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Accounting software helps small businesses and self-employed professionals stay on top of their finances with less effort. The right solution lets you easily track income and expenses, manage invoices, and generate reports — saving time, reducing errors, and keeping your books accurate so you can focus on growth.
Our top picks for July 2025
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If you’re looking for easy accounting options, there are many programs available, including bookkeeping software that works seamlessly. These solutions provide everything you need to keep your finances in order, from personal accounting to more advanced features like automated invoicing and real-time financial reporting. By using an accounting program, you’ll have a clear, accurate view of your financial health, empowering you to make better business decisions every day.
How Does Accounting Software Work?
Accounting software automates and organizes your financial tasks so you can manage money flow with less effort. Once you enter data like income, expenses, and invoices, the software processes and categorizes it for you. This gives you a clear view of your finances, helps you run reports, and makes invoicing simple without requiring advanced accounting skills.
Most small business and self-employed accounting tools are easy to use on both desktop and mobile. You can track transactions, send invoices, and generate reports from any device. Many programs connect to your bank accounts to import transactions automatically. This reduces manual entry, keeps records accurate, and helps you stay in control as your business grows.
How Do You Set Up Accounting Software?
Setting up accounting software can vary in time and complexity depending on how long your business has been operating and the features you need. It can take as little as five minutes or several hours to get everything set up after you sign up for an account. Many accounting programs offer free trials or demo accounts, so you can explore the software before committing to a monthly subscription fee. Generally, the more you require from an accounting service, the longer it takes to set up and the higher the monthly cost.
Setting up accounting software is usually fast and flexible. Many programs offer free trials or demo accounts so you can test the features before choosing a plan. The setup time depends on how much you want to customize, but most businesses can get started in under an hour.
Start by creating your account and entering basic details about your business. Next, link your bank and credit card accounts to import recent transactions. This helps you avoid manual data entry and ensures accuracy. If you plan to accept payments, connect a payment processor like PayPal or Stripe.
You can then adjust settings to match your operations. Activate features such as purchase orders, inventory tracking, or project management if you need them. Finally, import customer, vendor, or product lists if available, or build your records as you go. Modern accounting software gives you the flexibility to keep things simple or set up a complete system from day one.
How Much Does Accounting Software Cost?
The cost of accounting software depends on the features, number of users, and level of support your business needs. Entry-level plans typically cover essentials like invoicing, expense tracking, and basic reporting, while higher-tier plans add advanced tools such as inventory management, multi-user access, and payroll.
For example, Intuit QuickBooks, one of the most popular options for small businesses, starts at $35 per month for its basic plan. This entry-level plan is great if you need essential features like online invoicing, expense tracking, and basic reporting. However, if you require more advanced capabilities like inventory management, project tracking, or access for multiple users, QuickBooks offers higher-tier plans that go up to $235 per month.
Most providers offer several pricing tiers so you can choose a plan that fits your budget and scale as your business grows.
The cost of accounting software depends on several factors, including:
- The Features You Need: Basic plans usually cover invoicing, expense tracking, and reports, while more advanced plans offer features like multi-user access, inventory tracking, and payroll.
- Number of Users: If you need access for more than one user, you may have to choose a higher-priced plan.
- Scalability: Larger plans are designed for growing businesses that need advanced features like time tracking, project management, and integration with other business tools.
How to Choose the Right Accounting Software
Choosing the right accounting software starts with knowing your business needs. Identify the features that matter most. For example, a retail business may want point-of-sale integration, a contractor might need mileage tracking and project invoicing, and a wholesaler will benefit from inventory management.
Look for software that is easy to use, with tools like invoicing, expense tracking, tax management, and reporting. If you need more, consider options with payroll, inventory tracking, or multi-user support. Make sure the software integrates with your existing tools, such as payment processors, POS systems, or CRMs.
Consider security, customer support, and scalability. Choose software that protects your data, offers helpful support, and can grow with your business. Finally, compare plans to find one that fits your budget and read reviews to see how others rate the software’s performance and reliability.
Essential Features to Look For
Good accounting software should handle key tasks efficiently and provide room for your business to grow. These are the features worth prioritizing:
Online invoicing
Create, send, and track invoices with ease. A good invoicing tool helps speed up payments, keeps records organized, and supports recurring billing for regular clients.
Expense tracking
Automatically import and categorize transactions by linking your bank accounts. This saves time, reduces manual data entry, and helps you stay on top of spending.
Financial reporting
Get clear profit and loss statements, balance sheets, and cash flow reports. These insights help you monitor performance, plan ahead, and make informed decisions.
Tax management
Simplify tax season with features that calculate taxes, track deductible expenses, and generate reports to help you stay compliant and file accurately.
Integrations
Connect your accounting software with point-of-sale systems, CRMs, e-commerce platforms, and payment processors. Integrations streamline operations and reduce errors.
Multi-user access
Allow team members to work together while controlling who can view or edit financial data. This is essential for collaboration and data security.
Inventory management
Track stock levels, manage purchase orders, and receive low-stock alerts. This is crucial for businesses that sell physical products.
Time tracking and project management
Log billable hours, monitor project costs, and link time entries to invoices. These tools are valuable for service-based businesses and freelancers.
Mobile access
Manage your finances from anywhere using a secure mobile app. This lets you handle tasks like invoicing and expense tracking on the go.
Scalability and customization
Choose software that can grow with your business. Look for plans and features you can upgrade, along with options to tailor the software to your needs.
Recommended Accounting Software For Small Businesses in 2025
There are many accounting software options on the market, and many appear similar at first glance. To make your choice easier, here are the most trusted and top-rated providers that deliver reliable features, flexibility, and strong customer support.
Software Integrations
Integrating your accounting software with payment processors like PayPal, Stripe, or Square simplifies the payment process, making it easier for you to accept credit cards, bank transfers, and other online payments. This integration enables automatic updates in your financial records when payments are received, reducing the need for manual data entry and minimizing errors.
Bank Account and Credit Card Syncing
Linking your bank accounts and credit cards to your accounting program allows transactions to be automatically imported and categorized. This integration is essential for small business owners and the self-employed who want to maintain accurate and up-to-date records without spending hours manually entering each transaction. Most accounting software for small businesses offers this feature, ensuring your expenses and income are always synchronized.
Point-of-Sale (POS) Systems
If you run a retail or restaurant business, connecting your accounting software to your in-store POS system is a must. This integration allows sales data to flow directly into your accounting records, ensuring that sales, returns, and inventory adjustments are automatically recorded. Programs like QuickBooks and Xero offer POS integration capabilities, making them ideal accounting software for small businesses needing seamless sales tracking.
Customer Relationship Management (CRM) Tools
Integrating your accounting software with CRM platforms, such as Salesforce or HubSpot, helps you manage customer relationships and financial data in one place. When these systems are linked, you can sync customer information, invoices, and sales history, giving you a complete view of each client. This integration is particularly beneficial for small businesses that rely on strong customer relationships and want to streamline their billing and follow-up processes.
E-commerce Platforms
For online retailers and e-commerce businesses, accounting software that integrates with platforms like Shopify, WooCommerce, or Amazon is essential. This integration allows you to automatically record sales transactions, track inventory, and manage refunds or returns directly in your accounting program. It ensures that your sales data aligns with your financial records, saving you time and keeping your business finances accurate.
Payroll and HR Systems
Connecting your accounting software with payroll services like Gusto or ADP ensures that your payroll data is automatically synced with your financial records. This integration helps you manage employee payments, taxes, and benefits efficiently. It also reduces errors and saves time by automating payroll entries, making it a valuable feature for small businesses with employees.
Inventory Management Software
If your business deals with products, integrating your accounting program with inventory management tools can greatly enhance your operational efficiency. This integration allows you to track stock levels, manage purchase orders, and automatically update your accounting records when inventory is sold or restocked. Accounting software like QuickBooks offers built-in inventory features, while others may connect with third-party solutions to provide this functionality.
Time Tracking and Project Management Tools
For businesses that rely on billable hours, integrating your accounting software with time-tracking apps like Toggl or Harvest can simplify invoicing and project management. This integration allows you to track time spent on projects and link it directly to invoices, ensuring accurate billing. It’s particularly useful for freelancers, contractors, and service-based businesses using accounting software for self-employed individuals or small businesses.
Tax Compliance and Filing Software
Integrating tax software with your accounting program helps ensure compliance and makes tax preparation much easier. Software like TurboTax can sync with your accounting records, allowing you to import expenses, income, and other financial data directly into your tax return. This saves time and reduces errors when filing taxes, making it a valuable integration for both small businesses and self-employed individuals managing their own taxes.
Cloud Storage Services
Connecting your accounting software with cloud storage platforms like Google Drive or Dropbox allows you to store and organize important financial documents securely. This integration is particularly useful for managing receipts, invoices, and reports, as it provides a centralized location for all your business records. It also makes sharing documents with your accountant or financial team easier.
Our top picks for July 2025
Final Thoughts
Accounting software gives small businesses and the self-employed an easier, more reliable way to manage finances. The right platform saves time, reduces errors, and helps you stay organized, from invoicing and expense tracking to reporting and tax compliance. With flexible features and plans, you can choose a solution that fits your needs today and grows with your business. Explore our top recommendations and find the best accounting software for your business now.
Frequently Asked Questions
Q. What is accounting software, and why do I need it?
A. Accounting software is a tool that helps businesses record, track, and manage financial transactions efficiently. It reduces manual errors, saves time, and provides real-time insights into your financial health.
Q. How much does accounting software cost?
A. Costs vary based on features and providers. Basic plans can start around $15–$20 per month, while more advanced packages with additional features may range from $50 to $200 or more monthly.
Q. Is cloud-based accounting software secure?
A. Yes, reputable cloud-based accounting solutions use encryption, secure data centers, and regular backups to protect your financial data. Always choose providers with strong security protocols.
Q. Can accounting software handle tax preparation?
A. Many accounting programs offer features that assist with tax calculations, track deductible expenses, and generate tax reports, simplifying the tax filing process.
Q. What features should I look for in accounting software?
A. Key features include invoicing, expense tracking, financial reporting, bank reconciliation, and integration capabilities. Advanced options may also include payroll processing and inventory management.
Q. Is accounting software suitable for small businesses or freelancers?
A. Absolutely. Many accounting software options are designed for small businesses and freelancers, offering user-friendly interfaces and scalable features to grow with your business.
Q. Can I integrate accounting software with other tools?
A. Yes, most modern accounting software integrates with tools like payment processors, CRM systems, and e-commerce platforms to streamline your operations.
Q. Do I need accounting knowledge to use the software?
A. Not necessarily. Many solutions are built for non-accountants, with intuitive interfaces and helpful tutorials or support.
Q. How do I choose the right accounting software for my business?
A. Consider your business size, specific needs, budget, and the software’s scalability. Free trials can help you evaluate ease of use and fit.
Q. Can accounting software help with financial decision-making?
A. Yes, it provides real-time reports and insights that support smarter financial planning and business decisions.
