20 Best Accounting Software for Retail in 2024

A note from the author, Daniel Epstein, SaaS software expert:

Fully featured accounting platforms are often built to handle just about any business, but if you’re in the retail industry, you might find yourself looking for specific tools designed for this niche. As a financial and SaaS software research expert with 10+ years of experience, I have come to realize that most retail companies need accounting solutions that not only keep detailed records of financial accounts but can also integrate with point-of-sale platforms and inventory management tools. So, to help you pinpoint which platforms can do this for you, I have meticulously studied information from industry reports, academic data and recent market statistics to create a list of the 20 best accounting software solutions for retail companies. Below, I will examine each product’s key features and pricing plans to help you make an informed purchasing decision that will allow your retail business to thrive.

These solutions have the essential features — or they integrate with key business systems — that you should look for in modern retail accounting software:

1. Inventory control. Ability to track inventory and product movements, which is important if you want to reduce your overhead and increase profits.
2. Supply chain management. Built-in tools or integration with a system for managing orders, fulfillment, returns, and other supply chain processes.
3. Point-of-Sale. Ability to connect or work with POS tools for processing payments, scanning barcodes, managing special orders, and generating daily reports.
4. Reporting. For analysis and insights on retail sales performance, financial status, purchasing trends, and other important information to guide you in your business decisions.
5. Multichannel capability. It should be able to provide you with tools and capabilities for selling on multiple channels and capturing, updating, and monitoring all records and details of financial transactions and deals.
6. CRM. Built-in or integration with CRM platforms to link transactions with your sales and marketing activities.

Retail accounting software comes in many forms. You can go for the full package offered by ERP software providers. These are enterprise resource planning systems made up of a robust accounting and financial management modules plus all other business and functional tools to manage inventory, purchasing, product planning, marketing, distribution, and HR (see components of a retail enterprise system in the visual below). There are also retail accounting systems offered as billing and invoicing platforms or time and expense management solutions. The choices are varied, and it is important that you match your current and future requirements with the software’s offerings and capabilities.

You might be surprised to know that sales decline is not always a product failure case. You may have an exceptional offer, but you may fall victim to these top five “killers” of retail business identified by The Retail Owners Institute:

1. Going out of cash
2. Inventory going out of control
3. Failure to manage gross margin
4. Expenses going out of control
5. Balance sheet going out of control

Noticed something? They all pertain to your accounting, financials, and inventory. Poor financial and inventory management could spell doom for your business and underscores the importance of good retail accounting software that can cover all the important bases. To get you up to speed, here’s our 20 best accounting software for retail. You can also check our best free accounting apps if you’re on a tight budget.

20 Best Accounting Software for Retail

1. FreshBooks

FreshBooks is a one-stop-shop solution that is used by millions of sole proprietors, small businesses, agencies, and professional services firms worldwide. This award-winning software is built to be fast and easy to use so you can devote more time to running your business and less time in managing your financials. Its specialties include professional invoice creation, time and expense tracking, seamless project collaboration, secure online payment, simple but powerful reporting, and mobile capability.

Designed for small and growing businesses, the software brings with it an array of flexible tools and features that you can use in your retail business such as expense tracking, letting you know at a glance how much you’re spending, what you’re spending on, and how profitable your business is.

FreshBooks allows your customers to pay you directly via invoices with the system automatically recording every payment in your account. It can also gather insights into your business’ financial performance and generate reports to guide you in your business decisions.

If you want to test drive the software’s features, you can easily sign up for FreshBooks free trial. Additionally, the platform provides mobile apps to keep you connected with customers, and your accounting records always within easy reach. There are three double-digit figure subscription plans starting with the Lite package at $15/month.

FreshBooks

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Why choose FreshBooks?

1. Save and maximize your time. In a retail business, time is of the essence. FreshBooks can put in auto mode most tasks, including invoicing, organizing and tracking expenses, syncing data across all your devices, and generating reports. It has been reported that FreshBooks users save on average 16 hours each month, the precious time they put back into running their business.
2. Built for e-Commerce businesses. The software lets you simplify accounting through custom invoices, customer account management, and payment tracking. It also integrates with some of the leading e-commerce services like Shopify, Bigcommerce, and Magento.
3. Faster payments. You get to receive payments faster as the accounting solution offers secure and hassle-free online payment solutions for your customers.

2. NetSuite ERP

NetSuite ERP is an end-to-end, highly scalable platform that can be used by all types of businesses regardless of size and industry. One of the best features of this software is its capabilities to combine financial management operations and business intelligence so as to help companies make data-driven and well-informed decisions. It also excels in accelerating order-to-cash processes with a robust and well-connected order management suite. Each sale and fulfillment operation is tied to pricing.

NetSuite ERP specializes in automating business processes such as financial management, order management, revenue management, inventory management, billing, and fixed assets. It has a retail management component designed to transform your business into an omnichannel-ready commerce platform.

You’ll also benefit from quote-based pricing. The vendor can come up with a custom package of features for your specific needs and budget. If you want to further explore its capabilities, just sign up for NetSuite ERP free demo. NetSuite ERP is a developer-hosted, cloud-based ERP platform that is offered as a software-as-a-service (SaaS).  The platform enjoys the recognition of being “the world’s most deployed cloud ERP solution” as it is used by more than 16,000 enterprises in more than 160 nations.

NetSuite ERP

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Why choose NetSuite ERP?

1. Robust financial management system. The ERP system provides integrated capabilities to automate financial planning and processes, generate deep insights into your retail business’ financial performance, and improve operational efficiencies. It gives you real-time financials and accounting as well as automation tools to speed up time-to-value and eliminate errors.
2. Inventory and supplier management. It lets you optimize the supply chain and inventory to accelerate delivery time, improve inventory cycle, and enhance sales. You get real-time visibility over your inventory across all channels and handle supplier transactions and dealings from a single platform.
3. Centralized order management. NetSuite ERP lets you manage and fulfill orders from multiple channels in a single location with a single view of all your stocks, inventory, and supply chain.

3. Gusto

Gusto is an accounting software built to support the financial health of various businesses well beyond payday. Designed as a modern HR platform for payroll, benefits, and financial management, it helps businesses simplify their financial-related tasks. From tracking billable employee hours and calculating payroll and filing taxes, the solution is equipped with all the essential tools to facilitate seamless accounting processes.

Moreover, Gusto is built on a robust infrastructure and flexible payroll features that ensure a timely payday for employees. It is also equipped with a wide range of payroll reporting features that allows both managers and employees to generate and download reports from payroll history, contractor payments, bank transactions, and more.

Why choose Gusto?

1. Full-service payroll. Gusto provides complete payroll features that allow businesses to hire, pay, and manage their employees more efficiently.
2. Accurate financial reporting. It provides actionable data and insights that eliminate the guesswork that goes into finding trends, spotting issues, and discovering new business opportunities.
3. Managing employee financial benefits. Gusto provides businesses with clear breakdowns of each employee’s paychecks, pre-tax savings, and smart financial tools to set teams up for success.

4. QuickBooks Online

QuickBooks Online benefits include: 1) It is available in low-cost subscription plans; 2) It’s designed for independent accountants and small businesses; 3) It is applicable for a wide range of industries; 4) and it comes with an array of smart tools. It’s also a cloud-hosted platform that can be accessed from your Mac, PC, or mobile devices.

This best-in-class accounting solution lets you track income and expenses, create invoices, accept online payments, send estimates, manage bills, oversee inventory, run reports, track time, monitor sales, and prepare taxes. QuickBooks Online has a version specifically built for the needs of in-store, online, wholesale, and retail businesses, which allows you to organize and manage your inventory and sales in one place

Why choose QuickBooks Online?

1. Easy data access. Your financial data is consolidated, stored, and secured in one centralized online location that you can easily access anytime you need to from whatever connected device. You have full control over who can access your company’s financial records.
2. Keep tabs on everything you sell. The software allows you to track every item you sell from whatever channel and record everything – daily sales, creation, and sending of invoices, capturing transactions through sales receipts, and running instant reports.
3. Stay on top of your inventory. Inventory management is one of the many highlights of QuickBooks Online. You’ll be able to keep an eye on inventory on hand, which is automatically updated whenever an item comes in or is sold, get real-time inventory values that are auto-adjusted in your balance sheet, and keep track of purchase orders from every supplier.

5. Sage Business Cloud Accounting

Formerly known as Sage One, easy-to-use online app Sage Business Cloud Accounting is targeted at freelancers and small businesses. The software is designed to help you move your business forward with features to manage your cash flow, such as expense tracking, payments, and invoices; automate repetitive tasks like reconciling banks accounts by automatically matching transactions to your financial statements, and tracking each and every business transaction from one place.

Sage Business Cloud Accounting also gives you options to access your accounting software on the go since it’s smartphone-friendly. Using your iPhone or Android device, you can log on and view your customer’s details and record notes. Moreover, you can create quotes and send them immediately to your client on the fly.

Aside from enabling you to track income and expenses, Sage Business Cloud Accounting can also double as your tax management tool. It can compute the amount of taxes based on available transaction data. You can also use it for cash flow forecasting. It can come up with cash requirement estimates using transaction history as a reference.

All these capabilities let you take full control of your finances while showing you where your business stands. It offers integration with dozens of third-party apps and services and is available in two low-cost monthly subscription plans at $10 and $25/month. You can sign up for Sage Business Cloud Accounting free trial to test the software for yourself.

Why choose Sage Business Cloud Accounting?

1. Small business software. The solution is built to address the needs of small businesses, offering tools for core accounting, expense management, online payment processing, inventory planning, and tracking, billing and invoicing, quotes and estimates, and data backup. These are the tools required for your retail business.
2. Mobile accounting. You can operate your business while on the go through mobile apps for Android and iOS devices, which allow you to access your online financial data, monitor and organize your transactions, transform quotes into invoices, which you can send quickly, and view financial performance for any given period.
3. Compliance solution. Sage Business Cloud Accounting eliminates the mess and worries when it comes to tax time. It keeps you updated and compliant with tax laws by automatically calculating what you owe from your sales and income.

6. Approve.com

Approve.com makes it easy for you to streamline payment processes and mitigate account payable risks. It does these through tools to help you manage invoice processing, tax compliance, supplier onboarding, global payments, and payment reconciliation. The app also helps you handle business challenges such as late payments, non-compliance, administrative and financial overload, and all-too-common but avoidable human errors.

Retail businesses often struggle with complex processes involved when it comes to paying vendors, suppliers, and partners, as well as complying with various tax regulations, especially when you operate at a global level. Approve.com offers tools and capabilities designed to optimize, automate, and efficiently manage your accounts payable so that you’ll always be accurate and on time with your payments, are tax-compliant, and free of fraud and risks.

The software is offered on a quote basis, so you can opt for the best solution to fit your organization’s requirements. The vendor has a free tour where you can tinker with the features at no cost. You can sign up for Approve.com free trial.

Why choose Approve.com?

1. Solid reputation. Approve is backed up by years of accounting experience in the field of global supplier payment automation and is considered a one-stop-shop solution when it comes to supplier payments and accounts payable.
2. Payment automation platform. The software boasts of being able to automate over half of all operational payment processes across 190 countries, making it a global leader in accounts payable, payment recording, and financial reporting.
3. Worldwide tax compliance. If your retail business operates on a global scale, you need to be compliant with both local and international tax regulations. Approve.com helps you with these by depicting the right tax automatically wherever region in the world you sell.

7. AvidXchange

AvidXchange is a cloud-based platform for managing invoices and accounts payable. Things can get super busy when you are in the retail business, so automation can be a real lifesaver for your accounting team. This is where AvidXchange comes in. It includes advanced automation features like OCR technology, so you don’t have to spend hours doing manual data entry and can even lessen errors in paperwork.

Moreover, being in the retail business means you probably deal with several suppliers, vendors, and other businesses in your daily operations. This makes it hard to keep track of paperwork and invoices in your pipeline. With AvidXchange, your AP team can streamline the entire invoice process and achieve paperless accounting. Inside the platform, you can easily look for and check the status of each invoice and create automatic payment processes with your desired approval workflow.

Why choose AvidXchange?

1. Paperless invoicing. Manually processing paper checks and invoices is time-consuming and prone to errors. AvidXchange can help eliminate tedious paperwork so you can completely modernize the way your company pays its bills. This means tons of potential savings on your operation costs as well higher output from your employees.
2. Reduce payment fraud. Since AvidXchange is paperless accounts payable, you can reduce the risk of fraudulent transactions and unauthorized payment requests. It also incorporates the latest security features through its e-payment integrations.
3. Increased productivity. AvidXchange is packed with automation features and tools designed to help your AP team get some relief from laborious and repetitive manual data entry work. This means they can focus their time and skills on more urgent and high-value tasks.

8. Rossum

Rossum is an all-in-one document gateway that is ideal for retail businesses looking to improve the way they handle their transaction files. It offers unified mail channels where you can collect all your transaction data. It then uses its self-learning AI and cognitive data capture to automate data entry. From there, you can also set custom approval and processing workflows to ensure that your transactions are being forwarded and archived the way you intend them to be.

One of the nifty things about Rossum is that it has a built-in usage reporting dashboard and notification system. With this, you get instant updates on transaction status as well as get detailed metrics on the usage and changes of the different documents in your repository. It also compliant with data security standards so you can be sure that the information you store in the platform is safe from unauthorized personnel.

Aside from the abovementioned, Rossum is also hassle-free to set up. It supports numerous out-of-the-box integrations, making the system highly configurable. For pricing, Rossum is available by quote. Be sure to get in touch with the vendor for more information.

Why choose Rossum?

1. Unified document management. Rossum centralizes all your incoming documents in an Intelligent Inbox, making it easy for you to access documents as needed. It even comes with a built-in communication system that lets you and team members handle inquiries and approvals with ease.
2. Automation powerhouse. The software is equipped with a self-learning AI that allows you to perform cognitive data capture and extracted data matching. With these, you can accelerate data entry with great accuracy. The system is also configurable which lets users set approval rules.
3. Seamless integrations. Rossum is not only built for zero-friction onboarding, it is also created to mesh well with your existing software ecosystem. The platform offers several out-of-the-box integrations so it can seamlessly connect with your ERP tools, RPA systems, and other document management systems.

9. A2X

A2X is an ecommerce software that automatically records transactions from sales channels such as Amazon and Shopify to your accounting platform. This cloud-based software provides accurate bookkeeping and eliminates manual accounting activities. Aside from simplifying accounting for Marketplace and eBay, A2X also integrates with other widely-used accounting platforms like Quickbooks and Xero. You can easily migrate your financial data to your books by using this software.

A2X classifies each transaction, makes a summary of sales and expenses, and provides a quick view of your cash flow. Designed in partnership with the leading ecommerce platforms in Europe, North America, and Asia, A2X categorizes fees, refunds, and other expenses that are typically incorporated with payouts. In addition, A2X helps you monitor your stock room by tracking the cost of goods sold as well as the gross margins of moving products. Inventory management is a breeze with A2X as it automatically updates goods in stock after placing a series of orders.

Why choose A2X?

1. Simplifies reconciliation. If your retail operations process high volumes of orders, reconciling and consolidating transactions on ecommerce websites would typically take a lot of time. A2X provides the solution by consolidating your transaction history and updating data in your accounting platform. This automated posting of transactions minimizes errors and quickly corrects inconsistent entries. A2x also ensures the accuracy of data by providing a breakdown of listed payouts.
2. Real-time monitoring of inventory and sales margin. Inventory management is another important feature of A2X as the software allows you to determine the value of your inventory and update the entry on your balance sheet. You can also customize A2X to automatically debit the total cost of goods sold from your inventory and adjust all related entries. This real-time matching of the cost of goods sold with the sales records provides a quick tracking of gross margins and enables you to adjust retail strategies.
3. Multichannel support. For retailers who carry a variety of product lines, A2X eliminates the need to use different accounts across individual merchant websites. Up to five Shopify accounts or up to five Amazon channels can be supported by A2X, and it even manages your financial information from two different platforms.

10. Zoho Books

Zoho Books is designed for the needs of startups and SMBs. As such, it brings with its intuitive features, easy-to-use tools, and simple interface. It is able to streamline all basic accounting tasks, repetitive accounting processes, and organize your financial records. It has capabilities to manage your company’s bills and invoices, track expenses, and cash flows. Likewise, the app helps you create error-free estimates and professional invoices, link to your bank transactions, and reconcile your accounts.

Monitoring your inventory levels, managing sales orders, and POs and scheduling reports are made simple with the software. It also provides you with real-time data, process online payments, and keep you tax-compliant. This powerful system gives you all the accounting and financial tools you need to efficiently run your retail business. Three paid plans are available, with prices ranging from $9 to $29/month. You can sign up for Zoho Books free trial if you want to take the software for a spin.

Zoho Books

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Why choose Zoho Books?

1. It’s part of the Zoho ecosystem. This means that Zoho Books integrates and works well with most other products in the more than 40 business and productivity apps of the Zoho family. You can have a fully extensible platform right in your accounting platform without the need for any third-party apps. But if you need to, it integrates with dozens of external apps for payment, document management, POS, tax management, bills and expenses, and time tracking.
2. Accounting automation engine. The software is able to automate error-prone tasks that are high-volume and time-consuming – from tedious business workflows, following up on customer payments to sending out recurring invoices. It can even put on auto mode categorizing transactions so you can deal with them even hundreds at a time.
3. Accounting + inventory management. These two crucial aspects of retail operations are managed by one system that can likewise track your products, monitor stock levels, and help you replenish immediately when needed. You can record and monitor inventory in real-time and stay updated via comprehensive inventory reports.

11. Zoho Expense

Zoho Expense is an expense management software that automates the management of spending. This software facilitates effective expense monitoring by integrating policies that define allowed expenditure and spending limits. Zoho Expense manages multi-currency expenses and categorizes spending for accurate recording. Digitized receipts are stored on the platform that also allows for offline upload. Report generation is easy through the dashboard.

Since spending policies can be integrated within the platform, Zoho Expense ensures that each transaction is within the range allowed by the business. You can upload and monitor expenses on the easy-to-use interface, where you can drag-and-drop digitized receipts. This software can also be connected to personal and corporate credit cards, and bank accounts, and easily integrates with other accounting apps, cloud-based and mobile. This flexibility makes Zoho Expense a great accounting software for small businesses in retail.

Zoho Expense

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Why choose Zoho Expense?

1. Record expenses in real-time. Zoho Expense keeps you informed of all spending, even when you are on the fly. Recording transactions is made easy by the quick upload features and the systems that keep your other expenses linked to the platform. Work processes become efficient as spending is immediately reflected, enabling you to make time for other activities that will add value to your business. Synchronizing credit card and bank transactions provide complete details and accurate reports.
2. Seamless approval workflow. Countless expense reports take up so much time to process, but not with Zoho Expense. This software provides solutions by automating the workflow, including the approval process of expense reports. By categorizing users as administrators, approvers, and submitters, roles are defined and policies are enforced within the system. Additional roles may be assigned to users as needed while maintaining transparency within the platform.
3. Accessible. Zoho expense is one of the most accessible spending management software in the market with its flexible and affordable pricing. Free subscription is also offered for up to three users. Zoho Expense easily integrates with Zoho’s other productivity suites, as well as with other ERP and accounting software..

12. Yooz

Yooz is a modern accounting software solution that fits right there with the need of the retail industry to keep up with the challenges of the times. These challenges are in the form of more intelligent buyers, more demanding logistics arrangements, and more exacting financial transactions among others. It features enterprise-grade security so organizations can attend to growing their businesses without worrying about falling into the hands of online predators.

The accounts payable software solution is all about providing retailers the big advantage of artificial intelligence, robotic process automation, and machine learning applied to handling money flows. While it is packed with state-of-the-art technologies, the developers are careful to hide its power behind an intuitive, user-friendly interface. With it, users can set up automatic PR/PO workflows without the need to deal with codes.

Yooz

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From purchase orders to payments via YoozPay, retailers can set up automation rules across multiple channels. Yooz will sync data across these channels, freeing users from having to duplicate error-prone processes manually.

Yooz comes with real-time monitoring to go along with dynamic analytics and reporting, features that retailers must have today. The accounting solution is compliant from the get-go, so businesses do not have to worry about working with outdated rules.

Why choose Yooz?

1. The best of modern accounting technologies. Yooz packs robotic process automation, machine learning, and artificial intelligence for a complete, smart accounting package.
2. Built with automation and speed in mind. Retail is about speed in handling critical processes, especially in the accounting department. Yooz is primed for automation from the very start to handle this modern need.
3. Mobility and security. Security is a crucial factor in starting and closing transactions over the cloud. The same goes for mobility, where transactions could happen anywhere and anytime. Yooz is designed to handle all these modern business needs, all of which are critical to retail.

13. Bill.com

For retail business owners looking for a straightforward accounting software, Bill.com fits the bill. It is an AI-powered accounting and invoicing system that automates accounts payable and accounts receivable processes. Retailers can enjoy how this solution streamlines financial processes such as making payments to suppliers, sending invoices to customers, and receiving payments from them.

Bill.com offers a click and capture function that lets users digitize invoices in a snap. This solution also allows you to set up recurring invoices, as well as automated reminders. It also supports invoice auto-sequencing and auto-charging.

Furthermore, Bill.com serves as a platform for efficient cash inflow and outflow management. You can easily monitor outgoing invoices and incoming payments through your Bill.com inbox or dashboard. It also allows users to integrate their bank account and other business systems, so you don’t always have to enter data twice and check multiple apps.

What’s more, Bill.com also lets you customize your invoices and set up their distribution schedule. It also supports ePayment processing. Bill.com comes with a free trial and plans start at $39 per user per month.

Why choose Bill.com?

1. AP and AR automation. With Bill.com, retailers can automate AP and AR processes and let the program do the work. As such, users save time and resources they would otherwise spend manually managing AP and AR.
2. Invoice capture. Bill.com makes it easier to digitize invoices with its click and capture function. As a result, you can monitor invoices and send payments to vendors online more efficiently.
3. Rich integrations. Bill.com integrates with other accounting and business systems. This minimizes the need to manually enter financial data twice.

14. Sage 50

Sage 50 is a desktop accounting software that has cloud capabilities, allowing it to be accessed on any device connected to the internet. It has basic accounting features such as cash flow management, inventory management, and bank reconciliation. You can also use it to track sales invoices, set budgets for your projects, and generate real-time reports.

This cloud-based accounting software is suitable for small to medium-sized businesses. It is capable of integrating with various other software and applications that you already use, including Microsoft 365. 

You can choose from three Sage 50 pricing plans, depending on the number of users. The Pro Accounting plan is for one user, which costs $595 per year. The Premium Accounting plan costs $970 to $2,222 per year for up to five users. The Quantum Accounting plan starts at $1,610 per year per user, and you can request a quote if you need pricing for 11 users and up.

Why choose Sage 50?

1. Automated bank reconciliation: You can set up automatic bank reconciliation to prevent errors and ensure that your accounts are cleared.
2. Track inventory: View your inventory status anywhere you are, saving you that trip to the warehouse.
3. Collaboration: With data accessible through the cloud, you can easily share and work with your accountant while keeping information secure.

15. Zoho Invoice

In our Zoho Invoice overview, we discuss how this highly rated online invoice and accounting solution is able to simplify vital financial processes. Among its highlights and capabilities are managing and monitoring invoices, keeping tabs on transactions, accepting online payments, tracking expenses, and running expense reports.

The system simplifies financial and accounting activities – from accurately recording foreign currency expenses and invoices, to automating repetitive tasks like payment reminders and sending out recurring invoices, to facilitating sales orders.

Zoho Invoice provides customizable invoice templates, wide integration with a variety of apps, and mobile versions of the software for invoicing on the go. Furthermore, it offers a free edition of the software and three subscription plans that start at $9/month.If you want to know what it can do for you before diving in, sign up for Zoho Invoice free trial.

Zoho Invoice

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Why choose Zoho Invoice?

1. Extensive integration. Zoho Invoice works not only with other Zoho apps but also with third-party software and services such as payment gateways, online file storage services, document management tools, and other business apps.
2. Best-in-class invoice templates. Making invoices is a tedious process. Zoho Invoice helps you save precious time by providing a gallery of invoice templates where you can choose and use free templates, customize and personalize them and, once completed, send them instantly to your customers. The whole process can be done in a couple of minutes, but once you get the hang of it, it will just take you a few seconds.
3. Built to be fast and simple. Zoho Invoice carries the trademark of a Zoho product – it is fast, responsive, intuitive, and simple to use, which are part of the reasons why Zoho apps are some of the most popular business and productivity solutions around.

16. Xero

Fully featured Xero gives you nearly two-dozen features to help you manage every part of your business. It carries a customizable, quick-glance dashboard for tracking your cash flow, sending online invoices, and managing stock and inventory. Xero allows you to link to your bank so that transactions automatically flow into the accounting software for every business day.

Since it is intended for startups and small businesses, the software brings with it handy and intuitive features to help you with quotes, purchase orders, online payments, file storage, reporting, business performance analysis, and sales tax. Xero integrates with dozens of payment gateways, payroll systems, e-commerce platforms, and productivity apps. Three premium packages are available, with prices ranging from $9 to $70/month.

Why choose Xero?

1. Affordable system. Xero provides three budget-friendly subscription plans starting at $9/month. For your small retail business, you may not need full-featured platforms when you’ll only be using a few tools to manage your financial business activities on a daily basis.
2. Multi-currency accounting. Your online retail business is a global store and can be reached by customers from around the world. Xero supports 160 currencies, giving your customers the convenience of paying you in their local currency and choosing any online payment app or service. Xero automatically takes care of currency conversion in real-time and immediately updates your reports to reflect prevailing rates.
3. Online invoicing. Aside from easy online payment options, Xero also provides an online invoicing tool so customers can send you their payments fast. With pre-built invoice templates, you can create professional and personalized invoices complete with your logo or branding elements. The system can schedule and send automated invoice reminders to your customers and even lets you see if customers have viewed the invoice and made payments.

17. Online Invoices

OnlineInvoices makes it easy for you to manage your financials, create invoices, keep track of payables and receivables, and calculate taxes. Intended for SMBs, it comes with built-in capabilities specifically for retail store billing and accounting.

Retail management is facilitated with tools for issuing and printing sales invoices, quick adding of discounts and taxes to invoice, tracking of sales and revenues by employee or time period, monitoring store expenses, and managing sales and purchases. It also keeps tabs on movements in your stocks with inventory tracking and can monitor and assign work through staff management features.

OnlineInvoices offers a free plan and three budget-friendly paid packages that start at $9.95/month.

Why choose OnlineInvoices?

1. Online or in-store invoicing. You get the flexibility of using the software for online invoicing or invoicing right at your brick-and-mortar store. It lets your online customers log in anytime at your online store, and make payments through online payment services. For follow-ups, you can email PDF invoices with reminders, or print invoices and send them by mail.
2. Inventory control system. OnlineInvoices helps you manage supplier lists and contact information, create and send POs, and automatically update stock levels each time POs and sale invoices are made. It also assists you in monitoring stock movements and notifies you when inventory levels run low.
3. Three vital management systems in one platform. Three integrated modules are at the core of the software – invoice and sales management system, client follow-up and management system, and inventory management and control – which cover all important operational and administrative aspects of your business.

18. DocuPhase

DocuPhase is a robust enterprise automation solution. It is designed to resolve issues in managing accounts payables to make the workflow go smoother and faster. To make that happen, it starts by assisting companies in digitizing this part of the accounting process; DocuPhase can store scanned invoices and store them in its system. Next, it ensures that invoices are searchable in its database so that users can pull them up anytime.

Additionally, the software can mechanize payments. It can make the AP center more profitable, as it can aid organizations in paying dues on time. This can help avoid penalties and even enable businesses to enjoy potential rebates and other benefits.

And if there are any purchases that must be made, DocuPhase can take care of those, too. It has an approval workflow that you can configure and define with your purchase order policies. It can route the POs to the right person for final approval. Then, it can process the invoice and the payment.

There are other tools that offer great benefits, too, such as the vendor processing automation and the vendor portal. With the former, checking the credentials of vendors can become faster. Meanwhile, the latter can offer self-service to vendors who need to check on the status of invoices.

Why choose DocuPhase?

1. AP automation. Organizations no longer need to manage payables every step of the way because DocuPhase can automate the workflow.
2. PO automation. When there are materials lacking, procuring them can be an easier task because of the PO automation feature.
3. Vendor self-service. Answering vendor’s questions regarding invoice statuses can be done by vendors themselves through the vendor portal.

19. Invoice Meister

Invoice Meister is built for startups, small businesses, and freelancers. It is equipped with all essential features for handling your finances and specializes in one of the most crucial areas of accounting – creating and managing invoices. Together with receipts and bills, invoices are source documents for accounting and are used to record and track sales transactions by item, period, volume, frequency, profitability, salesperson, and many other variables.

With Invoice Meister, you are able to create quotes and convert them to online invoices, monitor your expenses, get paid faster, and produce accurate reports about your financial performance. The software can also automate daily activities such as recurring invoices as well as notifications. Three subscription plans are available beginning at €7.50/user/month.

Why choose Invoice Meister?

1. All-around accounting and invoicing solution. Everything you need for your retail business accounting and invoicing needs is offered by Invoice Meister. It can manage online invoices, create and send quotes, accept online payments, etc.
2. Flexible and easy to use. The software system offers easy navigation, intuitive features, and effortless configuration so you can use it the way you want for your business.
3. Bank-level security. Your online data, records, and payment transactions are secured with bank-level safeguards, PIN security, automatic backups, and role access permissions.

20. 1&1 Online Accounting

In our 1&1 Online Accounting review, we were able to validate the product’s tagline, “accounting made simple.” Developed by a UK-based Internet solutions provider, the software is designed for the needs of SMBs and brings with it features to automate accounting processes, eliminate paperwork, drive productivity, and enhance efficiency.

The software package is made up of three modules – quotes and invoices, accounting, and inventory manager – vital tools and functions for your retail business. You can purchase a subscription for the three separately, but with accounting paired with an invoice, and inventory manager lumped with the first two.

The plan price for the invoice module alone is pegged at $4.99/month while the full package of three is priced a little higher but gives you all the features for creating and sending invoices, tracking expenses and automating bookkeeping, and managing your inventory levels.

Why choose 1&1 Online Accounting?

1. Professional invoices. The software lets you create quality quotations and invoices with the automatic entry of customer details through pre-built templates that can be personalized with your logo and branding.
2. Customer data visibility. You can easily access and view customer contact information anytime since all data and records are stored in a secure and centralized online location. The system can automatically pick the required information every time you need to manage your books, create an invoice, or update your inventory.
3. Scan and text recognition tool. 1&1 Online Accounting offers a smart mobile app that allows you to scan invoices and documents, capture important information such as dates and invoice numbers, upload them to your online storage, and have the system retrieve them to fill up the forms and documents you’ll be preparing.

What are common challenges when implementing accounting software?

Implementing accounting software in a retail business can enhance efficiency, but it also comes with challenges. Here are some common issues businesses may face during this transition:

• Data Migration: Transferring existing financial data to the new software can be complex. Businesses often encounter issues with data integrity, requiring thorough checks to ensure accuracy. This process may require additional time and resources.
• User Training: Ensuring all staff members are proficient with the new software is crucial for its success. Inadequate training can lead to mistakes, reduced productivity, and employee frustration, impacting overall operations.
• Customization Needs: Every retail business has unique accounting requirements. Some software may require customization to fit specific workflows or reporting needs, which can complicate implementation and increase costs.
• Integration with Existing Systems: Many retail businesses use multiple software tools. Ensuring that the new accounting software integrates smoothly with other systems, like inventory management or point-of-sale (POS) systems, is essential to avoid data silos and streamline operations.
• Resistance to Change: Employees may be hesitant to adopt new technology because they are comfortable with existing processes. Addressing these concerns through clear communication about the benefits of the new software can facilitate a smoother transition.

Which retail accounting software is right for you?

The right retail accounting software for you is the one that can handle and meet the unique needs of your business. Aside from core accounting tools for invoicing, monitoring expenses and income, and producing financial reports, it must also be able to manage inventory, payments, purchase orders, vendors, customers, multi-channel selling, and multi-location business. It must also be usable – capable of supporting the number of people that will use it at its given price or plan; accessible through the different devices you use such as desktop and mobile; and scalable regardless if you’re crunching small or big data, handling few or dozens of sales transactions, and tracking low or high volume inventory.

If you want the most robust accounting software that can help you manage your financials and everything else, you can’t go wrong with FreshBooks for retail, which is our top pick. Down the line, it has specific functions like billing, invoicing, vendor payments, expense management, and more that will go a long way in ensuring that your business is ready and able to perform given the future retail trends. If you want to investigate the features closely you can easily do so when you sign up for a FreshBooks free trial.

Key Insights

• Specialized Needs for Retail: Retail companies require accounting software that integrates seamlessly with point-of-sale (POS) systems and inventory management tools to streamline operations and reduce overhead costs.
• Essential Features: Key features of retail accounting software include inventory control, supply chain management, POS integration, detailed reporting, multichannel capabilities, and CRM integration.
• Comprehensive Solutions: Options range from ERP systems with robust accounting and business management tools to specialized platforms focused on billing, invoicing, and expense management.
• Cost Considerations: The average cost and pricing plans for these software solutions vary widely, offering flexibility for businesses of different sizes and budgets.
• Impact on Business Health: Proper financial and inventory management using specialized software can prevent common pitfalls in retail, such as running out of cash, uncontrolled inventory, and mismanaged expenses.

FAQ

1. Why do retail companies need specialized accounting software? Retail companies require specialized accounting software to integrate POS systems, manage inventory efficiently, and streamline financial operations. This integration helps in reducing overhead costs and increasing profits by providing real-time insights and automating key processes.
2. What are the essential features to look for in retail accounting software? Essential features include inventory control, supply chain management, POS integration, detailed financial reporting, multichannel sales support, and CRM integration. These features ensure comprehensive management of sales, inventory, and customer relationships.
3. How does accounting software help in managing inventory? Accounting software with inventory control features helps track product movements, manage stock levels, and update inventory records in real-time. It ensures that businesses can monitor inventory cycles, prevent stockouts, and optimize reorder levels.
4. What are the benefits of integrating POS systems with accounting software? Integrating POS systems with accounting software allows seamless data flow between sales transactions and financial records. This integration facilitates accurate sales reporting, real-time inventory updates, and efficient financial management, reducing manual entry errors and saving time.
5. How do these software solutions support multichannel retailing? Retail accounting software supports multichannel retailing by providing tools to capture, update, and monitor transactions across multiple sales channels. It ensures that all financial records are consolidated and up-to-date, regardless of the sales platform used.
6. What role does CRM integration play in retail accounting software? CRM integration links customer transactions with sales and marketing activities. It helps businesses understand customer behavior, track sales performance, and manage customer relationships more effectively, leading to improved customer satisfaction and increased sales.
7. Are there cost-effective options for small retail businesses? Yes, there are cost-effective options tailored for small retail businesses. Platforms like FreshBooks, QuickBooks Online, and Zoho Books offer affordable plans with essential features, allowing small businesses to manage their finances efficiently without a large investment.
8. How can retail businesses ensure compliance with tax regulations using these software solutions? Retail accounting software often includes tax management features that automatically calculate taxes based on transaction data. It ensures businesses remain compliant with local and international tax laws by keeping accurate records and generating necessary reports.
9. What are the advantages of using cloud-based accounting software for retail? Cloud-based accounting software offers accessibility from any device, real-time data synchronization, and secure data storage. It allows retail businesses to manage their finances remotely, collaborate with team members, and ensure data security.
10. How does automation in accounting software benefit retail businesses? Automation reduces manual data entry, minimizes errors, and speeds up financial processes. It allows retail businesses to automate tasks such as invoicing, expense tracking, and report generation, freeing up time for strategic business activities and improving overall efficiency.

By Daniel Epstein

Daniel Epstein is a senior financial research analyst at FinancesOnline and the architect behind our Fintech and ERP content division. His main areas of expertise are blockchain technologies, cryptocurrencies, and the use of biometrics in fintech solutions. His work has been frequently quoted by such publications as Forbes, USA Today, Entrepreneur, and LA Times. With more than 1,800 solutions scrutinized in the last 5 years spent on our team he always prioritized offering readers an unbiased perspective on modern financial technologies.