Best Cloud Accounting Software of 2023: Updated List

As a business, you can’t do everything manually. You need the help of tools and technology. Especially when it comes to bookkeeping and accounting. This is why we’ve curated this list of the best cloud accounting software. 

Cloud-based accounting software can make your life easy. They automate repetitive tasks, they eliminate the risk of errors, and they simplify the overall tasks. Whatever you need to do, cloud-based accounting software can handle it. 

We sat down last weekend and made a list of cloud accounting software we wanted to try. Out of that list, all of us chose one single tool that impressed us. Thus, the list of cloud-based accounting software. 

Common Features offered By Cloud Accounting Software

There are some basic features that you can expect from every single accounting software. Here are some of them:

• Create, send, and manage invoices
• Income and expense tracking
• Receipts and payment organization tools
• Tax estimation and tax filing tools
• Work hour tracking and payroll management
• project profitability tracking to help build better business strategies
• Financial reporting

The best reason to use cloud-based accounting software is data access anytime, anywhere. Plus, you don’t have to build a mound of physical storage devices as all your data is stored on the cloud. 

Overview of Top Cloud Accounting Software

Detailed Overview of Best Cloud Accounting Software

1. FreshBooks

FreshBooks is one of the easiest to use cloud-based accounting software that offers a feature-rich experience to the users. Freelancers, businesses, self-employed professionals, and others can use the software. During our testing, we fell in love with the range of features it offers. Here’s all we love about FreshBooks cloud accounting software. 

• Time tracking, expense tracking, project profitability projection.
• Create and send unlimited invoices
• Send estimates and reminders to your clients for payments
• Mobile application to help you control everything on the go

If you want, you can get a FreshBooks free trial for 30 days. Or if you want, you can avail a 50% discount instead for the first 3 months. QuickBooks also offers the same option for users. 

2. QuickBooks

QuickBooks is the market-leading cloud-based accounting software. QuickBooks has over 7 million users worldwide. The reason for this user base is that it offers a wide range of functionality. Moreover, you can access the tool from almost anywhere, and from any device. 

• Track income and expenses
• Maximize tax deductions
• Track inventories, project profitability, and working hour tracing
• Add-on payroll features
• Invoice creation and management features

If you’re a small or medium-scale business, then QuickBooks is the best accounting software you’ll find. It offers you a range of features at affordable prices. 

3. Zoho Books

Zoho Books is capable of handling almost all the tasks you can throw at it. It frees up your mind and lets you focus on an additional task. Apart from the features, it offers with Zoho Books, Zoho offers 40+ platforms that can be integrated.

What makes Zoho great is:

• Mobile app for Android and iOS users
• Create invoices in multiple languages, and set automation for recurring invoices
• Tracks expenses with ease
• Track project profitability
• Get a custom domain with the premium plan
• Robust budgeting and reporting tools

Zoho Books is a great tool if you need advanced cloud accounting software. You can get a free version to test out the tool. They offer invoice management, reporting, and other features in the free plan that you can test out. 

4. Xero

Xero is one of the cheapest cloud accounting software that you can try out. Similar to QuickBooks, you can get 50% off on the prices for the first 3 months. 

While there’s not much to say about Xero, the features make the tool worth the money:

• Time tracking and project profitability tracking
• Maintains a record of receipts and documents to help you with tax filing
• Build and share invoices. Maintain records of invoices for every single customer.
• Financial reporting and analytical tools
• Easily integrates with Gusto for payroll management

We consider Xero as one of the top-rated cloud accounting software for small businesses. Plus, the prices they offer are some of the cheapest in the industry.

5. Pabbly

Pabbly is a lesser-known name when it comes to cloud-based accounting software. It offers multiple functions at the same time. Pabbly offers you email marketing, invoicing, financial reporting, automation, billing, and much more.

There are some things that Pabbly does incredibly. Here’s what makes Pabbly praiseworthy:

• Seamless integration with 500+ platforms
• Easily manages your taxes
• Robust financial reporting tools
• Build invoices, coupons, and discounts for your customers
• Can work with 30+ global currencies

If you offer a subscription-based service, then don’t hesitate to move forward with Pabbly. Especially the recurring billing feature. It eliminates a lot of repetitive manual labor. We’ve used it in the past for some of our needs too.

6. Sage 50 Cloud

If you want to reduce your manual burden, then Sage 50 Cloud is your best option. You can use it on your desktop or on the cloud. The high point of the tool is the powerful income and expense management tools. Some other notable functionalities include financial reports, cash flow tracking, and more.

Here’s a breakdown of Sage 50 Cloud accounting software’s features:

• Build, send, and manage invoices
• Tracks your cash flow
• Provides you sales tax reports, expenses, and profits
• Payroll process using direct deposits, pay cards, and checks

Sage 50 Cloud is an old-timer in the industry. The plans are a bit on the expensive side, but the automation features make up for the cost.

7. Wave

A wave suddenly grew and built a name for itself. So, we had to test it out. While it ranks last on our list of best cloud accounting software, it in no way is the least. Wave is a free money management software for small businesses. It offers features for payroll, invoicing, payments, and more. Moreover, all the features can be integrated easily.

• Wave’s best features include:

• Check the performance of your business
• Builds reports for overdue invoices, cash flow management, profit & loss, and more.
• Income, expenses, and sales tax tracking
• Organize expenses to simplify tax filing

Wave quickly built a name for itself and has become one of the best cloud accounting software. Plus, it's available for free so all kinds of businesses can make use of the features.

Frequently Asked Questions about Cloud Accounting Software

1. What are the disadvantages of using accounting software?

As you must know, there are endless benefits to using accounting software. Most importantly, it improves your day-to-day work. But there are some disadvantages as well. Accounting software deployed on your desktop needs electricity to run. Plus, it's possible for you to lose your data in the case of a system failure. 

Cloud-based accounting software or mobile apps need high-speed internet service.

2. How much does accounting software cost?

The cost of cloud-based accounting software can cost between $3 per month to $999 per month. All of it depends on the features offered, and the needs of your organization. There is some online accounting software out there that you can use for free as well. Free tools offer invoicing, budgeting, bookkeeping, and other features.

3. Which is Better Sage or Xero?

Both Sage and Xero are incredible cloud accounting software, but they are different from each other.

While Xero is cheaper and easier to use, Sage offers features that are useful for big businesses. Sage can handle complex business needs.

4. Which is the Best Accounting Package for Small Businesses?

If you’re a small business with complete accounting tool needs, then QuickBooks is the perfect solution. The low-end plans are affordable, and they’re full of features. If we’re going by features, QuickBooks beats almost all the other tools in the industry. 

5. Is Xero a Cloud-Based Accounting Software?

Xero is definitely a cloud accounting software. It is a powerful, feature-packed cloud accounting software that’s perfect for small to medium-sized businesses with advanced functionality needs. 

Conclusion: Best Cloud Accounting Software

This concludes our list of the best cloud accounting software. Businesses of all kinds need to perform accounting tasks, but they can get repetitive and then lead to errors. Business owners have to focus on building their businesses instead of worrying about accounting tasks. 

This is why they need cloud-based accounting software. Hopefully, our list of the best cloud accounting software will help you make an informed decision. 

Tags: cloud accounting software, best cloud accounting software , cloud based accounting software, cloud based accounting