Which Is the Best Small Business Accounting Software for Your Ecommerce Business?

Michael Pignatelli
Mar 31, 2022

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Unless you live in a cave, you already know how automation can speed things up. Automation is involved in every step of the manufacturing process of almost every product sold in the market. Mass production wouldn't be possible without it. But have you ever wondered if you can automate your spreadsheets as well? It would take a lot of work off your plate, wouldn't it?

The good news is that you can! With the help of small business accounting software, you can say goodbye to sleepless nights trying to complete your books and meet deadlines. There is plenty of accounting software for small businesses that you can use. This article weighs its good and bad sides to help you pick the best one!

Keep reading to discover the advantages and disadvantages of the best small business accounting software in the ecommerce sphere!

Top Small Business Accounting Software Reviewed

best small business accounting software - Accountant with calculator and notebook

We gathered some of the most-used small business accounting programs in the ecommerce sphere. These bookkeeping software have their respective strengths and weaknesses. Their features may enrich your bookkeeping experience, while their shortcomings may be a dealbreaker for you. So what are you waiting for? Scroll down and see what these bookkeeping programs can offer you and your business.

Intuit QuickBooks Online

Pros:

  • Can be scaled to keep pace with your growing business
  • Accounting tool of choice for professional accountants and growing businesses
  • Has seamless integration with hundreds of third-party applications
  • Includes a responsive and feature-rich mobile application
  • Occupies zero storage on your computer because it is cloud-based

Cons:

  • Spending for upgrades necessary for more features and more users
  • Occasionally has issues with syncing with bank accounts and credit card providers
  • Very costly to sustain in the long run; impractical for new small business owners
  • Might be overwhelming to use for inexperienced users
  • Some customers complain about the customer support

Outstanding App Integration

Aside from the features offered by Intuit QuickBooks Online, you can expand the usability and improve the platform's effectiveness using apps. Intuit QuickBooks Online features an app marketplace filled with hundreds of first-party and third-party apps. Each app offers functionalities catering to users with more specific needs. Furthermore, apps allow greater automation of your workflow.

QuickBooks Online stands out because it seamlessly works with third-party apps. 

Typically, communication between a platform and software designed by third-party developers experiences errors and less-than-ideal integration. However, in the QuickBooks Online ecosystem, everything works without any fuss. For instance, you will have no problems syncing data to and from other apps.

Shortcomings

QuickBooks Online is a popular choice among accountants and bookkeepers, with good reason. The platform has top-of-the-line accounting features. Unfortunately, these features come with a hefty price tag. Small business owners may be turned off by how expensive it is. Even at the lowest tiers you may find it costly.

Since it's a cloud-based service, you can use it wherever there is a stable internet connection. However, you may consider this feature a double-edged sword. When your internet connection is slow, the platform becomes near-impossible to use. That's why long-time users of the platform dread switching from the desktop-based app (Quickbooks Pro) to the cloud-based service.

Xero

Pros:

  • Accessible from anywhere as long as you have access to the internet
  • Offers a responsive and feature-rich mobile app for on-the-go use
  • Trusted by more than 16,000 accounting firms and boasts a user base comprised of over 1 million people
  • Features a clean interface that shows you the most relevant information in an instant
  • Can be used and accessed by an unlimited amount of users

Cons:

  • Has a steep learning curve, especially for those with limited accounting knowledge
  • Does not include a built-in payroll solution but can be integrated with a third-party payroll app
  • Does not have a first-party function for chasing debtors with unpaid invoices
  • Offers basic and limited inventory management features
  • Limited customer support

Crystal Clear Overview

Have you ever wanted to check up on your business's performance? You can see how good your business is doing by using accounting reports and financial statements. However, reading through your financial documents would be impractical if you only want a quick overview of your business. Fortunately, Xero offers a well-executed solution to the problem.

Take a glance at Xero's dashboard, and you will immediately see why many consider it to be a cut above the rest. The platform's unique dashboard lets you see the most relevant information about your business's performance. For instance, the dashboard shows you your cash flow, expense tracking, outstanding invoices, accounts receivable, and bank and credit card information on one page.

Shortcomings

If you are new to using cloud accounting software, learning how to use Xero will be very challenging. While there is plenty of documentation and helpful videos to guide you, there may be situations where having a person to talk to is necessary. Unfortunately, Xero doesn't have phone support and will only call you if the situation demands it. Instead, they have 24/7 online customer support.

Another drawback of the platform is its restrictions on bills and invoicing. If you are on the lowest-tier plan, Xero only lets you send a maximum of 20 invoices every month. So if you have more than 20 clients, you may have to do your invoices manually to accommodate all of them. Aside from invoicing restrictions, you can only schedule five bill payments.

FreshBooks

Pros:

  • Stores your data on the Cloud; accessible anywhere there is an internet connection
  • Features a simple and easy-to-use interface; perfect for beginners
  • Integrates apps developed by third-parties
  • Relatively affordable compared to its competitors in the market (like Sage Business Cloud Accounting)
  • Includes sophisticated invoicing features to automate the process

Cons:

  • Has a mobile app but with limited functionality and doesn't allow access to reports
  • Suitable for small businesses but may not be able to keep up as your business grows
  • Only includes a basic set of accounting features which may be lacking for more experienced users
  • Does not include a built-in payroll service 

Affordable Pricing Plans

If you are a small business owner, you might better appreciate FreshBooks's subscription plans. Unlike its competitors (like AccountEdge Pro and Sage Accounting), the three plans that FreshBooks offers range from $15 to $50 per month. Each tier differs in terms of accounting features and functionality. Plus, if you want to add more users, you must pay $10 for each.

Shortcomings

One of the greatest advantages of cloud accounting software is that they let you access the platform no matter where you are. As such, they provide mobile apps to complement their browser-based platform. Unfortunately, FreshBooks' mobile app has limited functionality compared to its browser-based counterpart.

Let Unloop Take the Wheel

best small business accounting software - Accountant in front of a laptop

The three software featured above are some of the best in the industry, but even they come with disadvantages. Small business owners like yourself may not have the know-how to make the best use of the software—all but sending the expensive monthly fees down the drain.

Instead of getting your head around a complicated accounting tool or dubious free accounting software, why not try employing a team of ecommerce experts? Unloop consists of experts with years of experience in accounting and bookkeeping in the ecommerce industry. Combining human expertise with the best accounting software, Unloop provides outstanding accounting solutions to let your growing businesses run on autopilot.

Get started with Unloop today!

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About unloop
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting.. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.
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