The 5 Best Accounting Software For Small Businesses of 2023

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Accounting software helps small business owners keep track of accounts receivable and payable, clearly understand profits, and prepare for tax season. Small businesses can often use accounting software out-of-the-box without the need for extensive customization. However, as a business grows, accounting requirements can become more complex and it is often necessary to have a dedicated Enterprise Resource Planning (ERP) system.

Which is best for your business will depend on skills, price, and suitability for the industry. After researching and comparing 5 options, here are our top picks for the best accounting software for small businesses.

The 5 Best Accounting Software For Small Businesses of 2023

Online accounting software can help you plan smarter and better understand your uncertain future by organizing and automating your daily financial tasks.

Every year we test & rate the best web-based accounting services. Some are better suited for sole proprietors, freelancers, and businesses with only one or two employees.


Others house slightly larger companies. Below is an overview of the apps with an explanation of the differences.

Along with what to look for when choosing the right software for your business. We’ve also included links to in-depth reviews of each piece of software if you want to learn more.

Below are some explanations about The 5 Best Accounting Software for Small Businesses of 2023, please see the full review below:

1. MarginEdge (Best For Restaurants)

MarginEdge is a cloud-based invoicing system customized for restaurants. The software includes POS (point-of-sale) and accounting integration with 45 of the leading software options on the market today, allowing it to integrate seamlessly with your current software suite.

The software excels at helping streamline daily food costing and keeping restaurant finances on track. Read our in-depth MarginEdge review to find out if this popular restaurant inventory and billing solution is the right choice for your hospitality business.

2. FreshBooks (Best For Ease of Use)

If you run a small business or freelance business, you probably know how to handle multiple clients, payment deadlines, invoices and more that’s always something to keep in mind.

FreshBooks accounting is a software designed for sole traders, freelancers and sole proprietors. The software makes it easy to stay organized, track payments due and expenses incurred, send invoices, and receive payments.


While there many accounting software options, FreshBooks is best suited for small businesses and businesses with one primary owner and operator.

FreshBooks comes packed with features that make it a great accounting and billing software for freelancers, sole proprietors and small business owners.

It lets you easily collect invoices and accept payments via credit and debit cards, automated clearinghouse transfers (ACH), Stripe, and PayPal. The credit card processing fee is 2.9% plus 30 cents per transaction, which is industry standard.

3. Zoho Books (Best For Zoho Users)

Zoho Books cloud-based accounting software with invoicing, inventory and project management systems. It offers a competitive free plan and various features to make the process easier and more efficient.

The Zoho Books is an excellent choice if you are a small or medium business (SME) looking for a bigger, more expensive software alternative.

Zoho Books offers a free plan and five subscription options starting at $15 per month up to $240 per month. Higher-level plans not only allow for more users and billing, but also include advanced features such as purchase approvals, vendor portals, and custom modules.


With Zoho, sure you can send custom invoices and connect to payment gateways so your customers can pay for your products and services online.

You can also link one or more bank accounts to important transactions and automatically categorize them for quick and easy reconciliation.

The dashboard gives you a clear view of your top costs, total accounts receivable and payable, and your revenue. You can also create various business reports such as balance reports, income statements, and cash flow reports.

Plus, there are tax tools to help you set standard tax rates, calculate sales tax, and submit 1099 forms to contractors.

No matter what plan you choose, you can fulfill your bookkeeping needs with the Zoho Books app, available on the Apple Store or Google Play. This app lets you quickly create and send invoices, record expenses, and get business insights.

If you get stuck using the software, you have access to a variety of support resources. You can contact Zoho, send an email, or use the website’s live chat feature.

4. Xero (Best For Advanced Features)

Xero accounting software is highly favored by small businesses. Read our Xero 2023 review to find out if this is the right solution for your business.

Business freelancers, owners, and entrepreneurs often spend a lot of time on administration and bookkeeping.

Xero is an affordable cloud-based accounting software system, ideal for small to medium-sized businesses, streamlining processes with plans starting at $12 per month.


Xero has extensive features that are ideal for handling complex accounting processes for small and medium businesses as well as large corporations.

This software makes it easy to pay bills, accept payments, claim expenses, track projects, store files, manage contracts, and much more.

Here’s the monthly fee for Xero:

  • Early: $12 per month
  • Established: $65 per month
  • Growing: $34 per month

1. The Early

Subscription is designed for solopreneurs and business owners who are just starting out. You can send 20 quotes and invoices per month, reconcile bank transactions, enter five invoices, receipts with Hubdoc dan retrieve invoices, and view short-term cash flow and transaction summaries.

2. The Established

Price level set is the company’s plan for companies that are already operating, especially companies that serve international audiences or markets.

3. The Growing

Plan is best for growing businesses and offers the same features besides the ability to enter unlimited invoices, send unlimited quotes and invoices, and match transactions in bulk.

In addition to the above features, it offers the ability to use multiple currencies, track projects, claim costs and view detailed analytics. All three plans include an optional add-on for Gusto Payroll for $39 per month plus $6 per month per person.

Gusto is a platform that automates payroll for all 50 states in addition to automating taxes, withholding, and filing payroll, and provides a platform for employees to view payslips and W-2s online.

Xero’s invoicing capabilities allow you to create and manage invoices for customers, then accept credit card, debit card, or wire transfer payments on those invoices.

Account holders can customize invoices online to add a logo, set automatic payment reminders for customers, receive payments directly through invoices, and issue invoices directly from the Xero application.

Xero processes payments through payment gateways such as Stripe, GoCardless and others. Note that these services charge a fee for payment processing (usually around 2.9% plus 25 cents per transaction, although this varies by payment processor).

5. NetSuite (Best For Automation)

NetSuite accounting software is all about automation, which can save time (and relieve stress) for businesses. Automation features include things like making journal entries and reconciling bank statements.


This software also provides tools for businesses that require financial compliance such as GAAP, ASC 606, and SOX. Access all insights from a single dashboard.

These considerations include profitability, liabilities, cash position, fixed assets, and taxes metrics. NetSuite pricing is customer specific, so you should speak to a member of the sales team for a quote.

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