Choosing the right accounting software is critical for effective financial management. Based on our research and testing, we'll provide an overview of the best accounting software options for 2023 in this article. Our evaluation process considered usability, pricing, features, customer support, and user feedback. We've included options for a variety of industries and business sizes so that you can make an informed decision for your startup or growing business.
- Criteria for Selection:
We considered several factors to ensure we are recommending the best accounting software options for 2023. The ease of use was important, so we looked for user-friendly and intuitive software.
The best accounting software should include various features to assist businesses in effectively managing their finances, such as invoicing, payment processing, expense tracking, and reporting. It should also provide excellent customer support, such as a knowledge base, tutorials, and quick responses. The software should be simple to use and offer good value for money.
We were able to select the best accounting software options for 2023 by considering these factors. In the following sections, we'll detail our top picks and explain why they made the cut.
- Top Pick 1: XERO
Xero is a user-friendly cloud-based accounting solution with numerous features and integrations. Invoicing, expense tracking, inventory management, bank reconciliation, and customized reporting are available features.
It integrates with over 800 third-party applications to facilitate the automation of your accounting processes. The dashboard, which provides an overview of your finances, is one of Xero's standout features.
Xero also has a mobile app that allows you to manage your accounting while on the go. For tech startups, e-commerce businesses, and some service providers, Xero is hands down our top pick: less clutter, a great dashboard, and reporting capabilities.
Although numerous integrations exist with preferred SaaS and e-commerce platforms such as Stripe, Amazon, and Shopify, you must seek expert advice to set up the right integrations as your workflows get more complex and your data gets more extensive. Xero is excellent for keeping accurate records, but it needs an expert Xero bookkeeper or accountant to manage it. This solution is best for growth-driven businesses needing finance experts on their teams.
Xero offers excellent customer support, including tutorials organized in a rich library called Xero Central. Xero accountants also receive fantastic support from the Xero team. They have an assigned account manager who is always available to answer any questions, find solutions, and provide customized solutions for complex operations.
Xero also has an API team for custom integrations with platforms that do not already have a pre-set integration with the accounting software. This is a great solution for tech businesses that want to integrate their platforms for better data synchronization.
Overall, if you are a data complex and/or tech business, Xero software with a Xero accountant is the way to go!
- Top Pick 2: QuickBooks
QuickBooks Online (QBO) is, for a good reason, one of the most popular accounting software options on the market today. This software is highly user-friendly and provides many features that make it simple to manage your finances. In addition to invoicing, expense tracking, and reporting, QuickBooks includes payment processing and bill pay features. QuickBooks Online accepts both online and in-person payments for payment processing. This is not a feature offered by Xero at this time.
Although having a one-stop-shop solution is perfect for some businesses, using all of the Quickbooks features for your financial operations might not be better if you are a tech start-up. We recommend customizing your processes based on your workflows and your business model. For example, Stripe might be better for your platform’s payment processing than QBO payments.
Your QBO can easily integrate with other platforms as you build your accounting and finance functions. However, as mentioned above, you must be careful with your integrations and seek an accountant’s expertise for a streamlined workflow. Integrations are great, but they can become a real mess if not set up correctly. This is especially true for tech start-ups and e-commerce businesses.
It is also worth looking into fees as we believe Quickbooks fees can become more expensive than other options.
Overall, QuickBooks is an excellent choice for small and medium-sized businesses that can use a one-stop-shop option - this depends on your business model - but we would put it as a second choice for tech startups such as SaaS or PaaS.
If QBO is your best fit, as your business grows, you will need a bookkeeper or accountant to maintain accurate records as things quickly become overwhelming and cluttered. A financial expert can also promptly advise you on your financial processes and how to set up your QBO.
- Top Pick 3: Sage
Sage is an accounting software company providing desktop and cloud-based solutions. It
includes invoicing, inventory management, and cash flow forecasting features. It's an excellent choice for medium-sized businesses with multiple accounting departments. It has features like multi-currency support and job costing. Sage also provides a variety of add-ons and integrations to help you tailor the software to your specific requirements.
Pros:
- A comprehensive range of features, including multi-currency support and job costing
- Add-ons and integrations for customization
- Both desktop and cloud-based solutions
- Strong customer support and resources
Cons:
- Can be complex and overwhelming for small businesses and start-ups.
- Limited mobile app functionality
- No time tracking feature
Sage is more dominant in Europe, and we could recommend it for our UK businesses, for instance. However, it is less present in the US, which is one of the reasons why it would not make the top choice for our US founders.
- Other Potential Contenders
Aside from our top picks, there are several other accounting software options. Here are a few more contenders to consider:
- Freshbooks:
FreshBooks is accounting software that is cloud-based and designed for small businesses and freelancers. It's simple to use and has various features that make it simple to manage your finances. FreshBooks' key features include the following:
- Invoicing: FreshBooks makes creating and sending invoices to your clients simple. You can personalize your invoices with your company logo and select from various templates to match your branding.
- Time tracking: FreshBooks allows you to track your time and bill your clients accordingly. You can also set up timers and import data from other apps.
- Expense tracking: FreshBooks makes it simple to track your expenses, including bills, receipts, and other expenses. You can also connect your bank and credit card accounts to the software to import your transactions automatically.
- Reporting: FreshBooks offers reporting options such as profit and loss statements, balance sheets, and cash flow statements.
FreshBooks also offers a variety of financial KPIs that you can use to assess your company's performance. For example, one of the most basic indicators of a company's success is its sales growth rate. You can get a clear picture of your business's performance and identify areas for
improvement by tracking your sales growth rate in FreshBooks.
Overall, FreshBooks is an excellent option for sole proprietors and freelancers looking for a simple accounting software solution to manage independently. However, if you are a start-up or a growing business, you will likely quickly outgrow Freshbooks, so it would not be our top choice for founders like you.
- ZOHO Books:
Another cloud-based accounting software for small and medium-sized businesses is Zoho Books. It has several features that simplify managing your finances and integrate with several other Zoho apps, including CRM, project management, and inventory management.
Zoho Books' key features include:
- Invoicing: Zoho Books allows you to create and send invoices to your customers. You can personalize your invoices with your company logo and select from various templates to match your branding. You can set up automatic payment reminders to ensure that you are paid on time.
- Expense tracking: Zoho Books makes it simple to keep track of your expenses, such as bills, receipts, and other outlays. You can also connect your bank and credit card accounts to the software to import your transactions automatically.
- Time tracking: With Zoho Books, you can keep track of your time and bill clients accordingly. You can also set up timers and import data from other apps.
- Reporting: Zoho Books offers several types of reporting, including profit and loss statements, balance sheets, and cash flow statements.
- Inventory management: Zoho Books integrates with Zoho Inventory, allowing you to manage and track your inventory. Purchase and sales orders can also be generated directly from Zoho Books.
The knowledge base, tutorials, and customer service provided by Zoho Books supplement its features. You can also tailor the software to your specific needs.
Zoho Books is a good option for small and medium-sized businesses looking for an all-in-one solution, including accounting, project management, inventory tracking, and CRM. However, Zoho is best known for its CRM abilities and might be quickly outgrown by a growing business.
- AccountEdge Pro:
AccountEdge Pro is a desktop accounting program for small businesses. It includes functions like payroll management, job costing, and inventory tracking. It's simple to use and includes customizable templates for creating invoices, purchase orders, and other documents. AccountEdge Pro also includes a mobile app for creating invoices, managing contacts, and viewing financial data from your phone or tablet.
Pros:
- User-friendly interface and customizable templates
- Robust inventory tracking and job costing feature
- Strong customer support and resources
Cons:
- Desktop-based software may be less convenient for some users
- No cloud-based option for remote access
- Limited third-party integrations compared to other options
This might be a good option for brick-and-mortar businesses, but we do not recommend this solution for tech-forward teams and high growth businesses.
Conclusion:
Finally, selecting the best accounting software for your company is a critical decision that should not be taken lightly. With so many options available, it's important to consider your specific needs and budget before making the best decision for your company.
Xero, QBO, and Sage are among the best accounting software options for high-growth businesses. Each has distinct features and benefits, making it appropriate for various business models.
When weighing your options, consider the selection criteria, such as dashboard and cloud features. Also, before committing to a subscription, take advantage of any free trials or demos software providers offer to get a feel for their platforms. Your finance expert can also get you good discounts on your subscription.
If you do not have a bookkeeper or accountant to help you manage your records in the accounting software that fits your needs, connect with us here for a chat.
