Owning a small business has its challenges especially when you are setting up a new business for the first time. Have you thought of using accounting software to run your business finance? Imagine being overwhelmed by paperwork – invoices, receipts, payrolls, and financial statements. It’s late, you’re tired, and you still have a lot of work to do. This can make it hard to focus on growing your business.
Don’t worry, you’re not alone. Many small business owners face this problem. But there’s a solution: financial software. This software can help you manage your finances easily giving you more time to focus on your business.
In this blog post, we will tell you all there is to know about handling the finances in your new business and the best free accounting software that will be of great use to your small business.
Key Takeaways
- Business finance involves planning, organizing, and controlling a business’s financial operations to achieve its objectives.
- New and existing small businesses need proper financial monitoring to track their financial status.
- Business accounting software can make life as a small business owner much easier and contribute to your business’s success.
Table of Contents
What Is Business Finance?
Business finances are like the money management for your business. It’s about knowing how much money you make, how much you spend, and how to keep your business financially healthy.
You will need to track your income, expenses, and profits. You will also need to have enough money to pay your bills and invest in your business.
Nigerian small business owners face some challenges, like the economy and regulations. But if you understand how to manage your finances, you can help your business grow.
The ultimate goal of business finance is to support the strategic objectives of your small business, which may include growth, profitability, market share, or other key performance indicators. By managing financial resources and operations effectively, your business can access the necessary funding, make sound investment decisions, and maintain financial stability, all of which contribute to the achievement of its overall objectives.
See also: Funding options available for businesses in Africa
These are the key financial terms you need to know as a small business owner:
- Income: The money your business makes from selling things or services.
- Expenses: The money your business spends on things like rent, salaries, and supplies.
- Profit: Money you make after paying all your expenses.
- Cash flow: How money moves in and out of your business.
- Budget: A plan for how you will spend your money.
- Debt: Money you owe to others.
- Credit: The ability to borrow money.
- Investment: Using money to buy something that will grow in value.
- Accounting: Keeping track of your business’s money.
- Tax: Money you pay to the government.
What Is a Business Accounting Software?
Imagine having a personal accountant right in your pocket! That’s what business accounting software does. It’s like a digital helper that records all your business’s money from income and expenses to payroll and invoices.
This software is easy to use, even on your smartphone. You can access your financial information anytime and anywhere. It helps you stay organized and makes managing your business’s finances much easier.
Accounting software can be a huge benefit for small business owners in Nigeria. It saves time by automating tasks like bookkeeping and payroll, reducing errors in financial calculations, and providing accurate financial information to support better decision-making. This software increases efficiency by streamlining financial processes and saving money.
Additionally, it gives you clues on your business’s performance, helping you identify areas for improvement and make data-driven decisions. Overall, business accounting software can make life as a small business owner much easier and contribute to your business’s success.
Read also: Essential components of a pig farming business plan
Best Free Accounting Software for Small Business Owners in Nigeria
1. Wave
Users of Wave benefit from its diverse accounting features namely invoicing, expenses, time tracking, projects, payments, reporting, and receipt scanning. These features are what make it the best free accounting software for small business owners.
Wave, a Toronto-based company founded in 2010, initially offered a free online accounting program designed for small businesses with up to nine employees. Over time, they expanded their product range to include invoicing, personal finance management, and receipt scanning software. With over 250 employees, Wave was eventually acquired by H&R Block in 2019.
Wave’s free program offers a comprehensive suite of accounting tools, covering essential aspects like income and expense management, financial reporting, invoicing, and . Accessible both online and through a mobile app, this program provides all bookkeeping, invoicing, and reporting functions without any cost.
Key features of the free program include, unlimited team members, unlimited bank and credit account connections, unlimited income and expense tracking, a dashboard for efficiency monitoring, annual financial statement generation, payroll administration, tax classification, and financial reports on overdue bills, invoices, cash flow, and profits and losses.
However, Wave does have limitations. Payroll management and customer payment processing are premium services that require additional fees. This means that users of the free program will not have access to these crucial functionalities.
2. Zoho Books
Zoho Books is a cloud-based accounting software designed to simplify financial management for businesses of all sizes. It offers a wide range of features, including invoicing, expense tracking, inventory management, tax compliance, financial reporting, time tracking, and integration with other business tools.
Whether you’re a small business owner, freelancer, or non-profit organization, Zoho Books can help you streamline your accounting processes, track your finances effectively, and make informed business decisions. With its user-friendly interface and comprehensive features, Zoho Books is a valuable tool for businesses looking to improve their financial efficiency.
Zoho Books stands out as one of the best free accounting software for small business owners because of its free plan offerings, providing small businesses the essentials of business finance management.
3. GnuCash
GnuCash is a free accounting software that’s easy to use. It’s great for businesses, freelancers, and anyone who wants to track their money. You can use it for personal finances or business accounting. GnuCash works on Windows, Mac, and Linux. But it’s a bit old-fashioned and simple for some businesses.
4. ZipBooks
ZipBooks enables business owners to manage all necessary accounting, bookkeeping, expense tracking, and reporting processes.
ZipBooks is a simple accounting tool for small businesses. You can use it on your computer or phone. It’s easy to learn, even if you don’t know much about accounting. With its easy-to-use interface, you can create and send invoices in just a few minutes.
With ZipBooks, you can manage your money, track expenses, and make reports.The basic plan is free, but you’ll need to pay a fee if you want to accept online payments.
5. Xero Accounting
Xero is a great accounting tool for small businesses. You can try it for free or use the free version. If you like it, you can pay to use it more. Xero has many features and can work with other software, so it’s a good choice for managing your money.
6. CloudBooks
CloudBooks is a free accounting tool that’s great for freelancers and small businesses. It’s different from other free tools because it helps you manage projects and track your money in detail. You can easily track time, expenses, and profits.
CloudBooks also helps you create estimates for clients and turn them into invoices. It keeps track of payments and sends reminders to clients. You can accept payments by credit card, cash, or PayPal.
7. Akaunting
Akaunting is a free online accounting tool that’s perfect for small businesses. It’s easy to use and lets you customize it to your needs. You can manage your money, track expenses, and create invoices. Akaunting works with different currencies, making it great for businesses that work with people in other countries.
It also sends automatic reminders to customers so they can pay you on time. Some of its features include open-source accounting, easy invoicing, vendor management, deposits and transfers, customer management, customer summary, and email templates.
While it might not have as many features as some other tools, Akaunting is open-source and has many useful features. It’s a good choice if you want a personalized accounting solution.
8. ProfitBooks
ProfitBooks is a great accounting tool for small businesses. It’s easy to use and affordable, making it perfect for businesses that are just starting out. You can create invoices, track payments, manage your money, and generate reports. ProfitBooks also helps you manage your inventory and stay compliant with tax regulations.
Its intuitive interface stands out from the competition because it makes it easy for novice accounting teams to handle finances.
9. myBillBook
myBillBook is a comprehensive online accounting solution offering a wide range of essential and advanced features. Even the free version provides robust capabilities such as personalized invoices, integrated billing, cash flow tracking, inventory management, business operations, electronic invoicing and e-way billing, digital marketing, bank account management, and more.
One of myBillBook’s greatest strengths lies in its user-friendly interface, making it accessible to business owners with limited financial expertise. The software’s multi-user, multi-device, and multi-business compatibility empowers you to manage your accounting seamlessly from any location and device.
10. Sunrise
Sunrise is a premier accounting solution designed specifically for small businesses seeking a free and user-friendly bookkeeping tool. Renowned for its security and reliability, Sunrise provides a comprehensive suite of features to cater to the needs of most small enterprises.Unlike many other free accounting software options,
Sunrise offers unlimited user support, ensuring that businesses always have access to assistance when needed. Additionally, Sunrise is widely recognized for its exceptional customer service. With Sunrise, users can send an unlimited number of invoices, effectively manage and track expenses, generate precise estimates and quotes and monitor cash flow efficiently.
If you are looking for a paid option that gives you unlimited accounting features, QuickBooks is a great option for your small business accounting. Click here to learn how to use QuickBooks effectively for your small business.
Conclusion
You have seen our list of best free accounting software for small business owners. Do well to check out their apps and websites to determine the one that best suits your business finance needs.
Understanding the top facts about small business accounting software can greatly benefit your business. From tax compliance to financial reporting, having a solid grasp of these key aspects can lead to better decision-making and financial management.
Frequently Asked Questions
What is the essence of small business accounting?
Small business accounting is the process of recording, organizing, and interpreting a company’s financial transactions. It converts financial data into comprehensible statements about the business’s profitability, enabling owners and managers to make informed decisions that support the enterprise’s long-term viability and growth.
Which is the best free accounting software for small business owners?
There are many free accounting software available for you. Some are Wave, ZipBooks, Xero and ProfitBooks.
References
- What Is Small Business Accounting? A Beginner’s Guide
- Best free Accounting software for small business owners
Blessed is a dedicated grants and business funding researcher with a keen eye for uncovering opportunities. With a background in digital marketing and social media management, she brings a unique perspective to her work. Blessed is passionate about helping individuals and businesses secure the funding they need to achieve their goals. Her expertise and dedication make her a valuable resource for anyone seeking financial support.
