Free small business accounting software—Wave

Free small business accounting software—Wave

The software comes with an array of tools designed to let you efficiently manage all important financial tasks and processes such as payrolls, taxes, expenses, estimates and invoices, bank transactions, cash flows, time tracking, and your project’s financial performance. Zoho Books is a smart accounting solution designed to manage small businesses’ cash flow and finances. It is known for its ease-of-use, helping users make intelligent business decisions. Being a part of the Zoho product stable, the product does not only offer hassle-free accounting but excellent support, uptime, and security as well.

Yes. QuickBooks will manage your contacts and handle tax issues, forms and returns. It will create a budget for you and do your payroll — although the payroll feature is an add-on that costs a little extra. QuickBooks does pretty much everything except drive you to work.

Reeleezee Accounting

Online accounting solution offered as a service to small & medium businesses with integrated shipping and tracking via USPS. Silvasoft is an accounting solution that also covers sales process, product, inventory & project management and time registration.

If you’re reading this, you’re probably in the market for a simple accounting solution. Maybe you don’t know anything about accounting and need a program that’s easy to learn. Or maybe you’ve been using Sage or QuickBooks Desktop Pro and are tired of the confusing accounting lingo.

by Accounting Software Group

Open source accounting software for small businesses that helps with inventory management, budgeting, invoicing and much more. Financial accounting software for tracking bank accounts, income and expenses for small businesses. Integrated with QuickBooks Online and Xero, suitable for small to medium businesses in retail, wholesale, manufacturing, food production sectors which have requirements to manage inventory levels.

Of course, you can get a paid version of the program, but that is up to you. Gnu Cash is available as freeware at the official Gnu Cash website.

simple accounting software for small business

Our 2018 Accounting Software Buyer Trends Report surveyed 3,000 software projects and found that 21% of smaller businesses want cloud-hosted software only. Smaller companies were also more receptive to cloud solutions than larger companies. Get the best small business accounting software for your business. Compare product reviews, pricing below.

  • SlickAccount is a cloud-hosted accounting solution serving India-based companies as well as small and mid-sized companies in 20 different countries.
  • Compared to other big-name programs, though, such as Xero, Sage, and AccountEdge Pro, QuickBooks Online is a piece of cake.
  • While QuickBooks Self-Employed is a great option for managing your federal taxes, our one concern is that the software lacks state tax support.
  • Integrated applications for accounting programs allow for comprehensive, real-time analysis of an organization’s financial status including cash flow and expense management.
  • Many cloud-based companies offer users a free trial these days, making it easy to try a couple or more providers before getting entrenched.
  • Certainly, no one wants their account numbers in the hands of hackers.

Many a time, these companies make the transition from free accounting software to paid accounting software; all because of multiple features to help increase productivity by tenfold. Stop wasting precious time creating invoices, following up on payments and trying to figure out where your business stands. FreshBooks makes invoicing painless, expense tracking simple and knowing how profitable you are easy. The all-new FreshBooks is accounting software that makes running your small business easy, fast and secure. Spend less time on accounting and more time doing the work you love.

As we mentioned earlier, SlickPie is easy to use and offers several automations to help save you time and energy. There are a few occasional navigational difficulties, and the organization could be improved, but overall, the software is simple to set up.

Other solutions feature solid accounting services, but the invoicing tools are comically bad. It can seem nearly impossible to find that perfect middle ground. Luckily, FreshBooks made a solution that hits the sweet spot. Designed to make sure you get prompt payments for your products or services, Invoice Meister provides a robust cloud-based invoicing, bank reconciliation, payment tracking as well as deep analytic reports to track the overall progress of your business. The UK-based application offers its Basic Plan for a reasonable €7.50 per user per month, which shouldn’t hurt your overall budget.

While much of your daily accounting work probably involves paying bills, sending invoices, and recording payments, you also need to keep a close eye simple accountancy on your bank and credit card activity. If you have connected your financial accounts to your accounting tool, then this is easy to accomplish.

The most popular plan, FreshBooks Plus, comes in at $25 per month and allows you to bill up to 50 clients. Extra features in this plan include setting up automatic payment reminders, charging late fees, and scheduling recurring invoices. Luckily for the user, accounting software is consistent and reliable—including when it comes to pricing. We recently reviewed this piece to make sure none of the prices or offers have changed (they haven’t) and that our rankings are the same (they are).

As far as the “paid” version goes, there is no license fee or any other expense for using the software. You can work as much as you want; add as many users as you like and use the software to maintain bookkeeping at any pace. We have tried Wave on several different occasions. It is free; it is online and most of the competition doesn’t get anywhere close to what Wave has to offer. Above all, Wave is loaded with features that most of the paid accounting software websites offer for a fee.

What’s unique about Online Invoices?

FreshBooks is another inexpensive, online-only solution that does a very good job of invoicing and basic bookkeeping and is ideal for small businesses and independent contractors. It supports all the most commonly used web browsers and also has iPhone/iPad and Android apps.

Modular accounting application with payroll processing and job costing functionality. For small and mid-sized business. Accounting tool that enables maintenance of multiple general ledgers through financial reporting, invoices delivery and more. Accounting tool built on to manage customers and bills, track inventory and payments, and report your financial information.

What is a contra revenue account?

What is a contra revenue account?

Closing the Dividends account—transferring the debit balance of the Dividends account to the Retained Earnings account. Closing the Income Summary account—transferring the balance of the Income Summary account to the Retained Earnings account (this should always equal net income or loss from the income statement). I also don’t see the normal contra asset accounts for Allowance for Doubtful Accounts or Allowance for Estimated Uncollectible Debts.

In essence, contra accounts allow you to report your firm’s gross and net amounts. These accounts also ensure that you follow the matching principle in accounting, which states that you record expenses in the same period you incur them.

What Is Accounts Receivable Turnover Ratio?

A contra account is used in order to better portray the relationship between certain debits and credits within the overall financial structure of an entity. A contra account can be used to remedy an error, to track depreciation of an asset, or to register payments that are not collectible.

Contra liability account, which is rather uncommon. An example would be a contra liability account which would be debited to offset a regular liability account. Learn what contra accounts are, how they serve a useful purpose for bookkeepers, and how easy they are to set up.

What is meant by contra revenue and contra liability accounts?

It would appear on the company’s income statement in the revenue section. In the sales revenue section of an income statement, the sales returns and allowances account is subtracted from contra revenue account sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.

  • For example, Allowance for Bad Debt is a contra account to Accounts Receivable.
  • When accounting for assets, the difference between the asset’s account balance and the contra account balance is referred to as the book value.
  • It is a helpful tool for the company to know the product specifications whether it is optimum or not as per customer requirement.
  • Sales allowances occur when customers agree to keep such merchandise in return for a reduction in the selling price.
  • To illustrate the contra revenue account Sales Returns and Allowances, let’s assume that Company K sells $100,000 of merchandise on credit.
  • The difference between an asset’s account balance and the contra account balance is known as the book value.

Sales Returns – If the company sells the goods and it returns due to some reasons such as defected goods or if they are not as per customer requirement. sales return decreases the sales and debtors if sales made on credit. Sales returns. Contains either an allowance for returned goods, or the actual amount of revenue deduction attributable to returned goods. An allowance for doubtful accounts is a contra-asset account that reduces the total receivables reported to reflect only the amounts expected to be paid.

Contra accounts allow you to show the amounts that offset a paired related account. As a small business owner, understanding how to set up contra accounts enables you to prepare and maintain accurate financial records.

A contra equity account reduces the total number of outstanding shares listed on a company’s balance sheet. Treasury stocks represent a contra equity account. When a company buys back its own shares from the open market, it records the transaction by debiting the treasury stock account. A company may decide to buy back its shares when management feels the stock is undervalued or because it desires to pay stock dividends to its shareholders. When the two balances are offset against each other they show the net balance of both accounts.

The sales allowances account is similar in use to the sales returns account, except that it deals with allowances given against a defective product which the customer has kept and not returned to the business. You can also record contra revenue within the sales account, but this means that it will be buried within the total amount of revenue reported, so that management cannot easily determine the amount of contra revenue. If your company has minimal contra revenue activity, it is acceptable to record these transactions within the revenue account. A contra account is used in a general ledger to reduce the value of a related account when the two are netted together. A contra account’s natural balance is the opposite of the associated account.

If a debit is the natural balance recorded in the related account, the contra account records a credit. By understanding the concept of a contra account, it is possible to simply look at the accounting records of a given corporation and turn back through the financial history related to certain debits and credits in the records in order to gain an understanding of how they are related. The most common type of contra account is the contra-asset account. This type is paired with the asset account, which allows a business to record the original price or value of the asset at time of purchase. The contra asset account then allows recording of the value factoring in depreciation.

Generally, have a debit balance. It should be deducted from the gross sales.

Two common contra asset accounts include allowance for doubtful accounts and accumulated depreciation. Allowance for doubtful accounts represents the percentage of accounts receivable a company believes it cannot collect. Allowance for doubtful accounts offsets a company’s accounts receivable account. Accumulated depreciation offsets a company’s real property assets, such as buildings, equipment and machinery. Accumulated deprecation represents the cumulative amount of depreciation expense charged against an asset.

The dollar balance in the allowance for uncollectible acounts is the amount you don’t expect to collect, and this offsets the amount you report in accounts receivable. If there’s an increase to allowance for uncollectible accounts, you record the same amount in the bad debt expense of your income statement. Similarly, accumulated depreciation accounts reduce the value of the fixed assets you report on your financial statements.

Be sure to enter the contra account on the opposite column of the account they’re offsetting. If contra assets appear in the credit column, record contra liabilities on side. Are you looking for a way to account for accumulated depreciation, returned merchandise, or damaged inventory? You can use contra accounts to record the goods your customers return, inventory that gets damaged, and equipment depreciation.

Becoming a Certified Bookkeeper: Step-by-Step Career Guide

Becoming a Certified Bookkeeper: Step-by-Step Career Guide

If you work out of your home, don’t have any equipment or inventory to offer, and don’t venture too frequently into the realm of cash transactions, you might consider single-entry Alternatively, you can pay an accountant, bookkeeper, or outsourced accounting company to manage your accounts and ledger for you.

Basic Accounting Skills Every Professional Accountant Must Have!

You must be good with math and have excellent skills with one or more spreadsheet programs. Employers typically want basic computer skills but they will generally train you in the specific accounting software they use. Bookkeeping is essential to the vitality and long-term success of any small business. Primarily, you need to have an accurate picture of all the financial ins and outs of your business. From the cash you have on hand to the debts you owe, understanding the state of your business’s finances means you can make better decisions and plan for the future.

On-the-job training is also important for bookkeepers. All businesses have slightly different processes that bookkeepers must understand so that financial matters can be seamlessly resolved. The best bookkeepers try to follow established business practices, but they may also suggest ways to streamline these practices to improve efficiency. Alternatively, a bookkeeper can gain certification through a professional organization such as the American Institute of Professional Bookkeepers, AIPB. This certification can help bookkeepers gain an advantage in the job market without seeking a higher educational degree.


To determine whether errors had occurred, the bookkeeper prepared a trial balance. A trial balance is an internal report that lists 1) each account name, and 2) each account’s balance in the appropriate debit column or credit column. If the total of the debit column did not equal the total of the credit column, there was at least one error occurring somewhere between the journal entry and the trial balance. Finding the one or more errors often meant spending hours retracing the entries and postings. The past distinctions between bookkeeping and accounting have become blurred with the use of computers and accounting software.

Makes sense, right? This method can work if your business is simple—as in, very, very simple.

You paid for the system, which cost $2,000, in cash. You’ve created your set of financial accounts and picked a system—now it’s time to record what’s actually happening with your money. Double-entry bookkeeping is definitely more challenging than single-entry bookkeeping, but don’t let the difficulty deter you.

This is a great way to let potential clients find you when they are looking for a new bookkeeper online. accounting profit Also, build your social media presence so they can easily check your and/or your business’ credibility.

Beyond simple accounting, you could offer packages that include doing payroll for your clients, handling their business tax filing, helping new businesses with financial planning and loan packages – the list of how you can add value to your business goes on. And any time you add a service is a great opportunity at which to re-evaluate your pricing structure and sell your clients on those new packages! Developing a more robust set of offerings is also a solid way to attract new clients. In general, a bookkeeper records transactions, sends invoices, makes payments, manages accounts, and prepares financial statements.

Many of the roles of a bookkeeper and accountant overlap, especially for bookkeepers working with small to medium-sized businesses, which can often make the transition an easy one to make. However, accountants tend to focus more on reporting and business analysis and processes than bookkeepers. Bookkeepers are classified with accounting and auditing clerks by the United States Bureau of Labor Statistics, BLS. While this official body does not offer statistics for bookkeepers specifically, it predicts job opportunities for bookkeeping, accounting, and auditing clerks will fall by 8 percent between 2014 and 2024. This decrease will lead to about 148,700 fewer bookkeepers, accounting clerks, and auditing clerks in the United States within the stated time span.

You know what the numbers mean. If you understand math, have a head for figures, and like to keep track of how everyone spends the company dime, you might be ready for a bookkeeping job. Bookkeepers, or bookkeeping clerks, work with a company’s accounts, making sure that every transaction, deposit and income is recorded in the company ledger. Bookkeepers use software to track these numbers, sometimes take in cash and checks, and record the transactions. Bookkeepers are often called upon to produce reports to help explain to management where company money is going and make sure that any discrepancies in the financial records are reconciled.

  • Then you’re ready to close the books and prepare financial reports.
  • People who knew I had been laid off were asking me about my “job seeking” prospects and I would tell them that I was starting my own bookkeeping business.
  • Bookkeeping includes the recording, storing and retrieving of financial transactions for a business, nonprofit organization, individual, etc.
  • Back in the day, charts of accounts were recorded in a physical book called the general ledger (GL).
  • Some accounting degree programs offer the opportunity to join student accounting organizations.
  • The bookkeeping process primarily records the financial effects of transactions.


This course of study was designed to have embedded community, as students will connect with their peers in real time throughout the time they are studying. Not only is the learning self-directed, but students even set their own exam schedule. The Penn Foster Career School is a nationally and regionally accredited career school with program offerings that are entirely online. Founded in 1890, they were originally known as International Correspondence School (ICS).

Instead, an account is a record of all financial transactions of a certain type, like sales or payroll. After recording purchase transactions for a business, the bookkeeper takes primary responsibility for making sure that the bills are paid for both the inventory and the supplies purchased. Usually, you’ll post the bills to Accounts Payable when they arrive, file them in the month or day to be paid, and pay them when they are due. Journal entries assign each transaction to a specific account and record changes in those accounts using debits and credits. Information contained in the journal entries is then posted to ledger accounts.

You can have a booth that promotes your bookkeeping business. Try to make your booth look fun and attractive. Find a creative way to make small business owners visit your booth and leave their calling cards, such as giving away a small token in lieu of their business cards or contact information.

An important difference between a manual and an electronic accounting system is the former’s latency between the recording of a financial transaction and its posting in the relevant account. This delay, which is absent in electronic accounting systems due to nearly instantaneous posting to relevant accounts, is characteristic of manual systems, and gave rise to the primary books of accounts—cash book, purchase book, sales book, etc.—for immediately documenting a financial transaction. Bookkeeping is the work of a bookkeeper (or book-keeper), who records the day-to-day financial transactions of a business.


There is no previous experience needed, and the course provides everything students would need to know in order to be successful in this field. Bookkeepers keep track of financial records for companies and organizations. To ensure updated and accurate financial statements, they must understand how to use spreadsheets and database software programs. The financial statements will include expenditures, debts, receipts, accounts payable and receivable, invoices, and profits.

They’ll receive friendly reminders via email or text, and you can check your schedule from your phone anytime. Square Appointments is also free for individuals, making it a perfect scheduling solution for bookkeepers. Sign up for an account today.


However, companies are increasingly looking for bookkeepers with degrees in relevant fields, including finance, accounting, and business studies. Along with becoming certified, those looking at working as a bookkeeper should become familiar with desktop computer applications, especially accounting software. An increasingly large percentage of business transactions and accounting tasks are computerized. Employers may favor candidates with experience using accounting and spreadsheet software. Students in accounting programs should consider taking courses that provide hands-on experience with these programs.

This opportunity is both affordable and conducted entirely online. The program is designed for students who have already achieved training in bookkeeping, but are seeking their certification with the American Institute of Professional Bookkeepers (AIPB). These bookkeeper courses are offered in collaboration with several colleges and universities, as well as other accredited educational institutions. Online bookkeeper courses at UGA Con Ed can be started at any point, and all textbooks are included. Participants are given 6 months to complete the program, and are able to work at their own pace.

You can successfully find bookkeeping clients by looking for businesses that are recruiting full-time or part-time bookkeepers. You can usually find these through checking various online job adverts. You only need to convince them that you’re the perfect person who can provide a better solution for their business’ bookkeeping needs. One of the best ways to get more clients for your bookkeeping services business is to create an incentive program for current customers to make referrals.