Bookkeeping Basics
Choosing Accounting Software for Your Small Business
3 min read
Spreadsheets work for a few weeks. After that, most businesses benefit from real accounting software. Here's how to choose.
Features that matter most
1. Bank and credit card feeds Automatic import of transactions saves hours and reduces errors. This is the single most important feature.
2. Invoicing and online payments Send professional invoices and let customers pay by card or bank transfer.
3. Receipt capture Snap a photo of a receipt and attach it to the transaction.
4. Reporting At minimum: profit and loss, balance sheet, and sales and expense reports by customer or vendor.
5. Accountant access Your bookkeeper or tax professional should be able to log in without sharing your password.
6. Integrations Connections to your payment processor, payroll provider, point-of-sale or job management app.
7. Sales tax tracking Important in Washington if you collect sales tax at different local rates.
Popular options at a glance
| Software | Often a good fit for | Notes |
|---|---|---|
| QuickBooks Online | Most small businesses | Most widely used by bookkeepers and accountants; strong integrations |
| Xero | Service businesses, owners who like clean design | Strong bank feeds; popular internationally |
| FreshBooks | Freelancers and service providers | Excellent invoicing and time tracking |
| Wave | Very small businesses on a tight budget | Basic features; fewer integrations |
| Zoho Books | Businesses already using Zoho apps | Good value with broad features |
Pricing and plans change often, so compare current plans on each provider's website.
How to decide
Ask your bookkeeper first
If you work with a bookkeeper or accountant, use the software they know well. You'll get faster, cheaper and more accurate help.
Think about the next two years
Will you hire employees? Track jobs or projects? Carry inventory? Choose software that can grow with you so you don't have to migrate later.
Check your industry tools
Contractors, retailers and e-commerce sellers often depend on specific integrations. Confirm your key apps connect.
Use a free trial
Most providers offer trials. Connect your bank and categorize a month of transactions before committing.
Set it up right
The software only works if it's set up correctly:
- Choose cash or accrual reporting
- Build a clean chart of accounts
- Connect only business bank and card accounts
- Set up bank rules carefully (they can automate mistakes too)
- Enter opening balances accurately
The bottom line
The best accounting software is the one you'll actually use and your bookkeeper supports. Prioritize bank feeds, invoicing and accountant access, and get the setup right from the start.
Need help getting this right? TRIG Bookkeeping & Tax Services helps new business owners in Washington with company registration, monthly and annual bookkeeping, and government compliance. Contact us to talk about your business.
This article is general information, not legal or tax advice for your situation. Tax rules and fees change, so confirm current details with the IRS, the Washington Department of Revenue, or a qualified professional.