Best 10 Accounting Software Solutions in 2021

Regardless of whether you already have a well-established company or you are only starting a new business, getting top accounting software is crucially important. How else will you decide whether you are on the right path? Using accounting tools, you can create invoices, handle payroll data, run valuable reports, and establish budgets for your projects.

Middle and well-established big businesses will also benefit from automating and optimizing their accounting workflow. Instead of dealing with the daily routine of comparing and adjusting hundreds of Excel sheets, accountants can focus on the big picture and leave the minutia to the software.

How to choose top accounting software systems?

However, the abundance of the accounting tools that are currently on the market can be overwhelming. How can you know which software would fulfill your business needs the best?

Identify your immediate needs

Make a list of the most important accounting activities you need to automate and handle. You might require a tool to track your inventory or receipts. Some companies prioritize advanced reporting features over other functions. Break down your needs and prioritize them in accordance with your business goals.

Set a budget for accounting software and stick to it

Usually, going over the budget means getting an overly complicated tool with a number of features you don’t even need. Keep this in mind and don’t spend more money than you can afford.

Do your due diligence

Contact the customer support and ask the right questions about software’s security, availability of technical and customer support, possible unexpected costs, the privacy of sensitive data, especially during backups, and so on.

Consider your future needs

Although it might not be your immediate requirement, however, in case your company gets more traction in the future, you will need your accounting software to grow with you. Inquire about their upscaling capabilities and how quickly they can adjust.

Top 10 accounting software solutions in 2021

Here is my list of top accounting software systems for the year 2021:

• Xero for those who are always on the run
• Coupler.io for those who handle big amounts of data
• QuickBooks for those who are in a rush
• Sage for those who value customer experience
• Kashoo for those who only start out
• Zoho Books for those who treasure automation
• KashFlow for those in the UK :)
• Wave for those who are cost-conscious
• Plooto for those who want to accelerate the accounts payable process
• FreshBooks for those who need the best invoicing tool

Now let’s take a closer look at these solutions, their benefits and features, and establish which tool would fit your objectives the best.

Xero Accounting Software

Xero is the best accounting software choice for people who value mobility and accessibility. You can create and send invoices, track inventory, and assemble financial reports all from your phone or tablet. Xero is designed specifically for small businesses and does not require a degree in finances to learn its features.

Pros and cons

Pros:

• Unlimited users starting with the basic plan
• Inventory tracking with every plan
• Simple and fast integration with more than 800 third-party applications

Cons:

• Basic plan does not offer reconciliation of invoices, bills, and bank transaction
• Advanced features like multi-currency support, project management come with the most expensive plan

Features

Xero offers invoices, bills, and bank reconciliation with more expensive plans as well as advanced financial reporting tools. You can set up your accounts to automatically create and send out custom invoices to your customers which you can track right in the program together with suppliers. The various integrated dashboards will help you track the most important metrics and make data-driven business decisions. The mobile version of the Xero app, for both iOS and Android, gives you access to your data any time and from anywhere. Finally, in case of an issue, technical support is always available via email.

Pricing Plan

• Starter Plan will cost you only $9,00 per month;
• Standard Plan goes for $30,00 each month;
• Premium 10 Plan is $70,00 monthly.

There is also a free trial version of Xero.

Bottom Line

Xero accounting software is the ultimate tool for every small business owner. It provides a clear overview of your finances by displaying your balances on convenient dashboards. You can quickly and effortlessly create custom invoices and even automate the process altogether. Since Xero does not limit the number of users even at the Starter plan, you can add colleagues, stakeholders, and other consultants to track your finances. On top of that, Xero allows you to link your bank account to the app and monitor the paid and unpaid purchases right away. Finally, you can install it on your smartphone or tablet and access the application from anywhere.

Coupler.io: Xero and QuickBooks Data Importer

Coupler.io is a solution that allows you to import data from Xero, QuickBooks, Airtable, HubSpot, Jira, and many others to Google Sheets. This tool lets you collect information from multiple sources and consolidate it into one shareable document.

Pros and cons

Pros:

• Integration with many third-party apps and big companies like Xero, QuickBooks, Jira, HubSpot, and others
• Automatic data refresh
• No coding required
• JSON Client importer to set up custom integrations using the REST API of third-party apps
• Append or replace modes for importing data

Cons:

• Google Sheets is the only destination

Features

Coupler.io makes it easier to handle large amounts of data by importing and consolidating it into one document. Another perk is the ability to set automatic updates which will allow you to constantly receive the latest information. With your data in Google Sheets, you can manipulate it in many ways by building charts, diagrams, graphs, and dashboards. Finally, Coupler.io makes sure you do not create abundant data by offering to replace or append each time when you pull the data.

Pricing

• Free Plan is free of charge and gives you 50,000 rows
• Professional Plan costs $24.00 and provides 500,000 rows
• Squad Plan goes for $49.00 and offers 5,000,000 rows
• Business plan will cost you $99.00 and includes 25,000,000 rows

Bottom line

Coupler.io is an ideal solution for small and medium-sized businesses and entrepreneurs. Even without knowing a thing about coding, you will be able to import data, automate the updates, and navigate the system. Collecting, separating, and analyzing big chunks of data is immensely difficult, and Coupler.io will take up these duties. You can simplify the data by building charts and diagrams and providing visual representation.

QuickBooks Accounting Software for Small Businesses

QuickBooks is the top accounting software mostly known for its user-friendliness and short learning curve. Being Intuit’s accounting solution, it has proven to be reliable and resilient. The program offers must-have features like invoicing, billing, and even sales tax tracking in its basic plan.

Pros and cons

Pros:

• Easy-to-use financial reporting feature
• Extensive tracking options
• The highest ratings among similar accounting programs

Cons:

• Higher pricing in comparison with similar tools on the market
• Limited inventory tracking and payroll features
• Unsatisfactory customer service

Features

No wonder that QuickBooks is commonly known as the best invoicing tool. It offers extensive invoice and bill management, the creation of custom invoices, and sales and expense management. Reporting features are also very impressive as they entail options like profit and loss reporting together with balance sheet reporting, and other advanced tools like dashboards and feeds. You can automate tax calculations and synchronize your bank data. Finally, QuickBooks allows you to be mobile and work right from your smartphone or tablet.

Pricing

• Simple Start Plan will cost you $12.50 per month
• Essentials Plan is $20 each month
• Plus Plan will charge you $35 per month
• Advanced Plan costs $75 monthly

QuickBooks also provides a free trial version.

Bottom Line

QuickBooks offers automation of many redundant processes like data collection which facilitates faster data updates and leaves you more time for other important business agenda. Additionally, QuickBooks has been very successful at data protection by ensuring a number of security options to keep your data safe. Even the most affordable plan provides regular system updates and guarantees the latest, safest, and most advanced version of the software. Lastly, this program allows you to handle business on the go by offering a well-functioning mobile version.

Sage Business Cloud Accounting

Being mostly known for its excellent customer experience, the Sage team offers 24/7 customer support via email and phone. Although its features are far less impressive next to the above-mentioned tools, it comes with an enticing price tag.

Pros and cons

Pros:

• In-depth reporting features, including inventory reporting
• High customizability of many features
• Excellent customer service

Cons:

• Difficult and cumbersome setup process and learning curve
• Not a great fit for small businesses
• Confusing pricing models

Features

As already mentioned, Sage offers extensive and in-depth reporting tools together with dashboards that illustrate the most significant metrics. You can also drill into the details of any chart and get more specific information about the numbers and processes behind reports. Sage allows you to automatize the invoicing and customize user information to fit business needs.

The Sage team is ready to support you at every step by providing customer support and various documentation and webinars on how to set up and use their software. It also has a built-in organizing feature that acts as a do-to list and sends you reminders. Finally, the program also has a mobile version that allows you to run your business from merely anywhere.

Pricing

• Business Cloud Accounting Starter Plan: $10.00 per month
• Business Cloud Accounting Advanced Plan: $25.00 per month

Sage offers a free trial for the advanced plan and many other tools and add-ons like payroll or business management program.

Bottom line

Sage also acts as a tax management tool and calculates taxes based on received data which makes it a high-quality accounting tool. Besides, you can perform cash flow analysis and make smarter business decisions. You can create custom invoices and use the integrated templates. Although this top accounting software does not track inventory, you can manually enter the necessary data and create in-depth reports even from the mobile version. You can also take advantage of the Sage team’s documentation and tutorials that help you get through the online accounting world.

Kashoo: The World’s Simplest Accounting Software

Kashoo owes its popularity to quick and easy setup and a short and clear learning curve. Due to its ability to predict your success based on the entered and received data, it has become the favorite accounting tool for many companies.

Pros and cons

Pros:

• Permission-based sharing features
• Advanced data protection options to secure your sensitive data
• Real-time reports

Cons:

• Only applicable for small businesses and startups
• Mobile version lacks important features that come with the web-based tool
• Lack of inventory tracking

Features

Similar to other best accounting software solutions, Kashoo offers expense tracking and allows you to create and send custom invoices. The tool entails progressive tools like tax and payroll management as well as reposting features. Integrated dashboards allow you to monitor and assess the most important metrics and make predictions about the future of your company. Being a great choice for entrepreneurs and small businesses, it provides a simple and intuitive interface and navigation.

Pricing

• Kashoo goes for $16.65 per month and does not offer multiple plans
• Kashoo provides a free trial period

Bottom line

What makes Kashoo truly stand out from its competitors is the simplicity of the program. The software also offers a multitude of ready-made invoice templates that you can use without hesitation. Real-time updates ensure that the most recent and relevant data is displayed on the dashboards which helps you to make informed decisions about your operations. You can also link your bank account to the software and access the information about bank statements, expenses, and income at any time.

Zoho Books Online Accounting Software

Zoho Books is the online accounting software, which best perk is automation of boring and routine processes. Especially in a small business, process automation becomes increasingly important since one person usually takes up a number of tasks. Letting a couple of daily tasks go and delegating it to a tool will save you time and let you concentrate on other relevant business operations.

Pros and cons

Pros:

• Ability to automate workflows
• Facilitates customer collaboration by creating user portals
• Very affordable starting price

Cons:

• Payroll features only work in California, Texas, and India
• Lack of integration options with third-party applications
• Long and cumbersome learning curve

Features

Zoho Books offers a variety of managerial features to optimize your workflow: contact management, inventory management, and tax management. You can plan your entire project into the system and set deadlines using the project time tracking tool. Zoho Books also allows you to create and send out invoices, track expenses, and assemble exhaustive reports. Finally, it offers a cloud-based option for your tablet or smartphone.

Pricing

• The basic Plan costs only $9.00 per month
• Standard Plan goes for $19.00 every month
• Professional Plan is $29.00 monthly

Bottom line

Zoho Books is known for its prominent automation features, including automatic bank feeds. Using this feature, you no longer have to manually enter your banking information because the tools will do it automatically. Automated payment reminders for your clients will gently let them know that the payment deadline is approaching. Zoho also serves as a project management tool where you can create timelines, assign certain people to tasks, and track the processes.

KashFlow Accounting Software, Bookkeeping & Payroll

KashFlow is an excellent accounting tool that contains a lot of helpful features…however, it seem to be a little UK-centric solution. It is an award-winning software for small businesses that values a short learning curve and simple navigation. Being built for non-professionals, it offers an array of automated features that make accounting simpler.

Pros and cons

Pros:

• VAT support
• Unlimited number of users

Cons:

• Poor support outside UK
• Tutorials at a cost

Features

In the UK, KashFlow is the number one best accounting software. You can create quotes, invoices and take advantage of the expense tracking features. The program integrates with business-relevant third-party tools like PayPal and Dropbox. KashFlow ensures a high level of account security as well as 24/7 online customer support. Finally, you can access business finance dashboards that display the most relevant information from any device.

Pricing

• Starter Plan comes with $9.00 per month
• Business Plan costs $18.00 each month
• Business & Payroll Plan is $25.00 monthly

Bottom line

KashFlow is aiming for automation of many processes and the creation of a clear overview of the company’s operations. It does so by offering customizable dashboards and invoices as well as an advanced contact management tool. KashFlow contains helpful features like inventory tracking, project management, and various reports including generated suggestions of how to improve your business. Unfortunately, some of the most progressive features like payroll and VAT are only available for users from the UK.

Wave Financial Software for Small Businesses

The best quality of the Wave accounting tool is its affordability — its starting subscription comes absolutely for free. Wave is the perfect tool for startups as it offers every essential accounting feature for free without pressuring you with more expensive plans with features you don’t need.

Pros and cons

Pros:

• Accounting, invoicing, and receipt-scanning is free of charge
• Payroll add-on is affordable

Cons:

• Lack of inventory tracking feature
• Only a few third-party app integrations

Features

Free subscription includes only features like accounting, invoicing, record keeping, and receipt tracking. You can add the payroll function for a fee and integrate it with third-party applications.

Pricing

Wave’s only package is $0.00 whereas Payroll costs an extra $20.00 per month.

Bottom line

Wave is a suitable tool for small startups under 10 employees. It has every important accounting feature you will need for your small business. On the other hand, if you are planning to expand your business in the foreseeable future, Wave might not be your best option. Since it offers only one package, it leaves you no opportunity to scale up in case of business growth.

Plooto Automated Accounts Payable and Receivable Software

Unlike other tools in our list, Plooto is an online payment management system that facilitates easier and smoother payment processes. Your clients don’t even have to have an account on Plooto — they will be able to pay your invoice without signing up for the tool.

Pros and cons

Pros:

• Automation of accounts receivable and payable
• Easy and transparent process of setup

Cons:

• Xero and QuickBooks are the only third-party integrations supported
• No phone customer support

Features

Plooto can be integrated with the accounting software of your choice — Xero or QuickBooks — and automatically imports your invoices to the system. It sends notifications to your clients and reminds them to pay their bills. Plooto also provides your clients with a complete guide on how to make a payment using its services. The program makes it graphic by showing you the status of payments, offering a contact management tool, and account reconciliation. Using Plooto, you can also assign the people responsible for payment approvals.

Pricing

Plooto goes for $25.00 per month and offers a free trial period.

Bottom line

The best feature of Plooto is its ability to deeply integrate with Xero and QuickBooks for data import. When you request a payment from clients using Plooto, they get a number of payment options together with detailed instructions on how to make the payment. Plooto makes the payment process easy for both sides — the only thing you need from your client is their email address. The system then requests banking details from the client via the given email address and proceeds with the payment.

FreshBooks: Invoice and Accounting Software for Small Businesses

FreshBooks is an ultimate option for small businesses with a large number of clients. Creating multiple invoices can get tiring and overwhelming, and FreshBooks will take care of the invoicing process. Since it does not provide great collaboration features as Xero does, FreshBooks is a program that will satisfy the needs of entrepreneurs and freelancers.

Pros and cons

Pros:

• Every plan comes with expense and time tracking
• Customizability of invoices and estimates

Cons:

• The cheapest plan only allows five clients
• Lack of inventory tracking

Features

FreshBooks offers customization of invoices and estimates as well as an expense management tool that helps you monitor your expenses. Your clients can make online payments, pay with deposits and even credit cards. FreshBooks easily integrates with third-party services like PayPal, Basecamp, WordPress, and many others. You can keep track of your taxes and even check when the customer has seen the invoice.

Pricing

• Lite Plan costs $4.50 per month
• Plus Plan is $7.50 monthly
• Premium Plan goes for $15.00 every month

Bottom line

FreshBooks always keeps innovation in mind and releases new versions of their software. They focus on building intuitive interfaces, enabling collaboration for small businesses within their system, and task automation. FreshBooks also provides customizable dashboards with the most relevant metrics and late payment tracking features.

What is the best accounting software?

In the era of automation and AI-driven technologies, two-thirds of accountants are turning to accounting software to make their work more efficient. Over half of the respondents of the survey conducted by Sage — a multinational enterprise software organization, stated that the company’s revenue increased after the implementation of accounting software whereas 67% of accountants share that they actually prefer working with cloud technology as opposed to traditional solutions.

The multitude of accounting tools on the market will make anyone feel overwhelmed. Hopefully, our little guide will help you identify the strengths and weaknesses of each program and make the right choice for your business.