Post-Pandemic, People Are Quitting Their Jobs to Start Their Own
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The Covid-19 pandemic shook up just about every industry — for better or worse. As expected, we saw layoffs, career jumps, and new hires around the globe, but something else happened that many didn’t expect: an influx of new businesses.
Whatever the reason, be it more time at home to work on side hustles, job fatigue, or increased savings, millions of people started businesses over the last few years. If you’re among these new entrepreneurs, you’re no doubt familiar with the difficulty of getting a business off the ground (and keeping it there) — in part due to the grind that is accounting.
Luckily, there’s an easy way to lessen the burden of running your own show: good accounting software. Popular software like QuickBooks, Xero, and FreshBooks promise entrepreneurs powerful tools for organizing their spending and revenue, letting them dedicate more time to managing their businesses’ books.
The Best Accounting Software for Small Businesses
Thinking of upgrading your business’s accounting power? Read on. Below, we’ve reviewed and rounded up some of the best accounting software available for small business owners to use in 2023.
1. Intuit QuickBooks
With over five million subscribers, QuickBooks the most popular accounting software — and for good reason. Launched about 40 years ago, the Intuit service is a fast step towards getting on top of income, expenses, and invoicing. Its easy interface and beginner-friendly language also makes QuickBooks especially helpful for anyone still learning proper accounting practices.
QuickBooks has four subscription tiers. The most affordable is the Simple Start plan which costs $30 a month and gets you all the basics of effective accounting, including tools for income and expenses, payments, taxes, reports, and contractors. Then there’s the Essentials plan ($55 a month), the Plus plan ($85 a month), and the Advanced Plan ($200 a month). The key upgrades with each of these tiers are added sales channels and more users on a single account.
But QuickBooks is also offering new customers two deals to choose from. The first is a 30-day free trial, which is great if you’re totally new to accounting and want to see how QuickBooks works. The second deal is 50% off on your first three months — no matter which subscription tier you choose from.
2. Xero
Another solid accounting software for small businesses is Xero. Standout features with Xero include payroll integration with Gusto, bank reconciliation, and integration with thousands of third-party apps. The interface is good too — even if you’re new to accounting — and the mobile app is especially easy to use. There are some downsides, of course, like limits on the number of bills and invoices you can process and fees for ACH payments.
The service’s basic plan is the $13-a-month Early plan, while more comprehensive plans let your accounting capabilities grow with the business. For $37 a month, you can upgrade to the Growing plan which lets you enter more bills and bulk reconcile transactions, and for $70 a month, you can get the Established plan for more analytics, claiming expenses, and other features. Plus, right now, you can get 75% off for 3 months on any plan.
3. Zoho Books
If you already use Zoho products, Zoho Books is a good pick. It’s a good tool for inventory management, invoicing, payroll, and other needs. You can also pay bills through your account and integrate a host of third-party apps, though fewer than competitors.
Thanks to a free subscription tier, Zoho is also a good choice for microbusinesses with less than 1,000 invoices a year. They have five different paid subscription tiers, which range from $20 to $275 a month, so there should be something for every budget. Besides the free tier, new users can also take advantage of a 14-day free trial for paid plans.
4. FreshBooks
FreshBooks is one of the best accounting software options for new business owners (second only to QuickBooks). The service’s interface is very easy to use, and it’s especially useful for sending and receiving invoices. Other good uses for FreshBooks include expense tracking, project management, and report viewing. Some features are lacking, like a low number of users, no payroll (without an add-on), and the inability to create audit trails.
In terms of pricing, FreshBooks is in-line with the competition, if not slightly more affordable. Plans start at $15 a month and increase to $30 and $55 a month for more advanced features like the ability to send more invoices and track things like bills, vendors, and profitability. Right now you can grab 90% off your first three months with any plan. FreshBooks also offers a plan with custom pricing that lets you pay for what you need.
5. Wave
If you’re looking for truly free software, check out Wave. You get unlimited income and expense tracking, bank and credit card connections, invoicing, and users — all for $0. The interface is clean and easy to use, whether you’re invoicing or paying bills. However, fees on Wave are higher for credit cards and ACH payments, third-party integration is lacking, and there’s no human customer support.