mitrobeAccounting Payroll Software for Small Business – Accounting and payroll software are essential tools for small businesses to manage their finances, taxes, and employees. Accounting software helps small businesses track their income, expenses, assets, liabilities, and cash flow. Payroll software helps small businesses calculate wages, deductions, taxes, and benefits for their employees. Both types of software can also automate tasks, generate reports, and integrate with other applications.
However, not all accounting and payroll software are created equal. Some are more suitable for different types of businesses, industries, features, and budgets. In this article, we will review the 10 best accounting and payroll software for small businesses in 2023 based on their functionality, pricing, ease of use, customer support, and user reviews.
The 10 Best Accounting and Payroll Software for Small Businesses in 2023
1. QuickBooks Online
QuickBooks Online is one of the most popular and widely used accounting software for small businesses. It offers a range of plans and features to suit different needs and budgets. QuickBooks Online can help small businesses with:
- Invoicing and payments
- Expense tracking and categorization
- Bank and credit card reconciliation
- Sales tax calculation and filing
- Financial reporting and dashboard
- Inventory management and tracking
- Project profitability and time tracking
- Mileage tracking and deduction
- Cash flow forecasting and management
QuickBooks Online also offers a payroll add-on service called QuickBooks Payroll that can handle payroll taxes, direct deposit, health benefits, workers’ compensation, and more. QuickBooks Online integrates with over 800 third-party apps, such as Shopify, PayPal, Stripe, Square, Gusto, Zapier, and more.
QuickBooks Online has four pricing plans: Simple Start ($25 per month), Essentials ($50 per month), Plus ($80 per month), and Advanced ($180 per month). QuickBooks Payroll has three pricing plans: Core ($45 per month plus $4 per employee), Premium ($75 per month plus $8 per employee), and Elite ($125 per month plus $10 per employee). All plans offer a 30-day free trial.
QuickBooks Online is best for startups, freelancers, solopreneurs, e-commerce businesses, service-based businesses, and businesses that need a comprehensive and scalable accounting solution.
2. Xero
Xero is another leading accounting software for small businesses that offers cloud-based and mobile-friendly features. Xero can help small businesses with:
- Invoicing and quotes
- Bills and expenses
- Bank connections and feeds
- Cash flow management
- Financial reporting and performance
- Budgeting and forecasting
- Inventory management
- Project management and costing
- Fixed asset depreciation
Xero also offers a payroll service called Xero Payroll that can handle payroll taxes, direct deposit, health insurance, retirement plans, time tracking, paid time off, and more. Xero integrates with over 800 third-party apps, such as Shopify, PayPal, Stripe, Square, Gusto, Zapier, HubSpot, Mailchimp, and more.
Xero has three pricing plans: Early ($11 per month), Growing ($32 per month), and Established ($62 per month). Xero Payroll has two pricing plans: Standard ($39 per month plus $6 per employee) and Premium ($39 per month plus $10 per employee). All plans offer a 30-day free trial.
Xero is best for micro-business owners, freelancers, solopreneurs, e-commerce businesses, creative agencies, and businesses that need a user-friendly and flexible accounting solution.
3. FreshBooks
FreshBooks is a simple and intuitive accounting software for small businesses that focuses on invoicing and payments. FreshBooks can help small businesses with:
- Customizable invoices and estimates
- Online payments and reminders
- Expense tracking and receipt capture
- Bank reconciliation and import
- Sales tax calculation and reporting
- Profitability analysis and reporting
- Time tracking and billing
- Project management and collaboration
FreshBooks also offers a payroll service called FreshBooks Payroll that can handle payroll taxes, direct deposit, health benefits, workers’ compensation, and more. FreshBooks integrates with over 100 third-party apps, such as Shopify, PayPal, Stripe, Square, Gusto, Zapier, Mailchimp, and more.
FreshBooks has four pricing plans: Lite ($15 per month), Plus ($25 per month), Premium ($50 per month), and Select (custom pricing). FreshBooks Payroll has two pricing plans: Basic ($39 per month plus $6 per employee) and Advanced ($99 per month plus $12 per employee). All plans offer a 30-day free trial.
FreshBooks is best for service-based businesses, freelancers, solopreneurs, consultants, and businesses that need a simple and easy-to-use accounting solution.
4. Wave
Wave is a free accounting software for small businesses that offers basic features for managing finances. Wave can help small businesses with:
- Invoicing and payments
- Expense tracking and receipt scanning
- Bank and credit card connections
- Sales tax calculation and reporting
- Financial reporting and dashboard
- Double-entry accounting and journal transactions
Wave also offers a payroll service called Wave Payroll that can handle payroll taxes, direct deposit, health benefits, workers’ compensation, and more. Wave integrates with a few third-party apps, such as PayPal, Stripe, Zapier, Etsy, and Shoeboxed.
Wave is free to use for accounting, invoicing, and receipt scanning. Wave Payroll has two pricing plans: Tax Service ($35 per month plus $6 per employee) and Self Service ($20 per month plus $6 per employee). Wave charges transaction fees for online payments: 2.9% plus 30 cents for credit cards and 1% for bank transfers.
Wave is best for the smallest businesses, freelancers, solopreneurs, non-profits, and businesses that need a free and basic accounting solution.
5. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a cloud-based accounting software for small businesses that offers essential features for managing finances. Sage Business Cloud Accounting can help small businesses with:
- Invoicing and quotes
- Bills and expenses
- Bank connections and feeds
- Cash flow management
- Financial reporting and insights
- Inventory management
- Sales tax calculation and filing
Sage Business Cloud Accounting also offers a payroll service called Sage Payroll that can handle payroll taxes, direct deposit, health benefits, workers’ compensation, and more. Sage Business Cloud Accounting integrates with a few third-party apps, such as Stripe, PayPal, AutoEntry, Zapier, and more.
Sage Business Cloud Accounting has two pricing plans: Accounting Start ($10 per month) and Accounting ($25 per month). Sage Payroll has three pricing plans: Essential ($49.95 per month plus $6 per employee), Full Service ($99.95 per month plus $6 per employee), and HRMS (custom pricing). All plans offer a 30-day free trial.
Sage Business Cloud Accounting is best for micro-businesses, freelancers, solopreneurs, retail businesses, and businesses that need a simple and affordable accounting solution.
How to Choose the Best Accounting and Payroll Software for Your Small Business
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How to Choose the Best Accounting and Payroll Software for Your Small Business
Choosing the best accounting and payroll software for your small business can be a daunting task, as there are many factors to consider and options to choose from. However, by following these steps, you can make an informed decision that suits your needs and budget:
Identify your business goals and requirements
What are the main features and functions that you need from your accounting and payroll software? How many users, transactions, and employees do you have? What kind of reports and insights do you need? How much are you willing to pay for the software?
Compare the features and pricing of different software
Use the comparison table above to see how the 10 best accounting and payroll software for small businesses in 2023 stack up against each other in terms of features, pricing, ease of use, customer support, and user ratings. You can also visit their websites or sign up for free trials to get a firsthand experience of their software.
Read user reviews and testimonials
Find out what other small business owners and users have to say about their experience with the software. You can check online platforms such as Capterra, Trustpilot, G2, or Software Advice to read verified reviews and ratings. You can also ask for referrals from your peers or industry experts.
Choose the software that best meets your needs and budget
After weighing the pros and cons of each software, select the one that offers the most value for your money and satisfies your business goals and requirements. You can also contact the software provider to ask for a demo, a quote, or a consultation before making a final decision.
Accounting Payroll Software for Small Business: Frequently Asked Questions (F&Qs)
Here are some of the most common questions that small business owners and users have about accounting and payroll software, along with their answers:
What is the difference between accounting and payroll software?
Accounting software is software that helps small businesses manage their financial transactions, such as income, expenses, assets, liabilities, and cash flow. Payroll software is software that helps small businesses manage their employee payments, such as wages, deductions, taxes, and benefits.
Why do small businesses need accounting and payroll software?
Small businesses need accounting and payroll software to simplify and automate their financial tasks, such as invoicing, payments, expense tracking, bank reconciliation, sales tax filing, financial reporting, payroll taxes, direct deposit, health benefits, workers’ compensation, and more. Accounting and payroll software can also help small businesses save time, money, and resources, as well as comply with tax laws and regulations.
How to choose the best accounting and payroll software for small businesses?
The best accounting and payroll software for small businesses depends on their specific needs and preferences. However, some of the factors to consider when choosing accounting and payroll software are:
- Features: The software should offer the features and functions that the small business needs to manage its finances and employees effectively and efficiently.
- Pricing: The software should fit the small business’s budget and offer a good value for money. The software should also have transparent and flexible pricing plans that suit the different needs and sizes of small businesses.
- Ease of use: The software should be user-friendly and intuitive, with a simple and clear interface that makes it easy to navigate and operate. The software should also be cloud-based and mobile-friendly, allowing the small business to access and use it anytime and anywhere.
- Customer support: The software should provide reliable and responsive customer support, with various channels of communication such as phone, chat, email, help center, blog, webinars, etc. The software should also offer training and guidance to help the small business get started and use the software effectively.
- User ratings: The software should have positive and credible user reviews and ratings from other small business owners and users who have used the software. The software should also have a good reputation and trustworthiness in the market.
What are the benefits of using accounting and payroll software for small businesses?
Some of the benefits of using accounting and payroll software for small businesses are:
- Improved accuracy: Accounting and payroll software can reduce human errors and mistakes that can lead to financial losses or penalties. The software can also ensure that the financial data is consistent and up-to-date across different platforms and devices.
- Enhanced efficiency: Accounting and payroll software can automate repetitive and tedious tasks that can take up a lot of time and effort. The software can also streamline workflows and processes that can improve productivity and performance.
- Increased visibility: Accounting and payroll software can provide real-time insights and reports that can help small businesses monitor their financial health and performance. The software can also help small businesses make informed decisions based on data-driven analysis.
- Better compliance: Accounting and payroll software can help small businesses comply with tax laws
What are two accounting software used for payroll?
Two accounting software that are used for payroll are QuickBooks Online and Xero. Both of these software offer a payroll add-on service that can handle payroll taxes, direct deposit, health benefits, workers’ compensation, and more. QuickBooks Online and Xero are also cloud-based and mobile-friendly and integrate with many third-party apps.
In conclusion, Accounting and payroll software are vital tools for small businesses to manage their finances and employees efficiently and effectively. However, choosing the best accounting and payroll software for small businesses can be challenging, as there are many factors to consider and options to choose from.
In this article, we have reviewed the 10 best accounting and payroll software for small businesses in 2023 based on their features, pricing, ease of use, customer support, and user ratings. We have also provided a comparison table and some frequently asked questions to help you make an informed decision. Based on our analysis, we recommend the above accounting and payroll software for small businesses in 2023
James steller
Mitrobe Staff
mitrobe