Accounting Software for Small Business

Accounting & Finance
Accounting & Finance

Accounting & Finance-3If you are a starting a new business or you are already a business owner then such a software is essential. New or Small businesses do not usually have a CFO or an accountant/bookkeeper as a staff member and in these cases, a good accounting software can make a huge difference for you in terms of both streamlining processes from an early stage and giving you immediate visibility to financials. By using an accounting system, you will also perform financial tasks that are usually done by an accountant and this will help you to reduce your expenses. Naturally, you can decide to write your ledgers manually or maintain several spreadsheets but this can only last for a limited period.

In one of my previous posts called “Choosing an Accounting Software“, I described the main things that a company should consider when their business requires them to select a new accounting software. Although these guidelines apply to all business types and sizes, there are still few more elements for you to consider if you are a small business.

you naturally need a software with the basic accounting capabilities like GL, Financial Reporting, Accounts receivables and payables, Bank reconciliation and etc.

In terms of functionality, you naturally need a software with the basic accounting capabilities (GL, Financial Reporting, Accounts receivables and payables, Bank reconciliation etc.). You may also want to include processes like tax preparation, quotes creation, payroll processing and mobile access as part of your requirements.

Since most of the Accounting software have this functionality and you want to avoid the heavy and complicated enterprise accounting systems, you should narrow the search by asking the vendors the following questions:

  1. Do you provide a web-based solution (aka SAAS)? This will allow you to minimize your IT costs
  2. Do you have a monthly subscription program? – it is easier to control you expenses
  3. How do I know that I pay only for the features that I use? – the software should have a module-based program
  4. What are the support programs you provide? You will need support, both technical (how to operate the system, password resets etc.) and financial

Businessman accounting

The following table summarizes all these elements and gives our recommendation for the preferred accounting software for small business. In my previous articles the recommended software were categorized either by company size or by sales volume. In this case, I will try to categorize them by industry, where industry-related modules are applicable:

 Functionality Small Business (less than 10 users)
Basic Accounting
Tax Preparations
Payroll processing
Quotes creation
Mobile Access
Web-Based (SAAS)
 Industry Engineering Technology General/Non-specific
 Recommended Software SAP Business One BillQuick QuickBooks
Deltek Ajera SAP Business One BillQuick
FuseBill Xero Xero
Cougar Mountain Intacct
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With over 20 years of experience in SW development and IT Management, Ohad Appelbaum can provide insights to those who are considering purchasing a new software to their company. As an IT executive for more than a decade, in 3 different companies (Internet Services, Hi-Tech and Government), Ohad has managed and supervised the purchasing, development and implementation of dozens of IT and IS systems and projects, in all of the common domains – CRM, ERP, Finance, BI, Manufacturing, Cloud-based system and many more. Ohad has managed large-scale budgets, teams, programs with major vendors and integrator and achieved success and high customer satisfaction in critical IT projects through the years. Ohad holds a bachelor's degree in Computer science and statistics from the Tel-Aviv University and in a bachelor's degree in Business Management and Economics from the University of South Africa (UNISA)