Top 5 Best Online Accounting Software of 2023

We have identified the best online accounting software in each class to help you choose the right one for your business.

When looking for accounting software, businesses should prioritize transparency in pricing and features available at each tier.

Small businesses with basic needs can start with free or low-cost cloud-based software and upgrade to more advanced features as they grow.

For businesses with more complex needs, there are plenty of accounting software options to choose from based on specific requirements.

Accounting software is essential for businesses as it allows for the creation of professional invoices, tracking of incoming and outgoing payments, management of past-due receivables, tax management, and financial analysis.

To help you find the best accounting software, we evaluated popular platforms based on affordability, ease-of-use, time-saving features, automated bank feeds, payment reminders, online invoicing, payment acceptance, comprehensive financial reporting, and industry suitability.

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What are the best online accounting software

1. QuickBooks Online

QuickBooks Online is an accounting software that is cloud-based and mobile-friendly, making it easy to access financial information on-the-go.

Its all-in-one dashboard provides a user-friendly interface to streamline bookkeeping and focus on growing your business.

QuickBooks Online offers four subscription plans with different features to meet various business needs.

Features:

• Scalable: QuickBooks Online is scalable, which means that as your business grows, you can upgrade your subscription to meet your changing needs.
• Commonly used by accounting professionals: QuickBooks Online is widely used by accounting professionals, which means that there are many online training resources and forums available to users seeking support.
• Integration with third-party applications: QuickBooks Online allows you to integrate with third-party apps such as Stripe or PayPal, which means that you can streamline your financial processes even more.
• Cloud-based Software: QuickBooks Online is cloud-based, which means that you can access your financial information from anywhere, at any time.
• Mobile app: QuickBooks Online has a mobile app, which means that you can access your financial information on the go, making it easier for you to stay on top of your finances. The mobile app enables you to manage your finances from anywhere, whether you’re traveling or simply away from your desk.

Pros:

• Easily accessible and customizable to business needs
• All-in-one dashboard for efficient bookkeeping
• Scalable subscription plans to meet business growth
• Commonly used by accounting professionals with endless online training resources and forums
• Integration with third-party apps to streamline financial processes
• Cloud-based with a mobile app for easy access to financial information

Cons:

• Costly subscription upgrade required for more users
• Occasional syncing problems with banks and credit cards

Our Verdict:

QuickBooks Online is an excellent option for small businesses that need a widely used, easy-to-use accounting software with a customizable interface.

Its scalability, integration with third-party apps, and cloud-based accessibility make it a convenient option for business owners who are always on-the-go.

However, the cost of upgrading the subscription for more users and occasional syncing problems with banks and credit cards may be drawbacks to some users.

2. Quickbook self employed

QuickBooks Self-Employed is a cloud-based accounting software that’s designed specifically for individuals who file a Schedule C on their individual tax return.

It automatically tracks all business transactions, making it easy for you to keep track of your income and expenses for tax purposes.

Plus, there’s a mobile app available that lets you track your mileage while driving and snap photos of receipts for business expenses.

Features:

• Schedule C Tracking: QuickBooks Self-Employed is designed specifically for individuals who file a Schedule C on their individual tax return.
• Automatic business transaction tracking: The software automatically tracks all business transactions, making it easy for users to keep track of their income and expenses for tax purposes.
• Cloud-based software: QuickBooks Self-Employed is cloud-based, which means that users can access their financial information from anywhere with an internet connection.
• Mobile App: QuickBooks Self-Employed has a mobile app available that lets users track their mileage while driving and snap photos of receipts for business expenses. This makes it easy to keep track of expenses on the go.
• Business and Personal Expense Differentiation: QuickBooks Self-Employed can differentiate between business and personal expenses. This is particularly useful for freelancers who don’t have a separate bank account for their business activity.
• Users can easily mark each transaction as business or personal, making it simple to keep track of finances.

Pros:

• Designed specifically for self-employed individuals
• Automatic tracking of business transactions
• Differentiation between business and personal expenses
• Mobile app for tracking mileage and taking photos of receipts
• Three plan options to choose from, including Self-Employed Tax Bundle and Self-Employed Live Tax Bundle (which both include a TurboTax subscription for income tax filing)

Cons:

• Data cannot be easily transferred to other accounting software
• Limited reporting options

Our Verdict:

QuickBooks Self-Employed is an excellent choice for part-time freelancers and independent contractors who need a user-friendly accounting software that’s specifically designed for self-employed individuals.

With its automatic tracking of business transactions and differentiation between business and personal expenses, it’s a comprehensive tool for managing your finances.

However, if you require more robust reporting options or the ability to easily transfer data to other accounting software, QuickBooks Self-Employed may not be the best fit for you.

3. Xero

Xero is a cloud-based accounting software program that is popular among small businesses. It offers a clean interface, payroll integration with Gusto, online payment collection through Stripe and GoCardless, third-party app marketplace, and simple inventory management.

However, it also has limitations in its reporting capabilities, charges fees for ACH payments, and has limited customer service options.

Features:

• Clean interface and intuitive design: Xero’s user interface is designed to be user-friendly and intuitive, making it easy for even those without accounting knowledge to navigate the software.
• Seamless payroll integration: Xero integrates with Gusto, a third-party payroll service, to automate payroll processing and simplify the task of paying employees.
• Online payment collection: Xero’s integration with Stripe and GoCardless allows businesses to collect payments from customers online, making it easier and faster to receive payments and improve cash flow.
• Cloud-based accessibility and mobile app for iOS and Android: With Xero, businesses can access their accounts and financial data from anywhere, at any time, as long as they have an internet connection.
• Over 800 Third-party app marketplace: They offers an extensive marketplace of over 800 third-party apps that can be integrated with the software, allowing businesses to customize their experience and add functionality to the software.
• Simple inventory management: With Xero’s inventory management, you can keep track of their stock levels and manage inventory, which is especially useful for product-based businesses.
• Three monthly subscription options with a full-service payroll add-on

Pros:

• Easy navigation and convenience of cloud-based access
• Integration with Gusto and third-party apps
• Online payment collection for improved cash flow
• Simple inventory management for product-based businesses

Cons:

• Limited reporting capabilities compared to other accounting software programs
• Fees for ACH payments
• Limited customer service options

Our Verdict:

Xero is a suitable option for small businesses that require a software program with a clean interface, payroll integration, and third-party app marketplace.

The simple inventory management feature is also beneficial for product-based businesses.

However, businesses with complex reporting requirements or in need of urgent customer service may need to consider other options.

Additionally, the ACH payment fees should be considered when choosing a plan.

4. NetSuite

NetSuite’s accounting software is designed for businesses that require financial compliance and automation.

It provides a comprehensive dashboard with insights into profitability ratios, cash positions, liabilities, fixed assets, and taxes. The software is cloud-based, which allows for remote access and team collaboration.

Features:

• Financial compliance: The software is compliant with GAAP, ASC 606, and SOX, making it an excellent choice for businesses that need to adhere to these standards.
• Automation: NetSuite offers automation features such as creating journal entries and statement reconciliation, which saves time and reduces stress for business owners.
• Comprehensive dashboard: The software provides insights into various financial metrics in one dashboard, making it easier for business owners to manage their finances.
• Custom pricing: NetSuite’s pricing is custom, so businesses will need to speak with a sales team member for a quote.
• Integrations: The software integrates with other NetSuite products, including HR, e-commerce, inventory, and order management.

Pros:

• Financial compliance: NetSuite’s accounting software is compliant with GAAP, ASC 606, and SOX, making it a reliable choice for businesses that need to adhere to these standards.
• Automation: The software’s automation features, such as creating journal entries and statement reconciliation, save time and reduce stress for business owners.
• Comprehensive dashboard: The software provides insights into various financial metrics in one dashboard, making it easier for business owners to manage their finances.
• Remote access: NetSuite’s cloud-based software allows for remote access and team collaboration.

Cons:

• Learning curve: There is a learning curve involved with using NetSuite’s accounting software, which may take some time to get used to.
• Custom pricing: NetSuite’s pricing is custom, which may make it difficult for some businesses to budget for the software.
• Limited customer support: Customer support may be limited, which could be a challenge for businesses that need assistance with the software.

Our Verdict:

NetSuite’s accounting software is an excellent choice for businesses that require financial compliance and automation.

Its automation features, comprehensive dashboard, and remote access make it easier for business owners to manage their finances.

However, the custom pricing and learning curve involved may be a challenge for some businesses, and customer support may be limited.

5. Sage Business Cloud Accounting Software

Another of the best online accounting software that stands out from the crowd is Sage Business Cloud Accounting.

Sage offers several features and integrations that make it an excellent option for micro-businesses, and it’s relatively affordable, making it accessible to startups.

Features

• Affordable plans: Sage offers two plans at affordable rates that can cater to small businesses with varying needs. Their start plan starts at $10 per month while startups plan starts at $25 per month, with 70% off for the first six months.
• Invoicing: The software has basic invoicing capabilities, allowing businesses to create and send professional invoices to their customers.
• Automatic bank reconciliation: The software can automatically reconcile bank transactions with the corresponding accounting entries, saving time and reducing errors.
• Expense tracking: The software helps businesses track what they’re owed, giving them a clear picture of their cash flow.
• Unlimited users: Sage Accounting plan allows businesses to add unlimited users at no extra cost, making it easy for teams to collaborate on accounting tasks.
• Cash flow forecasts: The Sage Accounting plan includes cash flow forecasting, helping businesses anticipate their future cash flow and plan accordingly.
• Purchase invoice management: The Sage Accounting plan offers purchase invoice management, allowing businesses to easily manage their incoming invoices and payments.
• Receipt capture: The Sage Accounting plan includes the ability to capture and post receipts automatically, reducing the time and effort required for manual data entry.

Pros

• It’s based in the cloud, which makes it accessible from anywhere.
• Offers a good variety of available integrations with other software and tools
• Provides automatic bank reconciliation, which saves time and effort.
• Supports multiple currencies, making it a convenient choice for businesses that transact globally.

Cons

• Its entry-level plan may be too basic for established businesses.
• Payroll is not included.
• Limited phone support hours.

Our Verdict

Sage Business Cloud Accounting is an excellent choice for micro-businesses and startups that need accounting software with basic features at an affordable price.

It’s a cloud-based platform that offers automation and other features like automatic bank reconciliation, invoicing, and accounts receivable tracking, making it a great option for small businesses.

However, established businesses with more complex accounting needs may need to look for more advanced software.

Final Thought

Finding the right accounting software for your business is crucial for tracking your finances and ensuring success.

Whether you’re a small business owner in need of basic invoicing and reporting capabilities or a larger business with more complex accounting needs, there are plenty of options available.

By considering factors such as pricing, features, and industry suitability, you can choose the best online accounting software for your business.

With our recommended top five best online accounting software, you can find a solution that fits your needs and helps you manage your finances with ease.