The best accounting software is easy to use, offers strong tools for tracking and planning, provides clear reports, works well with other software, and makes it easy to convey information to outside bookkeepers or accountants. Even with these advantages, a recent survey showed that 51% of small businesses with 19 or fewer employees still use spreadsheets or non-digital methods to handle their finances.

The software choices mentioned here can help you handle your business finances more easily and prepare you to switch to more advanced systems as your business expands.

According to our analysis, Vyapar App is the best accounting software for small businesses due to its popularity, large active user base, and wide range of useful tools and resources that can help you easily handle the software and your business finances.

Before selecting our top pick, we investigated 10 different business accounting software options. We compared them based on their price, capability to grow with your business, how easy they are to use, their importance, and the accounting features they offer.

Best Accounting Software for Small Businesses

1. Vyapar App
2. QuickBooks Online
3. FreshBooks
4. Xero
5. Zoho Books
6. Wave
7. GnuCash
8. Bright book
9. Akaunting
10. ZipBooks

Vyapar App

Vyapar App is a complete accounting software developed for small and medium-sized businesses. It helps to handle finances, track expenses, generate invoices, and facilitate inventory management all from a single platform. With its user-friendly interface, Vyapar facilitates accounting tasks, making it easy for business owners to manage their financial records without the need for advanced technical skills. From billing to payment tracking, Vyapar helps businesses stay organized and efficient.

Key Features of the Vyapar App

• Easy invoicing and billing
• GST filing and compliance tracking
• Inventory and stock management
• Business reports and analytics
• Expense tracking
• Multi-device access (mobile and desktop versions)

Pros

• User-friendly interface
• Affordable pricing
• Offline functionality
• Real-time data synchronization

Cons

• Some advanced features are paid
• Requires internet for cloud backup
• Limited customization options

Overall, Vyapar is a perfect choice for businesses looking for a cost-effective accounting software solution. Its capability to manage various financial and inventory management tasks allows businesses to focus more on development and less on manual accounting processes. With Vyapar, managing day-to-day business operations becomes more comfortable and more efficient.

QuickBooks Online

QuickBooks Online is a widely used accounting software developed to facilitate financial management for businesses of all sizes. It offers cloud-based solutions that permit users to track income and expenses, handle invoices, and generate reports. Its intuitive interface helps businesses stay on top of their finances, making accounting tasks quicker and more organized.

Key Features of QuickBooks Online

• Income and expense tracking
• Invoice and payment management
• Financial reporting and analytics
• Payroll integration
• Cloud access from any device

Pros

• User-friendly interface
• Cloud-based accessibility
• Scalable for small and large businesses
• Integrates with multiple third-party apps

Cons

• Higher pricing for advanced plans
• Limited offline functionality
• Can be complex for beginners

FreshBooks

FreshBooks is an intuitive accounting software developed especially for freelancers and small business owners. It presents simple tools for handling invoicing, tracking payments, and generating reports, all through a cloud-based platform. FreshBooks facilitates accounting, helping users stay organized and efficient with the tiniest effort.

Key Features of FreshBooks

• Easy invoicing and payment tracking
• Expense and time tracking
• Financial Reporting
• Project management tools
• Cloud-based access from any device

Pros

• Simple and user-friendly
• Great for freelancers and small businesses
• Cloud access and mobile-friendly
• Responsive customer support

Cons

• Limited features for larger businesses
• Higher pricing for advanced features
• Fewer third-party integrations compared to competitors

Xero

Xero is cloud-based accounting software prepared to meet the requirements of small to medium-sized businesses. It presents a complete set of tools for handling finances, including real-time financial data, invoicing, and payment tracking. Xero’s reflexive interface and powerful features make it a popular choice for businesses looking to facilitate their accounting processes.

Key Features of Xero

• Real-time financial reporting
• Customizable invoicing
• Expense management
• Bank reconciliation
• Multi-currency support

Pros

• User-friendly interface
• Excellent customer support
• Strong integration with third-party apps
• Robust reporting and analytics

Cons

• More expensive than some competitors
• Limited features in the lower-tier plans
• Can be overwhelming for beginners

Zoho Books

Zoho Books is an all-in-one accounting software developed to manage the key parts of financial management for small businesses. It offers end-to-end accounting features, including invoicing, payment tracking, and sales order management. The platform also contains a client portal to facilitate seamless communication with clients. With its user-friendly interface and solid mobile app, Zoho Books delivers a specific solution for handling your accounting requirements.

Key Features of Zoho Books

• End-to-end accounting resources
• Customizable invoicing and sales order management
• Client portal for customer interaction
• Expense tracking and financial reporting
• Mobile app for on-the-go access

Pros

• User-friendly and accessible
• Comprehensive feature set for small businesses
• Solid mobile application
• Free plan available with email support

Cons

• Limited payroll management features
• The free plan includes only email support
• May not be suitable for larger businesses with complex needs

Wave

Wave offers a complete suite of accounting features at no cost, making it an attractive choice for small business owners and freelancers. The platform includes limitless income and payment tracking, the ability to handle multiple businesses from a single account, and unrestricted bank and credit card associations. Despite its powerful features, Wave does have some restrictions, such as the lack of accounts expected tracking and a less comprehensive mobile app.

Key Features of Wave

• Unlimited income and expense tracking
• Multiple business management from one account
• Unlimited bank and credit card connections
• Basic invoicing and receipt scanning

Pros

• Completely free with no hidden costs
• Easy to use and set up
• Scalable for various types of businesses
• No limits on transactions or accounts

Cons

• No accounts payable tracking
• Limited mobile app functionality
• May lack advanced features needed by larger businesses

GnuCash

GnuCash is a complimentary, open-source accounting software available for Linux, Windows, and Mac OS X. It delivers a range of features including double-entry accounting, a checkbook-style register, prepared transactions, and customizable reporting. While its design can be challenging and its interface may appear dated, GnuCash offers a powerful solution for handling finances without cost.

Key Features of GnuCash

• Double-entry accounting
• Checkbook-style register
• Scheduled transactions
• Customizable visual reporting
• Multi-currency support

Pros

• Completely free and open source
• Strong double-entry accounting capabilities
• Versatile reporting options
• No recurring fees

Cons

• Dated interface and challenging setup
• Limited scalability for growing businesses
• No built-in cloud integration or mobile app

Bright book

Brightbook is a web-based accounting software created for separate contractors, freelancers, and small business owners. It provides a powerful set of features for free, including invoicing, cash flow visibility, financial reporting, and financial reports. While it is well-suited for freelancers and small business owners, it lacks mobile support and has a less acquired interface compared to some more established accounting solutions.

Key Features of Brightbook

• Free invoicing and expense tracking
• Cash flow visibility
• Financial reporting and statement drafting
• Accessible through a web browser

Pros

• Completely free with no hidden costs
• A comprehensive suite of features for basic needs
• User-friendly for freelancers and small businesses
• One-time paid features available

Cons

• No mobile app or mobile browser support
• Less sophisticated compared to established alternatives
• Limited scalability for larger businesses

Akaunting

Akaunting is a complimentary, open-source accounting solution prepared for small businesses and freelancers, offering both On-Premises and Cloud versions. The On-Premises performance is free and delivers a wide range of features, including a customer portal for sharing transactions and accepting bulk payments.

Key Features of Akaunting

• Free On-Premises version with extensive features
• Client portal for transaction sharing and bulk payments
• Multi-language support
• Customizable invoicing and expense tracking
• Available in both On-Premises and Cloud versions

Pros

• Free with a wide range of features
• Client portal and bulk payment options
• Large user base and multilingual support
• Open source with extensive customization

Cons

• Requires installation and maintenance on your own server
• Limited support through community forum only
• Less user-friendly and accessible compared to some alternatives

ZipBooks

ZipBooks offers a strong and user-friendly accounting platform created for small businesses and freelancers. It delivers important features for invoicing, payment tracking, and payment processing via credit card or PayPal. ZipBooks also permits businesses to customize and expand their financial abilities as their needs grow. However, the free plan is especially limited, and users might quickly find it required to upgrade to access more advanced features.

Key Features of ZipBooks

• Invoicing and quote management
• Payment acceptance via credit card and PayPal
• Basic financial reporting
• Customization options for expanding functionality
• One bank account linkage in the free plan

Pros

• Easy-to-use interface
• Customizable and scalable
• Supports credit card and PayPal payments
• Reasonably priced premium plans

Cons

• A free plan is very limited in features
• Only one bank account can be linked in the free version
• Basic reporting and functionality in the free plan
• Premium plans needed for advanced features

Conclusion

For those seeking powerful and user-friendly accounting software, Vyapar stands out as the most suitable option. With its extensive features and reflexive interface, Vyapar offers outstanding value and functionality for handling finances effectively.