Accounting & Invoicing
Good books are less about software and more about habit: every sale, expense and transfer categorized once a week, receipts kept, and accounts reconciled every month. The right tool makes that habit cheap. For most owners that means one accounting app connected to the business bank account, with invoices sent from the same place so payments match up automatically.
If you only send a few invoices a month, a simple invoicing app may be enough until you hire a bookkeeper. Once you have payroll, inventory or sales tax in several states, a full double-entry system pays for itself. The IRS recordkeeping page at the bottom explains what you actually have to keep and for how long.
Accounting software
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QuickBooks Online
Widely used small-business accounting with bank feeds, invoicing and reports.
quickbooks.intuit.com
Invoices, quotes & client billing
Expenses & receipts
Bookkeeping help & rules
How to choose
- Ask your tax preparer which software they already work with; sharing access to the same system saves hours every spring.
- Look for automatic bank feeds and rules that categorize repeating transactions. That is where most of the time savings come from.
- If you sell physical products, check inventory and cost-of-goods features before you commit; adding them later can mean switching apps.
- Invoices should support online payment links. Clients pay faster when they can pay by card or ACH from the email.
- Export your data at least once a year (CSV or PDF reports) so you are never locked in to one vendor.
Frequently asked questions
What is the difference between bookkeeping and accounting software?
In practice the same apps do both. Bookkeeping is the day-to-day recording of transactions; accounting adds reports such as profit and loss and balance sheet, plus tax preparation. Small-business apps cover both for most owners.
How long should I keep business records?
The IRS generally asks you to keep records that support your tax return for at least three years, and longer in some situations such as employment tax records (four years) or unreported income. See the IRS recordkeeping page for the full rules.
Can I use a spreadsheet instead?
Yes, many sole proprietors start with a spreadsheet. It becomes error-prone once you have many transactions, multiple accounts or employees, which is when dedicated software is worth it.
Cash or accrual accounting?
Most very small businesses use the cash method, recording income when received and expenses when paid. Businesses with inventory or larger revenue may need accrual. Ask a tax professional about your situation.
Descriptions are written by ShopStart and are not endorsements. Features and prices change; confirm details on each provider's official site. Something missing or out of date? Tell us.