Free Small Business Accounting Software

So you’ve got a fantastic, game-changing idea for a business but no cash?  Well, you absolutely have to have accounting and financial records (really, it’s the law) but you can keep it affordable by taking advantage of an amazing number of free and almost free online programs.  The catch is finding credible providers who won’t just lure you in with free enticements and then, a few months down the road, hold your records hostage until you pay a fee for this or that service.  To help you find your way through that minefield I have done some investigating and I have below some of the most highly thought of free software for entrepreneurs on the web.

Getting it online

Bookkeeping and Accounting

QuickBooks is by far and away the most popular accounting software program for small business in American and is rapidly growing its reach around the world.  Its ubiquity means that your accountant probably knows it and is familiar working with it and that you can easily find resources for using it.  QuickBooks Online is the most economical way of getting started, you get a free trial for up to a month, and then it costs $10 a month and up thereafter.  The beauty of Quicken is that it can be upgraded to become almost as sophisticated as you could want, which will be nice down the road when your business really makes the big time, and due to its popularity it has a large number of third party add-ons that can enhance and niche QuickBooks to tailor it to your needs.

No, Really Free

“Dude”, you say, “10 bucks a month is like four burritos, I need that money for food!” Well, I am feeling your pain and bootstrapping my business along to greatness just like you are with yours.  So, for those who risk malnutrition and maybe scurvy if they have to part with the $10 bucks, there are some absolutely free options out there!  Ah, I know what you are thinking.  Why on earth would anyone offer for free something as complicated and difficult to produce as accounting software?  My guess is that, as your business grows, you are going to need some more advanced services that will not come free with the basic package and your “free” provider will gladly offer them.

The Google Apps Options

Google Apps is just a mind-blowing offering of resources for small business and many of them are absolutely free!  Plus, they synchronize and work with another fantastic free resource, Google Docs, and so you can layer free on top of free!  God I love that word, “free!“  Two of the more popular accounting and bookkeeping options are below.

• Rhino Accounting maintains that it is 100% free forever for basic use.
• myERP.com is free for up to two users, which should be all a small business needs.

The Open Source Options

Another branch of the free software road leads you to open source software, which generally means software that can be worked upon and modified by any programmer.  I am going to take a wild guess here and bet that you don’t program your own code and that what you really want is a finished product that can handle your accounting needs.  Two of the best that fit that bill are below.

• Turbo Cash is probably the single most popular free accounting program in existence.  It has been around for seven years now and has a pretty nice website with training resources and a forum to help users solve their accounting issues.
• osFinancials also has a pretty nice looking website and a user friendly set up.  It’s Dutch run (Hup, Holland) but don’t be put off by the Dutch that you will see when you first connect to the site as it also offers full service in English.

Spreadsheets, Word Processors, Office

Web Finance isn’t just about accounting software; you’ll also need programs to keep databases of your customers and vendors, spreadsheets to calculate the payment on your loans and a word processor to write letters pleading for more time from bill collectors.  If your not willing or able to spring for the bucks to get a Microsoft package then you can consider a couple of free online options.

• Google Docs is what I use to write this blog and it is adequate for wordprocessing needs, and can do very basic spreadsheets.  It also has a really cool Forms app that you can use to communicate to your customers online.
• Open Office is absolutely amazing and I can’t believe that I had never even heard of it a few weeks ago!  In fact, this article took way longer to write than it should have because I had so much fun playing around with Open Office.  In addition to the spreadsheet, word processor, and database technologies they also offer a graphics program and a presentation program.  But wait, there’s more!  To ice the whole cake off you can download all your documents to a PDF format!  I always thought the ridiculously expensive Adobe software was my only option for that.

Tax

Preparing your taxes is always painful but it at least can be made a little more affordable with some of the free reporting options available.

• The IRS, go figure, has absolutely loads of free information to help you prepare your taxes.  Here is a dirty little secret of the trade that you must promise never to divulge, we CPA’s go to the IRS reference materials all the time when we prepare your taxes!  Crazy, I know!  I mean, they’re the enemy!
  • File for free online on the IRS’s website if you meet certain criteria
  • Absolutely free resources.  As I mentioned in Self-Employed Tax Deductions, the IRS offers  the tax calendar, and all the forms you might need, along with their instructions, are available on the IRS website.
• Turbo Tax has a free option for people filing online who have basic tax returns.
• H&R Block offers the same

Payroll & Other Special Programs
The list of possible software needs for a young business can be virtually endless, and so I have included a list of other resources you can turn to should the need arise.

Please leave your questions or offer your solutions below. As the WebCPA and the author of WebBizFinance.com, my job is to help you grow your business and solve your business finance and accounting problems!

Tyler