Affordable Small Business Accounting Software

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Did you know that as of 2016 there were 11.3 million women-owned businesses in the United States?

True story. Since 2007, the economy at large has only seen an increase of 9% for the establishment of new businesses. But women-owned businesses? Forty-five percent growth.

Not all of this growth is for positive reasons. One reason people leave the W-2 grind and head out on their own is unequal pay and marginalization in the workplace. It stands to reason that women would start working for themselves or taking charge and employing others.

This is especially true for black women, who are the fastest growing group of entrepreneurs in our country. When you consider the added barriers that racism imposes, it’s not surprising that so many women are taking control of their own destiny.

While the reasons behind these trends may be messed up, there’s no reason to feel any kind of pity. Businesses run by women have seen a 37% increase in revenue since 2007–ten percentage points higher than the economy at large.

Women aren’t just quietly leaving, establishing new businesses in lieu of being someone else’s employee.

They’re rocking it once they head off on their own.

Today’s post goes out to all the ladies out there. Full of ambition. Capable. And driven.

Who also want a little bit of help keeping their finances straight along the journey.

Taking Care of Your Money as a Small Business Owner

When you’re a small business owner, you have to take care of everything yourself–or hire someone to take care of it for you. When it comes to business finances, the person you’ll be hiring or contracting with is an accountant.

Here’s the thing, though: you can’t just hand your accountant a shoe box of receipts at the end of the year along with your bank account number.

You have to stay organized so they can do their job effectively. Not only will it help you stay on good terms with your CPA, but staying organized will help you measure the health of your business on days that don’t rhyme with “April 18th.”

A great way to do this is through accounting software. Typically, the best programs are going to be pseudo pricey. But recently, I got turned on to one that’s pretty darn comprehensive at an affordable price. Because you shouldn’t go broke trying to take care of your money.

Affordable Small Business Accounting Software from Xero

Let’s start with the basics: Xero is an online accounting software program that services companies with up to one hundred employees. If you don’t employ that many people, or only employ yourself, you don’t have to pay the same price as the larger small businesses. Prices are tiered:

Starter Plan

Best for solopreneurs with minimal invoicing needs.

Comes with:

  • Ability to send five invoices/quotes per month.
  • Capability to enter five bills to remind yourself when to pay and to make sure you have an accurate perception of your cash flow.
  • Ability to reconcile 20 bank transactions.

Cost per month: $9

Standard Plan

Best for companies with >6 employees, or solopreneurs with higher monthly invoice volumes.

Comes with:

  • Unlimited invoicing and quotes.
  • Unlimited bill tracking.
  • Unlimited bank transaction reconciliation.
  • Payroll for up to 5 people.

Cost per month: $30

Premium Plan

Best for companies with 6-100 employees on payroll.

Comes with:

  • Unlimited invoicing and quotes.
  • Unlimited bill tracking.
  • Unlimited bank transaction reconciliation.
  • Payroll for up to 10, 20 or 100 people.
  • Multi-currency capabilities.

Cost per month:  $70 for 10 employees, $90 for 20, and $180 for 100.

Free Trial

No matter which plan best suits your needs, you can get a 30-day free trial here–no credit card required.

Evergreen Nonprofit Pricing

Run a nonprofit? Then you can get 25% off the prices you see above at the end of your free trial.

Xero’s Functionality

Affordable payroll software for small business owners.

Xero is super simple to use. The larger your business is, the longer it will take to set up, but that’s only because you have more information. No hair pulling. Everything is streamlined. Even the most complex accounting maneuvers are navigable with Xero’s guidance. Your CPA will be impressed when she looks things over.

The biggest bump in the road is the payroll availability. This is no problem if the only person you employ is yourself, but if you do have employees, you should know that currently Xero only offers full payroll capabilities, including electronic services, for the following states:

  • California
  • Florida
  • Illinois
  • New Jersey
  • New York
  • Pennsylvania
  • Texas
  • Utah
  • Virginia

It does offer payroll for these states, as well–you just won’t be able to execute every last thing for your employees electronically:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • Colorado
  • Georgia
  • Hawaii
  • Indiana
  • Kentucky
  • Louisiana
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Nebraska
  • Nevada
  • New Hampshire
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • South Carolina
  • South Dakota
  • Tennessee
  • Washington
  • Wisconsin
  • Wyoming

They keep adding states all the time, so if you don’t see yours, be sure to scroll down on this page to check Xero’s most recent list.

Simplicity and Affordability

While Xero is simple and affordable, it’s also comprehensive. After that initial setup, upkeep is a breeze. That gives you more time to get back to running the world.

Shoot...this is pretty much half the price of the small business accounting software I'm paying for now...

*I have been compensated for the writing of this post. Regardless, all opinions are honest and my own.*

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5 thoughts on “Affordable Small Business Accounting Software

  1. Mel @ brokeGIRLrich

    Xero does seem to be a pretty nifty accounting tool. It’s always awesome when you can hook up with such a legit affiliate. The payroll aspect is pretty cool for any growing little business too.

  2. Pingback: Should I Hire Employees or Contractors? | Femme Frugality

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