Research Great Online Accounting Software Small Businesses Need
Introduction
You didn’t start your freelance editing business because you love spreadsheets and tax prep. But you do want to get paid, stay out of trouble, and make smart financial decisions.
With so many options for online accounting software small businesses need, it’s easy to feel overwhelmed—or worse, to put it off entirely.
What’s the good news? You don’t need a CPA, a finance degree, or even matching socks. You just need the right tool to take the stress out of managing your money. We did some research for you.
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Alt Text: “Small business owner using cloud-based accounting software on a laptop in a bright home office.”
Concept: Simple, tech-savvy business management for real life
Why Online Accounting Software Matters for Small Businesses
When your finances are organized, you can do these things:
- Make decisions with confidence.
- Send invoices on time (and actually get paid).
- Avoid tax-time panic attacks.
- Spend more time earning instead of scrambling.
The right software can save you hours each month and give you the clarity of a real CEO, even if you’re also homeschooling, breastfeeding, or reheating your coffee for the third time today.
What to Look For in Online Accounting Software
Ease of Use
You shouldn’t need to learn accounting just to send an invoice. Look for clean interfaces, intuitive dashboards, and tools built for people who are not bookkeepers—unless you are a bookkeeper. In that case, ignore complexity and obtain access to whichever program you like.
Invoicing and Payment Integration
Send branded invoices, accept online payments, and track who still owes you, without chasing people manually.
Bonus: Some tools offer automatic reminders so you don’t have to be the bad guy.
One of our members said, “A few clients have contacted me to say they saw the automated reminder from QuickBooks and that they’d get that paid ASAP. I didn’t even know that they were due to make a payment yet. I love being able to just serve my clients and allow the software to be my Accounts Receivable Department.”
Expense Tracking and Receipt Scanning
Stop letting receipts pile up in the bottom of your bag. Good software will categorize expenses, attach receipts, and help you stay tax-ready all year long. A receipt scanner can be a Godsend, even though the price tag seems hefty. When you realize how much time it will save you, even the most expensive one is a bargain. Check out this receipt scanner that works with QuickBooks Online. This receipt scanner has a much lower price point and says it has ScanSmart AI PRO Receipt Management & PDF Software for PC & Mac.
Reports and Tax Readiness
Your software should make it easy to do all of this:
- Generate profit and loss reports.
- Track deductible expenses.
- Estimate quarterly taxes (without guessing).
Pricing and Scalability
Start with what fits your current business. Upgrade only when you actually need more.
Many tools have free tiers or low-cost plans for solopreneurs.
Top Online Accounting Software Small Businesses Should Look At
Wave Accounting
- Best for: Freelancers, solo service providers, and new businesses
- Why it rocks: It’s free! It has a clean interface, strong invoicing, and solid receipt tracking. You can give your bookkeeper access and you can access it anywhere you have internet.
- Limitations: Fewer integrations and advanced features
QuickBooks Online
- Best for: Growing businesses, multi-client service providers
- Why it rocks: Deep features, tax prep tools, bank syncing, and nearly universal integrations
- Limitations: Pricier and has a steeper learning curve
FreshBooks
- Best for: Coaches, consultants, and creative service providers
- Why it rocks: Beautiful invoices, time tracking, and client communication tools built in
- Limitations: Some plans charge per client
Xero
- Best for: Businesses with inventory or growing teams
- Why it rocks: Clean design, strong reporting, inventory tracking, and payroll options
- Limitations: Less U.S.-focused than QuickBooks or FreshBooks
Zoho Books
- Best for: Entrepreneurs already using other Zoho tools
- Why it rocks: All-in-one ecosystem, strong mobile app, and automation features
- Limitations: Not as intuitive for total beginners
How to Choose the Right Platform for Your Business
- Start with your needs: Invoicing? Tax tracking? Profit clarity?
- Use free trials: Try before you commit.
- Look at where you’re going: Will this platform grow with you, or will it box you in?
- Ask yourself: “Will this help me spend less time managing money and more time making it?”
Conclusion
The best online accounting software small businesses can use isn’t the one with the fanciest features.
It’s the one you’ll actually open, use, and benefit from, whether you’re working from a desk, a kitchen table, or a pile of laundry.
Run your business like a pro, even if you’ve got a toddler on your hip and cereal in your hair.
TL;DR:
Online accounting software small businesses can rely on should save time, reduce stress, and support growth.
Start small, stay consistent, and pick the tool that fits your workflow.
5 FAQs for Online Accounting Software Small Businesses Need
Q: Do I really need accounting software, or can I just use a spreadsheet?
A: You can start with a spreadsheet—but software will save you time, automate tasks, and help you stay organized, especially at tax time.
Q: What’s the best software for a brand-new freelancer?
A: Wave is a great free option with all the essentials, especially for service-based businesses.
Q: Can I switch platforms later if I start with a free or basic tool?
A: Yes—most platforms let you export your data, though it’s easier to start with one that can scale as you grow.
Q: Do I have to link my bank account to use these tools?
A: You don’t have to, but syncing your account saves time and improves accuracy. It’s safe with reputable platforms.
Q: Can accounting software help me track tax deductions automatically?
A: Absolutely—many tools categorize expenses and generate reports you or your accountant can use for taxes.
Call to Action
Tired of cobbling together spreadsheets or guessing at taxes? Explore your options for online accounting software small businesses trust, and pick one that supports your real life and real goals.
If you want to have conversations with grownups who know what you’re going through as you build and run your freelance editing business, join the Editors School Classroom. There, we talk about online accounting software small businesses need and a thousand other things—and we’ll give you time to grab a hot cup of coffee.