Best Business Software of April 2026
We looked at more than 125 business software products. We chose the top contenders in a variety of categories. That includes accounting, payments, payroll, invoicing and inventory management.
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Already know which type of business software you need?
Explore our more specialized roundups below:
Xero
Best for Accounting
Starting at
$25/month
Additional pricing tiers (per month): $55, $90.
Promotion
90% off
for 6 months.
Learn more on Xero's website
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
Square
Best for Payments
Payment processing fees
In-person: 2.6% + $0.15
Online: 3.3% + $0.30
Online: 3.3% + $0.30
Monthly fee
$0
for Free plan; $49 Plus plan; $149 Premium plan.
on Square's website
Pros
- Offers a free mobile card reader and free POS software plan.
- Can subscribe to related services, such as payroll, that integrate with its POS system.
- No termination fees or long-term contracts.
- No chargeback or PCI compliance fees.
Cons
- Complex businesses might prefer a processor that integrates with more specialized POS systems.
- Free plan processing rates are more expensive than competitors.
Zoho Invoice
Best for Invoicing
Starting at
$0
Free.
Promotion
N/A
on Zoho Invoice's website
Pros
- Send up to 500 invoices per year for free.
- Portal lets clients pay invoices and view their transaction history.
- Payment gateway integrations include Stripe, PayPal, Square and more.
- Photograph receipts and attach them to expense reports.
- Free invoice app for iOS lets you add a timer widget to your home screen, send invoices via iMessage and add new contacts by taking photos of their business cards.
Cons
- Limited third-party integrations outside of other Zoho products and QuickBooks Online.
Zoho Inventory
Best for Inventory management
Starting at
$0
Additional pricing tiers (per month): $39, $99, $159, $299.
Promotion
14-day free trial
on Zoho Inventory's website
Pros
- Sync inventory across multiple online sales channels. Other integrations include Zoho Books and QuickBooks Online for accounting.
- Free plan includes invoice customization, shipping labels, backorders and item bundling.
- Free barcode, purchase order and shipping label generators.
- Mobile app available for iOS and Android.
Cons
- Free plan caps users at one, purchase orders at 20 and sales orders at 50.
Gusto Payroll
Best for Payroll and HR
Starting at
$49/month
Additional pricing tiers (per month): $80, $180. Fee per employee varies by tier.
Promotion
1 months free
on Gusto's website
Pros
- Benefits administration (health benefits are available in 38 states and Washington, D.C.; 401(k) plans are available in all 50 states).
- Time-tracking features at higher-price tiers (limited at Simple level).
- Certified HR experts available (at the Premium level).
- Free account setup.
- Next-day direct deposit (at Plus and Premium levels).
Cons
- More expensive than some options.
- Limited hours for live support.
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Default Xero
Best for Accounting
Starting at
$25/month
Additional pricing tiers (per month): $55, $90.
Promotion
90% off
for 6 months.
on Xero's website
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
Xero has a competitive price point and a simple user interface. But it doesn’t skimp on features. That makes it a solid accounting pick for most small businesses.
Xero has many of the same features as QuickBooks Online, the industry standard in accounting. That includes dozens of reports, hundreds of integrations and detailed transaction categorization. But it’s less expensive.
Xero’s plans range from $25 to $90 per month. QuickBooks Online’s plans range from $38 to $275. That’s a big reason why we chose to highlight Xero over QuickBooks in this roundup.
We also like Xero’s clean layout. Bookkeeping tasks can be overwhelming for new business owners. So the simpler the interface, the better.
Xero stands out for allowing unlimited users in every subscription tier, too. That’s an especially valuable feature for businesses that need to give multiple users access to the system. Competitors’ plans limit how many users you can add. Or they charge an additional monthly fee for each one. If you have a large team, those costs can add up quickly.
If you appreciate simplicity and don’t want to dedicate much time to learning how to navigate a product, Xero is a great choice. If you need mileage and time tracking, you’ll need to subscribe to the highest-tier Established plan.
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
Xero has a competitive price point and a simple user interface. But it doesn’t skimp on features. That makes it a solid accounting pick for most small businesses.
Xero has many of the same features as QuickBooks Online, the industry standard in accounting. That includes dozens of reports, hundreds of integrations and detailed transaction categorization. But it’s less expensive.
Xero’s plans range from $25 to $90 per month. QuickBooks Online’s plans range from $38 to $275. That’s a big reason why we chose to highlight Xero over QuickBooks in this roundup.
We also like Xero’s clean layout. Bookkeeping tasks can be overwhelming for new business owners. So the simpler the interface, the better.
Xero stands out for allowing unlimited users in every subscription tier, too. That’s an especially valuable feature for businesses that need to give multiple users access to the system. Competitors’ plans limit how many users you can add. Or they charge an additional monthly fee for each one. If you have a large team, those costs can add up quickly.
If you appreciate simplicity and don’t want to dedicate much time to learning how to navigate a product, Xero is a great choice. If you need mileage and time tracking, you’ll need to subscribe to the highest-tier Established plan.
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
Pros
- Offers a free mobile card reader and free POS software plan.
- Can subscribe to related services, such as payroll, that integrate with its POS system.
- No termination fees or long-term contracts.
- No chargeback or PCI compliance fees.
Cons
- Complex businesses might prefer a processor that integrates with more specialized POS systems.
- Free plan processing rates are more expensive than competitors.
We typically recommend using the same product for your payment processing and POS needs. Square is a jack of all trades in both. Its free POS software and inexpensive hardware means it has a low barrier to entry. Plus, it has industry-specific features for businesses in professional/personal services, retail and food/beverage. This makes it especially versatile.
Square is also easy to use. Employees and customers alike are typically familiar with its interface.
The downside is Square’s Free plan processing rates. They’re not high enough for us to rule the product out. But they are more expensive than some competitors. The plan charges 2.6% plus 15 cents per in-person transaction and 3.3% plus 30 cents per online purchase.
That said, Square’s free POS features might make it worth it. The Free plan gives you access to online ordering, invoicing, sales reports and low-stock alerts among other features.
Pros
- Offers a free mobile card reader and free POS software plan.
- Can subscribe to related services, such as payroll, that integrate with its POS system.
- No termination fees or long-term contracts.
- No chargeback or PCI compliance fees.
Cons
- Complex businesses might prefer a processor that integrates with more specialized POS systems.
- Free plan processing rates are more expensive than competitors.
We typically recommend using the same product for your payment processing and POS needs. Square is a jack of all trades in both. Its free POS software and inexpensive hardware means it has a low barrier to entry. Plus, it has industry-specific features for businesses in professional/personal services, retail and food/beverage. This makes it especially versatile.
Square is also easy to use. Employees and customers alike are typically familiar with its interface.
The downside is Square’s Free plan processing rates. They’re not high enough for us to rule the product out. But they are more expensive than some competitors. The plan charges 2.6% plus 15 cents per in-person transaction and 3.3% plus 30 cents per online purchase.
That said, Square’s free POS features might make it worth it. The Free plan gives you access to online ordering, invoicing, sales reports and low-stock alerts among other features.
Pros
- Offers a free mobile card reader and free POS software plan.
- Can subscribe to related services, such as payroll, that integrate with its POS system.
- No termination fees or long-term contracts.
- No chargeback or PCI compliance fees.
Cons
- Complex businesses might prefer a processor that integrates with more specialized POS systems.
- Free plan processing rates are more expensive than competitors.
Zoho Invoice
Best for Invoicing
Starting at
$0
Free.
Promotion
N/A
on Zoho Invoice's website
Pros
- Send up to 500 invoices per year for free.
- Portal lets clients pay invoices and view their transaction history.
- Payment gateway integrations include Stripe, PayPal, Square and more.
- Photograph receipts and attach them to expense reports.
- Free invoice app for iOS lets you add a timer widget to your home screen, send invoices via iMessage and add new contacts by taking photos of their business cards.
Cons
- Limited third-party integrations outside of other Zoho products and QuickBooks Online.
We usually recommend using your accounting software’s built-in invoicing features if possible. If you need dedicated invoicing software, though, Zoho Invoice is a smart choice. It’s comprehensive yet easy to use. And best of all, it’s free.
You can use Zoho Invoice to keep track of hours, expenses and inventory items on a variety of projects. When work is complete, you can send highly customizable invoices to customers. The software will also email automated reminders to customers. That way, you don’t have to deal with late payments. Other features include a customer portal, invoicing reports and quotes.
Zoho Invoice integrates seamlessly with a variety of other programs in the Zoho ecosystem as well. For example, there’s Zoho Books for accounting, Zoho CRM for customer relationship management and Zoho Marketing for targeted campaigns.
Pros
- Send up to 500 invoices per year for free.
- Portal lets clients pay invoices and view their transaction history.
- Payment gateway integrations include Stripe, PayPal, Square and more.
- Photograph receipts and attach them to expense reports.
- Free invoice app for iOS lets you add a timer widget to your home screen, send invoices via iMessage and add new contacts by taking photos of their business cards.
Cons
- Limited third-party integrations outside of other Zoho products and QuickBooks Online.
We usually recommend using your accounting software’s built-in invoicing features if possible. If you need dedicated invoicing software, though, Zoho Invoice is a smart choice. It’s comprehensive yet easy to use. And best of all, it’s free.
You can use Zoho Invoice to keep track of hours, expenses and inventory items on a variety of projects. When work is complete, you can send highly customizable invoices to customers. The software will also email automated reminders to customers. That way, you don’t have to deal with late payments. Other features include a customer portal, invoicing reports and quotes.
Zoho Invoice integrates seamlessly with a variety of other programs in the Zoho ecosystem as well. For example, there’s Zoho Books for accounting, Zoho CRM for customer relationship management and Zoho Marketing for targeted campaigns.
Pros
- Send up to 500 invoices per year for free.
- Portal lets clients pay invoices and view their transaction history.
- Payment gateway integrations include Stripe, PayPal, Square and more.
- Photograph receipts and attach them to expense reports.
- Free invoice app for iOS lets you add a timer widget to your home screen, send invoices via iMessage and add new contacts by taking photos of their business cards.
Cons
- Limited third-party integrations outside of other Zoho products and QuickBooks Online.
Zoho Inventory
Best for Inventory management
Starting at
$0
Additional pricing tiers (per month): $39, $99, $159, $299.
Promotion
14-day free trial
on Zoho Inventory's website
Pros
- Sync inventory across multiple online sales channels. Other integrations include Zoho Books and QuickBooks Online for accounting.
- Free plan includes invoice customization, shipping labels, backorders and item bundling.
- Free barcode, purchase order and shipping label generators.
- Mobile app available for iOS and Android.
Cons
- Free plan caps users at one, purchase orders at 20 and sales orders at 50.
Inventory management software can be especially expensive — even more so than accounting software. It’s not uncommon for intro plans to cost more than $300 per month. That’s not the case with Zoho Inventory. It tops our list because it offers a free plan with a decent set of features.
You can use it to process 50 sales orders per month and track items from up to two locations. It lets you run inventory reports and integrate with one Shopify store too. If you find that you need more features, upgrading isn’t a problem.
Zoho Inventory has four paid plan options. And they scale up according to the number locations, orders and bills. That means you don’t have to pay for what you don’t need.
Pros
- Sync inventory across multiple online sales channels. Other integrations include Zoho Books and QuickBooks Online for accounting.
- Free plan includes invoice customization, shipping labels, backorders and item bundling.
- Free barcode, purchase order and shipping label generators.
- Mobile app available for iOS and Android.
Cons
- Free plan caps users at one, purchase orders at 20 and sales orders at 50.
Inventory management software can be especially expensive — even more so than accounting software. It’s not uncommon for intro plans to cost more than $300 per month. That’s not the case with Zoho Inventory. It tops our list because it offers a free plan with a decent set of features.
You can use it to process 50 sales orders per month and track items from up to two locations. It lets you run inventory reports and integrate with one Shopify store too. If you find that you need more features, upgrading isn’t a problem.
Zoho Inventory has four paid plan options. And they scale up according to the number locations, orders and bills. That means you don’t have to pay for what you don’t need.
Pros
- Sync inventory across multiple online sales channels. Other integrations include Zoho Books and QuickBooks Online for accounting.
- Free plan includes invoice customization, shipping labels, backorders and item bundling.
- Free barcode, purchase order and shipping label generators.
- Mobile app available for iOS and Android.
Cons
- Free plan caps users at one, purchase orders at 20 and sales orders at 50.
Gusto Payroll
Best for Payroll and HR
Starting at
$49/month
Additional pricing tiers (per month): $80, $180. Fee per employee varies by tier.
Promotion
1 months free
on Gusto's website
Pros
- Benefits administration (health benefits are available in 38 states and Washington, D.C.; 401(k) plans are available in all 50 states).
- Time-tracking features at higher-price tiers (limited at Simple level).
- Certified HR experts available (at the Premium level).
- Free account setup.
- Next-day direct deposit (at Plus and Premium levels).
Cons
- More expensive than some options.
- Limited hours for live support.
We recommend using the same software for payroll and HR needs when possible. Gusto excels in both categories.
For one, all plans have tax filing and payments along with automated payroll. These are big time-savers. All plans include unlimited payroll runs per month too. That way, you don’t have to pay more to run an extra cycle.
In terms of HR, you’ll find health insurance administration, employee self-onboarding and state new hire reporting in all of Gusto’s plans. You can upgrade to the Premium plan for dedicated HR support. Employees also get access to a mobile app called Gusto Wallet. This can help them track their finances.
But Gusto doesn’t just help you pay your employees. For $49 per month (plus $6 per month per person), you can pay yourself and get S-corporation compliance support.
Pros
- Benefits administration (health benefits are available in 38 states and Washington, D.C.; 401(k) plans are available in all 50 states).
- Time-tracking features at higher-price tiers (limited at Simple level).
- Certified HR experts available (at the Premium level).
- Free account setup.
- Next-day direct deposit (at Plus and Premium levels).
Cons
- More expensive than some options.
- Limited hours for live support.
We recommend using the same software for payroll and HR needs when possible. Gusto excels in both categories.
For one, all plans have tax filing and payments along with automated payroll. These are big time-savers. All plans include unlimited payroll runs per month too. That way, you don’t have to pay more to run an extra cycle.
In terms of HR, you’ll find health insurance administration, employee self-onboarding and state new hire reporting in all of Gusto’s plans. You can upgrade to the Premium plan for dedicated HR support. Employees also get access to a mobile app called Gusto Wallet. This can help them track their finances.
But Gusto doesn’t just help you pay your employees. For $49 per month (plus $6 per month per person), you can pay yourself and get S-corporation compliance support.
Pros
- Benefits administration (health benefits are available in 38 states and Washington, D.C.; 401(k) plans are available in all 50 states).
- Time-tracking features at higher-price tiers (limited at Simple level).
- Certified HR experts available (at the Premium level).
- Free account setup.
- Next-day direct deposit (at Plus and Premium levels).
Cons
- More expensive than some options.
- Limited hours for live support.
Jump to
How we select the best business software
What kinds of business software do you need?
How much does business software cost?
How to choose the best business software
Looking for more business software options?
We chose to list one option per category above to keep things simple. Those options work for most businesses, but not all of them. There are plenty of other highly rated products to consider if the picks above aren’t the right fit.
Here are some great alternatives from each category:
- QuickBooks Online: Best for working with an accountant. As the industry standard in small-business accounting, QuickBooks is generally a safe choice. Your accountant and/or bookkeeper will almost certainly be familiar with it. Read our full QuickBooks Online review.
- Zoho Books: Best free accounting software. Zoho Books tops our list of free accounting software thanks to its robust list of features. And it seamlessly integrates with other products from Zoho. Read our full Zoho Books review.
- FreshBooks: Best for freelancers. All plans include time and mobile mileage tracking. This is a big plus for freelancers and small service-based businesses. Read our full FreshBooks review.
- Wave: Best for very small, service-based businesses. Wave’s free software is easy to use and supports unlimited invoicing. Read our full Wave review.
- Stripe: Best for global, online transactions. Stripe is a good choice for businesses that mostly transact online. You can customize the checkout flow and accept payments in more than 135 currencies. Read our full Stripe review.
- Helcim: Best for interchange-plus pricing. Helcim’s pricing model can be more cost-effective for high-volume operations. Plus, it offers volume discounts to businesses processing more than $50,000 per month. Read our full Helcim review.
- PayPal: Best for brand recognition. Customers recognize and trust PayPal’s brand. And it supports a range of payment methods outside of debit and credit cards (e.g., PayPal; Venmo; buy now, pay later). Read our full PayPal review.
- Finix: Best for larger small businesses. Finix’s subscription-based pricing can help quickly growing businesses save money in the long run. Read our full Finix review.
We typically recommend using your accounting software for invoicing. But if you need a dedicated invoicing solution, consider the following:
- Invoice Ninja: Best payment flexibility. This software integrates with several payment gateways including Stripe, PayPal, Square and Apple Pay. That gives you lots of options for accepting online payments.
- Hiveage: Best for simplicity. If you’re looking for invoicing software with a straightforward user interface, Hiveage is worth checking out.
- Harvest: Best project invoicing. Harvest is made specifically for project-based businesses. You can use it to estimate project costs, track employee time and set billable rates for each team.
- Invoice Home: Best free online invoice templates. Invoice Home has 100 free invoice templates to choose from. Customers can pay their invoices by card or through PayPal.
Read more about each in our best invoicing software roundup.
We usually recommend using your POS system’s built-in inventory management features. If they aren’t robust enough, though, consider the following:
- Sortly: Best mobile app. Sortly’s app is easy to use and lets you organize inventory items by photo. Plus, it has a free plan.
- Cin7 Core: Best for a variety of industries. Lots of inventory management software products are made for specific industries. That’s not the case with Cin7 Core. It has solutions for businesses in retail, food and beverage, health and wholesale.
- Katana: Best for manufacturing companies. Katana stands out for its manufacturing-specific features. Those include production planning, raw material tracking and shop floor insights.
- Brightpearl: Best built-in accounting features. Unlike many competitors, Brightpearl has its own accounting module. This can be helpful if you want to keep accounting and inventory management under one roof. It also integrates with Xero and QuickBooks.
Read more about each in our best inventory management software roundup.
- QuickBooks Payroll: Best QuickBooks accounting integration. QuickBooks’ payroll solution seamlessly integrates with its accounting software. If you use QuickBooks Online for accounting, it’s worth looking into.
- OnPay: Best specialized industry support. OnPay offers different versions of its software for businesses in a variety of industries. Those include agriculture, nonprofit, healthcare and restaurants, just to name a few.
- RUN Powered by ADP: Best free trial. ADP offers anywhere from three to six months free. Terms and conditions apply, but that trial period is hard to beat.
- Patriot Payroll: Best money saver. Patriot starts at $17 per month plus $4 per worker. Even its higher-tier $37 plan is cheaper than most competitors’ intro options.
Find options by industry
Accounting
POS systems
How we select the best business software
We looked at more than 125 products to find the best business software. To make the list digestible, we picked just one top contender for each category we cover. Those software categories include the following:
- Accounting.
- Payments.
- Payroll.
- Invoicing.
- Inventory management.
To make our list, business software products have to earn at least 4.5 stars in their respective rubrics. But they also need to be versatile enough to accommodate a variety of small businesses. That means we ruled out industry-specific software, like Toast or Lightspeed for Retail.
Cost played a big role too. Most businesses need multiple types of business software, and fees add up quickly. Whether your business is very small or quickly growing, you probably have one thing in common with other entrepreneurs. You’re cost-conscious. The software products we chose are some of the least expensive in their category. We tried to select options that have free and paid plans, so that they can grow with your business.
» MORE: Best free accounting software
What kinds of business software do you need?
Obviously each business is different. Our recommendations don’t cover every possible case scenario or business type. But in general, here are the main types of business software and who should consider them.
Accounting
Who needs it: All businesses.
Solid accounting software is the foundation of a capable business software ecosystem. You use it to centralize all of your financial data, prepare for tax season and track your business’s financial health. It often includes features for transaction tracking, reporting and invoicing, among other capabilities.
» MORE: What is accounting?
Payments
Who needs it: All businesses.
Accepting only cash just isn’t feasible these days. To accept card payments, you’ll need a payment processor. Most processors also offer POS hardware and software. You’ll need both if you accept payments in person. If your business operates solely online, you’ll just need the software.
» MORE: Best free POS systems
Payroll
Who needs it: Businesses with employees.
Payroll software doesn’t just make paying your employees easier. Some also calculate and file payroll taxes for you. Typically, this type of software lets employees view pay stubs, download tax forms and update their personal info too. If your business spends a lot of time hiring and training employees, you should consider options with HR add-ons.
Invoicing
Who needs it: Service-based businesses. But your accounting software probably already includes it.
Service-based businesses that bill by the hour often transact via invoice. This gives the customer a set amount of time to pay their bill.
Most businesses don’t need separate invoicing software. You’ll find most of the invoicing features you need in your accounting software. The exceptions are project-based businesses and others that need industry-specific solutions.
Inventory management
Who needs it: Retail and manufacturing businesses. But your payments/POS software may already have it.
Retail and manufacturing businesses often need to track their inventory so they know when to reorder certain items.
It’s not uncommon to find inventory tracking features in your accounting or POS software. Standalone options, however, may provide more robust capabilities or be designed for specific industries.
» MORE: Best free inventory software
How much does business software cost?
Calculating how much you’ll owe per month in business software costs involves some math. Mostly, it depends on what types of software you need.
Basically all businesses, for instance, should have accounting software. Those programs usually range anywhere from $0 to $275 per month.
The majority of businesses should also use payment software for accepting card payments. Even if your POS software is free, you’ll still need to pay transaction fees. Use our credit card processing fees calculator to estimate how much that’ll cost you each month.
For more details on software pricing, see the table below.
| Software product | Price (per month) |
|---|---|
| Accounting | |
| Zoho Books | $0-$275 |
| Wave | $0-$19 |
| FreshBooks | $23-$70 |
| Xero | $25-$90 |
| QuickBooks Online | $38-$275 |
| Payments | |
| Helcim | $0 (plus processing costs) |
| Stripe | $0 (plus processing costs) |
| PayPal | $0 (plus processing costs) |
| Square | $0-$149 (plus processing costs) |
| Finix | $79 and up (plus processing costs) |
| Invoicing | |
| Zoho Invoice | $0 |
| Invoice Ninja | $0-$18 |
| Invoice Home | $0-$9 |
| Hiveage | $0-$49 |
| Harvest | $0-$11 |
| Inventory management | |
| Zoho Inventory | $0-$299 |
| Sortly | $0-$299 |
| Katana | $0-$299 and up. |
| Cin7 Core | $349-$999 |
| Brightpearl | Quote-based. |
| Payroll | |
| Patriot | $17-$37(plus per-employee costs) |
| OnPay | $49 and up (plus per-employee costs) |
| Gusto | $49-$180 (plus per-employee costs) |
| QuickBooks Payroll | $50-$134 (plus per-employee costs) |
| RUN Powered by ADP | Quote-based. |
How to choose the best business software
1. Pick your accounting software
Almost all small businesses should have accounting software. Start by selecting that.
Look for features like automated bank feeds, reconciliation tools and in-depth reporting. Also try to test out the user interface before you commit. It should feel intuitive. That way, you won’t dread entering transactions or reconciling your accounts.
2. Consider how you’ll get paid
This is where payment processors/POS system providers come into play. Think about where you accept most of your transactions. Is it online, in-person or both? Make sure your payment provider can accommodate that.
Brick-and-mortar businesses, for instance, may consider processors that also have countertop POS systems. Mobile businesses may only need a portable card reader. Online businesses need processors that integrate with e-commerce platforms or offer their own.
3. Figure out how you’ll pay employees
If your business has employees, you’ll need payroll software. Confirm it has all of the features you need. Some payroll software, for example, lets you add HR services, offer medical benefits and track time off. At a minimum, it should let you pay employees and help you file payroll taxes.
4. Decide whether you need separate invoicing or inventory software
The less software programs you use the better. Using one type of software for multiple purposes can help simplify your workflow and minimize costs. For example, most accounting software has invoicing capabilities. And some POS software has inventory tracking tools.
If you have a larger business or manage multiple locations, you might need separate solutions for invoicing and inventory. The same goes for businesses in specific industries, like manufacturing.
5. Set a monthly software budget
At the very least, start by budgeting for processing costs and accounting software. From there, see how much wiggle room you have. Can you afford to spend more on additional programs, or might it hurt your cash flow more than you’d like?
6. Make sure it all integrates
If your business software programs don’t integrate with each other, you could be stuck manually entering data. Above all, your accounting software should integrate with your POS system, payments software and payroll. Then it can keep track of all the money coming into and out of your business.
Direct, built-in integrations, as opposed to those hosted by third-party apps, are preferable. That’s because they typically don’t cost extra.
Accounting software products usually have an “app marketplace” or something similar that lets you quickly search for the integrations you need. Or, if you’re overwhelmed, you can opt for business software from a company like Zoho. It has multiple programs under the same roof, and they’re guaranteed to integrate with each other.
Methodology
NerdWallet independently reviews business software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
Here’s more information about how we evaluate accounting software, POS systems, payment processing providers and payroll software services.
• How we rate accounting software.
• How we rate point-of-sale systems providers.
• How we rate payment processing providers.
• How we rate payroll 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. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
