5 Best Online Bookkeeping Softwares in 2024
Octa Accountants
7 Min Read
Mar 5, 2024
Bookkeeping Tips
Looking for the best online bookkeeping software for your business? Here’s our list of top bookkeeping softwares that you may want to have a look at before choosing one.
But first let us explain why do you need a bookkeeping software? Switching to online bookkeeping has a lot of advantages and with more and more businesses going digital there has been a shift towards online bookkeeping softwares which are not only much more efficient and accurate but also way less time consuming for small businesses and start ups that already have millions of things to take care of. Managing finances can become overwhelming which is why online bookkeeping provides real time financial information with unmatched ease of access. With long term savings online bookkeeping is a flexible option. With improved compliance and enhanced security through integrated tools and applications it can provide data driven insights into the finances of your company in no time.
1) Xero
Best for Integrated Add-Ons and SMEs
Contrary to its name Xero is indeed a leader in bookkeeping software. If you are a new budding business then Xero will lure you right in with its user friendly interface. It is one of the best cloud based accounting software for small to medium sized businesses. Without a hassle Xero will simplify all your bookkeeping tasks with only a few clicks. With over 3.95 billion subscribers Xero has also partnered up with Forbes Advisor.
Features:
- User-friendly Dashboard
- Quick Invoicing
- Bank Reconciliation
- Expense Tracking
- Payroll Management
- Inventory Management
- Generation of Financial Reports
- Multi-currency Support
- Integration with third-part apps
Pricing:
Xero provides different price plans to choose from based on your budget and business requirement. They usually range from $15 to $ 78 per month. They also offer a free 30 day trial. The trial lets you access all features of Xero for 30 days free of cost so you can decide which plan suits you best. Visit Xero’s pricing to know more!
Pros:
- User Friendly
- Easily accessible via Mobile App
- Provides accurate real-time data
- Automation features
- Scalable solution
- Exceptional support
Cons:
- Complex to use for beginners
- Payroll feature limitations
- Performance issues on older hardware
2) QuickBooks Online
Best for Businesses of All Sizes
QuickBooks, developed by Intuit, is one of the leading online bookkeeping & accounting software choices for small to medium-sized businesses. It comes in various versions tailored to different business needs, including QuickBooks Online, QuickBooks Desktop (Pro, Premier, and Enterprise), and QuickBooks Self-Employed. Their services stand out because it’s easily customizable, comes in multiple versions with hundreds of add-on apps, and offers better mobile access than most rivals.
Features:
- Invoicing Features
- Expense Tracking
- Tax Preparation
- Payroll Management
- Inventory Management
- Time Tracking
Pricing:
QuickBooks offers a free trial for 30 days with an option to buy now for 50% for three months. It has four different plans Simple Start, Essentials, Plus and advanced ranging between $15 to $100 a month. You can also upgrade between QuickBooks Simple Start, Essentials, Plus or Advanced.
Pros:
- Accounting experts frequently use this software
- Several Third-party integrations
- Scalable and cloud-based
- It distinguishes between corporate and personal spending
- Outstanding experience for users
- Dashboard with two screens
- Exceptional mobile application
Cons:
- Can be complicated for beginners
- For additional customers, a software update is necessary
- Data can't be simply transferred to different accounting software.
3) Zoho Books Online
Freemium Bookkeeping Solution
Zoho Books is one of the most comprehensive online bookkeeping software on the market meeting all your basic needs: send invoices, reconcile accounts, track expenses and generate reports. Zoho Books is a strong contender in the accounting software market, particularly for SMEs looking for a comprehensive, user-friendly, and cost-effective solution. If you have less than $50,000 per year in revenue, you can sign up for the Zoho Books Free plan. It gives one user access, enabling them to manage clients and invoices, create recurring invoices, import bank and credit card statements, and track expenses and mileage.
Features:
- Invoicing Features
- Expense Tracking
- Bank Reconciliation
- Tax Compliance
- Inventory Management
- Project Time Tracking
- Comprehensive Reporting
Pricing:
Its Standard plan comes with even more support options, custom fields, reporting tags and bulk updates for $15 per organization per month, billed annually. Its Professional plan costs $40 per organization per month (billed annually), and includes bills, vendor credits, purchase approval, stock tracking and price lists. The Premium plan is $60 per organization per month (billed annually) and comes with a custom domain, vendor portal, budgeting and validation rules.
Its Elite plan is $120 per organization per month, and includes forecasting and multi-currency handling. For $240 per organization per month, its Ultimate plan includes advanced analytics and 25 custom modules.
For more information, visit Zoho Books’ pricing.
Pros:
- Each component has depth and versatility
- Various types of sales and cost forms
- SurePayroll integration
- Exceptional mobile applications
- Free Forever Plan (Under $50K revenue)
Cons:
- Some small businesses could find it too complicated
- Projects must be linked to time tracking.
- There are no inventory assemblies
- Third-party integrations are scarce
4) Sage 50 Cloud Accounting
Best for Larger Businesses
With an easy to use, secure and customizable cloud bookkeeping system Sage 50 is there to assist you whether you are a freelancer or a medium sized business. It’s the most comprehensive accounting program. 40+ years of being in business and with over 40,000+ partners sage has three categories for medium and small sized businesses which include sage business cloud for accounting finance and payroll, construction and real estate, and business management. These are further categorized into industries and business needs.
Features:
- Invoicing Features
- Payroll Management
- Bank Reconciliation
- Tax Compliance
- Inventory Management
- Both desktop & cloud-based bookkeeping options
- Comprehensive Reporting & Analytics
Pricing:
Sage offers a variety of accounting and bookkeeping products, each with its own pricing structure, which can vary by region and specific business needs. Sage 50 offers three packages: Pro Accounting for $58 per month, Premium Accounting for $96 per month, Quantum Accounting for $160 per month. Sage is the pioneer in giving finance leaders the insight to take action.
Pros:
- A very advanced feature set
- Bank reconciliation is automatically done
- Multiple currencies are supported
- Extensive documentation and transactions
- Techniques for enhanced inventory management
- Outstanding assistance
- Integration with Microsoft 365
Cons:
- Payroll is excluded
- Works for Windows only
- Resource-heavy
- Expensive compared to alternatives
5) FreshBooks
Best for Sole Proprietors & Service-Based Businesses
Introducing the most easy to use accounting and bookkeeping system, FreshBooks is the ultimate accounting and invoicing tool. The software is designed for small business owners who don’t have an accounting background. Besides its primary plans, it also offers a custom plan with custom pricing for businesses with complex needs.
Features:
- Invoicing Features
- Payment & Time Tracking
- Expenses & Receipts
- Projects & Proposals
- Payroll & Team management
Pricing:
If you have five or fewer clients, you can sign up for FreshBooks’ Lite plan for $19 per month. The plan includes unlimited expense tracking, unlimited estimates, accept credit cards and bank transfers, track sales, see reports and send unlimited invoices to up to five clients.
With up to 50 billable clients, pay $33 per month for its Plus plan. This comes with unlimited invoices to up to 50 clients, everything in the Lite plan, plus recurring billing and client retainers, business health reports, double-entry accounting reports, invite your accountant and track mileage via your mobile.
Its Premium plan is $60 per month for unlimited billable clients and invoices, track bills, bill payments and vendors with Accounts Payable, track project profitability, customize email templates and email signatures and more.
Pros:
- Cloud-based system
- Integration of third-party applications
- Tools for team cooperation and time tracking
- Mobile apps that automatically track mileage
- Cost-effective
- Features for advanced invoicing
Cons:
- Onboarding support is minimal
- There are restrictions to the mobile app
- Not ideal for complex bookkeeping
- Customization of invoices is constrained
In a Verdict
These are the best online bookkeeping software according to our expert accountants. But be sure to evaluate features, pricing plans, scalability, user reviews, and customer support to find the best fit for your needs and budget.
In case you can’t manage software by yourself because of time constraints or complex processes, hire a professional accountant from us.
We here at Octa Accountants believe in innovation and tech-driven approach to help entrepreneurs achieve their goals with Dedicated Bookkeeping & Accounting, VAT Registration, Virtual CFO, Audit & Assurance and many more services.
So say good bye to hours of manual calculations and spreadsheets! Book a free consultation with us today and streamline your finances.
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