12 best accounting software for small businesses: Features, pricing, and comparisons

Managing finances as a small business owner in Singapore can be time-consuming. 37% of finance and accounting professionals in Singapore say that finding manual errors in their monthly reconciliation process is still a major challenge.¹ 

Accounting software can eliminate inefficiencies by automating many financial tasks. These include invoicing and expense tracking, generating reports, and simplifying tax compliance. Automating these tasks will allow you to focus on what really matters: running and growing your business.

With so many accounting software options available, how do you choose the right one? Here, we’ll explore the benefits of using accounting software and outline some popular solutions in Singapore.

What is accounting software?

An accounting software is a computer application that simplifies the process of maintaining accurate financial records and provides tools for tracking financial activities. Accountants and business owners use it to track revenue, reconcile expenses, generate invoices, and prepare financial statements. The right accounting software can provide a clear overview of the business’ financial performance and simplifies financial management.

No matter the size of your business, accounting software is useful in some of these scenarios:

• Filing GST returns. Accounting software can quickly calculate a business’ total sales, expenses, credit and debit adjustments, which is needed to file Goods and Services Tax (GST) returns. 

• Calculating Corporate Income Tax. Singapore companies need to submit two Corporate Income Tax Returns to IRAS every year. Accounting software can estimate your company’s taxable income for the current year.

• Monthly bank reconciliation. Accounting software makes it easier to reconcile your bank statements each month. It does this by comparing your business' sales and accounts receivable to records like employee expenses or accounts payable. Airwallex Expense Management syncs with popular accounting software like Xero, which automates the reconciliation process and saves you time.

• Track eCommerce sales. Most accounting software can integrate with payment gateways and eCommerce platforms. This means eCommerce transactions and sales are automatically recorded as soon as they occur. For example, the Airwallex payment gateway has seamless integrations with Xero and other accounting software. 

•  Invoicing. On top of tracking sales, accounting software can also generate invoices and schedule recurring invoices. You can even embed an Airwallex Payment Link onto your invoice, which lets your customers pay you in any currency and their preferred local payment method.

12 best accounting software for small businesses in Singapore

Different types of accounting software are available to suit businesses of all sizes. Here's an overview of some popular accounting software options in Singapore.

Enterprise resource planning systems

Large multinational companies often use enterprise resource planning (ERP) systems instead of standalone accounting software. An ERP combines financial management with other business functions like inventory control and human resources. They are designed to centralise all departments and their activities within a single system.

These are some ERP software with accounting features:

1. Netsuite. Netsuite is a cloud-based ERP that helps companies streamline their operations. Its financial management solutions automate key accounting tasks and streamline financial reporting.² 2. SAP Business One. SAP is a robust ERP solution with advanced accounting, inventory, and business management features. Best suited for established businesses that need more complex financial management, or that already use SAP.³ 

3. Sage. Sage is a powerful ERP platform with some accounting capabilities. It offers two products to Singapore businesses. Sage Business Cloud X3 is for managing core business processes like inventory and sales, while Sage 300 Cloud connects business processes with finance.⁴ 

Accounting software

On the other hand, small and medium-sized enterprises (SMEs) typically use off-the-shelf accounting software that can be customised to fit their specific needs. We recommend you research each software in more detail and take advantage of free trials (where available) to determine the best fit for your business needs.

4. ABSS (formerly MYOB Singapore). ABSS provides a robust accounting solution with tools specifically tailored for Singapore SMEs.⁵ Availability of features depend on the software version you purchase, with ABSS Premiere having the most features.⁶

5. Deskera Online Accounting Software: Comprehensive accounting, payroll, and CRM tools in one platform. It’s suitable for small to medium-sized businesses looking for an all-in-one solution to manage operations efficiently.⁷

xBooks. This cloud-based software is known for its easy invoicing and time tracking. It’s designed for freelancers and service-based businesses, however it isn't available in Singapore.⁸

7. Jaz. This AI-first accounting software offers invoicing, expense tracking, and financial reporting. Businesses can enjoy a free plan for up to 5 users.⁹

8. Odoo. Odoo Accounting is part of Odoo ERP’s business applications, with features like invoicing, bank reconciliation, and expense tracking.¹⁰ It’s highly customisable and integrates seamlessly with other Odoo apps and the Airwallex Business Account.

9. QuickBooks Accounting Software. QuickBooks offers a comprehensive suite of accounting tools. It has more advanced accounting features and a higher learning curve compared to other software for SMEs.¹¹

10. Volopay. Volopay is a financial solutions platform with accounting automation tools. It has smart features to configure rules and workflows to enable faster reconciliation.¹²

11. Xero Accounting Software. Xero is a user-friendly cloud-based accounting software with strong invoicing, payroll, and inventory management functionalities. Businesses on a smaller budget and who need less complex accounting tools often use Xero.¹³

12. Zoho. In Singapore, Zoho is an eSignature software that lets businesses collect signatures via SingPass.¹⁴ Its accounting software Zoho Books is not available for Singapore businesses.

Let’s take a closer look at the differences in the features of ERPs and accounting software. In the table below, you’ll find that Odoo, QuickBooks, and Xero have straightforward accounting features to support small-to-medium enterprises. Meanwhile, Netsuite and Sage can support medium and large enterprises with their accounting as well as global business management, CRM, and production management tools.

The Airwallex Business Account supports integrations with Xero, Netsuite, Sage, Odoo, and Quickbooks. This means you get real-time visibility into your company’s financial performance through the Airwallex dashboard or your accounting software’s books. Integration also reduces the need for manual data entry, and automates tasks like invoicing. This frees up valuable time and allows you to focus on strategic growth.  

Advantages of using accounting software for businesses

Accounting software offers several features and benefits for small businesses, including:

• Automated invoicing: Create, send, and track invoices instantly. This saves you time and reduces errors associated with manual invoice creation.

• Expense tracking: Track expenses by automatically recording and categorising transactions from linked bank accounts or uploaded receipts. This provides a clear and transparent view of your spending.

• Financial reporting: Generate financial reports by compiling transactions, invoices, and expenses into easy-to-read formats like profit and loss statements. You gain quick insights into your business’s financial health and make informed decisions.

• Tax compliance: Accounting software registered with the IRAS automatically applies GST rules and tracks taxable income. This allows for seamless and timely submissions of income tax and GST returns. 

Types of accounting software for business 

There are three main types of accounting software for businesses to consider:

Cloud-based Accounting Software

Cloud-based accounting software is accessible from any device with an internet connection. Cloud-based accounting software offers:

• Accessibility: Access your financial data from anywhere, anytime.

• Automatic Backups: No need to worry about data loss with automatic backups.

• Collaboration: Multiple users can access and update the software simultaneously.

The potential drawbacks of cloud-based accounting software:

• Internet Dependency: Requires a stable internet connection for functionality.

• Security Concerns: Choosing a reputable provider with robust security measures is crucial.

Popular cloud-based accounting software solutions include QuickBooks Online, Xero, and Zoho Books.

Desktop Accounting Software

Desktop accounting software is installed on a local computer. Desktop accounting software offers:

• Data Security: Data is stored locally on your computer.

• Offline Functionality: Use the software even without an internet connection.

The disadvantages of desktop accounting software:

• Accessibility: Limited access to data from multiple devices or locations.

• Data Backups: Manual backups are required to prevent data loss.

• Scalability: Limited scalability as your business grows.

Popular desktop accounting software solutions include MYOB and Sage Business Cloud Accounting.

Hybrid Accounting Software

Hybrid accounting software combines cloud and desktop functionalities. This offers flexibility, so you can access data online or offline depending on your needs. However, hybrid accounting software may not be as widely available as cloud-based or desktop solutions.

Examples of hybrid accounting software include Odoo.

How to choose the right accounting software for small businesses

The right accounting software can reduce inefficiencies and provide accurate insights into your business’s financial health. Consider these factors as you evaluate accounting solutions:

Features

A great software should handle the day-to-day tasks of regular bookkeeping. On top of this, businesses should look for features that simplify financial management and automate manual tasks, such as:

• Multi-currency capabilities. If you operate internationally, multi-currency support is a must. It should automate currency conversions in your accounting records and ensure that the current rate is reflected on invoices or purchase orders.

• Integrations. Check if the software supports integrations that can automate error-prone manual tasks. Many software can integrate with your corporate bank account, but they might require you to manually upload bill payment details. Software like Xero can be integrated with Airwallex to automate bill payments, so that payments made through Xero are reflected accurately in Airwallex and vice versa.

• Invoicing. Most accounting software can automate your invoicing process and schedule recurring invoices.

• Financial reporting. Your software should provide clear, concise reports and useful business insights. 

Scalability

As your business grows, your accounting needs will evolve, so choose a solution that can adapt and scale with you. You’ll know a software is scalable when it can accommodate more users, accept larger datasets, and accommodate new business requirements, such as multi-entity accounting.

Ease of use

When companies introduce new software, they often face employee resistance, as some see it as a disruptive addition to their current workflow. Accounting software that’s easy-to-use can reduce employee friction and drive productivity from day one. 

Ask the software company what kind of training and onboarding they can provide to ease the transition.

Pricing

Cloud-based accounting software usually charges a subscription-based pricing model. Businesses can choose from tiered pricing plans and pay a monthly or annual fee depending on the features and the number of users. 

Some companies like Quickbooks used to offer one-time fees for their standalone desktop version. However, they have since switched to a subscription-based pricing model and no longer offer standalone licences.¹⁷

To choose the right price range, consider the size of your business and number of users. Free or low-cost solutions may be enough for very small businesses, while more advanced options like QuickBooks or Xero come at a cost but offer more features. 

Integrate business accounting software using Airwallex Expense Management

As your business grows and expenses become more complex, it’s hard to get a comprehensive view of your financial performance. An accounting software alone can’t provide the complete picture of your business financial activities. You need to integrate it with an expense management tool for a holistic view of your performance across all departments and entities. We’ve broken down the difference between accounting software and expense management in this guide.

If you already use Xero or Netsuite, you can easily integrate them into Airwallex, the all-in-one financial platform designed to simplify your financial operations. Not only do you save time on monthly reconciliations, but Airwallex also automates bill payments, offers Payment Links to invoices, and employee reimbursements, all within one platform.

Airwallex supports these three types of accounting integrations with these software providers: 

• Bank feeds. With a bank feed, all transactions on your Airwallex Business Account seamlessly sync into Xero or Quickbooks. This integration saves your finance team hours of manual data entry during weekly or monthly bank reconciliations. Synced bank feeds also reduce manual errors and give you a timely view of your cashflow.

• Expense management. Chart of accounts, card expenses, employee reimbursements, tracking categories and tax rates can be imported from your accounting software into the Airwallex Expense Management tool to streamline reconciliation.

• Bill pay. Approve and pay all domestic and international invoices directly from your Xero or Quickbooks account, using funds from your Airwallex Business Account.

• Payment Links. Add Airwallex Payment Links into invoices generated by Xero or Quickbooks to increase the speed and lik​​elihood of payment. Our Payment Links let your customers pay in their preferred currency and payment method.

Using Airwallex with your accounting software has these key benefits:

• Automated financial reconciliation. Our bank feed integration saves you 4+ hours of manually uploading bank transactions to your accounting software in order to reconcile transactions. The real-time sync reduces manual data entry errors and gives you a running view of your financial performance. 

• Streamlined reporting. You’ll be able to generate comprehensive expense reports automatically, getting valuable insights into your business spending.

• Borderless Cards. Let your employees take charge of company expenses with our physical and virtual Borderless Cards. See and approve expenses in real time, and set custom spend limits per card.

How to integrate your accounting software with Airwallex

The integration process may vary depending on your accounting software. Here’s a rough guide on getting started:

1. Log into your Airwallex account and navigate to “Connections”

2. Select your accounting software and click ‌“Get Started”

3. You’ll be taken to your accounting software.

Detailed instructions can be found in our Connections FAQs.

Reconciling expenses with other accounting software

If your accounting software isn't currently integrated with Airwallex, you can still reconcile your expenses using our custom accounting data importer. 

We have a detailed guide on how to import accounting data from any software into Airwallex.

Final thoughts

All businesses need accounting software for recording transactions, paying bills, invoicing customers, and generating financial statements. However, you need to assess how effectively it can automate manual tasks and how well it integrates with your bank or business account. 

The Airwallex Business Account supports integrations with Xero, Netsuite, Sage, Odoo, and Quickbooks. This means all your international transactions, eCommerce sales, or card payments done through Airwallex will be instantly reflected in your accounting system and vice versa. You gain real-time visibility of your cash flow at all times, and save hours on manual reconciliation.

Ready to start streamlining your financial management? Sign up for an Airwallex account today!

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FAQs

1. Can accounting software help with tax compliance?

Yes – accounting software can be a lifesaver when it comes to Singapore corporate tax compliance. Many software solutions help you categorise expenses throughout the year, generate tax reports, and even offer features to simplify tax calculations and filing. This can save you significant time and effort come tax season.

2. How secure is cloud-based accounting software?

Reputable accounting software providers implement robust security measures to protect your financial data. These include data encryption, access controls, and regular security audits. It's important to choose a provider with a strong track record of security and ensure you use strong passwords and enable two-factor authentication when available. You should also look at providers licensed under the IRAS ISR+ framework, which means they have tools that allow you to fulfil your tax obligations efficiently.¹⁶

3. What types of businesses benefit the most from using accounting software?

All businesses can benefit from using accounting software. Whether you're a freelancer, a service-based business, or a retail store, automating tasks like invoicing and expense tracking frees up valuable time and resources. Accounting software can also help ensure you stay on top of your finances and make informed business decisions through timely monthly reconciliations.

4. Are there free accounting software options suitable for small businesses?

There are a few free accounting software options available, but they may have limitations on features or functionality. These might be suitable for very small businesses with simple accounting needs. It's important to weigh the limitations of free software against the potential benefits of a paid plan with more features and support.

5. Is Excel an accounting software?

While Excel can be used for basic bookkeeping tasks, it's not a true accounting software solution. Spreadsheets lack the automation, security features, and specialised functionalities offered by dedicated accounting software. Excel can be error-prone with complex calculations and data management, and it doesn't offer features like automated reports or inventory management. For most small businesses, accounting software is a more efficient and reliable way to manage finances.

Sources

1. https://www.channelnewsasia.com/advertorial/solving-accountancys-talent-problem-through-digital-transformation-3573696

2. https://www.netsuite.com.sg/portal/sg/home.shtml

3. https://sapbusinessone.com.sg/

4. https://www.sage.com/en-sg/ 

5. https://myobsingapore.com/

6. https://sg.abssasia.com/abss-accounting-premier

7. https://www.deskera.com/  

8. https://www.freshbooks.com/

9. https://www.jaz.ai/#pricing

10. https://www.odoo.com/app/accounting  

11. https://quickbooks.intuit.com/global/

12. https://www.volopay.com/sg/accounting-automation/

13. https://www.xero.com/sg/

14. https://www.zoho.com/en-sg/sign/

15. https://www.iras.gov.sg/digital-collaboration/for-software-developers/accounting-tax-software/iras-accounting-software-register-plus/asr-plus-listing

16. https://www.iras.gov.sg/digital-collaboration/for-software-developers/accounting-tax-software/iras-accounting-software-register-plus 

17. https://quickbooks.intuit.com/learn-support/en-us/other-questions/quickbooks-desktop-pro-2024-standalone-non-subscription-version/00/1414600

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.