In my free time, I love to spend time outdoors (mountain biking, running. hiking) or reading books. Laura is a freelance writer specializing in ecommerce, lifestyle, and SMB content. As a small business owner, she is passionate about supporting other entrepreneurs, and sharing information that will help them thrive. Understand your clients and work faster using Xero HQ in your practice. Accountants and bookkeepers can partner with Xero for more efficient workflows and collaboration. Instead, customers can visit the Xero Central support site or raise a case online.

  • Keep track of your unpaid and overdue invoices, bank account balances, profit and loss, cash flow and bills to pay.
  • Plans are affordable, starting at $13 per month, but no free plan.
  • Payment will be taken on the date shown on your invoice using the payment details entered when you purchased your subscription.

Although I had reservations about an external company handling our finances, we smoothly transitioned to Zerobooks managing our payroll, superannuation, and accounts. Their attention to detail, flawless procedures, and personal liaison with our dedicated file manager make this partnership seamless, saving us time and money. Zerobooks has replaced the need for an extra staff member, and we have confidence in their experience and expertise to support and foster the growth of our business.

Pricing plan details and offer terms

Suited for small- and medium-sized businesses (SMBs), Xero is an affordable cloud-based accounting software system that streamlines these processes with plans starting at $13 per month. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. Learn more about how we rate small-business accounting software. Each month, Xero sends you a link to your subscription invoice with easy ways to pay for your accounting software.

  • The Growing plan is best suited for growing businesses, grants the same capabilities in addition to the ability to send unlimited quotes and invoices, enter unlimited bills, and reconcile transactions in bulk.
  • Keep your practice a step ahead with Xero accounting software.
  • You can import data from another accounting system in bulk via CSV files once you’ve done the initial set up in Xero.
  • For example, you can give all employees the ability to send quotes and invoices, allow some to enter expenses and limit who can see the company’s complete financial picture.

You might do bank reconciliation daily, weekly, monthly, or less often, depending on the number of transactions going through your business. However, you will probably be required to reconcile your books before submitting tax returns at the very least. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month). Xero, on the other hand, offers unlimited users for all plans. This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team.

Best Free Accounting Software for Small Businesses

Find out what bookkeepers do, and get an intro to double-entry bookkeeping. Use Xero to work with your employees, bookkeeper, or accountant online, even if you’re on opposite sides of the world. Invite your advisor to work with you on the online accounts anywhere, anytime. You need reliable financial statements to compare your business’ performance over time. You need accounting consulting (you would like to maintain your own books, but don’t know how, or you just need to ask a questions).

Small business bookkeeping for beginners

Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month. If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies. Set up bank feeds from your accounts so transactions are imported securely into the Xero accounting software each business day. Explore Xero accounting software and its tools for small businesses, accountants, and bookkeepers. Which is why you’re not seeing a lot of AI in the technical capabilities of these accounting applications.

See more of what Xero can do

Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. However, for freelancers, consultants and solopreneurs mainly looking to send invoices, receive payments and keep track of income, consider some of the free software available including Zoho Invoice, Square Invoices and PayPal Invoicing. Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time. Bookkeeping focuses on recording and organizing financial data, including tasks such as invoicing, billing, payroll and reconciling transactions. Accounting is the interpretation and presentation of that financial data, including aspects such as tax returns, auditing and analyzing performance.

Keep track of your unpaid and overdue invoices, bank account balances, profit and loss, cash flow and bills to pay. You can even reconcile bank accounts and convert quotes to invoices. It’s free with every subscription and compatible with iOS and Android. With your accounting software and data stored online in the cloud, you can access your up-to-date accounts anywhere there’s an internet connection. Your Xero data is backed up regularly and protected with multiple layers of security. You can import data from other accounting software in bulk via CSV files once you’ve done some initial set up in Xero.

We cater to your precise needs with customizable bookkeeping solutions, be it for daily financial management or regular monthly/quarterly account reviews. Our aim is to provide an efficient and effective tailored approach that precisely meets your specific requirements. If you’re too busy to do the bookkeeping for your small business, then you can find someone top 6 strategies to protect your income from taxes to do it for you. Bookkeepers often allow you to choose different service levels depending on your budget. That means you can start out with basic bookkeeping at a modest cost and ladder up to more advanced services as your business grows. All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person.

Of course, this work can be augmented with the work of calculators or spreadsheets such as Microsoft Excel. Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. Payments are due by the end of your monthly billing period based on the date you purchased your subscription. Xero may be harder to learn than a simpler invoicing platform like Square Invoices or Zoho Invoice. However, it’s generally considered easier than QuickBooks Online.