3 Accounting Tools to Consider for Small Business in 2024

Discover the top tools that simplify invoicing, expense tracking, and financial reporting, so you can focus on growing your business in 2024!

As a small business owner, your time is precious. You’ve got products to sell, customers to wow, and a team to lead.

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But if you’re spending hours manually tracking expenses or worrying about getting invoices out on time, you’re leaving money on the table. That’s where accounting software comes in.

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In 2024, having the right accounting tool is a game-changer—it’s like having your own financial assistant, but without the hefty payroll cost.

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What is Accounting Software?

Think of accounting software as the backbone of your business's financial health. It's the tool that takes care of all the number-crunching so you don’t have to.

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Whether it’s tracking expenses, automating invoices, or ensuring your books are tax-ready, this software handles it all, keeping everything organized and giving you real-time insights into your cash flow.

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That means fewer headaches when it’s time to file taxes or apply for that small business loan.

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Why is Accounting Software Essential for Small Businesses?

You didn’t start your business to become a part-time accountant.

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But if you’re not on top of your numbers, you’re risking more than just late payments—you’re potentially hurting your business’s growth.

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The right accounting software makes sure you stay on track, get paid faster, and have the data you need to make smart financial decisions. With features like automation, cloud access, and easy-to-read reports, you’ll have the financial clarity to focus on scaling your business, not stressing over spreadsheets.

Tools in this ranking

Quickbooks
All-in-one accounting for small businesses and payroll.
Sage
Business management and accounting solutions for SMEs.
Xero
Cloud-based accounting with real-time financial tracking.

1. Quickbooks

Why QuickBooks Made the List‍

QuickBooks is a leading accounting software trusted by millions of small businesses. Its invoicing feature is particularly robust, allowing businesses to create professional invoices, track payments, and integrate seamlessly with your accounting data. QuickBooks is ideal for businesses that need an all-in-one financial management solution with powerful invoicing capabilities.

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Things We Like About QuickBooks (Pros)

All-in-One Accounting: Combines invoicing with comprehensive accounting tools.
Automation: Automate recurring invoices and payment reminders.
Multi-Currency Support: Handle invoices in multiple currencies for global operations.
Integration with Payment Systems: Accept payments directly through invoices.
Advanced Reporting: Provides detailed financial reports and insights.

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Things That Could Be Improved (Cons)

Price: Higher cost compared to some alternatives.
Learning Curve: Can be overwhelming for beginners due to the extensive features.
Limited Customization: Invoicing templates have limited design flexibility.

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Pricing

Simple Start: €15/month
Essentials: €27/month
Plus: €40/month
Advanced: €100/month

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QuickBooks is the go-to solution for small businesses seeking an all-in-one platform to manage their invoices, accounting, and finances. It’s a strong fit for businesses with growing financial needs that want to automate workflows and streamline operations.

2. Sage

Why Sage Made the List‍

Sage provides a solid invoicing and accounting solution specifically tailored for small businesses and freelancers. Its simple interface, combined with automation and reporting tools, helps small business owners manage their invoicing and finances without getting bogged down in complexity.

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Things We Like About Sage (Pros)

Easy-to-Use: Simple invoicing tools for small businesses and freelancers.
Automation: Set up recurring invoices and automate payment reminders.
Financial Reports: Generate real-time reports to track income and expenses.
Customizable Invoices: Personalize your invoices to match your business branding.
Affordability: Competitive pricing, especially for the features provided.

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Things That Could Be Improved (Cons)

Limited Integrations: Fewer third-party app integrations compared to competitors.
Advanced Features Missing: Lacks some of the advanced features found in larger platforms like Xero or QuickBooks.
Customer Support: Limited customer support channels.

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Pricing

Accounting Start: €12/month
Accounting Standard: €27/month

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Sage is ideal for freelancers and small businesses that need an easy-to-use, budget-friendly invoicing tool with basic accounting features. It’s a great option for those who want simplicity without sacrificing essential functionality.

3. Xero

Why Xero Made the List

‍Xero is known for its clean, user-friendly interface and powerful cloud-based accounting features. The invoicing tool allows small businesses to create, customize, and track invoices with ease. Xero's integrations with third-party apps and its mobile app make it a top choice for businesses looking for a versatile invoicing solution.

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Things We Like About Xero (Pros)

Easy-to-Use Interface: Simple and intuitive design for invoicing and accounting.
Customizable Invoices: Personalize invoices with your branding and terms.
Real-Time Invoice Tracking: Get notified when clients open invoices or make payments.
Third-Party Integrations: Connect with numerous business apps for enhanced functionality.
Mobile App: Manage invoices and payments on the go.

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Things That Could Be Improved (Cons)

Limited Features on Basic Plan: Some features are locked behind higher pricing tiers.
No Live Customer Support: Only offers email and self-help resources for lower tiers.
Steep Learning Curve: Complex features may take time to master.

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Pricing

Starter: €12/month (5 invoices per month)
Standard: €30/month
Premium: €40/month

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Xero is a fantastic invoicing tool for small businesses that need simplicity and scalability. With its seamless integrations and user-friendly design, it’s perfect for businesses that want a customizable, easy-to-manage invoicing system backed by powerful accounting features.