This means you don’t need to worry about installing the latest version and you’ll get access to new features instantly. With cloud accounting software, you have the option to run your business remotely, from anywhere in the world. And when data is fluid and accessible, the possibilities are endless. Xero wins out over the competition as far as price, scalability, and integrations go. However, other accounting software such as QuickBooks Online and FreshBooks provide a phone number for customer support. The only way to contact Xero with questions is to sign up for a free trial or purchase a plan, and then submit queries online.

Best Accounting Software for Small Businesses of 2024

Given that Wave’s single paid accounting plan is cheaper than all the other alternatives we’ve listed here, and that it offers a forever free plan, this is absolutely the best option if you need to save cash. However, Wave’s features are more limited than many competitors in order to keep the price low, so it may not suffice for growing businesses. The number of users is also technically unlimited, but FreshBooks does charge an extra fee of $11 per user per month. Unlike Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — but limits you to 1 billable user and 2 accountant firm users.

Customizable reports and dashboards

Xero also has inventory management, but it’s not one of its core functions. Xero and Sage’s main selling point is their intuitive invoicing systems. Sage lets you create invoices directly from quotes and estimates, send them to customers and automatically track outstanding invoices to see what you’re owed. It also partners with Stripe so you can take card payments with ease. Xero looks to be shaking up its pricing structure and strategy in the coming months. Currently, if you’re looking to sign up with the service in the US then the Early plan costs $11 per month.

The Best Corporate Credit Cards For Businesses

It’s a full-service option with unlimited, automated payroll runs and direct deposit. The average time to become proficient in Xero varies widely, depending on users’ prior knowledge and experience. Xero reports that you can receive certification, free of charge, in approximately 6-8 hours. However, the average time is likely closer to 3-4 weeks as users become more familiar with the software through consistent use.

We’re backing small business

As a small business owner, you might be concerned about a cloud service provider storing your data. But the cloud is one of the most secure ways to store information. For example, using cloud software, if your laptop is stolen, no one can access your data unless they have a login to the online account. With cloud software, your data lives online on secure servers – as opposed to on your hard drive. Xero offers a strong selection of accounting features — including invoicing, bill pay, and analytics — that are in line with the competition.

After you start a free 30-day trial of Xero, you’ll activate the account and provide details about your business. Then, you can connect your bank accounts to Xero and decide if you’ll accept electronic payments for online invoices. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills. The Growing plan is best suited for growing businesses, grants the same capabilities in addition to the ability to send unlimited quotes and invoices, enter unlimited bills, and reconcile transactions in bulk.

In the battle of Xero vs. Sage, both come out on top for different uses. We prefer Sage for very small businesses or freelancers that need help tracking their clients and invoices. But if you’re a bigger company that requires more functionality, Xero lets you manage your inventory and provide access to everyone in the company without extra fees. One big drawback of Xero is that it doesn’t have a dedicated customer service phone number. If you want to talk to a human being, you have to submit a ticket and request a callback.

Xero has never offered phone support and has relied on email support. It may take a day or two to get a response to your email, but there are plenty of other forms of support available. Despite a few shortcomings, we rated Xero 4.7/5 for its customer support. To get the most out of your software, Xero has over 800 integrations to choose from. If this isn’t enough, Xero also integrates with Zapier, connecting the software to hundreds of additional add-ons. Some Xero integrations are country-specific, so make sure they are compatible before you make any additions or purchases.

This gets you 5 invoices and quotes, lets you enter 5 bills and reconcile 20 bank transactions. The other appeal of the software was that each plan came with unlimited users, access to every Xero feature, and payroll. Unlimited users documents requested in a letter of credit transaction lc document and advanced features make this cloud accounting software platform a good fit for many small businesses. The Established plan is best for businesses that have been around for a while or companies that do business internationally.

Running a small business can mean moving between being a general manager to a customer services contact, marketing lead and, in some cases, debt collector. Without the proper processes in place, managing payments can take up too much time and even result in bigger problems. Cloud-based accounting software is just like traditional accounting software with the exception that all the data is hosted on remote servers instead of the user’s desktop computer.

We like Xero for businesses with lots of employees, as they can take advantage of the unlimited number of collaborators. The downside to the free software is the fact it is not as robust as many of its competitors in the cloud accounting software space. Basic features such as inventory management features, customer support, expansive tax services and time tracking, are not available through Wave. FreshBooks is an intuitive, easy-to-use accounting software designed for small business owners who do not have an accounting background. It allows users to easily create invoices, manage projects, track expenses, track time, track loans and file taxes. As a cloud-based platform, it is accessible across all devices.

You can be confident that you have an up-to-date picture of how your business is doing, no matter where you are. While competitors such as FreshBooks provide a discount for annual plans, Xero only offers a monthly option. Xero enables you to easily view the payment status of your invoices to see who has paid and what is overdue. You can also bulk import invoices from other accounting software to Xero so all your invoices are accessible from one place. Once you’ve got your bank information in Xero, the software will help you match up your transactions for reconciliation (Figure B). Keep in mind that bulk reconciliation is not included with the cheapest Early plan, so you might have to pay to upgrade if you want this feature.

You can use cloud-based software from any device with an internet connection. Online accounting software keeps small business owners connected to their data and their accountants. The software can integrate with a whole ecosystem of third-party business apps. After your free trial ends, you can choose the plan that best suits your needs.

1. Both made our list of the best accounting software because of their invoicing capabilities and bank transaction reconciliation.
2. Use Xero to work with your employees, bookkeeper, or accountant online, even if you’re on opposite sides of the world.
3. Xero and Sage’s main selling point is their intuitive invoicing systems.
4. Xero has had even more new features added and, as cloud-based services go, this currently has to be one of the most fully featured options on the market.

Features include downloading bank transactions, sending invoices, tracking expenses, accepting payments and running essential accounting reports. For $27 a month, the Kashoo plan is an advanced accounting plan for medium- to large-sized businesses. Advanced features include double entry, payroll integration, project cost tracking, customization options and the ability to collaborate with an accountant. Wave is a free accounting service that is designed for small businesses just starting out.

However, it’s generally considered easier than QuickBooks Online. All pricing plans cover the accounting essentials, with room to grow. See all your invoices, contacts, balances, financial information and accounts online. Even the most user-friendly software can leave you scratching your head sometimes. NetSuite clearly has the advantage for businesses with aggressive growth plans or complex organizational structures.

Customers tend to give good reviews of Xero’s customer support. Xero gets a 4.3 out of 5 stars rating on software review site G2, and a 4.2 out of 5 stars on Trustpilot, a consumer review site for businesses, with many reviews praising its customer service. Xero offers payroll and advanced inventory management as add-ons. For businesses that have larger amounts of stock, do business via an eCommerce channel, or operate with negative inventory, Xero offers Inventory Plus –a full-service inventory management system.

There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface. One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees. The software is also updated automatically, so businesses always have the latest features and security patches.

The software offers a variety of features, including invoicing, tracking expenses and creating financial reports. Xero also integrates with other business applications, what is cost allocation such as payroll and inventory management systems. This makes it a versatile tool for small businesses that need to streamline their operations.

Xero is cloud-based accounting software that packs a real punch when it comes to features and functionality. Based in New Zealand, the multi-faceted package currently comes quiz and worksheet accounts receivable process in three incarnations and is aimed at small, medium and larger-sized businesses. Software updates can be developed and delivered faster and more easily in the cloud.