Free accounting software features

Quick insights

• Accounting software can help businesses track payments and expenses.
• There’s a variety of free expense management software options available.
• Many free options allow users to automate the expense report process, potentially saving time on data entry and other repetitive tasks.

Small businesses may benefit from investing in accounting software to track payments, automate expense reports and more. While this could be a worthy investment, not all businesses have the budget to spend on potentially costly software. Therefore, business owners might want to try out free software options before opting for a paid one.

Below, we review some of the benefits of using accounting software, a range of free options and what factors to consider when selecting software for your business.

Benefits of using accounting software

Time spent on data entry and accounting tasks may add up over time as a business grows. Relying on accounting software can be a helpful way to manage this.

A few key benefits of using accounting software could include:

• Efficient expense tracking: Automate the process of recording and categorizing business expenses.
• Accurate financial reporting: Generate financial statements with potentially fewer human errors.
• Automated data entry: Automate repetitive tasks like invoicing and bill payments.
• Compliance with tax regulations: Use built-in tax features to help accurately file business taxes.

What you may want to consider when choosing accounting software

Just starting the process of selecting the right expense management software for your business? Here are a few factors and features you may want to consider before making your decision:

Cost

If you aren’t sure you want to invest in a more robust program just yet, you can start by comparing free options or find software that offers free trials. The annual cost for accounting software differs widely depending on the platform and number of users who need access.

For example, if a small business only needs a handful of users to access the software, it could cost up to $5,000 annually. But that cost can increase with additional users and features added.

Number of users

Some free or low-cost options limit the number of user seats or the number of clients you can invoice through the program. It may be wise to tally exactly how many people on your team will be using the software, and how many clients need to be included.

Features

Some free expense management software options offer limited features. For example, some software is specific to only invoicing or only expense management. Ensure your chosen software offers the capabilities your business needs.

Integrations

Does the software integrate with other finance software? Additionally, does it integrate with your business bank account or business credit card to simplify expense tracking?

Do small businesses need paid accounting software?

While accounting software can offer many different efficiencies to businesses, every business may not need the robust capabilities of a paid program. In many cases, free accounting software has plenty of capabilities.

Free accounting software may be a great starting point for small businesses that may have limited budgets. While these types of software may have limited functionality, they can typically help track expenses, create reports and handle invoicing.

But keep in mind that your business may not always stay small. Some companies may choose a software program that offers different tiers of plans. That way, they can continue using the same system and upgrade plans down the line if necessary.  

Your individual business bookkeeping needs may depend on a variety of factors, including business size and industry.

In summary

Small business owners may be hesitant to invest in large-scale accounting software without trying it out first or confirming that it will be helpful for their company. Because of this, it may be wise to test out free accounting software or opt for software that offers free trials.

Expense reports and other financial responsibilities often grow along with your business. Because of this, businesses may benefit from the time savings that may result from using accounting software.