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Small Business Accounting: Your Key to Financial Success

small business accounting services

Unlike Xero, FreshBooks lets you send an unlimited number of invoices and estimates with every plan. Each plan also includes time tracking for easier, more accurate client billing. FreshBooks’s built-in small-business expense tracking helps you maintain a balanced budget. And, like QuickBooks Online, FreshBooks includes built-in mileage tracking—a must for freelancers who plan to claim mileage expenses on their year-end tax forms. FinancePal provides an all-in-one bookkeeping solution that includes features, such as transaction reconciliation, bill pay, business projections, guidance, catch-up bookkeeping, financial statements and tax filing. It’s also ideal for brand-new businesses because FinancePal can help with entity formation.

Another option is utilizing the American Institute of CPAs’ directory or the National Association of State Boards of Accountancy, which allows users to search by state and region. Reputable small business accountants and accounting firms should business accounting have no problem setting up an exploratory meeting to go over your needs, as well as provide several references. Many firms that charge a flat monthly fee also offer tax filing services for an extra fixed annual fee in the range of $750 to $900.


Below, we explore the pricing plans, features, pros and cons of the top e-commerce accounting software you need to consider. The first plan, Support, is geared toward businesses who want to continue to manage their own bookkeeping, with some assistance from the Bookkeeper360 advisors. At $199 per month, this plan includes two hours per month of support as well as training and check-ins from the Bookkeeper360 team. When it comes to business bookkeeping, there are a variety of sources you can turn to in order to keep your finances organized, reconcile your books, and manage your accounting software. Of course, you always have the option to find and hire an in-house bookkeeper, who will work directly with your business on a day-to-day basis. Proper documentation of financial transactions is important for preparing financial statements like balance sheets, preparing tax returns, and monitoring a company’s financial health.

E-commerce business owners need both general accounting reports and e-commerce-specific reports to gain a full picture of the financial health of their business. These reports should be easy to customize when it comes to date ranges and data inputs so you can be sure you’re looking at the information you need. Accurate sales tax calculations are essential to keeping your business compliant with all federal, state and local laws. Look for e-commerce accounting software that includes automatic sales tax calculations so that you don’t have to set up workarounds or calculate it manually each time you make a sale. Zoho Books makes it possible to automate various functions with tools like workflows, webhooks, email alerts and custom functions to save yourself time and effort. It offers six different pricing plans to choose from — including a forever free tier for small businesses — so it’s very scalable for companies of different sizes.

Hiring a Professional Accountant or CPA

The most important benefit of small-business accounting software is probably the time it saves. Once you sync your bank account and credit cards to your accounting program, the software automatically imports your financial transactions. This ensures you’re always working with the most up-to-date numbers as you’re making crucial business decisions.

small business accounting services

The table below summarizes most of the accounts (and their types) that you might need to use while doing accounting for your small business. You can find the 8 most common accounts that any small business will have to use for their accounting highlighted in blue. Instead, an account is a record of all financial transactions for a certain type. Accounting software can be found either in the form of a desktop application or as a cloud-based app. As a business owner, accounting is probably the last thing you want to worry about. The general ledger is a record of all financial transactions made by a business.

Considerations for Setting Up Your Small Business Accounting System

For the regular price of just $13 a month, Xero lets you send custom invoices, reconcile bank transactions, capture receipts for easier record keeping, and track inventory. If you already use or are planning to use QuickBooks Online for your business accounting, then it makes good sense to use QuickBooks Live for your bookkeeping needs. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach.

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