Small Business Bookkeeping: A Beginners Guide

Unfortunately, even though QuickBooks Online is our top pick, it’s also our priciest one. The cheapest QuickBooks plan starts at $30 a month—higher than any of our other recommended bookkeeping solutions. And if you want the best reporting QuickBooks can offer, you’ll need at least the $55 Essentials plan or, preferably, the $85 Plus plan.

• Before you begin your search, consider your budget and which features are a must for your plan so you can find the best cheap accounting software for your needs.
• She is a former Google Tech Entrepreneur and holds an MSc in international marketing from Edinburgh Napier University.
• Read through our reviews of the best accounting software options for small businesses like yours.
• Here’s what yours might look like as you draft a plan for your bookkeeping business.
• Whether it’s a lack of interest or knowledge, many businesses outsource this process to a professional bookkeeper to ensure accurate and healthy finances all around.

Of course, there are certain foundational aspects you need to establish before launching your business. For instance, before starting an accounting business, you should get the education and testing you need to become a certified public accountant. Our research is designed to provide you with a comprehensive understanding of small business services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility and credibility.

QuickBooks Online: Most user-friendly option

QuickBooks Online is one of the most popular bookkeeping software choices in the US. Its comprehensive reports are easy for first-time business owners to generate and understand, and it offers more thorough reporting than just about any other software out there. In spite of its excellent reports and recurring invoices, small business bookkeeping though, FreshBooks falls short in a few bookkeeping areas. Most notably, its cheapest plan doesn’t include double-entry bookkeeping or free accountant access. For accountant access, more accurate bookkeeping, and detailed business health reports, you’ll need the $30-a-month Plus plan (non-promotional price).

• You can also learn how to use Excel to keep your books or create your business budget with Google sheets.
• The advent of accounting software significantly lessened the tediousness of bookkeeping by handling debits and credits for you in the background.
• It helps you manage your finances while also tracking products, storing key client data, processing payments and helping you prepare for tax time.
• Whether you are a small business or a large business with multiple employees, there is e-commerce software out there to fit your needs and budget.
• However, there are plenty of reasons to make quarterly, or monthly financial statements as well.

If you find it feasible to keep your books in-house, you might consider using a software accounting program. This can help alleviate some problems you might run into with manual record keeping. While there are a myriad of courses available for bookkeeper education and training, a good deal of bookkeepers are self-taught since there are no required certifications needed to work as one. The skills needed to become a successful bookkeeper are often acquired through working in a career in the finance industry or even by balancing your personal budgets. Many bookkeepers hone and develop their expertise over time while others opt to complete seminars, read books or take online classes. Bookkeeping over the course of a few years also makes it easier for you to estimate how much tax you’ll owe.