QuickBooks Online is the best overall accounting software for small businesses of those reviewed. Not only do the majority of small business accounting professionals use QuickBooks Online, but there are also endless online training resources and forums to get support when needed. All accounting features can be conveniently accessed on one main dashboard, making bookkeeping more fluid and efficient.

Pros
Scalable
Commonly used by accounting professionals
Integration with third-party applications
Cloud-based
Mobile app

Cons
Upgrade required for more users
Occasional syncing problems with banks and credit cards

Xero is the best in our review for micro-businesses that are looking for very simple accounting software. This software has a clean interface and also fully integrates with a third-party payroll service. Businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless.

Pros

Cloud-based
Mobile app
Payroll integration with Gusto
Third-party app marketplace
Simple inventory management

Cons
Limited reporting
Fees charged for ACH payments
Limited customer service

The most crucial accounting need for most service-based businesses is invoicing. FreshBooks offers more customizations for invoicing compared to other accounting software. Its primary function is to send, receive, print, and pay invoices, but it can also take care of a business’ basic bookkeeping needs as well. This accounting software makes it easier for service-based businesses to send proposals and invoices, request deposits, collect client retainers, track time on projects, and receive payments.

Pros
Cloud-based
User-friendly interface
Third-party app integration
Affordable
Advanced invoicing features

Cons
No inventory management
No payroll service
Mobile app has limitations