Success Tips


8 Free Bookkeeping Software for Small Businesses in 2020

Oct. 18, 2020

Bookkeeping For Small businesses – Free Bookkeeping Software

Running your small business is always twice as easy when you hire a bookkeeper.

You can either hire a bookkeeper at an affordable price or take advantage of free bookkeeping software.

Bookkeeping can be very overwhelming for nonprofessionals.

Even when you feel your business isn’t large so it’ll be easy to go about it, you might encounter challenges.

To avoid the mistakes that come with poor bookkeeping, every entrepreneur should hire a bookkeeper.

Who is a Bookkeeper?

free bookkeeping software

A bookkeeper is a professional who records all financial transactions of a business, including; purchase, sales, and payment receipts.

Bookkeeping is an aspect of accounting.

This is why all accountants can perform bookkeeping functions but bookkeepers cannot fully perform accounting roles.

No business can attain growth without proper bookkeeping by a professional.

Hence, it is fundamental to hire a bookkeeper.

You can decide to go for a virtual or physical option.

If your best bet is a virtual bookkeeper, consider certain factors before settling for one.

Things To Look Out For Before Choosing A Free Bookkeeping Software

Bookkeeping software like virtual bookkeepers uses technology to keep business records.

There is so much free bookkeeping software you can use to properly organize your business records.

However, you need to be certain that your virtual bookkeeper has the capacity to carry this out.

Some of the key roles any bookkeeper ought to carry out are;

  1. Bookkeepers are responsible for recording income and outflow of money and some other financial assets.
  2. In charge of recording and reviewing all financial data.
  3. Processing payments
  4. Reconciling reports
  5. Maintain confidentiality by not disclosing business information.

In getting these responsibilities carried out effectively, a bookkeeper should pay close attention to details.

The ultimate consideration before choosing accounting software is how helpful the features are to your business.

Also, you need to be mindful of the fact that you might end up making some form of payment for more advanced bookkeeping services.

Best Free Bookkeeping Software for Small Businesses

1. Bench Bookkeeping Software

This is one of the best bookkeeping software for small businesses.

With bench bookkeeping, you can monitor your business’s financial health, download financial statements, and chat with your bookkeeping team.

It has a period of free trial but its price starts from $139/month.

They are mobile-friendly as apps are available for Android and IOS Phones.

2. Wave Bookkeeping Software

Wave is an accounting software that carries out bookkeeping. Wave targets small business owners and solo entrepreneurs.

They take care of your account payable and receivable, billing and invoicing, and bank reconciliation.

With Wave, you can seamlessly preserve your information without the manual entry. It also helps you easily collaborate with your bookkeeper in real-time.

Wave has a basic package that is free but with limited features and several other paid plans to unlock certain features.

3. Kashoo Bookkeeping Software

Kashoo is accounting software that uses machine learning to perform bookkeeping functions as well as carry out bank reconciliation and provides accurate real-time reports.

It has the lowest features which are at lower charges and higher features but have a 14 days free trial. After this, the user has to pay $19.95 monthly.

Kashoo is a good choice for small business owners looking for free bookkeeping software for their business.

However, it doesn’t offer automatic payment reminders and is not available as an app for your Android smartphone.

4. ZipBooks Bookkeeping Software

ZipBooks is an accounting and bookkeeping software that was specifically designed for freelancers, small businesses, and sole entrepreneurs.

It allows you to track your receipt and manage another form of resources in your business.

ZipBooks free plan which is the starter plan allows for a single user.

The smarter plan supports about 5 users while the sophisticated plan supports unlimited users.

Despite the fact that this is nice and easy bookkeeping but lacks some important advanced features.

5. Clearbooks Bookkeeping Software

It is an accounting, bookkeeping, and payroll software for freelancers and start-ups.

This software is certified by the Institute of Certified Bookkeepers (ICB) and a great bookkeeping tool.

ClearBooks uses a simple design to guide business owners  through their day to day accounting and bookkeeping tasks.

Using clear books without properly backing up your files is risky as you might lose them should a technical difficulty arise.

6. Slickpie Bookkeeping Software

This is a web-based software with an automated data entry tool which allows you to simplify your bookkeeping tasks

It is a free software with a paid plan that costs $39.95 per month.

It is secured to a very high degree as it uses military-grade 256-bit server encryption for users’ data.

7. The Neat Company

The neat company is a web-based bookkeeping software.

It offers simple & easy bookkeeping automation for small businesses.

You can organize your documents and data with ease.

This information is stored on the cloud which means easy access.

The software has a period of the free trial.

After this, the user is expected to pay a monthly subscription fee or a yearly fee starting from $99.99.

8. Sunrise

Sunrise bookkeeping software which was formerly known as Billy, is an excellent choice for startup entrepreneurs and freelancers from all industries.

Compared to other software, sunrise is easy to use with a simplified interface.

It is a very flexible option when it comes to choosing a free bookkeeping software because it is available on Android and IOS devices.

Disadvantages of Online Free Bookkeeping Software

  • You are overly dependent on Internet subscription- Due to the fact that they are web-based, you would need the Internet to access it.
  • No 100% guarantee of security and confidentiality- As much as the security help secure your files on the cloud. There is no full guarantee of totally secure software and this can beach confidentiality.
  • Price- Most small business owners do not have many funds to part with. This is why they mostly go for free bookkeeping software.

It only takes a while for you to upgrade and start paying.

This is because you only have access to the other basic feature and your business would definitely need those features.

Also, this is one of the reasons why small business owners are still encouraged to go for one physical accountant.

This accountant takes care of the entire financial needs of your business.

Do I Need an Accountant after Getting a Free Bookkeeping Software?

payroll liabilities for small businesses

Not all bookkeeping software performs full-service accounting duties. However, many of them come with almost the total package.

The total package from this software might require a monthly or yearly fee.

Regardless of the fact that bookkeeping software is a good investment, it doesn’t cost less than hiring a physical accountant.

If you opt for a bookkeeping software that includes accounting features, you may not require an accountant.

Nevertheless, any small business owner that desires rapid business growth knows the importance of a physical accountant.

A good bookkeeping agency does more than just keep financial records.

They go the extra mile to interpret the records in relation to your business niche. It is very helpful in taking the right financial steps to grow your business.

This is one major reason why small businesses trust KAFT CPA to handle all their financial needs.

Need an accountant who specializes in medical practices, oil and gas, small business and more?
Book your free 30-minute "Success Check" today.