7 Best Accounting Software for Small Businesses in 2025

ZarMoney is an all-in-one accounting, invoicing, and inventory solution for businesses. It combines financial management with advanced inventory tracking, making it ideal for startups needing both functionalities in one platform. It is a tax management and preparation software that offers a suite of tools designed to streamline the tax process for tax professionals and their clients. For example, consider a software startup with two full-time founders working from startup cpa home. With TurboTax, they can capture deductions for computers, internet expenses, home office use, car mileage, travel costs, etc.

Deloitte – Offers Extensive Services

Whether it’s your first business tax return or you’re a pro, having an organized system for your documents will save you a lot of stress. FreshBooks can help by keeping your accounting systems organized, allowing you and your tax online bookkeeping professional to find all the information when you need to file. Features include strong e-filing capabilities, ensuring seamless submission of tax documents while staying compliant with ever-changing regulations. Its built-in diagnostic tools help identify potential errors before filing, reducing the risk of audits or penalties. Additionally, the software includes advanced client management features, allowing tax professionals to track filings, manage documents, and streamline workflow for multiple clients efficiently. Kashoo is an online accounting software designed for small businesses and freelancers.

• Check with taxpayers who can claim you as a dependent before preparing your taxes.
• Inaccurate tax calculations, missed deductions, or filing errors can result in penalties, IRS audits, and unnecessary tax payments.
• Membership includes access to tax advice from experts, which can be invaluable for startups navigating tax season for the first time.
• However, like Xero and QuickBooks, Zoho might be too unwieldy for smaller businesses that plan to stay small.
• Whiz Consulting has been a key player in outsourced bookkeeping and accounting for a decade.

What are the downsides to using QuickBooks?

It boasts a wide range of features, including multi-state return capabilities and extensive support for different types of tax filings. Drake Tax is known for its exceptional customer support and training resources, making it a reliable choice for tax professionals who value ongoing support and educational tools. Its strong reporting capabilities and efficient data entry system also stand out in the market. H&R Block is a tax preparation software for small business owners who need both online and in-person assistance. It makes tax filing easy by offering essential tools and professional support to ensure accurate returns. Features include a step-by-step filing guide that walks you through the tax preparation process.

• However, this approach often leads to endless exchanges, delays, security concerns, and missing files – ultimately reducing your team’s productivity and creating frustrated clients.
• ShareFile is a secure document-sharing solution with convenient automations to streamline client-facing workflows.
• Both simple and easy-to-use, Quicken is also highly customizable, catering to your specific needs.
• A member of the CPA Association of BC, she also holds a Master’s Degree in Business Administration from Simon Fraser University.
• Karbon is best suited for Mid-sized and growing accounting firms that need a scalable workflow management solution with deep automation, email integration, and client collaboration tools.

Next Up In Taxes

• This makes it more expensive than competitors FreeAgent and ZohoBooks for businesses that are VAT-registered.
• As business increases, the pressure of managing all tax preparation jobs also increases.
• Zeni simplifies investor reporting and cash flow management with AI-powered bookkeeping and financial automation.
• AI-driven categorization ensures expenses are correctly labeled, reducing misclassification.
• From these experiences, I recommend Xero as an invaluable tax preparation and financial management resource for startups.

After integrating Gusto, they were not only able to streamline their payroll process but also managed to navigate the complexities of state and federal tax obligations smoothly. The platform’s user-friendly interface and robust customer support significantly eased their transition, demonstrating its merit beyond just software capabilities. And while you have many online tax software options for your business, you’ll want to choose one that’s user-friendly, inexpensive and provides quality customer service. You should select a product that also can help you find all the deductions you’re entitled to. The company offers one plan for businesses looking to prepare and file their taxes as well as a less expensive option for self-employed and freelance users. Plus, former TurboTax users looking to switch to H&R Block can seamlessly import tax data from the previous virtual accountant year’s return.

It seamlessly integrates with Zoho’s ecosystem, including CRM, customer support, and project management tools. Xero is ideal for small businesses that need multiple users to access bookkeeping software. It’s particularly useful for growing businesses, retailers, and service-based companies. Xero is another emerging online accounting software company providing practical tools and bank connections with a variety of plans to suit any size of business.