11 min read
Jun 20, 2021
Accounting & Finance

5 Best Finance Accounting Software for SMBs

Take accounting challenges head on by investing in a finance accounting tool that helps you make sense of your company’s finance.

A.U.
Ashish UpadhyayContent Writer

Small and midsize business owners face several challenges every day, and financial accounting is a major one. But not every business owner is a number cruncher and with a robust accounting team often lacking, managing company finances can go wrong, really fast.

Fortunately, even without accounting specialists or great numeracy skills, you can still tackle your company’s financial woes with the help of technology. Finance accounting tools can help you better adapt to modern-day financial management challenges and make sure your financial reporting and accounting needs are met.

This buyers guide is the perfect place to start to understand what an accounting solution is, what are the different types, and a few other important things to know before embarking on a product hunt.

But if you’re already familiar with the basics and want to explore the five best finance accounting software, read on. The products are listed alphabetically and chosen from our Accounting Software Category Leaders 2021 report.

(See how we shortlisted the five products at the bottom.)

5 Best Finance Accounting Software for SMBs

FreshBooks


  • Overall user rating: 4.5/5

  • Notable features: Receipt management, expense tracking, accounting integration

FreshBooks is a cloud-based accounting solution designed specifically for small businesses and freelancers. FreshBooks specializes in expense tracking, maintaining general ledgers, and receipt management.

As a FreshBooks user, you can easily manage company bills and create profit and loss reports. The tool also helps generate cash flow reports to see outstanding bills and keep track of paid sales tax. Additionally, if you work with a lot of clients, you can create project reports with financial estimates to keep them informed.

FreshBooks also features multiple integrations with third-party applications and platforms to sync your online business and make financial management easier. It is also available for iOS and Android devices.

Billing and Invoicing in FreshBooks

Billing and Invoicing in FreshBooks (Source)

User reviews on FreshBooks

Pros:

  • Its does a wonderful job helping to keep track of all the outstanding bills of all of the clients that I have.

  • The best I found in this software was the ease of use, it is very friendly to the user, the cost is very good too.

  • Love the tools for collaborating and the ability to handle multiple businesses.

Cons:

  • The lack of inventory management / inventory accounting is a bit of a hold back for our needs.

  • There are a few features missing in the software compared to the other softwares.

  • If there was an offline version of the tool that would at least let me make and hold invoices locally

Patriot Accounting


  • Overall user rating: 4.8/5

  • Notable features: Transaction tracking, multiple accounts, payroll

Patriot Accounting is an online accounting software tool for small businesses. The software allows you to track transactions, manage invoices, maintain general ledgers, and create project estimates.

The tool allows you to set up multiple accounts (such as an expense account and an income account) to handle different types of transactions. Additionally, it provides bank reconciliation and the ability to import transactions for greater visibility.

Patriot Accounting also allows you to create profit and loss statements for your business. You can measure your company’s financial health by analyzing your income and expense details. The tool also offers the ability to customize invoices and financial documents to reflect the business’s brand.

Profit and loss statement in Patriot Accounting (Source)

Profit and loss statement in Patriot Accounting (Source)

User reviews on Patriot Accounting

Pros:

  • Customer service is very responsive and you can quickly speak to someone knowledgeable and experienced with the software.

  • Patriot accounting is very user friendly. Patriot customer support is also very helpful.

  • Ease of use; invoicing and template customization (especially the colors); and the seamless integration/flow with Patriot Payroll.

  • To be able to select accept or dismiss the transaction makes it easier for clients to understand account categorization.

Cons:

  • Navigation can be confusing with all the COVID options being in the forefront instead of at the end for those that need it.

  • There is a learning curve to get things set up, and the phone system for getting in touch is very awkward as you need a code to begin a call.

  • If you have accrued liabilities, They use  modified cash basis which is also odd vs Cash Basis. No Statement available to send out to customers.

Quickbooks Online


  • Overall user rating: 4.3/5

  • Notable features: Payroll management, sales history tracking, online user portal

Quickbooks Online is a cloud-based accounting tool that helps small businesses manage accounting, payroll, expenses, and perform financial analysis. The software offers multiple integrations with third-party platforms as well as advanced customization.

Quickbooks Online provides a single dashboard to manage all operations from. Whether it’s account management, expense tracking, report generation for clients, or overseeing your company’s fiscal health, the tool helps in overall accounting and expense management.

It is available for iOS and Android devices and there’s online training as well.

Tracking sales in Quickbooks Online

Tracking sales in Quickbooks Online (Source)

User reviews on Quickbooks Online

Pros:

  • It is pretty easy to navigate and I can favorite the reports I like the most.

  • Great tool to help keep track of spending and payments. Very user friendly and easy to operate.

  • QuickBooks Online is very intuitive and easy to navigate. Its capabilities are perfect for a small business/company.

Cons:

  • Coding transactions is slow and sometimes lost simply because its .online

  • They have charged clients of mine without warning them. They have removed functions and doubled the prices on clients to get them to pay more.

  • The financial reporting feature is cumbersome.  My boss always asks me to run reports for her because she finds it difficult and confusing.

Wave Accounting


  • Overall user ratings: 4.4/5

  • Notable features: Income and expense tracking, smart dashboard, invoice management

Wave Accounting is a fully integrated accounting and invoicing solution built specifically for small businesses. The tool can connect your bank accounts, sync all expenses, balance books, and assist with tax payments.

Wave Accounting has advanced security protocols in place to safeguard all your transactions. The tool is PCI Level-1 certified for handling credit card and bank account information. Additionally, you can track taxes on incomes and expenses, generate invoices, cash flow, and profit and loss reports.

The tool also gives you the option to organize income and expenses into tax categories along with unlimited bank and credit card connections. Wave Accounting is available for iOS and Android devices as well.

Invoice generation in Wave Accounting

Invoice generation in Wave Accounting (Source)

User reviews on Wave Accounting

Pros:

  • It also allows me to easily convert an estimate into an invoice which saves me a great deal of time.

  • Its simple to use and uses terms which are easily understandable. It also has excellent invoice templates which are easy to set up.

  • Accounting by Wave is brilliant for owners who want to do their own accounting but are not trained accountants.

Cons:

  • Very limited functionality around assigning cost elements or cost centers.

  • With all that being said, its hard to argue with the price and integrations cost money on the development side.

  • The reports from Wave are also very limited, so don’t expect any customizable reports as of 08/2019.

Xero


  • Overall user rating: 4.3/5

  • Notable features: Project tracking, bank reconciliation, contract management

Xero is a cloud-based small business accounting software with features such as invoice management, bank reconciliation, inventory and purchase management, bookkeeping, and expense tracking.

As a Xero user, you get an intuitive dashboard that gives a clear view of your company’s financial situation. The accounting system highlights bank balances, outstanding invoices, and upcoming bills to provide greater visibility into your cash flow.

Xero integrates with a variety of third-party payment and CRM applications to make your operations easier to manage. It is also available for Android and iOS devices.

Creating an invoice in Xero

Creating an invoice in Xero (Source)

User reviews on Xero

Pros:

  • Ease of use and great functionality - very easy to export desired reports.

  • The features are very user friendly, and it is a great price compared to other similar accounting softwares, like Quickbooks.

  • What I like most is the automation and reporting capabilities of the software.

Cons:

  • Removing/deleting of transactions and line items are difficult, imported by error and had to delete one by one.

  • As an accounting firm it is a very risky move to partner with the Xero software platform.

  • Some countries lack a builtin payroll option.  Customized reporting options are still limited.

Don’t let accounting woes get the best of you: Invest in a finance accounting tool today

Even without a team of finance gurus, you can still manage your company's accounting needs with the right finance accounting tool. Moreover, investing in a finance tool can help you understand the complex processes that are part of finance accounting.

This article highlights the five best finance accounting software for SMBs. But if those don’t provide the features you want, check out our Accounting Software Category Leaders to see more tools that real users have rated highly in the market.

Methodology:

The five products with the highest ratings from finance industry reviewers are featured in this article.

To be considered for this article, products had to:

  • Meet the market definition for accounting software: Accounting software enables accounting professionals in any type of organization to manage accounts and perform various accounting and financial operations such as record keeping, financial reporting, billing, and invoicing.

  • Offer the following core features: General ledger, accounts payable, accounts receivable, bank reconciliation, financial reporting.

  • Have at least 20 reviews from finance reviewers in the past two years.

Only reviews from users in the finance industry were evaluated to select the products featured in this article.

Notes: For the pros/cons sections, we performed a sentiment analysis of reviews left for each product in the 24 months previous to the creation of this report. Reviews data may have changed since publication and may not reflect current conditions. Reviewer comments were not edited for conciseness or clarity.

Listed pros and cons are derived from features listed on the product website and product user reviews on Gartner Digital Markets domains (Capterra, GetApp, and Software Advice). They do not represent the views of, nor constitute an endorsement by, GetApp or its affiliates.

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