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Best Accounting Software for Small Retail Businesses of October 2023

If your retail shop uses multiple sales channels, narrow down your choices to products that include the right POS and e-commerce integrations.
Last updated on April 5, 2023
Edited byRyan Lane
Fact checked and reviewed

⏰ Estimated read time: 3 minutes

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Retail accounting software can help you manage inventory, track taxes and sync sales across multiple channels. Which of those channels your business uses will likely determine the best option for you. Have a brick-and-mortar? You'll want accounting software that works with your POS system. If you sell online, make sure your choice integrates with your e-commerce platform.
On top of retail-specific features, look for all the basics you’d want in typical small-business accounting software — think reporting, online bank connections, live customer support and a mobile app.
Here are NerdWallet’s picks for best accounting software for small retail businesses, organized by the capabilities that make them stand out.

Best Accounting Software for Small Retail Businesses

Product
Promotion
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QuickBooks Online

Learn more

on QuickBooks Online's secure website

5.0/5

Best for Retail stores that sell online and in person

$30/month

Additional pricing tiers (per month): $60, $90, $200.

50% off

for first three months or free 30-day trial.

Learn more

on QuickBooks Online's secure website

Xero

Learn more

on Xero's secure website

4.5/5

Best for Access for multiple employees

$13/month

Additional pricing tiers (per month): $37, $70.

30-day free trial

or monthly discount (terms vary).

Learn more

on Xero's secure website

Zoho Books

Learn more

on Zoho Books' secure website

4.0/5

Best for In-house e-commerce website builder

$0

Additional pricing tiers (per month): $20, $50, $70, $150, $275.

14-day free trial

of the Premium plan.

Learn more

on Zoho Books' secure website

Wave Accounting

3.5/5

Best for Free accounting for invoice-based retail businesses

$0

Free (Wave makes money via paid money management products).

N/A

QuickBooks Enterprise

4.0/5

Best for Advanced inventory tracking for larger brick-and-mortar stores

$1,410/year

Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra.

30-day free trial

Our pick for

Retail stores that sell online and in person

QuickBooks Online

Learn more

on QuickBooks Online's secure website

Starting at

$30/month

Additional pricing tiers (per month): $60, $90, $200.

Promotion

50% off

for first three months or free 30-day trial.

Our pick for

Access for multiple employees

Learn more

on Xero's secure website

Starting at

$13/month

Additional pricing tiers (per month): $37, $70.

Promotion

30-day free trial

or monthly discount (terms vary).

Our pick for

In-house e-commerce website builder

Zoho Books

Learn more

on Zoho Books' secure website

Starting at

$0

Additional pricing tiers (per month): $20, $50, $70, $150, $275.

Promotion

14-day free trial

of the Premium plan.

Our pick for

Free accounting for invoice-based retail businesses

Wave Accounting

Starting at

$0

Free (Wave makes money via paid money management products).

Promotion

N/A

Our pick for

Advanced inventory tracking for larger brick-and-mortar stores

QuickBooks Enterprise

Starting at

$1,410/year

Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra.

Promotion

30-day free trial

How to choose retail accounting software

You can use any business accounting software for a retail business. This being said, certain accounting software solutions offer features that are better suited for small retail businesses than others.
The best retail accounting software should help you find opportunities to save money and boost profits. For example, by calculating the cost of goods sold and collecting sales data from your POS system or e-commerce website, your software can help determine which products are most profitable or, on the flip side, not worth producing anymore.
In addition to standard bookkeeping and accounting tools, here are a few important features retail businesses should consider when choosing accounting software:

Inventory management

Inventory is the lifeblood of a retail business, so it's extremely helpful to have inventory management tools integrated within your accounting software.
However, inventory management should expand beyond monitoring the merchandise you have in stock. Along these lines, you’ll want to look for accounting software that can determine:
  • The profitability of each product you sell. 
  • How long your inventory sits on the shelves or in the warehouse before it’s sold. 
  • The rate at which your entire inventory turns in a given period. 
  • Shrinkage due to theft or damage.
Although your POS system might be able to take care of some of these functions, having these inventory tools in your retail accounting software can be more convenient.

Sales tax tools

Most states charge a sales tax, though certain items like medication, food and clothing may be exempt in your state. With the increased impact of online business on sales tax revenues, many states are passing laws requiring out-of-state retailers to collect and remit sales taxes. You’ll want to look for retail accounting software that can track sales taxes due and customize your sales tax rates.

Sales channel integrations

If you have multiple sales channels — both online and offline — it’s important to choose an accounting product that has plenty of integrations with retail POS systems and e-commerce websites. That way, all of your sales data will be centralized in one place. This makes it easier to compare how your business is doing in one sales channel versus another. While browsing integrations, make sure to note whether they come with an additional monthly fee and factor that into your budget.

Payroll integrations

If you have employees operating your retail store, payroll software will be an important consideration. Although payroll isn’t unique to retailers, it’s often one of the biggest expenses these types of businesses incur. Your accounting software should handle your payroll correctly and efficiently, whether it’s through an integration or an in-house payroll product.
A version of this article was first published on Fundera, a subsidiary of NerdWallet.
Last updated on April 5, 2023

Methodology

NerdWallet’s accounting software ratings favor products that are easy to use, have a robust feature set and can grow with your business. Ratings are based on weighted averages of scores in several categories, including scope of features and integrations, customer support and cost, among others. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. Simplicity doesn't always translate into ease of use. Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one.
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