Today I wanted to share my top three online accounting programs for entrepreneurs and small business owners. Tracking expenses online is so much easier than trying to do it by hand, or in a spreadsheet.
Tax season is still a few months out, but this time of typical slowness in online business is a great time to get your finances in order for the coming tax season. You should realistically be tracking income and expenses each week at least, but if you haven’t been keeping up with it, let’s get started!
Quickbooks Self Employed is the current app that I use to track my income and expenses. It’s just $10/month, and pretty much has every feature I would ever need. You can link your bank account, and then just categorize each purchase and deposit. It’s really simple to set up. My favorite part is that it tells me how much I will owe in quarterly taxes, and gives simple directions for getting that set up. At the end of the year when I go to do my taxes, I can simply transfer everything to TurboTax and call it good. It’s awesome! Quickbooks also allows you to create invoices, but I’ve stuck to PayPal for this.
Freshbooks is a really close second for me and may be a better program depending on what you are using it for. In addition to expense and income tracking, Freshbooks allows you to send invoices, track your time (and tie tracked time to invoices), create projects with team chat and file storage, and easy-to-read reports. Freshbooks is probably the system I will move to once I start taking on more client work, but Quickbooks has everything I need right now. The Freshbooks Plus plan is the one I would use and starts at $22.50/month. Their lite plan starts at $13.50/month.
Xero is up-and-coming accounting software, and for good reason. It allows you to create quotes and invoices, manage inventory, send purchase orders, manage bills and expenses and run payroll. It also works with over 700 tools, like payment tools and CRM tools. Xero starts at $9/month for just 20 bank transactions. For full features, you’ll need to shell out $30/month. For businesses with inventory and employees, Xero is a great option.
Thanks for reading my top picks for online accounting programs!