One of the most noteworthy challenges of running a small business is to manage its financial aspect effectively. New startups often struggle to find cheap bookkeeping software for small business so that their bookkeeping tasks can be accomplished efficiently.
Although the main part of this article explores the best Cheap bookkeeping software for small business options. But before diving into specific options, it makes sense to first understand why such affordable options are crucial for small businesses.
Cost Management
When it comes to budgets on which small businesses need to operate, it’s usually low. Well, the cheap bookkeeping software for small business is a big savior in such situations. It helps save a lot in terms of costs without needing you to compromise on important features.
Time Efficiency
Manual entry of accounting data consumes a significant part of precious time that can otherwise be utilized for the accomplishment of other important tasks or operations. Automated bookkeeping software, on the other hand, reduces the need for manual entry of data, thus saving a big chunk of time. It also minimizes errors.
Compliance
Being compliant with the tax rules is mandatory for every business owner, which requires them to maintain proper financial records of their business. Good bookkeeping solution helps them meet all such regulatory requirements and financial reporting so that they can stay compliant.
Scalability
With the growth of every small business, financial management gets more complicated. It’s very easy to scale the business with a cheap automated software solution by purchasing its upgraded plan with more advanced features at affordable prices.
Top 4 Affordable Bookkeeping Software Options for 2024
Wave accounting is an affordable bookkeeping solution that very well caters to the needs of freelancers and small businesses.
It offers features like invoicing, customizable invoicing, Income and expense tracking, bank reconciliation, receipt scanning through a mobile application, etc.
Its free plan is also available if you are too tight on budget and paid plan starts at $16 per month.
Another software that deserves a spot in this article on “Cheap Bookkeeping Software for Small Business” is ZipBooks which offers a free plan as well as paid options with advanced features.
It covers almost all the necessary needs of bookkeeping. Paid plan of ZipBooks starts at $15 per month.
Another cheap software option tailored for the needs of small proprietors or freelancers is QuickBooks which offers features like expense tracking, invoicing, Quarterly tax estimation, Mileage tracking, Integration with TurboTax, etc. And, as far as the pricing is concerned, it starts at $18 per month.
The user-friendly interface and good customer service are what FreshBooks is popular for.
If you own a service-based business and need a robust invoicing tool for it, FreshBooks is going to be the ideal choice. It also offers project management features.
Its crucial features include invoicing and payments, time tracking, expense tracking, financial reporting, project management, etc. And, the plans start at $19/month.
Choosing the Right Software for Your Business
Selection of the right cheap bookkeeping software for a small business depends on various factors that are specific to your business. These factors are as follows:
Business Needs
Features offered by various software packages vary. Therefore, you should first do a thorough analysis while keeping in mind the unique requirements of your company.
Once you are very well aware of your specific requirements related to bookkeeping, you can easily choose the software option that provides all the features needed to align with those requirements.
Budget
Budget is also one of the most crucial factors to be considered by small businesses as they are usually on a tight budget.
Determine the exact budgeting you can allocate to the purchasing of bookkeeping software. Free options are also provided by some companies if you are not ready to invest anything in the beginning.
However, a paid plan might save your time and enhance productivity by providing advanced features, so it’s also worth investing in.
Ease of Use
A user-friendly interface of software requires you to have minimal training to get started with its use.
So choose one with an intuitive user interface. Good customer support is also an extra advantage that you shouldn’t miss out on considering.
Scalability
Scalability is another vital factor that you shouldn’t ignore if you seriously intend to grow your business over time. Make sure you choose a software solution that can also grow as your business grows.
It should also have advanced features. Or there should be an option to upgrade to a better plan with more advanced features needed when the business gets expanded.
Integration
The most suitable software option for your small business will be the one that also integrates seamlessly with other platforms and tools that your business is using.
These tools may include CRM systems, tax software, payment processors, etc. Hence, you should consider this factor also to ensure that you end up choosing the right option.
Final Words - Cheap Bookkeeping Software for Small Business
The success of a small business is significantly affected by how bookkeeping is managed by them. Hence, choosing the right software that can cater to the specific needs of the business and also falls within the budget constraint of the business is an important responsibility of the business owner.
The above article on “Cheap Bookkeeping Software for Small Business” will work as a crucial guide in making an informed decision.
Frequently Asked Questions
Yes, there are several free bookkeeping software options available. Among the well-known ones are-
- Wave: Which provides free accounting software with functions like bookkeeping, scanning receipts, and invoicing.
- GnuCash: An open-source accounting software suitable for personal and small business use.
- ZipBooks: Provides free invoicing, accounting, and reporting tools.
- Sunrise by Lendio: With features like spending tracking and invoicing, free bookkeeping software is available.
The owner’s particular requirements and tastes are often what determine which small business accounting software is the easiest to use. However, some widely recognized user-friendly options include:
- Wave: Known for its simplicity and ease of use, especially for small businesses and freelancers.
- QuickBooks Online Simple Start: Offers small businesses a basic interface and necessary capabilities.
- FreshBooks: Easy to use and built for small businesses, especially those that provide services.
- Zoho Books: Intuitive and easy to navigate with essential accounting features.
There is a basic, free plan available on Zoho Books. Businesses with less than $50,000 in annual revenue can benefit from the free plan. It has all the necessary functions, including basic reporting, spending monitoring, and invoicing. Paid plans are offered for features that are more advanced.
Yes, you can do bookkeeping without QuickBooks. There are many alternatives to QuickBooks, both free and paid. Some options include:
- Wave: Free and user-friendly.
- Xero: A popular alternative with various features and plans.
- FreshBooks: Great for service-based businesses.
- Zoho Books: Offers a range of features suitable for small businesses.
- GnuCash: Free and open-source.
QuickBooks is not free, but they do offer a 30-day free trial for their online version, which allows you to test the software before committing to a subscription. To accommodate varied business demands, QuickBooks offers a range of programs with varying features and price tiers.
