Are you looking for the best free accounting software for your business in 2022? Then, you've come to the right place! This blog post will share our top picks for the best free accounting software and explain why each one is a great choice for small businesses. We'll also provide a few tips on choosing the right accounting software for your business.
When it comes to accounting software, there are many different options to choose from. But which one is the best for your business?
In this blog post, we'll look at some of the best free software options available in 2022 and what they have to offer. Whether you're just starting or looking for an alternative to your current software, these programs can help streamline your accounting process.
If you're looking for the best free accounting software for your business, you've come to the right place. This article will share our picks for the top five free accounting programs of 2022.
This blog post will outline the best free accounting software for 2022 and briefly review each program. Whether you are just starting or have been using accounting software for years, this list will be sure to include an option that meets your needs.
So, without further ado, let's jump into the best free accounting software for 2022!
Let's get started!
The Importance Of Accounting Software
What exactly do we mean when we talk about accounting software? Accounting software is a collection of computer applications that, when used together, can assist businesses in automating certain bookkeeping and accounting operations, such as the creation of invoices and the monitoring of expenses.
Accounting for small businesses, including appropriate bookkeeping, management of cash flow, management of invoices and inventories, and management of inventory, is vital to the life and financial success of your firm. However, many owners of small businesses find accounting procedures time-consuming and difficult to understand, particularly those who have no prior experience in the field of financial administration.
The correct accounting system can be the most valuable tool in the arsenal of a small business owner. Whether you handle the financial aspects of your company's accounting on your own or you have employees who are solely responsible for that function, accounting software might be beneficial to your company. Accounting software can assist you with a variety of activities, including the following:
- Bookkeeping
- Reconciling bank accounts
- Invoicing, processing payments, and paying bills (such as credit cards and vendors)
- Time tracking
- Completing payroll for onsite employees, freelancers, and others
- Tracking sales and sales tax
- Recording expenditures
- Managing cash flow
- Generating financial reports (such as balance sheets and income statements)
Accounting software enables small enterprises to make more effective use of their resources, which are sometimes restricted. You'll be able to boost the efficiency of your small business just by investing in some accounting software.
It would be in your best interest to prioritise the hours of your staff members on business development, production, and other crucial responsibilities. You will also be able to reduce the amount of time spent studying bookkeeping, managing time tracking, chasing down payments, or fighting with inventory management.
Accounting software designed for small businesses can have an effect on the bigger picture, but it also has a direct impact on the financial aspects of your company:
- It is possible for it to bring your books up to date.
- Because automated invoicing and payment processing make it simpler to track what customers owe, it is possible for this to lead to improvements in payment collection rates.
- It is possible for it to eliminate errors resulting from missed transactions, improper reporting, and miscalculations.
- It is able to generate financial reports and paperwork with a higher degree of precision.
- It may result in cost savings.
- It makes it easier to compute and file business taxes.
- It is possible to optimise tax deductions, which will result in bigger savings. In addition, the QuickBooks mobile app allows you to keep digital copies of receipts for spending and monitor mileage.
Because of its many advantages, accounting software is an instrument that cannot be ignored if you want to increase the productivity of your small business (and with fewer headaches).
How to Pick an Accounting Program
Because there are so many different alternatives available for accounting software, it is not always easy to find your way through the seemingly infinite sea of choices. The piece of accounting software that fulfils all of your organization's requirements is going to be your finest bet.
Reviewing the aforementioned considerations will help you select the most suitable accounting software for your company in the event that you are contemplating utilising one for your company.
- Features: There is a wide variety of accounting software available. When evaluating systems, one of the most crucial considerations to make is which specific accounting functionality each of the programmes offers. For instance, does the programme take care of the majority of the accounting responsibilities, such as bookkeeping, bank reconciliation, expense monitoring, and accounts receivable?
Your programme allows you to issue purchase orders, but it also allows you to send payment reminders. Is it possible to integrate it with the other tools that your company uses? Keep in mind that many companies that provide accounting software offer tiered packages, which give you the ability to enhance the number of functions given by the software for a larger fee.
- User-friendliness: The perception that accounting software is complicated to use is one of the primary reasons that owners of small businesses avoid purchasing it. You want the accounting software you use to be straightforward and simple to use so that you can rapidly incorporate it into your business model and get your staff up to speed with minimal effort. Accounting software that is designed to be user-friendly should be well-organized, intuitive, and equipped with support for anything that is difficult for the user to figure out on their own.
- Affordability: Regardless of whether you are looking for enterprise resource planning (ERP) assistance or bookkeeping software, one of the most significant aspects of any technology that you are going to onboard your small business is the cost.
When searching for new accounting software, it is important to take into account the total price of the programme (whether it is a one-time payment, a monthly fee, or some other type of pricing plan), and to evaluate whether or not the expenditure is within your financial means.
Don't forget to factor in the total value of the particular programme as well as the fact that you and your accounting team will be able to save time by using it. This will be an important consideration.
You are the only person who can decide which accounting method will work best for your company. First, determine what your top priorities are, such as a low monthly membership charge or an all-encompassing solution, and then filter down your choices accordingly.
Find online accounting software that offers you the greatest value (has the most helpful features to fulfil your business demands) for the most affordable price. This will be your best option.
There is an abundance of software that can solve your problems. Companies that are well-known in the field of accounting software include:
- QuickBooks
- FreshBooks
- Sage
- Wave
- Xero
- Gusto
- Zoho Books
- Kashoo
- NetSuite
- Addon
- Sage 50cloud
There is no single accounting system that is superior to all others. You can find out which accounting management software is the most suitable for the requirements of your team by using our comparison directory to compare and contrast the various accounting solutions side-by-side.
Choosing Accounting Software: Things to Think About
When selecting the accounting software that will best serve the needs of your small business, keep the following things in mind:
1. Are the features that you require present?
How much assistance do you require with the operations of your accounting? Do you have little to no experience with accounting, or do you require further assistance to get your eCommerce business up and running?
Streamlining bookkeeping, managing invoices and payments (including automated invoicing, for example), and running regular financial reports are all possible goals that can be accomplished with the help of basic accounting software.
If, on the other hand, your needs go beyond that, such as entirely revamping the accounting procedures of your small business or adjusting your strategy as a result of inadequate cash flow management, you will require a more sophisticated solution to meet your requirements.
A software programme such as QuickBooks Online is capable of effectively performing the same tasks as an accounting staff (and possibly even your payroll services).
2. Is the software user-friendly?
Whether you or a group of employees working with the software, there will be a learning curve associated with the implementation of new software in your company. This will demand time and effort to understand the software. There is no getting around the fact that some computer programmes are naturally simpler to comprehend than others. This is a fact that cannot be refuted.
Comprehending the financial data of your firm is already a challenging task; accounting software ought to make this endeavour simpler, not more challenging. Unfortuitously, some programmes can be extremely complicated, with a muddled interface that is difficult to understand, and unnecessarily advanced functions.
The finest accounting software for small businesses puts an emphasis on providing an exceptional user experience. This means that the software is simple to use, has features that are clearly labelled and structured, and is not difficult to master. QuickBooks Online features a user-friendly interface that has a well-deserved reputation for being relatively simple to master because it was developed with the user in mind from the start.
3. Is it accessible?
Accounting software that may only be installed on one machine at a time is out of date. On the other hand, if you use modern online accounting software that enables you to save all of your data in the cloud, then you will always have access to the relevant financial information whenever you need it.
Anyone on your staff (if they have the sign-in credentials), including your CPA, will be able to utilise the programme on any device if it is cloud-based accounting software. In addition to being hosted in the cloud (and hence accessible from any location with internet access), the majority of the available choices for online accounting software also come with mobile apps. For instance, both iOS and Android users can download the QuickBooks Online app.
This could be useful for working while travelling, getting ready to give a presentation to potential investors, or simply keeping an eye on the current accounting state of your small business at all times. When you have access to an easy-to-use accounting system, you may feel at ease at any time and in any location, regardless of where you are.
4. What integration features does the software offer?
You should seek accounting software that is able to link with a variety of different tools in order to further reduce the amount of time it takes and get the most out of automation.
If you use accounting software that is integrated with invoicing and project management systems, you will spend less time manually entering data and transferring information across systems, reducing the likelihood of making errors due to human intervention.
Find out if the accounting software you're considering can be synchronised with your financial information as well as with tools for commerce and transactions like Square before making a purchase decision.
5. How safe is the service?
Cybersecurity is of the utmost importance for companies of all sizes, but especially for those organisations that take online payments. The financial information of both the company and its customers is extremely sensitive, and only the most reliable programmes should be trusted with it.
Checking the data security of any potential software is a vital step in the evaluation process. This is important for a variety of reasons, including safeguarding payment information for customers and maintaining the confidentiality of your company's financial standing.
When you use this platform, how can you ensure that the connection, as well as the data you transmit and save, will be safe? Ask about it if you don't see it stated in their benefits or features, since businesses who realise the importance of this priority will make information regarding cybersecurity very easy to reach.
For instance, all of the information stored within Intuit QuickBooks Online is encrypted with 128-bit SSL and is automatically backed up.
6. Is there a trustworthy method of providing support to customers?
Let's face it: acquiring new software can be tough for anyone, regardless of how proficient they are in technology. It is essential to determine whether or not there is convenient access to customer support for any new product or service, but especially for those that have the potential to severely affect your company.
It's possible that you have a query regarding a certain function, that you're having trouble connecting your bank account and other apps, or that you'd like to look for a tutorial. Regardless, you want to make sure that any support that you might require is available before the event (before you run into an issue that halts your workflow).
7. Do you think you'll be able to afford it?
It is essential to maintain financial discipline when running a small company. However, receiving assistance with accounting should not be kept solely for companies that have large budgets and are able to engage a team of skilled professionals. One advantage of using accounting software is that it provides a more time- and money-efficient method of completing bookkeeping and accounting responsibilities.
Although there are possibilities for free accounting software, these programmes often do not provide the extensive functionality or accounting tools that are necessary for owners of businesses to address their accounting requirements.
When contemplating new expenditures, regardless of how vital they may be, it is prudent to be certain that the product in question represents a fair expense that you can easily manage from month to month without putting your financial security at risk.
After all, accumulating credit card debt is the last thing you want to do and should try to avoid at all costs. Accounting software designed specifically for small businesses is most likely going to be one of the more manageable costs on your list; nonetheless, services may quickly add up to significant sums of money, so you'll want to make sure you spend wisely.
After you have obtained information on the cost of the programme in the form of a standard price, tiered pricing plan, or a custom estimate, you should examine all of your available choices in order to determine where you will receive the best deal. What exactly do you mean by that? Please take into account everything that has been said thus far and evaluate it in relation to the cost.
You have located the most beneficial accounting software for your small company if the investment is worthwhile.
The Best Accounting Software — Top Picks In 2022
1. QuickBooks Online — automated accounting software
Bookkeeping, tracking of expenses and sales tax, as well as invoicing and other aspects of accounting, may all be handled with the help of the all-inclusive automated accounting software for small businesses known as Quickbooks.
Quickbooks pros
Quickbooks lets you:
- Streamline the process of entering transactions through the use of automation,
- Carry out the necessary tax calculations,
- Keep an eye on your costs and invoices, as well as set up recurring payments, and
- Make invoices and require your commercial customers to pay you directly through PayPal, their debit or credit card, or credit card.
A standout feature of QuickBooks is its ability to assist you in defining estimates and quotes for your customers in a straightforward manner. Subsequently, once an estimate is accepted by a customer, the software will transform the estimate into an invoice, and you will be able to monitor its progression.
Available for: Web, Windows, Mac, Linux, iOS, Android, Google Chrome
Market: United States, Canadian, UK (with support for South African and Irish VAT), Australia
2. Zoho Books — all-in-one accounting software
Zoho Books is a good choice for companies who require more than simple accounting software to run their operations. Using this application, you will be able to concentrate on the tasks you work on on a daily basis without having to worry about processes such as accounting, monitoring of time, and overall organisation.
Zoho Books pros
Zoho Books lets you:
- Make appointments for reports,
- Keeping track of financial papers and attaching them to transactions
- Maintain continuous communication with your team members and the accountants,
- Record the amount of time spent on each task, and
- Make invoices with online payment options and send them to customers.
In addition, Zoho Books provides its customers with an integrated customer interface that enables them to monitor their financial transactions and organise their bank records according to their own preferences.
Available for: Web, iOS, and Android
Market: Global
3. Clockify — free time management application for accountants
Clockify is a free tool for tracking time and keeping timesheets. It also monitors billable hours for the purposes of payroll, bills, and taxes.
You give your customers or staff the instruction to determine their hourly rates, and after that, they use a timer to keep track of the amount of time that they spend working on various chores (or add it manually after work).
You can view all of their earnings by looking at their reportable time, which is used in the automatic calculation of their total earnings. They can achieve the same result by entering their time in a timesheet view as an alternative.
In either case, you will obtain the numerical information necessary to generate invoice documentation as well as payroll and tax computations, all while maintaining compliance with the standards of the FLSA and the DCAA.
Clockify pros
Clockify lets you:
- Keeping track of time using a timer, adding it by hand or entering it into a timesheet,
- Time that can be billed and time that cannot be billed,
- A monitoring and planning tool, as well as project visualisation,
- A powerful filtering system that allows for precise and accurate reporting,
- A straightforward method for classifying your time entries in accordance with these criteria, as well as
- There are four distinct varieties of hourly rates, ranging from those that are less explicit to those that are more specific.
In addition, you'll have the ability to edit your billable and non-billable time entries in bulk, as well as lock time entries after a given period (so that your documentation remains consistent), and you'll be able to lock time entries after a specific period.
Available for: Web, Windows, Mac, Linux, iOS, Android, Google extension, Firefox extension
Market: Global
4. Freshbooks — cloud-based accounting software
The accounting software known as Freshbooks is hosted in the cloud and acts primarily as an app for invoicing and bookkeeping. It also enables users to manage payroll.
Freshbooks pros
Freshbooks lets you:
- Make personalised invoices online, then copy & paste them when necessary.
- Send send thank you messages with your own personal touches,
- Don't forget to attach and send out the receipts!
- Handle information pertaining to credit cards, accept payments via electronic means, and
- Keep an eye on both your profit and your loss.
You will also be able to specify due dates for payments and keep track of late fees. Customers who do not pay their fees on time will receive a courteous automatic reminder to pay them as soon as they are able to do so.
Available for: Web, Mac, iOS, Android
Market: Global
5. Wave Accounting — invoicing and payroll software
Let's say you're looking for an inexpensive accounting solution like QuickBooks or FreshBooks, but you'd prefer to use something that doesn't cost you anything. In such a scenario, you might want to consider using Wave Accounting, which provides a card processing and payroll management app in addition to being a cost-effective invoicing and accounting programme.
Wave Accounting pros
Wave Accounting lets you:
- Take care of invoicing,
- Maintain a record of your transactions, investments, and costs.
- Manage the most fundamental aspects of financial reporting,
- Maintain a close eye on your money, including your cash balance and the status of any outstanding invoices for customers, and
- Please scan the receipts.
In general, the app is a useful tool that can solve problems for smaller companies.
Wave Accounting allows you to connect bank accounts with credit cards, which is perhaps the system's biggest feature. The software also lets you to accept and process payments from any credit card, making it possible for it to handle all client payments automatically.
Available for: Web, Windows, iOS, Android, Google Chrome
Market: Global
6. Kashoo — simple accounting app for small businesses
Recently, Kashoo has emerged as one of the most popular programmes for sole proprietorships and other small enterprises. This accounting software has a user-friendly interface and features that are simple to operate. It also has built-in safeguards that ensure that your figures are always accurate.
Kashoo pros
Kashoo lets you:
- Send out invoices and keep tabs on your spending,
- Connect numerous users,
- Personalise the CoA (chart of accounts), as well as.
- Keep tabs on the sales tax.
Kashoo has had significant growth in 2022, and its expansion is anticipated to surge in the years that will follow. This growth may be attributed to the company's user-friendly and cost-effective pricing structure.
Available for: Web, iOS
Market: Global
7. Sage Accounting — accounting and business management software
You will also be able to track payments and costs, make automatic reminders for payments and other vital information, generate reports, and track statistics with Sage Accounting, which is business and accounting software primarily geared towards small enterprises.
Sage Accounting pros
Sage Accounting lets you:
- Invoicing,
- Management of compliance requirements and accounting,
- Electronic payments,
- Analysis of finances, as well as
- The importing and exporting of data
Let's say you're the owner of a medium-sized company and you're wanting to improve the efficiency of your accounting procedures. In such situation, you might want to look into Sage 50 Accounting, which is also known as Sage 50cloud. This particular Sage accounting system provides a collection of payroll and accountancy solutions that include features that are designed to appeal to customers in various parts of the world.
Sage 50 Pastel for South Africa, Sage 50 for the United Kingdom, a version for the United States that was once known as Peachtree Accounting, a version for Canada that was formerly known as Bedford Accounting, and so on are all included in these Sage Packages.
Available for: Web, Windows, Mac, Android, iOS
Market: Australia, US, UK, Canada, France, South Africa, Ireland, Spain
8. Odoo — CRM, project management, and accounting software
One of the most popular options for huge companies that need a solution that can do multiple functions is Odoo. It is free software that manages customer relationship management (CRM), project management (PM), accounting (accounting), scheduling (scheduling), and timesheets (timesheets).
Odoo pros
Odoo lets you:
- Show the workers the worksheets, and keep them informed during operations.
- Take care of your accounting needs and your invoices.
- Maintain order among your incoming and outgoing email traffic, and
- Completely compatible and compatible with other programmes.
Available for: Linux, Windows, iOS
Market: Global
9. Xero — traditional online accounting software
Xero is a piece of online accounting software that is hosted in the cloud and is free to use for small and medium-sized enterprises. It makes it simple to keep track of financial transactions and to run a company.
Xero pros
Xero lets you:
- Invoices on a recurring basis should be created, processed, and sent out.
- You need to get all of your transactions related to your credit card organised and categorised.
- In order to effectively manage your financial flow, precisely schedule your payments.
- Calculate payroll and manage subsequent taxes, and
- Take care of managing your separate forms.
One of the most significant features of this software is that it is tailored to the requirements of freelance accountants. With this app, you will be able to work with an infinite number of clients, as well as benefit from robust data encryption and different authentication methods.
Available for: Web, Mac, iOS, Android
Market: US, UK, Australia, Canada