-Employed, Simple Start, Essentials, Plus and Advanced. QuickBooks offers a free 30-day trial, but offers 50% off any package for three month if it is purchased without the trial. The Self-Employed package costs $7.50 to $15 monthly. A few of the benefits that the package offers are the ability to import and sort transactions, to take photos of receipts with the mobile app and quarterly tax estimation.

The Simple Start package costs $12.50 to $25 monthly. A few of the benefits that the package offers are custom invoices, accountant access features, and 1099 contractor management, including preparation and filing.

The Essentials package costs $20 to $40 monthly. A few of the benefits that the package offers, besides the features in the Simple Start package, are bill management, online payment options and integration with QuickBooks Time.

The Plus package costs $35 to $70 monthly. A few of the benefits that the package offers, besides the features in the Simple Start and Essentials packages, are user-access levels and separate sign-ins for five users, as well as inventory tracking, payments, and vendor management.

The Advanced package costs $75 to $150 monthly. A few of the benefits that the package offers, besides the features in the Simple Start, Essentials and Plus package, are user-access levels and separate sign-ins for 25 users, KPI tracking and analysis tools, as well as integration with LeanLaw, HubSpot, DocuSign, Bill.com, and Salesforce.

Xero

Xero is a simplistic accounting software for small business which is able to manage the books. The accounting software is able to handle income and expenses, inventory management, A/R and A/P, as well as bank and credit card tracking. This accounting software is best for small businesses which require fewer accounting features.

Xero offers three packages to potential clients, namely Early, Growing and Established. The Early package costs $11 monthly. A few of the benefits that the package offers are the ability to send quotes and up to 20 invoices online, bank reconciliation and accounting reports.

The Growing package costs $32 monthly. A few of the benefits that the package offers, besides all features in the Early package, are the ability to send unlimited quotes and invoices online, unlimited bill tracking and bulk transaction reconciliation.

The Established package costs $62 monthly. A few of the benefits that the package offers, besides all features in the Early and Growing packages, are multi-currency capabilities, project tracking and expense monitoring.

Which is best?

These mentioned accounting software tools range in price and benefits. Naming the best is not possible seeing that each accounting software tool is differently suited to different types of businesses which have different types of needs. Business owners need to evaluate their business’ needs and goals before being able to select which account software tool best suits their business.