Top 7 Cloud-Based Accounting Software for Small Business

• Reading Time: 7 Minutes
• Published: September 19, 2022
• Last Updated: February 13, 2025

Small business owners constantly struggle to stay within budget and stay on track with their projects. The amount of time it takes to track expenses and money thrown away is staggering. And even for those who keep things running smoothly, keeping tabs on finances can be challenging. If you run a small business, chances are you’re already aware that using an accountant is expensive. But did you know that using accounting software could help you cut costs? Moreover, using cloud-based accounting software for small business brings more speed and accuracy to business finances. However, small business owners are often sceptical of selecting particular accounting software. In order to tackle this issue, a small business should first analyse its needs and requirements and then choose software that fulfils them.

Popular Cloud-Based Accounting Software Options

It is evident that the right software helps streamline outdated processes, automate routine tasks, and build foundations for financial growth. Here’s a list of popular and affordable cloud-based accounting software for small business that can save a lot of time, energy, and costs for small businesses:

• Zoho Books- The Zoho Books accounting software was started in 2011 to provide accounting and bookkeeping solutions to businesses just starting out. It is one of the best cloud-based accounting software choices for business owners who are just beginning their entrepreneurial journey. The best feature of Zoho Books, which adds to its popularity, is that it is free for businesses with less than 35K GBP annual revenue.
• Xero- It was founded in 2006 in New Zealand and now has over 3 million subscribers all over the world. Accounting software like Xero is the best choice for micro-businesses looking for simple and sorted software. In addition, it commonly integrates well with a third-party payroll service.
• QuickBooks- QuickBooks was launched in 2001 and is one of the first accounting software to adopt the cloud feature. It provides superb tax planning support and easy filing of VAT returns directly to HMRC without leaving QuickBooks. Accounting software like QuickBooks is a clear winner in terms of self-employed accounting software.
• FreshBooks- It was founded in 2004 in Toronto as an invoicing software. FreshBooks is a great choice for service-based businesses, and it offers more customisations as compared to any other accounting software. In addition, it has features that help create and send Making Tax Digital VAT returns.
• Sage- It was founded in 1981 and now has different versions with various plans to suit business needs and requirements. Sage was initially founded to resolve small business accounting issues, but over time, it has covered every type and size of business. It is the simplest and most affordable cloud-based accounting software for small business.
• FreeAgent- It was set up in 2007 and is now being used by over 90,000 small businesses in the UK. The FreeAgent software is free to RBS/NatWest business banking customers. FreeAgent accounting software has won awards like small business accounting software of the year at the 2018 Accounting excellence awards.

The above list specifies certain popular options to choose from. However, a small business can search and select various other options available in the market. A small business owner must ensure that every business function is properly organised, whether it is accounting, bookkeeping, payroll, or any other business process. Small businesses do not have separate or delegated teams or departments to handle each business task. Hence, they rely on cloud-based accounting software for small business and payroll software to streamline accounting, bookkeeping, payroll, and other tasks.

Considering the importance of payroll function, small businesses often use independent payroll software to develop an effective payroll system. Such payroll software can be easily integrated with the existing accounting software used by small businesses. With this, small business owners can track payroll processes along with accounting and bookkeeping. Here’s a list of some amazing payroll accounting software for your small business:

Top Payroll Software Recommendations

• QuickBooks online payroll- This software is designed for small businesses having up to 50 employees. It calculates, processes, and files all payroll tax forms. It offers complete integration with QuickBooks online accounting, eliminating the need to post entries manually.
• Gusto- It offers three payroll plans for small businesses, with all plans offering full-service payroll. In addition, it is an all-in-one HR platform for growing businesses. Gusto offers integration with Xero, FreshBooks, and QuickBooks online and allows the import of payroll transactions into such accounting software.
• SurePayroll- SurePayroll offers the best integration with software like Sage 50, Xero, QuickBooks desktop and online, and AccountEdge. It handles all payroll taxes from report preparation and form filing to payment remittance.
• RUN powered by ADP- This software was created specifically for small businesses with up to 49 employees. It allows easy export of information into your accounting software, eliminating the need for manual processing of journal entries, tax filing, payment remittance, etc.
• Clear Books- It is one of the most flexible online payroll software and allows you to adjust the number of employees as per the subscription at any time without any limits. In addition, it offers powerful features like click-to-pay, allowing employees to save time and pay all at once. It can be easily integrated with Clear Books accounting software.
• OnPay- This software offers payroll services like direct deposits, unlimited monthly pay runs, multiple pay rates, schedules, tax filings, and payments. OnPay can be easily integrated with applications like Xero, QuickBooks Online, QuickBooks desktop, etc.

Final thoughts

Online accounting and payroll software is a great option for small businesses because it allows them to hire a dedicated team without spending much. In addition, it provides greater flexibility and ensures accuracy in the processes. However, choosing the best cloud-based accounting software requires a deep understanding of the business needs and requirements. Therefore, small business owners should analyse essential business aspects and choose the best software.

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