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Top 6 Accounting Software for Small Business in Canada

It offers expense management, core accounting, and everything you need to take care of basic bookkeeping. Once you connect your business bank accounts and credit cards to a software, transactions show up in a queue and are grouped into categories. Once you approve of the categories, transactions automatically settle in your financial statements. Accounting software for small business is a type of accounting software program specifically tailored to small businesses. It can be used instead of or alongside an accountant and it assists in recording and reporting your small business financial transactions. It helps you manage your accounts, track your revenue and expenses, and store your receipts and important financial documents. It’s great for small business accounting because of its two-step authentication to keep your data secure, as well as its different plans for different business needs.

• Find an accounting software that makes it easy to account for sales tax.
• It also offers benefits like excellent customer support and the ability to accept payments online.
• It’s a plus for accounting software to also serve as an invoice generator.
• It has won numerous PCMag Editors’ Choice awards for these reasons.
• It doesn’t have a dedicated time-tracking tool, comprehensive mobile access, or inventory management, though.

There aren’t a lot of complex features that you’ll never use, but there are many helpful ones that will save you time and money. Small businesses that need basic invoicing and reporting capabilities will do fine with free or low-cost cloud-based accounting software. As your business grows, you can add more features and functionality. Patriot is a great accounting and payroll software choice that offers the most essential payroll and accounting features in an easy-to-use, affordable package. Other solid options for accounting and payroll software include QuickBooks Online and Wave. Recent updates have put Zoho Books on par with QuickBooks Online in terms of features, but with better customer service and a more user-friendly UI, Zoho Books is a great option for small businesses.

Wave Accounting

As a business grows, most software is scalable, and the plan can be easily upgraded to meet new business needs. The more robust plans allow businesses to track inventory, prepare more customized financial reports, run payroll, and choose from more invoicing options. The company has over 250 employees and was purchased by H&R Block in 2019.

Corporations and LLCs are required to use a separate credit card to avoid commingling personal and business assets. Anna Grigoryan is a public accountant specializing in providing accounting, bookkeeping and tax services to Small Business owners and individuals. She has more than ten years of professional experience in public accounting fields and a bachelor’s degree in Business Accounting. Anna is the founder and CEO of Taxory, an accounting firm located in Ontario, Canada. But suppose you do have a budget and do not want to spend time on research. In that case, we highly recommend QuickBooks Online Essential package. It is a very easy-to-use accounting software backed up by one of the most reputable software companies in North America.

Best for ecommerce businesses: GoDaddy

The all-new Accounting Software from FreshBooks empowers small businesses to spend less time on bookkeeping, without the stress. There is a paid-for version you can buy to run the software without advertising with a slightly higher cost if you also want to include AutoManager or Shop/Cafe Manager. The most popular package is Standard, which comes with up to 500 contacts, 3 users and 10 automated workflows. Professional, meanwhile, is a full bells-and-whistles experience that offers 500 contacts, 10 users and 10 automated workflows.

Although it mainly facilitates quick and easy invoicing, the software is also great for basic bookkeeping, billing, expense tracking, and time tracking. In addition, it has a user-friendly interface and is relatively affordable too. Founded in Toronto, Canada, in 2003, Freshbooks has successfully become a vital accounting tool for service-based businesses. This Canadian accounting software offers a more customized invoicing feature compared with other accounting SaaS . These days many accounting software exists to provide a great alternative to a spreadsheet.

QuickBooks Self-Employed: Best Accounting Software For Freelancers

Zoho Books is integrated with multiple payment gateways to make accepting online payments easy for customers. The auto-scan option in Zoho Books lets you scan your documents and automatically convert them into an expense, bill, or purchase order. Your bookkeeping software should offer you the flexibility to approve and edit transactions before sending them out. Verify your transactions before you send them out and ensure they are free of errors.

While prices differ, basic accounting software can cost anywhere between $9-$16 per month. Before you start looking for the right solution, consider how much you are willing to invest in an enterprise resource planning and accounting tool. A clear idea will help you eliminate some options and provide clarity on the solution you can purchase.

Before you commit to any bookkeeping and accounting software

Finally, the system integrates with all the most popular third-party features. These include PayPal, MailChimp, Basecamp, WordPress, Gusto, Zendesk, and more. There really isn’t anything you can’t so with FreshBooks, and it is definitely worth a look. The interface is straightforward, easy to use, and easy to understand. You have the ability to bill in any currency, as well as use the recurring invoice feature. Despite the pandemic, small businesses in the United States are on the road to recovery, according to a new report from Intuit.

Some accounting products are still desktop-run and can only be accessed from a certain computer. If accessing your accounting data from anywhere is a priority, look for a cloud-based option. QuickBooks Online is cloud-based and well-suited to smaller businesses, although it can scale up as your company does, from the Simple Start package up to Advanced . The program integrates with hundreds of apps, in addition to connecting easily with other products in the Intuit family handling payroll and payment processing. There’s also a separate version for self-employed individuals (starting at $15 per month with 50% off in the first three months). The bulk are the type that any small business owner could customize, generate, and understand. Kashoo Classic’s strengths are income and expense management, usability, and support.

The 8 Best Accounting Software for Small Business

Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. Can integrate with a family of other Zoho products and several third-party apps.

• That kind of consistency — paired with it’s first-rate functionality — make Pabbly a solid option.
• There’s also a separate version for self-employed individuals (starting at $15 per month with 50% off in the first three months).
• For some small business owners, an accounting platform that tracks expenses and sends invoices is all that’s needed.
• We chose QuickBooks Online as our best pick for small businesses for several reasons.
• It’s geared toward small to medium-sized businesses, has a basic version and a pro version, and offers comprehensive accounting solutions full of customizations.

Brands with big growth goals often need to secure funding to make investments in new product developments, inventory, retail stores, hiring, and more. This number represents the total sales revenue that’s kept after the business incurs all direct costs to produce the product or service. COGS. These are the direct costs incurred in producing products bookkeeping sold by a company. If you’re ever in doubt about potential tax obligations, it’s wise to talk to a tax professional. Despite the cost, it can save you lots of time and money down the line. Tax obligations vary depending on the legal structure of the business. If you’re self-employed , you’ll claim business income on your personal tax return.

Additionally, FreshBooks doesn’t include bank reconciliation with its cheapest plan. Since bank reconciliation is an absolutely foundational accounting task, we can only recommend FreshBooks’s cheapest plan to freelancers or brand-new startups with just a few transactions a month. However, Xero’s $12 a month plan limits you to entering only five bills and sending only 20 invoices a month. You can send unlimited invoices and quotes with only the Growing and Established plans, which start at $34 and $65 a month, respectively. Plus, you can only track expenses with the priciest plan—both QuickBooks and FreshBooks offer small-business expense tracking up front. Most paid accounting solutions will automatically generate journal entries for your chart of accounts every time you accept a payment or pay a bill. Some automatically reconcile your bank accounts, and still others automatically sync with your payroll software to keep your accounts in order.

It’s easy to use, well designed, and built to serve a wide variety of users. In this story, we test and rate the top online accounting applications available to see what makes them different and which type of small business benefits most from using each one.

It’s easy to jump straight in and start using Wave, even with little previous accounting experience. If you’re a freelancer looking for a way to manage your finances and taxes, QuickBooks Self-Employed could be a good option for your business.