What is Online Accounting Software?

Online accounting software solutions can be used by organizations to keep track of their financial transactions. Key features include reporting and payroll modules, accounts payable/receivable, and general ledger. In addition, specialty platforms have extra features designed for particular markets. Online accounting software tools can be accessed via the internet and you don’t need to install them on your company computers. This minimizes IT requirements such as hardware, maintenance, and backups. Plus, you don’t need to shell out large upfront costs but only need to pay a monthly or annual subscription fee to access and use the online software. Start by checking our leader FreshBooks, and other recommended solutions in this category.

Online Accounting Software

Top 13 Most Popular Online Accounting Software

FreshBooks reviews
1.
FreshBooks

Our Score 9.8

User Satisfaction 99%

FreshBooks is the winner of our 2017 Best Accounting Software Award. It is a great cloud accounting app for small business that makes billing easy and effective. Read Reviews

Sage 50cloud reviews
2.
Sage 50cloud

Our Score 9.7

User Satisfaction 100%

Desktop & cloud accounting software that offers built-in anytime, anywhere cloud access applications. Read Reviews

Sage Business Cloud Accounting reviews
3.
Sage Business Cloud Accounting

Our Score 9.3

User Satisfaction 96%

Sage Business Cloud Accounting is an easy-to-use accounting application for small businesses and startups. Read Reviews

Zoho Books reviews
4.
Zoho Books

Our Score 9.6

User Satisfaction 100%

Zoho Books is the winner of our 2016 Great User Experience Award. It is an intuitive accounting software designed for small businesses to manage their finances. Read Reviews

QuickBooks Online reviews
5.
QuickBooks Online

Our Score 9.3

User Satisfaction 94%

QuickBooks Online is an ideal accounting software for freelancers and small businesses that simplifies small business accounting. Read Reviews

Tipalti reviews
6.
Tipalti

Our Score 9.1

User Satisfaction 100%

Tipalti is a powerful and secure payment solution that automates the entire mass global payment processing operation. Read Reviews

Xero reviews
7.
Xero

Our Score 9.5

User Satisfaction 97%

Xero is the winner of our 2017 Expert's Choice Award. It is a popular online accounting app designed for the needs of small and medium businesses in multiple industries. Read Reviews

Sage Intacct reviews
8.
Sage Intacct

Our Score 9.4

User Satisfaction 99%

Sage Intacct is a software app that offers a wide range of out-of-the-box features with customizable functions to fit various conversion funnels and purchase orders. Read Reviews

Brightpearl reviews
9.
Brightpearl

Our Score 9.0

User Satisfaction 98%

Brightpearl is a retail management system that helps businesses to manage orders, inventory, and customer data. Read Reviews

FinancialForce Accounting reviews
10.
FinancialForce Accounting

Our Score 9.0

User Satisfaction 99%

FinancialForce is designed for large companies that have outgrown entry-level systems, but are not big enough to support their own intranet systems. Read Reviews

Wave reviews
11.
Wave

Our Score 9.1

User Satisfaction 99%

Wave is the world's fastest growing software for small businesses' 100 % free accounting and unlimited invoicing. Read Reviews

Roboeyelabs reviews
12.
Roboeyelabs

Our Score 8.0

User Satisfaction 100%

A comprehensive business management application that improves customer relationships, sales activities, business opportunities, inventory, and bookkeeping. Read Reviews

Arithmo reviews
13.
Arithmo

Our Score 6.7

User Satisfaction 100%

Developed to take the hassles out of accounting for freelance accountants and small businesses. Read Reviews

How To Choose The Best Online Accounting Software

Online accounting software programs provide anytime, anywhere access to users and are affordable too. Hence, they are preferable to on-premise systems especially if your company has multiple office locations and remote employees. However, how do you do informed comparisons to select the best online accounting software platform for your company needs given the surfeit of tools out there? To assist you, we have prepared this buyer’s guide which gives you valuable tips on the main features and factors you should focus on while evaluating the different software platforms and vendors.

Get to know each product with free trial

An ideal way to start your search for the best online accounting software application is to register for the free trial or demo offered by leading online accounting software providers. This will enable you to check out each system’s main features and gauge if they are what you are looking for. Visit the websites of the following recommended platforms to check the possibility of a free trial: XeroFreshbooksQuickBooksSage Intacct, and KashFlow. These products have been give high rankings in our online accounting software reviews that you can browse to get a good comparison. 

Targeted Businesses

  • Freelancers, single accountants, and sole proprietors can check out the possibility of using a free online accounting software system for their basic needs.
  • Small, medium-sized, and large businesses can invest in a quality paid platform to access advanced features.
  • Companies in specialty sectors such as medical practice, banking, real estate, nonprofits, and others can try out tools that provide specific features for their particular needs.

Examples of Online Accounting Software

  • Xero: Use Xero to manage your company’s bookkeeping, bank reconciliation, invoicing, and more. This platform is designed to meet the needs of small businesses in any industry. Xero is based in New Zealand and has become a popular accounting software product in the US, UK, European, and Australian markets. The product offers robust financial reporting tools that summarize the impact of all your accounting activities.
  • Freshbooks: Ideal cloud-based accounting software for small businesses. You can accept credit cards, manage expenses and receipts, track time, and send invoices easily. Freelancers will find it easy to use this product to manage their clients, time, and income effortlessly. The vendor offers a handy 30-day free trial to help you check out the features before you decide to invest your money.
  • QuickBooks: QuickBooks Online is designed to work on your PC, Mac, smartphone, and tablet. You don’t have to pay extra for mobile access to your subscription. Use the tool to organize all your accounting tasks in one place. Record your sales and get paid faster by sending invoices that accept debit and credit cards.
  • Sage Intacct: Provides online accounting software to small and medium-sized companies. The platform offers real-time operational and financial insights and enables you to automate key processes. Plus, you get to use core accounting modules such as order management, cash management, accounts payable, accounts receivable, and general ledger. The software also includes multi-entity consolidations, revenue management, project accounting, and time and expense management tools, as well as built-in dashboards and reporting functionality.
  • KashFlow: One of the leading bookkeeping and accounting software solutions in the UK. The product is easy to use and makes its simple to manage your small business accounts. It is cloud-based which means you get 24/7 access from anywhere. The best part is the platform is jargon-free which means it can be easily used even by non-accountants to track expenses and balance books.

Types of Online Accounting Software

The following are the main types of online accounting software tools:

  • Invoicing
  • Expense
  • Personal
  • Enterprise
  • Small business
  • Micro-business

Key Features of Online Accounting Software

  • Invoicing. Get faster payments by sending online invoices that have online payment options.  
  • Payroll. Pay your employees, send them paystubs, and run reports easily.
  • Bank connections. Link to your bank so that transactions flow automatically into the accounting software each day.
  • Bank reconciliation. Keep track of money flow with simple bank reconciliation and daily updates.
  • Data security. Top online accounting software vendors use industry standard security measures to protect your sensitive business data.
  • Manage expenses. Effortlessly manage, claim, and record receipts and expenses online.
  • Reporting. Generate smart financial reports to track the financial health of your organization.
  • Accept payments. Get paid faster by accepting payments from online services like Stripe and PayPal.

Benefits of Online Accounting Software

  • Info security. Leading online accounting software vendors utilize the latest security measures to protect your confidential business data. You don’t have to worry about on-premise crash or losing your data to theft or emergencies. Many online systems allow you to download your data locally if you wish to.
  • Lower costs. You don’t have to shell out a large upfront fee, but only need to pay a small monthly or annual fee to access online accounting software.
  • Less dependence on IT department. You don’t have to worry about whether the software you download works properly on your company’s systems and devices. On top of that, the cloud vendor handles all the routine maintenance, upgrades, and backups. This means small businesses can save money and time spent on IT infrastructure.
  • Facilitates better interaction. Top online accounting software products offer enhanced capabilities such as employee portals and online payments. Your company’s staff can utilize the online employee portal for better collaboration and communication. In addition, online payments help to save time by integrating with the general ledger and accounts payable and receivable to automatically update your enterprise’s books.

Latest Trends

  • Electronic payments. Your company can save time and money by electronically paying invoices and collecting receipts. Therefore, top vendors are focusing on including electronic payment features in their online accounting software applications to make things easier for users.
  • Customization. One of the best features of SaaS solutions is you only need to pay for what you use. Therefore, if you wish to use only core accounting features and not bells and whistles like forecasting or grant management, the software will not include them or bill you for them.

Potential Issues

  • Costs add up. Though you don’t need to pay a large upfront amount, the costs can add up over the years when you continue to pay the subscription fee for your online accounting service. Therefore, in the long run you may end up paying more for online software compared to an on-premise system that needs updates only after a few years.
  • Data confidentiality. You are not sure where the cloud vendor will store your sensitive data. Their servers could be in the US, UK, Asia or anywhere. This means other entities and governments could well browse and review your business data. Therefore, find out all details about the data security measures adopted by the cloud vendor before entrusting your precious business information with them.

List of Online Accounting Software Companies

Updated

Selected products (0)

1.
FreshBooks

Our Score 9.8

User Satisfaction 99%

FreshBooks is the winner of our 2017 Best Accounting Software Award. It is a great cloud accounting app for small business that makes billing easy and effective. Read Reviews

  • Pricing: $15
  • Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment, Annual Subscription
  • Customer Types: Small Business, Freelancers
  • Deployment: Cloud Hosted

2.
Sage 50cloud

Our Score 9.7

User Satisfaction 100%

Desktop & cloud accounting software that offers built-in anytime, anywhere cloud access applications. Read Reviews

  • Pricing: $44.97
  • Devices Supported: Windows, Android, iPhone/iPad, Web-based
  • Pricing Model: Monthly payment, Annual Subscription
  • Customer Types: Small Business, Large Enterprises, Medium Business
  • Deployment: Cloud Hosted, On Premise

3.
Zoho Books

Our Score 9.6

User Satisfaction 100%

Zoho Books is the winner of our 2016 Great User Experience Award. It is an intuitive accounting software designed for small businesses to manage their finances. Read Reviews

  • Pricing: $9
  • Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment, Annual Subscription
  • Customer Types: Small Business, Medium Business, Freelancers
  • Deployment: Cloud Hosted

4.
FreeAgent

Our Score 9.5

User Satisfaction 93%

The perfect financial management and accounting tool for small businesses or freelancers, whether you are just starting or in the business now. Read Reviews

  • Pricing: $10
  • Devices Supported: Windows, Linux, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment
  • Customer Types: Small Business, Medium Business, Freelancers
  • Deployment: Cloud Hosted

5.
Xero

Our Score 9.5

User Satisfaction 97%

Xero is the winner of our 2017 Expert's Choice Award. It is a popular online accounting app designed for the needs of small and medium businesses in multiple industries. Read Reviews

  • Pricing: $9
  • Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment
  • Customer Types: Small Business, Freelancers
  • Deployment: Cloud Hosted, Open API

6.
QuickBooks

Our Score 9.4

User Satisfaction 96%

QuickBooks is an accounting software app that pioneered the use of windows that look like real-life forms. It offers most features every business will need. Read Reviews

  • Pricing: $5
  • Devices Supported: Windows, Linux, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment, One-time payment, Annual Subscription
  • Customer Types: Small Business, Large Enterprises, Medium Business
  • Deployment: Cloud Hosted, On Premise

7.
Sage Intacct

Our Score 9.4

User Satisfaction 99%

Sage Intacct is a software app that offers a wide range of out-of-the-box features with customizable functions to fit various conversion funnels and purchase orders. Read Reviews

  • Pricing: by quote
  • Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Quote-based
  • Customer Types: Small Business, Large Enterprises, Medium Business, Freelancers
  • Deployment: Cloud Hosted

8.
QuickBooks Online

Our Score 9.3

User Satisfaction 94%

QuickBooks Online is an ideal accounting software for freelancers and small businesses that simplifies small business accounting. Read Reviews

  • Pricing: €4.20
  • Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment
  • Customer Types: Small Business, Freelancers
  • Deployment: Cloud Hosted

9.
Sage Business Cloud Accounting

Our Score 9.3

User Satisfaction 96%

Sage Business Cloud Accounting is an easy-to-use accounting application for small businesses and startups. Read Reviews

  • Pricing: $10
  • Devices Supported: Windows, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment
  • Customer Types: Small Business, Freelancers
  • Deployment: Cloud Hosted

10.
Tipalti

Our Score 9.1

User Satisfaction 100%

Tipalti is a powerful and secure payment solution that automates the entire mass global payment processing operation. Read Reviews

  • Pricing: by quote
  • Devices Supported: Windows, Linux, Android, iPhone/iPad, Mac, Web-based
  • Pricing Model: Monthly payment
  • Customer Types: Small Business, Large Enterprises, Medium Business, Freelancers
  • Deployment: Cloud Hosted

Our Score Read More

Our website utilizes our special SmartScore™ algorithm to gather information about all the products in the Online Accounting Software category to help you decide on the best possible software. It compares and contrasts the following factors: main modules, collaboration capabilities, customization, integrations with other services, intuitiveness, help & support, how secure a software is, mobile support, ratings in media. Currently, FreshBooks is the leader in this category and is recommended by our experts. Following extensive research and analysis it got the best results among its competitors and our reviewers strongly suggest that you include it as one of the solutions for your company.

User Satisfaction Read More

An overview of general user satisfaction with the software in our Online Accounting Software category based on our unique algorythm that collects customer reviews, comments and opinions across a broad range of social media platforms to help you make an educated buying decision.

99%

100%

100%

93%

97%

96%

99%

94%

96%

100%

Pricing Read More

Every vendor in the Online Accounting Software category will offer a different group of pricing plans for its app and each plan will include a unique group of features. Below we list the general pricing for the cheapest plan offered for each app. Keep in mind that advanced features may have an extra cost.

$15

$44.97

$9

$10

$9

$5

by quote

€4.20

$10

by quote

Devices Supported Read More

An analysis of what type of devices and operating systems are supported by the listed B2B services in the Online Accounting Software category, including mobile platforms and web-based solutions.

Windows

Android

iPhone/iPad

Mac

Web-based

Laguages Supported Read More

Learn what languages and countries are served by the best B2B solutions in the Online Accounting Software category, including spftware designed for international markets and created for multi-cultural teams of employees.

Pricing Model Read More

Examine what pricing packages are supported by the vendors in the Online Accounting Software category to check which one suits your business requirements and budget best. Note that some solutions can support free or freemium accounts for you to try out first.

Free

Monthly payment

One-time payment

Annual Subscription

Quote-based

Customer Types Read More

An analysis of what types of clients a specific B2B software in the Online Accounting Software category provides for, from small businesses and non-profits to large enterprises.

Small Business

Large Enterprises

Medium Business

Freelancers

Deployment Read More

A summary of what kinds of product deployement are offered by every B2B vendor in the Online Accounting Software category. While almost all modern SaaS services are cloud-hosted there are solutions might offer an on-site deployment model as well.

Cloud Hosted

On Premise

Open API

Post by Alex Hillsberg