The Best Accounting Software for Small Businesses

Over my career, I’ve worked with accounting systems that range from good to bad to just plain ugly. As a Fractional CFO, these are the accounting systems I recommend to my clients:

🟢 Intuit 𝗤𝘂𝗶𝗰𝗸𝗕𝗼𝗼𝗸𝘀 𝗢𝗻𝗹𝗶𝗻𝗲

QBO is the most popular accounting solution for small businesses and for good reason: it is easy to implement and use, fairly priced, and available worldwide. It offers a comprehensive suite of features and integrates well with other business tools like Expensify and Bill. It processes payroll seamlessly. Their customer service is responsive and helpful, and they are constantly offering new and improved services.

QBO is right for your business if you are accounting for a single entity, have a small accounting staff, and require a simple solution. QBO fall shorts for companies that require multi-entity consolidations and robust accounting controls. Pricing can also add up as a company adds features and users.

🔵 Xero

Xero is also designed for small businesses. It has many similarities to QBO and offers similar pros/cons.

When deciding between QBO and Xero I suggest considering the following: Xero's integrated AI for bill entry is better than QBO and their pricing plans are less than QBO and include unlimited users. Like QBO, Xero offers integrations with business tools like Expensify, ApprovalMax and PEO’s. Some of those integrations do not work as smoothly as in QBO, but depending on the integrations a company is considering one accounting system may work better than the other. Xero also has limited reporting options compared to QBO.

💻 Acumatica

Acumatica is a cloud-based ERP solution that offers robust accounting features alongside other business management tools. It’s particularly suited for growing businesses.

When your business outgrows a system like QBO or Xero—whether due to the need for multi-entity consolidation, stronger accounting controls, or a more comprehensive ERP solution--it’s time to consider Acumatica. In my experience, their pricing is often more favorable compared to other ERP providers like NetSuite and Sage Intaact. The “out-of-the-box” configuration typically meets the needs of most businesses, though it can be tailored extensively for businesses with specific needs.

Acumatica provides a comprehensive solution that necessitates the expertise of implementation consultants and accounting professionals for setup and ongoing management. However, the investment in proper implementation pays off with a robust and adaptable ERP system that can support your business as it grows.

𝙁𝙚𝙚𝙡𝙞𝙣𝙜 𝙤𝙫𝙚𝙧𝙬𝙝𝙚𝙡𝙢𝙚𝙙 𝙗𝙮 𝙩𝙝𝙚 𝙩𝙝𝙤𝙪𝙜𝙝𝙩 𝙤𝙛 𝙘𝙝𝙤𝙤𝙨𝙞𝙣𝙜 𝙖𝙣𝙙 𝙞𝙢𝙥𝙡𝙚𝙢𝙚𝙣𝙩𝙞𝙣𝙜 𝙖𝙣 𝙖𝙘𝙘𝙤𝙪𝙣𝙩𝙞𝙣𝙜 𝙨𝙮𝙨𝙩𝙚𝙢? 𝙇𝙚𝙩 𝙢𝙚 𝙜𝙪𝙞𝙙𝙚 𝙮𝙤𝙪 𝙩𝙝𝙧𝙤𝙪𝙜𝙝 𝙩𝙝𝙚 𝙥𝙧𝙤𝙘𝙚𝙨𝙨, 𝙨𝙩𝙚𝙥 𝙗𝙮 𝙨𝙩𝙚𝙥.