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You’re likely well aware that QuickBooks is the reigning incumbent for accounting and bookkeeping software in the United States. There’s a reason that so many small businesses turn to QuickBooks for their small business needs—it’s easy to use, inexpensive, and QuickBooks training resources for the software abound. But if you’re looking for an alternative to QuickBooks, whatever your reason, great options do exist.
Although there’s plenty working in QuickBooks’s favor—industry dominance, ease of use, and a low price point, for instance—there are some QuickBooks alternatives for small businesses available you might want to consider when you’re thinking about your financials. We’ll examine all of the best QuickBooks alternatives, and compare what they have to offer so you can decide if they’re the right pick for your small business.
But! Before we do, we need to ask what might seem like a simple question. Trust us—it’s important….
Seriously! This might seem silly, but our experts (including, you know, the one behind this post with more than 20 years of experience…) have worked with every kind of small business out there, and we know that this is the most important question to ask before choosing a bookkeeping software suite. And that’s because the answers vary tremendously, which will greatly influence which QuickBooks alternative is best for your small business.
While certain things—like paying taxes—are obviously required of every small business, each business has its own other specific needs. For instance, some businesses rely heavily on invoicing, while others collect all monies due at the point of sale. Some businesses set up payment terms with their vendors and need to track those bills for payment later, while others run everything through the company credit card. For some small businesses, the only business assets are the laptop the owner purchased to run the business, while other small businesses may have extensive fixed assets to track, manage, and depreciate.
Similarly, each business owner has a different style for actually running their business and making business decisions. Some need to know every single detail on a daily basis, while others are perfectly happy only having a big-picture overview once a quarter. Some business owners review financial statements closely before making business decisions. Others look at their bank account and make a decision based on the available balance.
So, before choosing a bookkeeping software….
Think about the following things you might need to do in your business:
There are no “right” or “wrong” answers here. Be honest with yourself and how you want to operate your business. This honesty will help you pick the right solution for your business.
Now that you’ve taken a good look at your business goals and why, exactly, you want bookkeeping software, it’s time to look at some QuickBooks alternatives. Before you settle on an option, make sure your data isn’t “trapped” if you change your mind—that’s why it’s best to investigate several options before making your final decision!
You can usually (although not always) get an Excel or a CSV file of your data should you choose to switch software programs. This will save you from having to spend valuable hours re-entering data by hand.
Sage One is a full accounting package. It produces a balance sheet and allows for bank reconciliations. Starting at just $10/month for Sage One Start, it’s very competitively priced, too.
Need more features than those offered in the $10/month version? You can choose Sage One Accounting for $25/month to unlock unlimited collaboration, quotes and estimates, vendor bill tracking, cash flow forecasts, and the option to choose either cash or accrual basis accounting.
Like Intuit (the maker of QuickBooks), Sage has a wide variety of options for helping you scale your business, including an accountant partner program and its own series of conferences to help you learn, collaborate, and grow.
Like Sage One and QuickBooks, Xero is also a full accounting package. This New Zealand-based company is the industry leader in New Zealand, Australia, and several European countries, too. Built “in the cloud, for the cloud,” Xero has avoided many of the perceived missteps its competitors have made when they transitioned to cloud-based accounting services.
Xero touts itself as “beautiful accounting software,” and, really, it is. Two of the things small business owners love most about this QuickBooks alternative is the simplicity of its interface and its avoidance of accounting and finance jargon. No debits or credits here—just easy-to-understand language that makes it simple to determine what to do with your transactions. The reconcile-as-you-go feature is also a favorite of small business owners, though many accountants and bookkeepers prefer a separate reconciliation function.
Xero has three pricing tiers. If you’re a super-small business, the Starter package at $9/month may work for you. However, most small businesses quickly outgrow this package and move up to the $30/month Standard package. More complex businesses dealing with multiple currencies and larger payrolls need the Premium package, which starts at $70/month.
What started out as an invoicing- and time-tracking software has evolved into a powerhouse for the self-employed. FreshBooks lets you invoice and collect payments from your clients, track your expenses, and collaborate with your subcontractors. It also works with a suite of external applications to help you build a truly customized solution for your business.
If you’re worried about getting stuck on an issue with the software and having to wade through pages of online FAQs to try to solve the problem yourself, don’t be. FreshBooks has excellent customer-service associates who respond quickly to your questions, often replying within an hour.
What FreshBooks does not do is keep a balance sheet. A template is available if you need to create one, but FreshBooks recommends seeking the help of your accountant if this is necessary. This can quickly become a costly endeavor, so if your business needs a balance sheet, FreshBooks is not the right solution for you.
As for price, FreshBooks starts at $15 per month, though most small businesses will need the $25/month plan. There’s also a Premium option available for $50/month, but by the time a business reaches this stage, it will likely need a more robust solution.
Though technically not accounting software, many small businesses use YNAB as though it is. After successfully using it in their personal finances, it didn’t take savvy YNAB users long to determine how to take advantage of the software’s zones of genius—expense tracking, goal setting, and debt management—in their businesses.
YNAB does not have a balance sheet, it doesn’t handle invoicing or payroll, and there isn’t a bank reconciliation feature. But it does have bank syncing, beautiful reporting, and an avid support community to help you form and stick to your goals. At $6.99/month (if paid annually), the price is definitely right.
Interested in substantially increasing the profitability of your business by leveraging your existing habits? This podcast episode tells how you can use YNAB with the “Profit First” method to bring clarity and awareness to your finances and proactively increase your profitability.
Yes, we’re supposed to be talking about QuickBooks alternatives. However, QuickBooks Self Employed is not your traditional QuickBooks software. Designed specifically for the Schedule C filer, this version of QuickBooks has a great mileage tracker, receipt capture, and the ability to classify an expense as either business-related or personal with a quick swipe on your smartphone.
QuickBooks Self Employed does not include a balance sheet, nor does it currently allow you to upgrade to a more robust QuickBooks product. It does, however, allow accountant collaboration, and at $10/month it costs much less than the other QuickBooks Online options.
There are free QuickBooks alternatives available, and many claim to be just as good as subscription-based solutions. Although some business owners use these solutions with good results, free accounting solutions are often lacking in functionality, reliability, user experience, or customer service.
If you choose not to invest in an accounting solution and your business is very small and not complex, your best bet is to use Excel templates to keep track of your business finances. Beginner Bookkeeping has a library of free templates available, as well as explanations of basic bookkeeping principles so you understand how to use the templates.
With these five QuickBooks alternatives, you’ve just barely begun to scratch the surface of what is available to small business owners. These popular alternatives may prove to be a good fit for you, or they may all fall flat. Most accounting software options offer a free trial period —typically 30 days—so you can try on different solutions before you commit to one.
Your data is an important part of your business, and data management can take hours of your time if you choose the wrong solution or set it up improperly. Whatever you decide to use, as always, seek the guidance of an accountant or a bookkeeper to properly set up your software. All of the options listed above have communities of professionals who are either certified in or extensively use the software. Once you have settled on your software, reach out to one of these professionals to help you get off on the right foot.