Retail businesses perform many accounting tasks. They track sales, record expenses, manage inventory, and reconcile bank statements.
Without accounting software, each of these becomes a major problem. Tracking sales manually invites errors. Calculating sales tax and discounts is difficult. Expense records may be incomplete or lost. Inventory management turns into guesswork. This can lead to lost sales from stock outs or wasted money on excess stock. Reconciling bank accounts requires hours of work and increases the chance of missed discrepancies. Creating financial reports for owners, investors, or tax authorities becomes a huge undertaking. Analyzing the business's financial health is nearly impossible.
When a retail business lacks accurate, readily available data, it struggles to make informed decisions and risks financial instability and reduced profitability.
7 Best Retail Accounting Software for Businesses
Thanks to technology, there are many accounting software programs available.
However, choosing the right accounting software for your retail business can feel overwhelming with so many options in the market.
This list of seven top retail accounting software options will help you navigate the choices and understand the benefits each offers.
Let’s dive right in!
1. QuickBooks Online
QuickBooks Online is a widely recognized accounting software tailored for retail businesses. It simplifies cash flow management and consolidates income and expense tracking in one central location. It also triggers automatic updates whenever an invoice is sent or payment is received. Its integrations with major payment gateways and marketplaces provides a holistic view of financial data.
Several key features distinguish QuickBooks Online for retailers. Automated sales tax calculations, which are based on location and product type, ensure accuracy and compliance with local regulations. Sales and income tracking is made simpler through easy recording via invoices or receipts, and integration with POS systems centralizes all sales data.
QuickBooks Online facilitates multi-user collaboration through customizable permissions. Detailed reporting, including P&L statements, balance sheets, and cash flow reports, offers valuable business performance insights. Multi-currency support and easy acceptance of payments from international banks and accounts expand the software’s global reach.
QuickBooks Online offers tiered pricing plans, ranging from Simple Start to Advanced, to cater to different business needs and budgets. This scalability makes it suitable for businesses of all sizes.
2. Xero
Xero is another commonly used cloud-based accounting solution that streamlines financial processes for small business owners, particularly those in the retail industry. Its mobile app provides convenient access to financial data on the go.
Xero automates routine tasks like invoicing and reporting. Direct bank feeds pull transactions from multiple accounts and makes daily reconciliation a matter of a few clicks.
Beyond these core functionalities, Xero offers features specifically beneficial to retailers. Real-time financial insights are readily available through Xero's dashboard. Live updates on sales and expenses provide a clear and immediate view of financial performance.
Extensive integration options connect Xero with popular retail platforms like Shopify. This integration automatically syncs sales data, so there’s no need for manual entry. There are fewer human errors too.
Inventory management is a key strength for retailers using Xero. They can set reorder alerts for frequently sold items. The software then notifies users when inventory levels fall below designated thresholds, thereby preventing stock outs during peak sales periods. Multicurrency support streamlines international transactions by automatically converting purchases to the business's home currency. This simplifies accounting for businesses engaged in global commerce.
Xero's pricing plans consist of Starter, Standard, and Premium options, for different business needs and budgets.
3. Freshbooks
FreshBooks categorizes expenses, automates invoicing and expense tracking, organizes financial data on a single platform, generates detailed reports, and provides clear financial insights.
It is known for its user-friendly interface and can be used by business owners without accounting backgrounds.
Like Xero, FreshBooks tracks stock levels seamlessly. It allows businesses to set reorder points. And sends alerts when inventory levels drop. This helps prevent stock outs during peak sales periods.
Furthermore, FreshBooks makes invoice creation easy and fast. It supports online payment processing. It also automates reminders and recurring billing. These features improve cash flow management and reduce administrative overhead.
FreshBooks offers tiered pricing plans. These plans include Lite, Plus, and Premium options. The Lite plan is budget-friendly. It limits the number of clients, but it supports essential functionalities like credit card and bank transfer payments, sales tracking, report generation, etc.
Higher tiers, on the other hand, can accommodate more clients. They also offer features like multi-currency and multi-language billing to facilitate international business.
For example, the Premium plan offers many automated tracking capabilities: expenses, bills, receipts, payment reminders, and project profitability, to name a few. However, these features may require a learning curve.
4. Zoho Books
Zoho Books integrates seamlessly with other Zoho applications and works well for businesses already using the Zoho ecosystem.
This integration creates a unified platform that manages all aspects of a business and eliminates the need for multiple logins.
The platform also offers several integrations that connect with external applications. These applications specialize in areas like card verification and tax compliance.
Zoho Books' core functionalities cover a wide array of accounting needs.
Creating and tracking invoices
Automating recurring invoices
Expense management
Report generation
Client management
Multilingual invoicing
Multi-currency payment
Timesheet module for project time tracking
Zoho Books is a strong contender in the race of best accounting software for retail businesses because it has a comprehensive suite of modules covering essential business functions. Plus, it comes at a competitive price, with paid plans starting at $15 per month. A free version is also available, which serves solopreneurs with a capacity of 1,000 invoices annually.
5. Sage Intacct
Sage Intacct is a modern, cloud-based accounting solution tailored for mid-sized businesses, particularly those prioritizing GAAP compliance and insightful, multi-dimensional reporting. Its robust features and user-friendly interface make it a strong choice for companies seeking to meet stringent accounting standards.
Notably, Sage Intacct is the sole accounting software endorsed by the AICPA, a leading professional organization for Certified Public Accountants.
Here's a rundown of its standout tools and how they can boost your retail business:
Smart inventory tracking: With real-time inventory updates, Sage Intacct helps you keep stock at the right level. You can set alerts to reorder popular items before they run out, so you’re always ready for demand.
Easy multi-store management: If you’ve got multiple stores, Sage Intacct’s multi-entity feature makes managing finances a breeze by automating consolidations and inter-store transactions—all in one view, making it a great complement to retail CRM systems for seamless data management.
Automated vendor payments: Sage Intacct streamlines accounts payable, so vendor payments are smooth and accurate, and cash flow stays healthy.
Custom reports & dashboards: You can create insightful dashboards and reports that give you a clear view of sales, expenses, and profits—perfect for making smart business moves.
Moreover, Sage Intacct facilitates the creation of multi-dimensional report views and provides businesses with granular insights into their financial data. In doing so, it helps business owners adapt to changing market dynamics as they grow, from small enterprises to mid-sized and even larger organizations.
Pricing for Sage Intacct is determined through a customized quote process. The company works with each customer to identify the necessary modules and tailor a pricing plan that aligns with their specific requirements.
In addition to the ongoing subscription cost for the chosen modules, businesses should anticipate a one-time implementation fee for setting up and configuring Sage Intacct to their specific needs. This implementation fee covers the initial setup, data migration, and training required to ensure a smooth transition to the new system.
By offering a customized approach to both functionality and pricing, Sage Intacct allows businesses to select the perfect combination of tools and support to optimize their financial management.
6. Wave
Wave is frequently cited as the top free accounting software for businesses without payroll requirements. Its user-friendly interface and comprehensive set of features make it accessible and easy to use, even for those with limited accounting experience. While a receipt scanning service is available at an additional cost, the platform's overall functionality simplifies financial record-keeping.
Its free version includes core functionalities like invoicing, accounting, and banking. The free tier's comprehensive features make it a popular choice among accounting software options. It allows businesses to track expenses and cash flow, create an unlimited number of invoices, and gives a basic dashboard to centralize accounting data.
Although the free offering is generous, it's important to note that credit card processing through Wave incurs a fee of 2.9% plus $0.60 per transaction.
Wave’s tiered approach allows businesses to begin with the free version and then scale up to paid services as their needs evolve.
The paid tier of Wave provides further enhancements, including direct bank account connectivity. This integration allows for automatic transaction imports and streamlines data entry. This automation feature also saves time and improves accuracy in financial tracking.
Wave’s Advisors package is a significant upgrade. It grants access to bookkeeping support and even coaching on accounting and payroll matters. This premium tier is designed to help businesses elevate their financial management capabilities and reach the next level of operational efficiency.
7. NetSuite
NetSuite is a robust cloud-based ERP solution designed to support the growth and operational complexities of larger small businesses and mid-size companies, particularly those with global ambitions.
Like the rest of the accounting softwares on the list, NetSuite also automates routine financial tasks, and builds customizable dashboards and reports for insightful business intelligence on key metrics like sales trends, inventory turnover, and customer behavior.
Besides financial management, NetSuite's comprehensive suite of tools addresses other core business functions: real-time inventory tracking, order management, eCommerce fulfillment, and a customer relationship management (CRM) system for personalized customer interactions.
For mid-sized businesses, especially those engaging in international expansion or mergers and acquisitions, NetSuite OneWorld is exceptionally useful for global reach and consolidated financial reporting across multiple business units. It also supports multiple currencies and complies with multiple accounting standards, including IFRS (International Financial Reporting Standards).
Pricing for NetSuite is quote-based and is determined by the number of users and the specific modules and suites selected. Interested businesses should contact Oracle NetSuite directly for a personalized quote.
FAQs
1. What are International Financial Reporting Standards?
International Financial Reporting Standards (IFRS) are global accounting principles set by the International Accounting Standards Board (IASB) to ensure transparency, comparability, and consistency in financial reporting.
Used in 140+ countries, IFRS follows a principle-based approach, emphasizes fair value accounting, and uses accrual-based accounting.
2. Do I need accounting software for my small business?
Yes, accounting software helps small businesses manage finances, track income and expenses, and handle taxes more efficiently. It reduces errors, saves time, and simplifies compliance with regulations. Cloud-based options offer automation, accessibility, and scalability. Spreadsheets can work for basic tasks, but using accounting software improves productivity and supports better decision-making as the business grows.
3. What's the best way for me to choose the right software for my retail store?
Begin by pinpointing your specific needs and top priorities. Think about your business's size, the kinds of products you sell, your sales channels, and your budget. Compare on-premise and cloud-based software based on security, accessibility, and cost. Choose on-premise accounting software if you need full data control and offline access. Look for features like inventory tracking, sales reports, and tax management. Check compatibility with existing systems and read user reviews. Request demos to test usability. Try out different software options to determine which one best suits your work style and offers the functionalities you need. Select software that supports business growth and streamlines daily operations.
5. What factors should I consider when comparing software costs?
Think about your current business size and how it might grow to select a plan that can adapt with you. Compare upfront costs, subscription fees, and hidden charges like upgrades or add-ons. Determine if pricing is one-time, monthly, or annual. Review costs for licenses, integrations, and user limits. Consider training expenses and customer support fees. Assess on-premise vs. cloud-based options. Weigh cost against features, automation, and scalability. Choose software that fits your budget and delivers long-term value at the same time.
6. How much accounting expertise is required to use these software options?
Most current accounting software is made to be user-friendly, even for people without deep accounting knowledge. Basic software with automated features and easy-to-use interfaces are pretty straightforward. However, more advanced systems may require familiarity with financial statements, tax regulations, and bookkeeping principles.
Software with customization options may require a deeper understanding of accounting to optimize features. In general, look for software with support resources, training materials, and customer service to assist if accounting knowledge is limited.
Overwhelmed by retail accounting software choices? Don't worry!
Oblique Consult offers free consultations to help you find the perfect fit for your business.
