10 best accounting software for small businesses
Accounting software plays a crucial role in managing financial operations for businesses of all sizes. In today's fast-paced and digitally-driven world, efficient financial management is vital for small businesses to thrive.
By automating and streamlining accounting processes, businesses can save time, reduce errors, and make better-informed decisions. But it can be tough to choose the best accounting software for small businesses in India.
To make the right choice, you need to understand the importance of accounting software for small businesses in 2023 and highlight the top ten accounting software solutions available.
What is accounting software?
Accounting software refers to specialized computer programs designed to help businesses manage their financial transactions, recordkeeping, and reporting. These software solutions provide tools and features that simplify various accounting tasks, including invoicing, bookkeeping, payroll management, tax calculations, and financial analysis.
There are many different types of accounting systems available in the market.
From small business accounting software to those that are flexible and can accommodate the requirements of a business of any size, there is plenty of choices for organizations to choose from.
Importance of accounting software for businesses
Streamlining financial processes
No matter how tedious of a process accounting may be, it is an important function that cannot be avoided. But by using accounting software, you can automate routine tasks, such as data entry and transaction categorization, speeding up processes and reducing manual errors.
Your accountant won’t have to spend too much time on repetitive tasks and instead will be able to focus on more strategic tasks.
Accurate financial recording and reporting
One major drawback of the traditional accounting process where things are done manually is that the chances of human errors occurring are quite high.
But when you shift to an automated accounting system with built-in checks and balances, it ensures accurate and up-to-date financial records, facilitating error-free reporting.
Better financial decision-making
A company’s management and senior executives cannot make sound financial decisions unless and until they have a clear picture of the current status of their finances.
By providing real-time access to financial data, accounting software enables businesses to make informed decisions based on accurate financial insights. Clear insights lead to better decisions which in turn lead to favorable business outcomes.
Compliance and tax management
Accounting software helps businesses stay compliant with accounting standards and tax regulations, simplifying tax calculations and filing.
There are many modern and new-age accounting software providers that have developed their products in a way that allows companies to easily calculate tax when creating invoices for payments and other tasks where tax calculations are needed.
Enhanced financial analysis
This is something that can be done through the traditional process of having an accountant and analyst do it manually but is very time-consuming.
It is much easier to let the accounting software system prepare financial reports and present data in a manner that gives you insights much quicker.
Advanced reporting and analysis features allow businesses to gain deeper insights into their financial performance, aiding in strategic planning and identifying growth opportunities.
Improved collaboration and accessibility
Last but not least, when a company does not use an accounting system that has an online version, it can be troublesome to coordinate and keep data up to date across business locations.
Cloud-based accounting software allows for seamless collaboration among team members and provides remote access to financial data from anywhere, at any time.
Top 10 accounting software in India in 2023
If you are looking for an accounting tool for your business, here are some of the best accounting software in India:
1. Volopay
Overview
Volopay is an all-in-one financial management platform that combines expense management, corporate cards, bill payments, and integrated accounting features.
Features
Volopay offers features for expense tracking, expense approvals, virtual corporate cards, and bill payments. It also provides real-time financial reporting and integration with popular accounting software.
Reviews and ratings
Volopay receives positive reviews for its comprehensive financial management capabilities, ease of use, and customer support. Users appreciate its seamless integration of expense management and accounting.
Integration capabilities
Volopay integrates with accounting software such as QuickBooks, Xero, and Netsuite, ensuring smooth data flow between expense management and accounting systems.
Pricing
Volopay offers customized pricing based on the specific requirements of each business. Interested users can contact Volopay for detailed pricing information.
Suggested read: Understanding the accounting cycle process: A step-by-step guide
2. Oracle Netsuite
Overview
Oracle Netsuite is a comprehensive cloud-based accounting solution suitable for businesses of all sizes. It offers a range of features, including financial management, inventory management, and project accounting.
Features
Netsuite provides modules for general ledger, accounts payable and receivable, billing, budgeting, and reporting. It also offers multi-currency support, tax management, and integration with other business systems.
Reviews and ratings
Users praise Netsuite for its scalability, robustness, and extensive features. It has received positive ratings for its financial reporting capabilities and ease of use.
Integration capabilities
Netsuite integrates with various applications and platforms, including CRM, e-commerce, and payroll systems, offering seamless data flow and enhanced business efficiency.
Pricing
Oracle Netsuite offers pricing plans based on the specific requirements of each business. For detailed pricing information, users can contact the Netsuite sales team.
3. QuickBooks
Overview
QuickBooks is a popular accounting software known for its user-friendly interface and powerful features. It caters to the needs of small and medium-sized businesses.
Features
QuickBooks offers tools for invoicing, expense tracking, bank reconciliation, and financial reporting. It also provides options for payroll management, inventory tracking, and tax preparation.
Reviews and Ratings
QuickBooks receives positive reviews for its simplicity, affordability, and accessibility. Users appreciate its intuitive design and time-saving features.
Integration capabilities
QuickBooks integrates with numerous third-party applications, including payment processors, CRM systems, and e-commerce platforms, allowing seamless data synchronization.
Pricing
QuickBooks provides various pricing plans, including options for self-employed individuals, small businesses, and accountants. The pricing varies based on the plan chosen and the additional features required.
4. FreshBooks
Overview
FreshBooks is a cloud-based accounting software designed for small businesses and self-employed professionals. It offers features for invoicing, time tracking, and expense management.
Features
FreshBooks provides tools for creating professional invoices, tracking expenses, and generating financial reports. It also offers features like project management, team collaboration, and client communication.
Reviews and ratings
FreshBooks receives positive feedback for its user-friendly interface, excellent customer support, and time-saving features. Users appreciate its invoicing capabilities and mobile accessibility.
Integration capabilities
FreshBooks integrates with popular business applications, including CRM systems, payment gateways, and project management tools, enabling efficient data transfer.
Pricing
FreshBooks offers various pricing plans based on the number of clients and additional features required. Users can choose a plan that suits their business needs and budget.
5. Xero
Overview
Xero is a cloud-based accounting software widely used by small and medium-sized businesses. It offers a range of features for managing financial operations and collaborating with advisors.
Features
Xero provides tools for invoicing, bank reconciliation, expense tracking, and financial reporting. It also offers features like inventory management, payroll processing, and project tracking.
Reviews and ratings
Xero is highly regarded for its user-friendly interface, robust features, and excellent customer support. Users appreciate its ease of use and comprehensive financial reporting.
Integration capabilities
Xero integrates with numerous third-party applications, including payment processors, CRM systems, and e-commerce platforms, allowing seamless data integration and automation.
Pricing
Xero offers pricing plans based on the specific needs of businesses, with options for different sizes and requirements. Users can choose a plan that aligns with their business needs.
6. Zoho
Overview
Zoho is a suite of business applications that includes Zoho Books, an accounting software designed for small businesses. It offers features for invoicing, expense tracking, and financial reporting.
Features
Zoho Books provides tools for creating invoices, managing expenses, tracking inventory, and generating financial reports. It also offers features like project management and time tracking.
Reviews and ratings
Zoho Books receives positive feedback for its affordability, ease of use, and integration capabilities. Users appreciate its comprehensive features and responsive customer support.
Integration capabilities
Zoho Books integrates with other Zoho applications, as well as popular third-party platforms like payment gateways and CRM systems, facilitating smooth data transfer.
Pricing
Zoho Books offers pricing plans based on the number of users and additional features required. Users can choose a plan that fits their business needs and budget.
7. TallyPrime
Overview
TallyPrime is an accounting software widely used by businesses in India. It offers features for managing financial transactions, generating reports, and complying with tax regulations.
Features
TallyPrime provides tools for bookkeeping, invoicing, inventory management, and tax calculations. It also offers features like bank reconciliation, payroll processing, and budgeting.
Reviews and ratings
TallyPrime is appreciated for its strong accounting capabilities, user-friendly interface, and local tax compliance features. Users find it reliable and suitable for Indian businesses.
Integration capabilities
TallyPrime offers limited integration capabilities with other business applications. However, it provides import and export functionality for data exchange.
Pricing
TallyPrime offers different pricing plans based on the number of users and additional features required. Users can contact TallyPrime for detailed pricing information.
8. Acumatica
Overview
Acumatica is a cloud-based ERP system that includes accounting features suitable for small and medium-sized businesses. It offers a comprehensive suite of financial management tools.
Features
Acumatica provides tools for general ledger, accounts payable and receivable, financial reporting, and cash management. It also offers features like project accounting and budgeting.
Reviews and ratings
Acumatica receives positive reviews for its robust financial management capabilities, scalability, and customization options. Users appreciate its flexibility and extensive integration capabilities.
Integration capabilities
Acumatica integrates with various business applications, including CRM systems, e-commerce platforms, and payment gateways, ensuring seamless data flow and process automation.
Pricing
Acumatica offers to price based on the specific requirements and modules chosen by businesses. Interested users can contact Acumatica for detailed pricing information.
9. Melio
Overview
Melio is an online payment platform that also offers basic accounting features. It simplifies bill payments and provides options for managing invoices and vendor payments.
Features
Melio offers features for online payments, invoice management, and vendor payment scheduling. It also provides features like payment tracking, recurring payments, and financial reporting.
Reviews and ratings
Melio receives positive feedback for its user-friendly interface, seamless payment process, and time-saving features. Users appreciate its simplicity and convenience for managing payments.
Integration capabilities
Melio integrates with accounting software such as QuickBooks and Xero, allowing automatic synchronization of payment data with accounting systems.
Pricing
Melio offers a free plan for basic payment features. It also provides a premium plan with additional features for a monthly subscription fee. Users can check the Melio website for detailed pricing information.
10. Sage Business Cloud Accounting
Overview
Sage Business Cloud Accounting is a cloud-based accounting software designed for small businesses. It offers features for invoicing, expense tracking, and financial reporting.
Features
Sage Business Cloud Accounting provides tools for creating invoices, managing expenses, reconciling bank transactions, and generating financial reports. It also offers features like inventory management and project tracking.
Reviews and ratings
Sage Business Cloud Accounting receives positive reviews for its ease of use, robust reporting capabilities, and good customer support. Users appreciate its intuitive interface and comprehensive features.
Integration capabilities
Sage Business Cloud Accounting integrates with various business applications, including payment processors, CRM systems, and e-commerce platforms, ensuring smooth data flow and process automation.
Pricing
Sage Business Cloud Accounting offers pricing plans based on the specific needs of businesses. Users can choose a plan that aligns with their requirements and budget.
You can use the list of accounting software systems mentioned above to determine and choose which one suits your needs the best.
Who needs accounting software?
Accounting software is essential for various stakeholders, including:
Small business owners and entrepreneurs
Small business owners and entrepreneurs who handle their own finances. Time is a critical resource for any small business. They need to optimize it as much as possible.
Using accounting software to automate processes and save time calculating their finances will help them focus on their business tasks.
Accountants and bookkeepers
Accountants and bookkeepers are responsible for managing financial records and providing advisory services. Accounting software is a tool to help finance professionals improve their efficiency and deliver better results.
Explore the vital role of bookkeeping with our informative article. Learn how accurate record-keeping empowers your business decisions and enhances financial stability.
Startups and growing businesses
Startups and growing businesses looking to establish robust financial systems. Any startup that plans to scale has to set up a smooth functioning finance and accounting system in order to avoid any kind of hiccup in operations due to financial errors.
Freelancers and independent professionals
Freelancers and independent professionals require efficient invoicing and expense tracking. Just like small business owners even solopreneurs and freelancers need to use most of their time developing their service and working for clients rather than managing finances.
Non-profit organizations and associations
Non-profit organizations and associations are in need of accurate financial reporting for transparency and compliance. Using accounting software is an ideal solution for non-profit organizations to show and prove compliance with their financial activities.
What are the types of accounting software?
Accounting software can be categorized into different types based on their implementation structure and capabilities. Let's explore these categories:
1. Based on the implementation structure
● On-premises accounting software
This type of software is installed and hosted on the company's local servers or computers. It requires manual installation, maintenance, and updates by the business itself.
On-premises software provides full control and data security but may involve higher upfront costs and IT infrastructure requirements.
● Cloud-based accounting software
Also known as web-based or online accounting software, this type operates on remote servers and is accessed through a web browser.
Cloud-based software offers the advantage of remote access, automatic updates, and data backups. It is typically subscription-based and offers scalability, ease of use, and lower upfront costs compared to on-premises solutions.
2. Based on capabilities
● Basic accounting software
These software solutions provide essential features for managing financial transactions, such as recording income and expenses, creating invoices, and generating basic financial reports.
They are suitable for small businesses with straightforward accounting needs.
● Small business accounting software
This type of software caters specifically to small businesses and offers additional features like inventory management, payroll processing, and tax preparation.
It provides more comprehensive financial management capabilities tailored to the needs of small enterprises.
● Enterprise accounting software
Designed for larger organizations with complex accounting requirements, enterprise accounting software offers advanced features for multi-currency transactions, consolidation of financial data, and advanced reporting capabilities.
These solutions are scalable and can handle high volumes of transactions.
● Industry-specific accounting software
Certain industries, such as construction, hospitality, or nonprofits, have unique accounting needs.
Industry-specific accounting software is tailored to meet these specific requirements, incorporating features and functionalities relevant to the particular industry.
● Integrated accounting software
Integrated software solutions combine accounting functionality with other business management modules, such as customer relationship management (CRM), inventory management, or project management.
These integrated systems provide seamless data flow between different departments, streamlining business processes.
How to select the best accounting software?
Cost-effectiveness
Consider the pricing structure, including subscription fees and additional charges for extra features or users.
You may or may not need some features that are offered by accounting tools and can choose the most cost-effective one accordingly.
Easy user interface
Look for intuitive software with a user-friendly interface that matches your team's skills and preferences.
A good idea is to schedule a demo of the product to see how the product works and whether it is a suitable solution for your business.
Accessible reports
Ensure the software generates comprehensive financial reports and allows customization to meet your business's specific needs.
Check the level of customization that you can do when creating reports.
Invoice processing
Invoice processing may be a major requirement for many businesses. Evaluate the invoicing capabilities, including customization options, automation, and payment integration.
Supports integration
Check if the software integrates with other essential business tools such as expense management systems, CRM, payment gateways, or project management software.
Inventory auditing
If your business deals with inventory, choose software that provides efficient inventory tracking and management features.
Multi-currency
For businesses dealing with international transactions, opt for software that supports multiple currencies and exchange rate calculations.
Data protection
Ensure the software follows industry-standard security protocols and offers data encryption, regular backups, and user access controls.
Customer support
Consider the availability and quality of customer support options, including documentation, tutorials, and responsive help desks.
Manage your business accounting easily with Volopay!
Volopay is a financial solution provider that offers corporate cards, automated expense management, and accounting integrations that streamline financial operations, helping businesses save time and money while elevating the role of their finance teams.
While Volopay isn’t an accounting system, it is a great expense tracking and payment management software with the capability to integrate with any accounting software in India. This makes it the best expense management tool for any business as it not only helps you control, track, and make business expenses but also allows you to easily sync with your accounting tool to keep your company ledger up to date.
Our platform has native integrations with some of the industry-leading accounting software such as Netsuite, Xero, Quickbooks, Tally, Deskera, MYOB, Zoho Books, and more! Apart from this, using our Universal CSV feature, you can sync and export your business expense data to any accounting tool even if we do not have a native integration with that platform.
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