Accounting software is the backbone of any business, small or large. These tools simplify tracking income, expenses, inventory, and all transactions, irrespective of the scale of operations. A few professional accounting software online even include options for automation, thus solving accuracy issues and removing the need for human intervention in bookkeeping. To facilitate seamless transactions, analytics, and reporting for compliance, consider these four best accounting software designed to suit your specific business needs.

QuickBooks
QuickBooks is one of the best accounting software online suitable for freelancers and small-to-midsize businesses. The custom dashboard offers tools for all your accounting, taxation, and reporting needs. Freelancers can benefit from plugins for income and expenses, invoices and payments, mileage tracking, report generation, and managing tax deductions. Supplementary tools for small and midsize businesses include bill management, business funding insights, cash flow management, tracking inventory, live bookkeeping, multichannel commerce, payroll, and tax compliances. Using QuickBooks, you can additionally manage contractors and vendors, generate all kinds of reports, and collaborate with team access. Paid business plans start at just $12.50/month, and freelancer plans are available for $7.50/month.

FreshBooks
This accounting software online is a good alternative if you are in the market for niche tools and customized plugins. FreshBooks offers easy invoicing options for all products sold and services rendered. You can organize your expenses and classify bills categorically in real-time. It is also possible to track the number of hours logged in and automatically transfer the details onto invoices and reports. In addition, you can actively collaborate with the team and sync projects to never miss a deadline. FreshBooks offers a unique feature where the software accepts automatic deposits from clients, generates reports for business and tax compliance, and accounts for every penny that goes through the cash flow. The double-entry accounting system ensures accuracy with inbuilt checks and error reporting. You can also use the mobile app to do all these things on the go. The Lite plans start at just $7.50/month, and custom pricing is also available.

Xero
Xero accounting software online is one of the simpler tools to use for small and midsize businesses. Its user-friendly interface and easy-to-navigate dashboard make accounting, reporting, filing, and compliance easy. You can track and pay bills on time, simplify expense claims, reconcile finances, and accept payments through different channels online. Additionally, it is possible to track the progress of current projects, manage payroll and contacts, capture data of original documents submitted, and use an online filing system to manage information seamlessly. Xero accounting software can also generate different reports, manage inventory, account for multicurrency exchange, track purchase orders, compile sales tax, and analyze all compliance modes to never miss a due date. The plans start at just $5.50/month, making it one of the more affordable accounting software available online.

Wave
Wave is easy to set up and requires minimal training for use. You can track all incomes and expenses, instantly update invoices, customize invoice uploads and receipts, and maintain proper records with periodic reminders. You can also use multiple dashboards efficiently, generate bulk transaction updates for bookkeeping, and export all kinds of accounting reports. The software is highly adept in managing sales tax transactions, accounting for multicurrency exchange, and managing multiple businesses with a single account. Wave also features dedicated software that can take care of all your invoicing needs in a separate dashboard and console. And here is the best part, small businesses can use this software for free!