Accounting software is a program that helps to manage a company's financial transactions. The accounting software you use can help track critical financial data in your business, keep track of your taxes, and pay your employees on time. Freelancers and small businesses can use a generic solution, while enterprise organisations need a more complex system.

The need for accounting software

The right accounting software can simplify business processes by doing the following: <ul><li>Automate business finances and remove human error.</li><li>Access your data anywhere with cloud-based software.</li><li>Prevent data loss. Cloud-based accounting software backs up your data.</li><li>Integrate with third parties like expense tracking and CRM solutions.</li><li>It makes filing your taxes easier.</li></ul>

How accounting software help you business

<ul><li>QuickBooks is best for small businesses.</li><li>FreshBooks is good for invoicing.</li><li>Zoho Books is a good pick for microbusinesses.</li><li>Oracle NetSuite is suitable for ERP tools.</li><li>Xero is good for growing businesses.</li></ul> All these options offer third-party integrations.

Top accounting software

Any accounting software should include basic features such as a general ledger, account reconciliation, accounts payable and accounts receivable. Other features are: <ul><li>Invoicing.</li><li>Payment processing. Your accounting software should give easy ways for customers to pay online, like scanning a QR code or clicking a button.</li><li>Payroll management.</li><li>Enterprise resource planning (ERP) helps collect and organise information.</li><li>Inventory management.</li></ul>

Accounting software features

Keep the following in mind when choosing accounting software:<ul><li>Ensure your accounting software integrates with your bank. It will automatically download new transactions.</li><li>Your business needs, for example, business size, the specific industry, etc.</li><li>Your budget. Many cloud-based solutions can accommodate nearly every budget.</li><li>Ease of use.</li><li>Scalability.</li></ul>

Choosing the right accounting software

Pros<ul><li>Accuracy.</li><li>Automation. By using artificial intelligence, the software can record and reconcile transactions and generate financial reports.</li><li>Relatively low cost. </li><li>Streamlined invoicing. Software like FreshBooks helps to create invoices within minutes and set up automatic payment reminders.</li><li>Collaboration. Many accounting programs let you grant outside access to your accountant.</li></ul> Cons<ul><li>Technical problems.</li><li>Potential for fraud.</li></ul>

Pros and cons of accounting software

<h1>How to Choose the Right Accounting Software for Your Business</h1><img alt="Jamie Johnson" src="https://img.business.com/rc/50x50/aHR0cHM6Ly93d3cuYnVzaW5lc3MuY29tL2ltYWdlcy9hdXRob3IvNjAxL2RhNzkxOWM2NThhZWQ2MDhiNDU2Ny8xMDAtMTAw"><div>Jamie Johnson</div><div dir="ltr">business.com Contributing Writer</div><div>Oct 11, 2021</div><h2>The right software will help you track critical financial data in your business, stay on top of your taxes, and pay your employees on time.</h2>The accounting software you use matters more than you may think. The right software will help you track critical financial data in your business, stay on top of your taxes, and pay your employees on time.Choosing the wrong software can set you back and limit your long-term growth. Whether you handle the bookkeeping yourself or employ someone to do it for you, you need a flexible solution to grow alongside your business.&nbsp;Editor's note: Looking for the right accounting software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.<h2>What is accounting software?</h2>Accounting software is a program that helps business owners, bookkeepers and accountants manage a company's financial transactions. The right software makes it easier to track, organize and analyze financial data.The features and level of customization depend on your business and the type of software you choose. Freelancers and small businesses may be able to use generic, one-size-fits-all solutions, while enterprise organizations will likely need a more complex system.<img src="https://www.business.com/images/content/605/102ad9c658add338b4567/75-75-" alt="FYI" width="75" height="75">FYI: Accounting software provides key insights about a company's financial data and helps you <a variation="primary" href="https://www.business.com/articles/small-business-accounting-mistakes/" dir="ltr">avoid common business accounting mistakes</a>. The level of complexity you need will depend on the size of your business.<h2>How can accounting software help your business?</h2>The right accounting software can simplify business processes and prepare you for tax season. If you're not sure whether your business needs accounting software, here's what it can do:<UL><LI>Automate business finances. Accounting software can help you automate your business finances and remove the human error that comes with manual data entry.&nbsp; </LI><LI>Access your data from anywhere. With cloud-based software, you can access your financial data from anywhere as long as you have a Wi-Fi connection. </LI><LI>Prevent data loss. Cloud-based accounting software regularly backs up your data, so you never have to worry about data loss. </LI><LI>Integrate with third parties. Most accounting software integrates with popular third-party apps, like ones for expense tracking and CRM solutions. </LI><LI>File your taxes. The right accounting software makes filing your quarterly and annual taxes easier. Use the software to collaborate with your accountant and track how much your business owes.&nbsp;&nbsp;</LI></UL><h2>Top accounting software to consider</h2>As you explore different accounting software types, you'll quickly realize there is no "best" solution. But certain types of accounting software will be better suited to your business than others.&nbsp;<img src="https://www.business.com/images/content/605/118c59c658ab3018b4567/75_-75-" alt="Tip" width="75" height="75">Tip: If you're not sure where to start, check out our in-depth reviews of the <a variation="primary" href="https://www.business.com/categories/accounting-software/" dir="ltr">best accounting and invoicing software</a> so you can find one that best suits your needs.<table dir="ltr"><tbody dir="ltr"><tr dir="ltr"><td dir="ltr">Name</td><td dir="ltr">Best for</td><td dir="ltr">Pricing</td><td dir="ltr">Free trial</td><td dir="ltr">Third-party integrations</td></tr><tr dir="ltr"><td dir="ltr">QuickBooks</td><td dir="ltr">Small businesses</td><td dir="ltr">Starts at $15 per month</td><td dir="ltr">30 days</td><td dir="ltr">Yes</td></tr><tr dir="ltr"><td dir="ltr">FreshBooks</td><td dir="ltr">Invoicing</td><td dir="ltr">Starts at $4.50 per month</td><td dir="ltr">30 days</td><td dir="ltr">Yes</td></tr><tr dir="ltr"><td dir="ltr">Zoho Books</td><td dir="ltr">Microbusinesses</td><td dir="ltr">Starts at $9 per month</td><td dir="ltr">30 days</td><td dir="ltr">Yes</td></tr><tr dir="ltr"><td dir="ltr">Oracle NetSuite</td><td dir="ltr">ERP tools</td><td dir="ltr">Custom pricing only</td><td dir="ltr">N/A</td><td dir="ltr">Yes</td></tr><tr dir="ltr"><td dir="ltr">Xero</td><td dir="ltr">Growing businesses</td><td dir="ltr">Starts at $11 per month</td><td dir="ltr">30 days</td><td dir="ltr">Yes</td></tr></tbody></table><h2>Accounting software features</h2>Any software you use should include <a variation="primary" href="https://www.business.com/articles/features-of-accounting-software/" dir="ltr">basic accounting features</a> like a general ledger, account reconciliation, accounts payable and accounts receivable. Let's look at some of the other features you can expect from accounting software.&nbsp;&nbsp;<h3>Invoicing&nbsp;</h3>Invoicing is a staple for most businesses, so it's a feature most accounting software offers. A basic invoice should outline customer information, the amount owed and the due date.In addition, some software will offer the following advanced invoicing features:<UL><LI>The ability to create branded invoices using your company logo, colors, and fonts</LI><LI>Multiple payment options, like credit cards, debit cards, PayPal, and e-checks</LI><LI>Automated payment reminders if a client is late on a payment</LI><LI>The ability to charge customers in their home currency</LI><LI>The ability to set up a recurring payment for customers who are on retainer agreements</LI></UL><img src="https://www.business.com/images/content/605/118c59c658ab3018b4567/75_-75-" alt="Tip" width="75" height="75">Tip: Developing a system for <a variation="primary" href="https://www.business.com/articles/effective-debt-collector-guide/" dir="ltr">collecting unpaid invoices</a> keeps your <a variation="primary" href="https://www.business.com/articles/what-is-a-cash-flow-statement/" dir="ltr">cash flow</a> strong and helps you effectively manage your expenses.<h3>Payment processing</h3>Your accounting software should provide an easy way for customers to pay online. Most invoices allow customers to pay by either scanning a QR code or clicking a button.There should be an option for you to set up recurring payments on a weekly or monthly basis for ongoing customers. After the customer has paid, your software should automatically track and reconcile this payment.&nbsp;Plus, the software should make it easy for you to view detailed reports about customer payments. These reports will help you understand how your customers prefer to pay and other payment trends.&nbsp;<h3>Payroll management</h3>When it comes to <a variation="primary" href="https://www.business.com/articles/how-to-do-payroll/" dir="ltr">running payroll</a>, companies' needs depend on how many employees they have and the types of benefits they provide. In general, the software you use should calculate what you owe your employees, whether you have hourly workers, salaried employees, or a combination of the two.&nbsp;The software should manage varying pay schedules, compensation and benefits. Most employees prefer to have their checks automatically deposited into their bank account, so any software you choose should handle <a variation="primary" href="https://www.business.com/articles/how-to-set-up-direct-deposit/" dir="ltr">direct deposits</a> for your employees.&nbsp;The software should also calculate taxes and print relevant forms. For instance, freelancers who earn more than $600 annually will need to receive a <a variation="primary" href="https://www.business.com/articles/what-is-the-1099-irs-tax-form/" dir="ltr">1099 form</a> at the end of the year. And you'll need a W-4 on file for full-time employees, since this will tell you how much to deduct from their paychecks.&nbsp;<h3>Accounts payable&nbsp;</h3>As a business owner, you need to keep track of your expenses and how much your business owes vendors and suppliers. The right accounting software will help you do that with billing features, purchase orders and the ability to pay vendor invoices.&nbsp;&nbsp;<img src="https://www.business.com/images/content/605/1211c5a215e6d348b4567/75_-75-" alt="Did you know?" width="75" height="75">Did you know? When you <a variation="primary" href="https://www.business.com/articles/automating-accounts-payable/" dir="ltr">automate your accounts payable process</a> with accounting software, you free your finance department from tedious invoice processing and coding. This allows them to focus on financial reporting.<h3>ERP</h3>Enterprise resource planning (ERP) is a feature that helps companies collect and organize information so they can operate more efficiently. This software provides support for accounting, manufacturing, marketing and HR operations.&nbsp;ERP provides a unified solution to managing different departments and processes in your business. This feature helps larger companies break down silos between departments and increase transparency.&nbsp;<h3>Inventory management</h3>If your business sells goods and products, you need to keep track of your inventory. An inventory tracking feature can monitor inventory levels and tell you when to re-order certain items.Accounting software can also track relevant information about each of your products. This includes SKUs, product images, prices and quantity.&nbsp;You can also use accounting software to create custom pricing lists. For instance, you may want to offer a discount to customers who order your products in bulk.&nbsp;&nbsp;<h2>How much does accounting software cost?</h2>The monthly or annual pricing for your accounting software will depend on your business's size, the number of users who need access, and the customization level required. For instance, if you're a solopreneur or small business owner, accounting software can cost less than $10 a month. You might also benefit from software that offers a free version with limited functionality.&nbsp;On the other hand, larger companies with more complex accounting needs can expect to pay more for implementation and licensing fees.&nbsp;&nbsp;&nbsp;You'll also have to pay for any additional users you add to your account. And since accounting software is only helpful if your employees know how to use it, you may need to pay an additional fee to train your employees.&nbsp;&nbsp;<h2>How to choose the right accounting software for your business</h2>Your accounting software will track your business's financial performance, so choose carefully. Here are a few things to keep in mind.<h3>Bank integration</h3>Before you invest in accounting software, make sure it integrates with your bank. If the software is compatible with your bank account, it will automatically download new transactions, saving you time.&nbsp;<h3>Your business needs</h3>When you're evaluating accounting software, consider your business needs first. A freelancer with no employees will have different requirements than a multimillion-dollar business, so take your business's size into consideration.Look for software that's geared toward your specific industry as well. For instance, our <a variation="primary" href="https://www.business.com/reviews/freshbooks-accounting-software-and-invoice-generators/" dir="ltr">review of FreshBooks</a> found that it is an excellent option for freelancers because of its advanced invoicing features. Some software is also tailored to companies in the manufacturing, retail or restaurant industries.&nbsp;<h3>Your budget</h3>Consider how much you can afford to pay for accounting software. Fortunately, many solutions, particularly cloud-based ones (see below), are affordable and can accommodate nearly every budget. Many packages come with a free trial so you can get a sense of whether or not it's the right fit for your business.&nbsp;&nbsp;<h3>Cloud-based software</h3>It's a good idea to go with cloud-based accounting software. Cloud-based software can be accessed from any location and has built-in protections to prevent data loss. Plus, cloud-based software tends to be less expensive, since you don't have to pay for licensing or additional servers to house your data.<h3>Ease of use</h3>If you <a variation="primary" href="https://www.business.com/articles/should-you-hire-a-bookkeeper/" dir="ltr">hire a bookkeeper</a> or accountant to manage your business finances, ease of use may not be as important to you. But if you're handling the bookkeeping on your own, you'll want accounting software that is intuitive and easy to use.&nbsp;Of course, there may be a learning curve in the beginning, so look for companies that offer additional training and support. For instance, our <a variation="primary" href="https://www.business.com/reviews/quickbooks-online/" dir="ltr">QuickBooks review</a> found that it offers dozens of articles and video tutorials on how to use its software.&nbsp;<h3>Scalability</h3>Free or low-cost accounting software may work well for your company if you have limited business needs at the moment. But it's important to take a long-term view of your business when selecting accounting software.Instead of choosing the cheapest software possible, look for a scalable option. For instance, QuickBooks provides pricing plans for businesses of all sizes. That way, you can start small and add additional features as your business continues to grow.<img src="https://www.business.com/images/content/606/dd60c5a215e53778b4567/75_-75-" alt="Bottom Line" width="75" height="75">Bottom Line: When choosing the best accounting software for your business, consider your company size, industry, specific business needs, ease of use, and scalability.<h2>Pros and cons of accounting software</h2>Here are some essential factors to consider when evaluating accounting software.&nbsp;<h3>Pros</h3><UL><LI>Accuracy: Anytime you rely on manual data entry, there's the possibility of human error. Accounting software will connect to your bank and will usually categorize your transactions automatically. This helps ensure accuracy in your financial records.&nbsp; </LI><LI>Automation: One of the most significant advantages of accounting software is that it lets you automate your finances. By leveraging artificial intelligence, the software can record and reconcile transactions and generate financial reports. It eliminates repetitive tasks so you're free to focus on other aspects of your business.&nbsp; </LI><LI>Relatively low cost: Hiring a bookkeeper or accountant can be expensive, but most accounting software is affordable. In some cases, a free solution like Wave may meet your needs. If you need a low-cost way to track your business finances, finding the right accounting software is an excellent place to start. Learn more in our <a variation="primary" href="https://www.business.com/reviews/wave/" dir="ltr">complete review of Wave</a>. </LI><LI>Streamlined invoicing: If you rely heavily on invoicing clients, the right accounting software can save tons of time. For instance, software like FreshBooks lets you create invoices within minutes and even set up automatic payment reminders. </LI><LI>Collaboration: Most accounting programs let you grant outside access to your accountant. This can save time come tax season and makes it easier for you to pay your quarterly taxes throughout the year.</LI></UL><h3>Cons</h3><UL><LI>Technical problems: For most people, the biggest downside to dealing with computer programs is the occasional technical issue. That's why it's a good idea to use cloud-based software you can access from anywhere. Then, even if there's a problem with your desktop computer, you can still access your financial information.&nbsp; </LI><LI>Potential for fraud: Cloud-based software has many advantages, but it also provides more opportunities for hackers. If you're not careful, hackers may get a chance to access your business's financial data. Employees with access could also steal sensitive information or money before you realize it.&nbsp;</LI></UL>There are upsides and downsides to weigh when choosing accounting software, just like with anything else. However, accounting software can improve your business's financial accuracy and visibility, and it can free up your time for more creative and profitable pursuits.<div dir="ltr">Image Credit: cat-scape / Getty Images</div><img alt="Jamie Johnson" src="https://img.business.com/rc/50x50/aHR0cHM6Ly93d3cuYnVzaW5lc3MuY29tL2ltYWdlcy9hdXRob3IvNjAxL2RhNzkxOWM2NThhZWQ2MDhiNDU2Ny8xMDAtMTAw"><div>Jamie Johnson</div><div dir="ltr">business.com Contributing Writer</div><div>Jamie Johnson is a Kansas City-based freelance writer who writes about finance and business. She has also written for the U.S. Chamber of Commerce, Fox Business and Business Insider. Jamie has written about a variety of B2B topics like finance, business funding options and accounting. She also writes about how businesses can grow through effective social media and email marketing strategies.</div><div>Finance</div>

Accounting software helps you stay on top of taxes, manage critical financial data, and pay employees. Here's how to choose the right accounting software.

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How to Choose the Right Accounting Software for Your Business

The right software will help you track critical financial data in your business, stay on top of your taxes, and pay your employees on time.

The accounting software you use matters more than you may think. The right software will help you track critical financial data in your business, stay on top of your taxes, and pay your employees on time.

Choosing the wrong software can set you back and limit your long-term growth. Whether you handle the bookkeeping yourself or employ someone to do it for you, you need a flexible solution to grow alongside your business.

Editor's note: Looking for the right accounting software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

Accounting software is a program that helps business owners, bookkeepers and accountants manage a company's financial transactions. The right software makes it easier to track, organize and analyze financial data.

The features and level of customization depend on your business and the type of software you choose. Freelancers and small businesses may be able to use generic, one-size-fits-all solutions, while enterprise organizations will likely need a more complex system.

FYI: Accounting software provides key insights about a company's financial data and helps you <a dir="ltr" href="https://www.business.com/articles/small-business-accounting-mistakes/" variation="primary">avoid common business accounting mistakes </a>. The level of complexity you need will depend on the size of your business.

How can accounting software help your business?

The right accounting software can simplify business processes and prepare you for tax season. If you're not sure whether your business needs accounting software, here's what it can do:

<ul><li>Automate business finances. Accounting software can help you automate your business finances and remove the human error that comes with manual data entry.  </li><li>Access your data from anywhere. With cloud-based software, you can access your financial data from anywhere as long as you have a Wi-Fi connection. </li><li>Prevent data loss. Cloud-based accounting software regularly backs up your data, so you never have to worry about data loss. </li><li>Integrate with third parties. Most accounting software integrates with popular third-party apps, like ones for expense tracking and CRM solutions. </li><li>File your taxes. The right accounting software makes filing your quarterly and annual taxes easier. Use the software to collaborate with your accountant and track how much your business owes.   </li> </ul>

As you explore different accounting software types, you'll quickly realize there is no "best" solution. But certain types of accounting software will be better suited to your business than others.

Tip: If you're not sure where to start, check out our in-depth reviews of the <a dir="ltr" href="https://www.business.com/categories/accounting-software/" variation="primary">best accounting and invoicing software </a>so you can find one that best suits your needs.

Any software you use should include <a dir="ltr" href="https://www.business.com/articles/features-of-accounting-software/" variation="primary">basic accounting features </a>like a general ledger, account reconciliation, accounts payable and accounts receivable. Let's look at some of the other features you can expect from accounting software.

Invoicing is a staple for most businesses, so it's a feature most accounting software offers. A basic invoice should outline customer information, the amount owed and the due date.

In addition, some software will offer the following advanced invoicing features:

<ul><li>The ability to create branded invoices using your company logo, colors, and fonts </li><li>Multiple payment options, like credit cards, debit cards, PayPal, and e-checks </li><li>Automated payment reminders if a client is late on a payment </li><li>The ability to charge customers in their home currency </li><li>The ability to set up a recurring payment for customers who are on retainer agreements </li> </ul>

Tip: Developing a system for <a dir="ltr" href="https://www.business.com/articles/effective-debt-collector-guide/" variation="primary">collecting unpaid invoices </a>keeps your <a dir="ltr" href="https://www.business.com/articles/what-is-a-cash-flow-statement/" variation="primary">cash flow </a>strong and helps you effectively manage your expenses.

Your accounting software should provide an easy way for customers to pay online. Most invoices allow customers to pay by either scanning a QR code or clicking a button.

There should be an option for you to set up recurring payments on a weekly or monthly basis for ongoing customers. After the customer has paid, your software should automatically track and reconcile this payment.

Plus, the software should make it easy for you to view detailed reports about customer payments. These reports will help you understand how your customers prefer to pay and other payment trends.

When it comes to <a dir="ltr" href="https://www.business.com/articles/how-to-do-payroll/" variation="primary">running payroll </a>, companies' needs depend on how many employees they have and the types of benefits they provide. In general, the software you use should calculate what you owe your employees, whether you have hourly workers, salaried employees, or a combination of the two.

The software should manage varying pay schedules, compensation and benefits. Most employees prefer to have their checks automatically deposited into their bank account, so any software you choose should handle <a dir="ltr" href="https://www.business.com/articles/how-to-set-up-direct-deposit/" variation="primary">direct deposits </a>for your employees.

The software should also calculate taxes and print relevant forms. For instance, freelancers who earn more than $600 annually will need to receive a <a dir="ltr" href="https://www.business.com/articles/what-is-the-1099-irs-tax-form/" variation="primary">1099 form </a>at the end of the year. And you'll need a W-4 on file for full-time employees, since this will tell you how much to deduct from their paychecks.

As a business owner, you need to keep track of your expenses and how much your business owes vendors and suppliers. The right accounting software will help you do that with billing features, purchase orders and the ability to pay vendor invoices.

Did you know? When you <a dir="ltr" href="https://www.business.com/articles/automating-accounts-payable/" variation="primary">automate your accounts payable process </a>with accounting software, you free your finance department from tedious invoice processing and coding. This allows them to focus on financial reporting.

Enterprise resource planning (ERP) is a feature that helps companies collect and organize information so they can operate more efficiently. This software provides support for accounting, manufacturing, marketing and HR operations.

ERP provides a unified solution to managing different departments and processes in your business. This feature helps larger companies break down silos between departments and increase transparency.

If your business sells goods and products, you need to keep track of your inventory. An inventory tracking feature can monitor inventory levels and tell you when to re-order certain items.

Accounting software can also track relevant information about each of your products. This includes SKUs, product images, prices and quantity.

You can also use accounting software to create custom pricing lists. For instance, you may want to offer a discount to customers who order your products in bulk.

The monthly or annual pricing for your accounting software will depend on your business's size, the number of users who need access, and the customization level required. For instance, if you're a solopreneur or small business owner, accounting software can cost less than $10 a month. You might also benefit from software that offers a free version with limited functionality.

On the other hand, larger companies with more complex accounting needs can expect to pay more for implementation and licensing fees.

You'll also have to pay for any additional users you add to your account. And since accounting software is only helpful if your employees know how to use it, you may need to pay an additional fee to train your employees.

How to choose the right accounting software for your business

Your accounting software will track your business's financial performance, so choose carefully. Here are a few things to keep in mind.

Before you invest in accounting software, make sure it integrates with your bank. If the software is compatible with your bank account, it will automatically download new transactions, saving you time.

When you're evaluating accounting software, consider your business needs first. A freelancer with no employees will have different requirements than a multimillion-dollar business, so take your business's size into consideration.

Look for software that's geared toward your specific industry as well. For instance, our <a dir="ltr" href="https://www.business.com/reviews/freshbooks-accounting-software-and-invoice-generators/" variation="primary">review of FreshBooks </a>found that it is an excellent option for freelancers because of its advanced invoicing features. Some software is also tailored to companies in the manufacturing, retail or restaurant industries.

Consider how much you can afford to pay for accounting software. Fortunately, many solutions, particularly cloud-based ones (see below), are affordable and can accommodate nearly every budget. Many packages come with a free trial so you can get a sense of whether or not it's the right fit for your business.

It's a good idea to go with cloud-based accounting software. Cloud-based software can be accessed from any location and has built-in protections to prevent data loss. Plus, cloud-based software tends to be less expensive, since you don't have to pay for licensing or additional servers to house your data.

If you <a dir="ltr" href="https://www.business.com/articles/should-you-hire-a-bookkeeper/" variation="primary">hire a bookkeeper </a>or accountant to manage your business finances, ease of use may not be as important to you. But if you're handling the bookkeeping on your own, you'll want accounting software that is intuitive and easy to use.

Of course, there may be a learning curve in the beginning, so look for companies that offer additional training and support. For instance, our <a dir="ltr" href="https://www.business.com/reviews/quickbooks-online/" variation="primary">QuickBooks review </a>found that it offers dozens of articles and video tutorials on how to use its software.

Free or low-cost accounting software may work well for your company if you have limited business needs at the moment. But it's important to take a long-term view of your business when selecting accounting software.

Instead of choosing the cheapest software possible, look for a scalable option. For instance, QuickBooks provides pricing plans for businesses of all sizes. That way, you can start small and add additional features as your business continues to grow.

Bottom Line: When choosing the best accounting software for your business, consider your company size, industry, specific business needs, ease of use, and scalability.

Here are some essential factors to consider when evaluating accounting software.

<ul><li>Accuracy: Anytime you rely on manual data entry, there's the possibility of human error. Accounting software will connect to your bank and will usually categorize your transactions automatically. This helps ensure accuracy in your financial records.  </li><li>Automation: One of the most significant advantages of accounting software is that it lets you automate your finances. By leveraging artificial intelligence, the software can record and reconcile transactions and generate financial reports. It eliminates repetitive tasks so you're free to focus on other aspects of your business.  </li><li>Relatively low cost: Hiring a bookkeeper or accountant can be expensive, but most accounting software is affordable. In some cases, a free solution like Wave may meet your needs. If you need a low-cost way to track your business finances, finding the right accounting software is an excellent place to start. Learn more in our <a dir="ltr" href="https://www.business.com/reviews/wave/" variation="primary">complete review of Wave </a>. </li><li>Streamlined invoicing: If you rely heavily on invoicing clients, the right accounting software can save tons of time. For instance, software like FreshBooks lets you create invoices within minutes and even set up automatic payment reminders. </li><li>Collaboration: Most accounting programs let you grant outside access to your accountant. This can save time come tax season and makes it easier for you to pay your quarterly taxes throughout the year. </li> </ul>

<ul><li>Technical problems: For most people, the biggest downside to dealing with computer programs is the occasional technical issue. That's why it's a good idea to use cloud-based software you can access from anywhere. Then, even if there's a problem with your desktop computer, you can still access your financial information.  </li><li>Potential for fraud: Cloud-based software has many advantages, but it also provides more opportunities for hackers. If you're not careful, hackers may get a chance to access your business's financial data. Employees with access could also steal sensitive information or money before you realize it.  </li> </ul>

There are upsides and downsides to weigh when choosing accounting software, just like with anything else. However, accounting software can improve your business's financial accuracy and visibility, and it can free up your time for more creative and profitable pursuits.

Bite‑sized knowledge
to upgrade
your career

Find the Best Accounting Software for Your Business - business.com

The need for accounting software

How accounting software help you business

Top accounting software

Accounting software features

Choosing the right accounting software

Pros and cons of accounting software

How to Move Money in the 21st Century

What is the Difference Between an Invoice and a Bill? Does it Matter?

Developing an Access Control Policy - business.com

Bite‑sized knowledgeto upgradeyour career

Find the Best Accounting Software for Your Business - business.com

The need for accounting software

How accounting software help you business

Top accounting software

Accounting software features

Choosing the right accounting software

Pros and cons of accounting software

How to Move Money in the 21st Century

What is the Difference Between an Invoice and a Bill? Does it Matter?

Developing an Access Control Policy - business.com

Bite‑sized knowledge
to upgrade
your career