Accounting is a fundamental process for any business, large or small. It involves tracking income, expenses, assets, and liabilities, as well as completing financial reports such as cash flows. However, a majority of accountants today feel that traditional accounting is no longer enough to stay competitive. 

That’s where accounting tools come into the picture. They make the accounts department’s job easier, faster, and smoother while giving them more time to focus on the decision-making aspects of finance and accounting. This is probably why more than 64% of SMBs are using accounting tools in their organization.

This article will discuss the nine best accounting tools for small businesses and how they can benefit your firm. It will also outline what these tools do and how they work, as well as answer popular, frequently asked questions related to software costs and associated features. 

What is Accounting Tool?

Accounting tools are software that helps business organizations track and record financial activities accurately, in compliance with legal and taxation regulations. In addition, these tools free up time and help reduce errors by automating complex calculations and financial statements. 

Business owners can use these tools to document and reconcile bank and cash transactions, accounts receivable and accounts payable revenue and profit, as well as generate financial statements. Commonly used accounting systems for business include online accounting tools, payroll systems, and billing and invoicing software.

9 Best Accounting Tools for Your Business

When it comes to selecting a small business accounting tool, there are many options on the market. Below is a list of the nine best accounting Tools for your businesses based on popularity and features. 

1. myBillBook

myBillBook is a user-friendly, intuitive accounting solution for small businesses. It helps users quickly manage their expenses and generate invoices. It also has an integrated customer management feature so you can keep track of who owes you money and follow up on payments. Additionally, it automatically generates standard reports such as balance sheets, cash flow statements, and GST summary reports.

Pros:

Easy to use, fast accounting tool specifically designed for small businesses, customizable, integrated with payment gateways.

Cons: 

Limited reporting capabilities, customer service is not as robust as with other software and lacks integration with external apps.

Pricing: 

• Silver Plan (1 Mobile Only) – ₹ 471 (1 Year Plan)
• Diamond Plan (Unlimited Multi User & Businesses) – ₹ 3067 (1 Year Plan)
• Platinum Plan (Mobile & Web & Unlimited Logins) – ₹ 5899 (1 Year Plan)
• Enterprise Plan – ₹ 9439 (1-Year Plan)

2. Vyapar

Vyapar is an invoicing and accounting tool solution available for small businesses. It gives owners the ability to manage their finances, track expenses easily, and generate invoices. It’s versatile and customizable, making it perfect for businesses of all sizes. Additionally, it is packed with features such as GST filing, sales and purchase tracking, and custom reports.

Pros: 

Comprehensive accounting tool designed for small businesses, customizable invoice and GST templates, integrated with other software for e-commerce and project management. 

Cons: 

Limited customer service, not as intuitive as other software, lacks integration with external apps.

Pricing:

• Basic Plan (Valid for 1 Year) – Only Desktop – ₹ 1999, Desktop + Mobile – ₹ 2399
• Saver Plan (Valid for 3 Years) – Only Desktop – ₹ 4599, Desktop + Mobile – ₹ 5499

Only Mobile Plans 

• Basic (Valid for 1 year) –  ₹ 599
• Saver (Valid for 3 years) – ₹ 1349

3. TallyPrime

TallyPrime is a secure, cloud-based accounting and business management software for small businesses. It offers features such as invoice creation, GST compliance solutions, multi-currency support, financial statement generation, and cash flow tracking. It allows users to simplify and centralize their financial operations, as well as quickly generate reports and financial statements.

Pros: 

All-in-one accounting and inventory management software, customizable reports and invoices, and multi-user support. 

Cons: 

Not as user-friendly as some other accounting tool, with limited customer support, and limited integrations with external apps. 

Pricing:

• Silver Rental (12 months)  – INR 7,200 + 18% GST (INR 1,296)
• Silver (Perpetual) – INR 18,000 + 18% GST (INR 3,240)
• Gold Rental (12 months) – INR 21,600 + 18% GST (INR 3,888)
• Gold (Perpetual) – INR 54,000 + 18% GST (INR 9,720)

4. MARG ERP 9+ Accounting

MARG ERP 9+ Accounting is an advanced, comprehensive business management solution for small businesses. It gives users the ability to manage their finances, customer relationships, and other operations in one easy-to-use platform. It also offers features such as inventory control, GST and tax filing, and budgeting tools. Additionally, it has built-in reporting functions to help keep you on top of your business performance.

Pros: 

Comprehensive inventory and financial management system, customizable GST and VAT compliance reports, comprehensive troubleshooting guide and customer service. 

Cons: 

The software can be complex to use, lacks integration with other apps, and pricing is not disclosed. 

Pricing:

• Basic Edition (Limited Edition) – ₹ 8991/- (18% GST Extra, 1 User Full Rights, ₹ 3000/- per extra user, Maximum 2 users)
• Silver Edition – ₹ 12600/- (18% GST Extra, 1 User Full Rights, 1 User for View only, ₹ 3000/- per extra user)
• Gold Edition – ₹ 25200/- (18% GST Extra, Unlimited Users)

5. Zoho Books

Zoho Books is an intuitive, cloud-based accounting solution tailored to the needs of businesses. It is suitable for companies with one to 50 employees, offering features including invoicing, payment tracking, bill payment, and project management. In addition, organizations can use this platform to gain insight into their finances with access to real-time customer and company financial reports. 

Pros: 

Comprehensive accounting app, customizable reports, and invoices integrated with e-commerce sites. 

Cons: 

Interface is not as intuitive as some other software, customer service is limited to email support, and lacks integration with other apps. 

Pricing:

• Free Plan – ₹ 0 (For businesses with revenue <25 Lakhs per annum)
• Standard Plan – ₹ 749 (Per Organization/Month, Billed Annually)
• Professional Plan – ₹ 1,499 (Per Organization/Month, Billed Annually)
• Premium Plan – ₹ 2,999 (Per Organization/Month, Billed Annually)
• Elite Plan – ₹ 4,999 (Per Organization/Month, Billed Annually)
• Ultimate Plan – ₹ 7,999 (Per Organization/Month, Billed Annually)

6. BUSY Accounting

BUSY Accounting is one of the most-used accounting tools for small businesses for managing their accounts, business processes, and operational controls. This web-based business accounting tool is developed to work in three different tiers. These include:

• Tier 1: This tier consists of the input channel that accepts data from users, processes it, and creates reports.
• Tier 2: In this tier, data processing is performed for being utilized by the first tier for interpretation.
• Tier 3: Here, data is stored for future cross-checking and monitoring purposes

Some of the major industries that use BUSY are FMCG, manufacturing, retail, distribution, trading, and service.

Key features

• Accounts receivable and payable
• Billing & invoicing
• Bank reconciliation
• Payroll management
• Tax management

Pricing

The pricing of BUSY Accounting starts at $240 as a one-time payment per user. No free version is available, but BUSY offers a free trial.

7. Horizon ERP

Horizon ERP is one of the best accounting tools for small businesses in India. It addresses all the accounting needs of the retail, distribution, and manufacturing sector.

Horizon ERP simplifies the GST Billing and Filing procedure, E-way Bill generation, and other day-to-day accounting work. It helps you keep track of your inventory with its robust Inventory Management System.

Horizon ERP provides you with an accounting module that supports the multi-level classification of items, offers and discount management, and user-wise access. Besides, you can also email invoices, and print customized bills.

Moreover, this on-premise/Cloud software enables you to generate daily and monthly reports related to stocks, finance, and bills. Getting precise reports lets you make informed decisions and improve procedures.

Horizon ERP Live cloud subscription allows users to access and works on data from multiple locations over the internet. which makes the solution infinitely scalable. Businesses with operations in multiple locations, multiple godowns, or chains of stores will find it very easy to get all their teams to work on a single platform.

Key features

• Billing & Invoicing
• Inventory Management
• Statutory Capabilities
• Credit Management
• Financial Accounting
• Barcode Module (For retail)
• Dedicated POS Window
• Distribution special features
• BOM/Manufacturing Voucher
• Cloud Database

Pricing

The price starts at $185 only. There are no annual renewal charges (on-premise edition).

8. Quickbooks

Quickbooks is a web-based and one of the most used accounting tools for small and medium-sized businesses (SMBs). This cloud-based accounting solution allows you to manage financial activities like projects, expenses, and invoices. Its centralized dashboard enables you to set and use key performance indicators (KPIs) to gain in-depth insights into business performance and upcoming trends.

One of the key reasons for Quickbooks being one of the most used accounting tool is its ability to help users collaborate on specific projects. It allows you to capture receipts, sort tax-based transactions, and improve the overall financial operations of your organization. Besides, you can also manage recurring payments, create custom estimates, and export generated reports.

Key features

• Accounts receivable and payable
• Project accounting
• Payroll management
• Purchase orders
• Expense tracking

Pricing

The pricing of Quickbooks starts at $5 per person per user. There is no free version available, but it offers a free trial.

9. Freshbooks

Freshbooks is an award-winning and one of the most used accounting tool for small businesses designed mainly for small and medium-sized businesses. It is powered by a comprehensive set of features that streamline time tracking and client invoicing processes.

This software is reliable, fast, and easy to use, and it turns complex business accounting into a seamless, enjoyable process. It enables you to create professional invoices in a few clicks, along with automating client follow-up and tracking processes to save you more time and resources.

Moreover, Freshbooks integrates with a wide range of third-party applications such as PayPal, Shopify, Stripe, etc. to help you get paid faster and extend your business capabilities.

Lastly, Freshbooks also has a mobile application available for both Android and iOS, which enables you to stay on top of your business anytime and from anywhere.

Key features

• Online Invoicing
• Expense Tracking
• Time Tracking
• Accounting Reports & Taxes
• Make and collect payments

Pricing

The pricing of Freshbooks starts at $6 per month. A free trial is available, and there is a free version as well.

Why Does Your Organization Need Online Accounting Tools?

If you are still confused about whether to invest in an accounting tools package, think no more! Your company will definitely reap some massive advantages in the long run. Here are some major reasons why your organization needs to invest in an accounting tools suite: 

1. Complete Automation

   Organizations need to leverage the power of modern technology, and accounting tool for small businesses is a great way to automate all your manual tasks! For example, accounting systems make sure that all your calculations regarding invoices, receipts, cash flows, and ledger maintenance are carried out in a matter of minutes – keeping all your accounting activities smooth and structured.

   There is no repetition of work, and complete automation minimizes the scope of errors, enhancing accuracy to the highest possible level. In addition, cloud-based accounting systems keep your financial figures up-to-date, and team members can access them at any possible time through the internet, thereby uplifting connectivity and productivity.

   So make sure to get all your accounting operations automated and mechanized by getting great accounting tool for your business!

2. Enhanced Security

   One of the most difficult tasks for any organization is to maintain complete security and privacy of its confidential financial records. However, accounting tool is an absolute asset for any company as it can help keep complete and stringent security protocols concerning accounting information. Only authorized staff is allowed access to sensitive data so that it is not misused or transferred to any wrong hands.

   An efficient system of firewalls, password protection, and encryption ensures that intruders do not hack accounting information; thereby making sure all your data remains safe and secure.

   Important personal information such as credit card numbers, usernames, passwords, and account details remain absolutely secure, and protection is the highest priority of modern accounting tool systems. So go ahead and get an accounting tool platform for your organization to safeguard your financial information in the best possible way!

3. Efficient Cash Flow Management

   There is tons of incoming and outgoing cash in any active and running organization – easy-to-use financial accounting tool solutions are a great way to track your incoming payables and receivables.

   Electronic records are maintained for all real-time transactions, and managers can view all information through visual dashboards at a quick glance. Radical accounting tool systems also have inventory management modules that allow organizations to monitor their stock levels so that they can replenish quantities well in advance.

   Computerized invoicing is another huge benefits of cloud-based accounting software, and the system can be searched for any information through names, amounts, or specific invoice numbers. It ensures that information can be generated promptly and in a reliable manner, leading business managers to make smarter decisions that will augment performance parameters.

   Accounting tool is the future of technology, and your organization needs to harness it to make a world of positive difference to the accounting function in your organization!

4. Simplified Tax and Regulatory Compliance

   Observing the changes in regulatory systems and legal requirements is no easy feat for any business company – getting accounting can instantly erase all your compliance troubles!

   It includes advanced analysis tools, reporting options, and payroll assistance modules that help your managers make correct and accurate payments. In addition, there is no need to worry about defaulting on payments, as your accounting makes sure that all legal compliances are adhered to in the proper manner.

   There is no doubt that accounting tool packages are real lifesavers while preparing tax and audit calculations. They make sure that all the relevant regulatory compliances are met and hence definitely save your organization from any penalty or reprimand. So do not think twice, rather, take the plunge and get accounting to transform your business fortunes in a revolutionary way!

5. Reduced Expenses

   If your organization wants to escalate profit levels to massive levels, you need to keep your costs running at a minimum. Investing in accounting tool is a one-time investment that will surely make your organization reap some wonderful benefits in the long run.

   There will be no requirement to maintain a large and well-staffed accounts department as the majority of the work will be automated, thereby leaving your key personnel to concentrate on critical organizational operations.

   Since accounting tools are simple and user-friendly, your workforce can manage them without any additional training–it eliminates the need for professionals to run your accounts function!

   Superb support and help facilities make sure that you do not require expensive maintenance, and even installment is a quick and simple affair. So, keep your expenses to a minimum and ensure that your profits skyrocket instantly by getting a top-class accounting tools solution for your company!

   Go digital with your accounting and computerize all major account functions in your company to witness a dramatic transformation of positive change! Speed, security, flexibility, and accuracy are some major advantages that your company will immediately accrue, and your clients will surely be delighted by top-class accounting services.

   Simple visual and user-friendly dashboards ensure that all company data is viewed by managers at any point in time, thereby keeping vital accounting information highly accessible.

How Can Online Accounting Tools Benefit Your Firm?

Accounting tools are designed to streamline processes, reduce costs, and improve accuracy for businesses. Here are ten ways that your firm can benefit from utilizing accounting software:

1. Save Time

   The biggest benefit of accounting tool is that they save a lot of time. This is because the accounting system makes most of the accounting processes much faster, including invoicing, statements, reporting, and budgeting.  

   Besides, most of the data you would manually check and enter can be automatically recorded by the accounting tool. For instance, when your employee makes an expense claim, it automatically gets synced with your software. 

   So, what normally takes days to manually enter everything (amount, documents, and other necessary information) can now be done in minutes.

2. Reduce Operational Costs

   Though accounting tool itself requires investment, they help you save a lot of money in the long run. Accounting systems eliminate the need to hire a bookkeeper or bill for the additional time required to check your books’ accuracy. 

   As mentioned above, an accounting system reduces the time required for data entry, thereby allowing your finance team to spend more time evaluating business performance. 

   Another way accounting tool can reduce your operational costs is by streamlining your cash flow. It provides a birds-eye on your payables and receivables, so you know where your money is being spent.

3. Enhance Data Accuracy

   We all make mistakes, don’t we? The same goes for accountants. And while errors are common, they can cost your organization a huge amount. For example, Hertz, a car rental company, found $46.3 million worth of errors in its 2011 financials. In another case, Groupon lost over $22 million due to financial mistakes in 2012. 

   With an accounting automation system, you can significantly reduce these errors. Even if the calculations involved in your financing statement are complicated and lengthy, good accounting tool will not let you down. 

   The only thing you should ensure is that the data entered in the tool are correct.

4. Provide Financial Statements Quickly

   Financial statements, such as profit and loss reports, balance sheets, and cash flow statements, are an integral part of any business. They help you understand the current financial situation of your organization. 

   Without accounting tool, your finance management department would have to go through hundreds of files to retrieve (or review) a document. And, if they are outdated, you will have to wait for hours (if not days) to get the statement you need. 

   On the other hand, accounting tool allows you to create financial reports within minutes. All you need to do is select the date and hit on “create the report.” 

   The best part? Most accounting tool doesn’t require you to have extensive training to use them. So, you can generate reports without depending on any financial expert.

5. Make Tax Filing Convenient

   Income tax filing is one of the most dreaded procedures for anyone in the accounting department. It could quickly get confusing with so many laws and provisions to comply with. 

   However, that shouldn’t be an excuse for making errors in tax filing. Even a minor mistake could invite a heavy penalty to your organization. With accounting tool, tax filing gets convenient. 

   It can help organize all your receipts and invoices for you so that tax compliance and tax filing become smoother. In addition, some advanced accounting tool can format invoices automatically to ease accountants’ jobs during tax seasons further.

6. Can Be Integrated With Existing Business Applications

   As you digitize your company processes, you will need solutions that work with each other. Think about having different tools to make your work easier that don’t integrate with each other. Well, that doesn’t sound easy.

   However, most modern accounting tool integrate with your existing business applications. This means your accounting tool receives information from your HR software, spend management software, and so on. 

   As a result, you will never have duplicate entries and have real-time data across all platforms

7. Strengthen Data Security

   Given the rise in cyberattacks, the need for data safety has become more important than ever. In 2020 itself, there were more than 445 million cyberattacks, double that of  2019. 

   Extra security layers, such as two-factor authentication, authorized access, and regular backup, protect today’s online accounting tool. Advanced companies even use additional security measures to protect your data, such as:

   • Encryption
   • Data storage in multiple data centers (to prevent data loss)
   • Protection from phishing attacks via firewalls
   • Extended Validation (EV) SSL

   You can even set up role-based access to ensure only authorized persons access sensitive financial information.

8. Can Be Accessed From Anywhere, Anytime

   Choosing a cloud-based accounting tool gives you the flexibility to work from anywhere. You can access the necessary financial data from anywhere and at any time. All you will need is an internet-connected device. 

   This is great for decision-makers who often travel for business purposes. You will be able to process payments quickly, check a document, create financial reports, and more without even being present in the office. 

   However, make sure that the accounting tool you choose has a mobile app so you can securely log in and view data as and when required.

9. Make Invoicing Easier

   Invoicing is a tedious and time-consuming task. And, if done in a hurry, the chances of errors are high. However, with accounting tool, you can create invoices within minutes. 

   The accounting tools will use the previously recorded data to create the invoice. All you need to do is enter the date and party involved. And the tool will do the rest automatically. 

   This is extremely beneficial as it allows you to quickly send reports to clients (without making them wait for the exact payment details), leading to higher customer satisfaction.

10. Support Expansions with Scalability

    As your business grows, so will your accounts. A lot goes into expanding operations, from adding new employees to onboarding clients. In the traditional bookkeeping system, you will have to hire more accountants to keep things running. 

    However, with an online accounting tools, all you will need to do is upgrade your plan. You won’t have to go through the hassle of finding new software or hiring accountants, for that matter. 

    And not only that. You can even downgrade your plan as and when required. This freedom allows you to keep your small business running smoothly.

Wrapping Up

It is clear that accounting tools are an invaluable asset to small businesses, offering a range of features to help organizations take control of their finances. With the right accounting tool, companies can automate tedious processes, gain insight into customer spending, and make more educated decisions.

If you’re looking for the best accounting tools for small businesses – Vyapar, myBillBook, TallyPrime, and MARG ERP 9+ Accounting are all great solutions. These powerful, feature-rich solutions can help you manage your finances and keep your small business running smoothly. So choose the option that best fits your needs and get started today!