If you’re a small business owner in Singapore, then you know that accounting can be a daunting task. Although there are many different software options, it can be hard to decide which one is right.
You’re on the right page.
This blog post will discuss the best accounting software for small businesses in Singapore, comparing four of the most popular options.
Keep reading below!
Table of Contents
What Is Accounting Software for Small Businesses?
Accounting software is vital for any small business. It streamlines the accounting process, making it easier and faster to track income and expenses.
Accounting software can help your business manage inventory, reconcile bank statements, and generate financial reports.
While there are many different accounting software programs available on the market, they all share one common goal: to make the accounting process simpler and more efficient.
How Does Accounting Software Work?
Accounting software helps businesses keep track of their finances. The software can:
Record and track income, expenses, and other financial transactions.
Create financial reports, such as balance sheets and income statements.
Accounting software typically features a double-entry accounting system, which means that each transaction is recorded in two accounts.
Take this example:
When your business records a purchase from a supplier, the accounting software will debit the Accounts Payable account and credit the Cash account. This accounting system provides a more accurate picture of your business’s financial health.
Accounting software has come a long way in recent years.
Not only has it become more user-friendly, but many accounting packages now allow for third-party application integrations. This means that you can use your accounting software to track inventory, manage payroll, and even handle customer service.
In short, accounting software is no longer just for accounting.
It can be a powerful tool for running your business. And that’s good news for businesses of all sizes.
How Much Does Accounting Software for Small Business Cost?
Small business accounting software costs can vary widely depending on the features and functionality you need. Many accounting software programs offer a free trial period to try out the program before you commit to purchasing it.
Generally speaking, accounting software for small businesses will cost up to $150 per month, while the basic plans range to $40.
Some of the factors that will affect the price include:
The number of users
The level of support offered
The amount of storage space required
When shopping for accounting software, compare prices and features to find the program that best meets your needs.
How to Choose Accounting Software for Small Business
When it comes to accounting software, small businesses have many options. And while that may seem like a good thing at first, it can be pretty overwhelming.
After all, how are you supposed to know which accounting software is right for your business?
The truth is, there’s no one-size-fits-all answer. The best accounting software for your business will depend on various factors, including:
The size of your business
The type of business you operate
However, there are a few things that all good accounting software should have:
Intuitive interface. No one wants to waste hours trying to figure out how to use their accounting software.
Affordable price. After all, small businesses have tight budgets.
Robust features. However, these features should meet the needs of your business.
Best Accounting Software for Small Business
Now that you know what to look for in accounting software, it’s time to take a closer look at some of the best options on the market.
QuickBooks Online is easy to use and has various features, making it a popular choice for small businesses. QuickBooks Online also offers a free trial, so companies can try the software for 30 days before committing to a subscription.
The subscription plans are affordable:
Simple Start ($25/month): best for service-based SMEs
Essentials ($50/month): best for product-based small companies
Plus ($80/month): best for product-based medium companies
Advanced ($180/month): best for large companies
QuickBooks will load you with heavy discounts if you’re a new client to fall in love with their software.
Pro tip: Their scalable accounting software and multiple customisation features would make you fall in love with the software even without these discounts.
The mobile app has broad functionality, too, allowing you to:
And many more
Besides, the plans boast advanced features, including:
Integration with third-party apps (PayPal, Stripe)
Bonus: If you’ve never used accounting software before, QuickBooks Online has you covered with many online resources and support forums.
Besides, this bookkeeping software is one of the most intuitive, making it easy to use for beginners.
QuickBooks Online isn’t perfect, though. If you want to add more users to your account, you’ll have to upgrade the program to a more expensive one. Also, some customers have noticed syncing delays with their bank accounts and credit cards. Although that doesn’t happen too often, you have to arm yourself with patience when it does.
Easy to scale up
Third-party app integration
Mobile app available
Upgrade needed for multiple users
Rare syncing delays
Xero is one of the most user-friendly accounting software, targeted explicitly at micro-businesses. So, if you hate paperwork and want to simplify your accounting process as much as possible, you need streamlined, fully-integrated accounting software.
That’s precisely what Xero proposes.
Apart from being intuitive, the software allows you to upload data from other payroll apps, such as Stripe and GoCardless.
Its years on the market prove that Xero is a practical choice.
The software has been around since 2006 and currently has more than 3 million users globally. The countries it’s most popular in include the UK, Australia, and New Zealand, though Xero is gaining popularity in the USA too.
Here are the subscriptions you can choose:
Early ($12/month): maximum 20 invoices/quotes and five bills/ month; best for micro-companies that have only a few (valuable) transactions each month
Growing ($34/month): unlimited invoices and bills
Established ($65/month): unlimited invoices and bills; multi-currency; expense management; project costing
All these plans sport Hubdoc to capture your bills and receipts. You can add the full-service payroll on top of that, but you’ll have to for out $39/month and $6/employee.
Not sure whether the expense will be worth it?
Xero’s 30-day trial will help you make up your mind. You can explore Xero’s many benefits and disadvantages during this trial, like the limited reporting and ACH payments’ fees.
Highly intuitive and straightforward
Accessible and affordable
User-friendly mobile app
ACH payments require fees
FreshBooks comes with a unique selling point: an endless stream of customisation options for invoicing. Unlike other accounting software, FreshBooks is explicitly created for all things invoice-related:
However, the software helps you tackle your primary accounting needs, like:
You can choose one of the four payment plans:
Lite ($6/month): Maximum five bills
Plus ($10/month): Maximum 50 bills/month
Premium ($20/month): Unlimited clients
Select (custom price): Unlimited clients and other unique features
Other costs include:
$10/person/month for each additional user
$20/month for the advanced payment feature (e.g., using the credit card in real-time; charging a client’s credit card recurrently)
Want to pay less?
The yearly payment plan comes with a 10% discount
Enrol now, and get the 60% discount/month for the first six months of your contract
Endless invoicing customisation
Limited mobile app
Wave is one of the best tools if you have a service-based company or are a freelancer. This accounting software allows you to send basic invoices and retrieve your reports for that dreadful tax return time of the year.
Best of all, it’s free!
You don’t even need to run payroll with Wave.
Founded in 2010, Wave strives to help small businesses with their basic needs:
Tracking their income and expenses
Getting their financial reports
Wave boasts an accessible mobile app that covers all these features.
Then there are the fees.
Wave has to make a living, so while it offers free use, it imposes some charges for each transaction:
9% and 60¢ for Visa, Mastercard, and Discover
4% plus 60¢ for American Express
1% and a minimum of $1 fee for processing ACH payments
As you can see, these charges are higher than those imposed by other accounting software. But, if you don’t have many (huge) transactions, the deal might be worth it.
Apart from the free option, Wave also offers two payment plans for processing customer payments and payrolls:
$20/month + $6/user/month: Processing payroll and preparing tax calculations; you have to complete the tax forms manually and then submit the payments
$35/month + $6/user/month: Full-service payroll, including completing tax and payments (not available in Singapore)
No limits on transactions, users or bills
You can add several businesses to your account
Few third-party app integrations
Higher charges for credit card and ACH payments
Accounting software helps you manage finances more effectively, keeping track of your transactions. Second, accounting software can save businesses a lot of time because it automates many tasks that would otherwise have to be done manually.
Now, you get automatic invoicing and recording payments. Finally, accounting software can help you comply with tax regulations because it can generate tax reports.
As a result, accounting software can be a valuable tool for your company.
If you don’t have the money to purchase accounting software outright, you may want to consider taking out a business loan. Plus, a business loan can help you build your credit history, which is helpful if you ever need to take out another loan.
With our personalised packages, low rates, and quick approvals, Credit Master will become a reliable partner for all your business needs.
At CreditMaster, we believe in building long-term relationships with our clients. Our team of experienced professionals is always ready to provide personalised financial advice and assistance to ensure that our clients make informed decisions. We understand that each client's situation is unique, and we strive to tailor our services to meet their specific needs.
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