10 Best accounting software for contractors (2024)

Running a contractor business is no cakewalk, especially when it comes to managing finances. 

Many contractors often find themselves wrestling with complex spreadsheets, lost receipts, and never-ending paperwork. 

It’s a struggle that can eat up valuable time and cause unnecessary stress. 

But fear not! In this article, we delve into the 10 best accounting software for contactors , how to choose the best one, and its ability to transform your financial woes into smooth sailing. With the right accounting software, you can bid farewell to the days of manual calculations and tedious bookkeeping tasks. 

So without further ado, let’s get started.

Best accounting software for contractors: Table of contents

• What is accounting software?
• Why do contractors needs an accounting software
• 10 Best accounting software for contractors in 2024
• How to choose the best accounting software for contractors
• Why is Mesha the best accounting software for contractors?

What is accounting software?

Managing financial records and transactions manually can be time-consuming, prone to errors, and overwhelming for businesses. Staying organized and accurately tracking finances is a challenge, especially with increasing complexities and regulatory requirements.

Accounting software automates and digitizes key financial tasks, including invoicing, expense tracking, payroll management, and tax filing. With user-friendly interfaces, real-time reporting, and customizable features, these software solutions empower businesses to make informed decisions based on accurate financial data. 

By reducing manual errors and automating routine tasks, accounting software saves time, enhances productivity, and ensures compliance with accounting standards. Embrace the power of accounting software to simplify your financial processes and propel your business toward success.

Why do contractors need accounting software?

Accounting software is essential for contractor businesses due to its numerous advantages. The following are five crucial reasons why accounting software is a good investment:

1) Efficient and organized financial tracking: Accounting software automates the process of recording and categorizing financial transactions, eliminating the need for manual calculations and paper records. This saves time and reduces errors.

2) Cash flow management: With accounting software, contractors can easily create invoices, track payments, and manage their cash flow. This helps ensure timely payments from customers and provides a clear overview of income and expenses.

3) Tax compliance made easier: Accounting software can calculate taxes owed based on the transactions entered, simplifying the process of tax compliance. It also generates tax reports and keeps track of deductible expenses, facilitating the preparation and filing of tax returns.

4) Improved collaboration and communication: Accounting software allows multiple users to access and update financial information simultaneously. This promotes collaboration between different departments, enhances transparency, and ensures everyone has access to the same financial data.

5) Enhanced security and integration: Accounting software provides security features like data encryption and secure backups, safeguarding sensitive financial information. It can also integrate with other business systems, such as inventory management or payroll system, streamlining processes and minimizing errors.

10 Best accounting software for contractors in 2024

Here are the top 10 accounting software solutions available today. These platforms offer efficient and user-friendly features that can streamline your financial tasks. Let’s delve into their key features, pros & cons, and discover which one suits your business needs best.

1) mesha

Mesha is an all-in-one accounting software designed for global companies and contractors that helps save time by automating your accounting and bookkeeping. It helps manage AR, AP, taxes and compliance for multi-entity businesses. With powerful integrations with 10000+ banks, payrolls, cards, payment gateways, commerce sites and CRMs, managing income and expenses becomes a breeze. Mesha seamlessly creates tailored workflows, auto-categorizes and reconciliates transactions and provides a centralized view of all your financial metrics. Mesha is AI-powered and comes with multi-currency support, crypto and fiat accounting, leading compliance and security and other innovative features to make accounting easy.

Features:

• Comprehensive and automated accounting solution to easily manage accounts receivable, accounts payable, taxes, and compliance 
• Innovative features like AI search, tailored workflows, multi-entity, and multi-currency support
• State-of-the-art compliance and security features for all financial data and transactions
• Interactive and real-time reporting and insights

Pros:

• Intuitive, easy to understand, and implement. Setup takes less than 5 minutes.
• Multiple integration support, including banks, payroll, cards, payment gateways, commerce sites, CRMs, and more
• End-to-end accounting for Web3 and Crypto teams, as well
• Only accounting software with multi-entity management + crypto + multi-currency + AI search

Cons:

• Advanced features and customizations might need some assistance
• For companies with many multiple entities, the initial setup might take a little longer

2) Quickbooks

FreshBooks is a popular cloud-based accounting software designed for contractors. It was created to simplify financial tasks and streamline invoicing, expense tracking, and time management for entrepreneurs and professionals seeking efficiency and organization in their financial management.

Features:

• FreshBooks offers a range of features to facilitate smooth accounting processes. 
• The software allows users to create professional-looking invoices and automate recurring billing. 
• Its user-friendly interface makes it easy to track expenses, manage project budgets, and record payments. 
• Time tracking and team collaboration tools enhance productivity, while comprehensive reporting and analytics provide valuable insights into business performance. 
• Moreover, FreshBooks seamlessly integrates with various third-party apps and offers mobile compatibility, enabling users to manage their finances on the go.

Pros: 

• FreshBooks’ intuitive interface makes it easy for users to navigate, even for those without extensive accounting knowledge. 
• The invoicing system is highly customizable, and the software’s customer support is praised for its responsiveness. 
• The time tracking feature is particularly beneficial for service-based businesses.

Cons: 

• While FreshBooks is ideal for freelancers and small businesses, it may lack the advanced features required by larger enterprises. 
• Some users find the pricing plans to be slightly on the higher side, especially as their business grows and needs to expand. 
• Additionally, the reporting capabilities, while helpful, could be more robust for in-depth financial analysis.

3) Xero

Xero is a cloud-based accounting software designed for contractors. It was founded in 2006 and has gained widespread popularity due to its user-friendly interface and accessibility. With a strong emphasis on automation and real-time data synchronization, Xero streamlines financial tasks, allowing business owners and accountants to manage their finances efficiently from anywhere.

Features:

• Xero offers a range of powerful features tailored to meet the needs of modern businesses. 
• These include invoicing, bank reconciliation, expense tracking, payroll management, inventory control, and financial reporting. 
• Users can easily connect their bank accounts, credit cards, and other financial institutions for seamless data integration. 
• Moreover, Xero’s add-on marketplace provides the flexibility to extend the software’s capabilities through various integrations with third-party apps.

Pros:

• Cloud-based accessibility ensures data availability and collaboration.
• User-friendly interface requires minimal accounting knowledge.
• Real-time updates provide accurate financial insights.
• Extensive add-ons expand functionality according to business requirements.

Cons:

• Limited capabilities for large enterprises with complex accounting needs.
• Some advanced features may require third-party add-ons, incurring additional costs.
• Customer support response times can vary, leading to potential delays in issue resolution.

4) Freshbooks

FreshBooks is a popular cloud-based accounting software designed for contractors. It was created to simplify financial tasks and streamline invoicing, expense tracking, and time management for entrepreneurs and professionals seeking efficiency and organization in their financial management.

Features:

• FreshBooks offers a range of features to facilitate smooth accounting processes. 
• The software allows users to create professional-looking invoices and automate recurring billing. 
• Its user-friendly interface makes it easy to track expenses, manage project budgets, and record payments. 
• Time tracking and team collaboration tools enhance productivity, while comprehensive reporting and analytics provide valuable insights into business performance. 
• Moreover, FreshBooks seamlessly integrates with various third-party apps and offers mobile compatibility, enabling users to manage their finances on the go.

Pros: 

• FreshBooks’ intuitive interface makes it easy for users to navigate, even for those without extensive accounting knowledge. 
• The invoicing system is highly customizable, and the software’s customer support is praised for its responsiveness. 
• The time tracking feature is particularly beneficial for service-based businesses.

Cons: 

• While FreshBooks is ideal for freelancers and small businesses, it may lack the advanced features required by larger enterprises. 
• Some users find the pricing plans to be slightly on the higher side, especially as their business grows and needs to expand. 
• Additionally, the reporting capabilities, while helpful, could be more robust for in-depth financial analysis.

5) Wave

Wave is a popular cloud-based accounting software designed for contractors. Launched in 2010, it has gained recognition for its user-friendly interface and accessibility, offering a comprehensive suite of financial tools to streamline bookkeeping and invoicing processes. As a web-based platform, it eliminates the need for downloads and updates, making it easy to manage finances from anywhere with an internet connection.

Features:

• Wave offers a range of features tailored to simplify accounting tasks for small businesses. 
• It allows users to create and send professional invoices, track expenses, manage receipts, and reconcile bank transactions effortlessly. 
• The software also includes financial reports such as balance sheets and profit/loss statements, providing valuable insights into the company’s financial health. 
• Wave’s payment processing feature enables users to accept credit card payments from clients directly through invoices, improving cash flow management.

Pros: 

• Wave’s most significant advantage is its cost-effectiveness, as the software is entirely free to use, with no hidden fees. 
• Its intuitive interface requires minimal training, making it accessible to users with limited accounting knowledge. 
• Additionally, the platform’s strong customer support and active user community provide valuable assistance and advice.

Cons: 

• While Wave is an excellent solution for small businesses, it might lack certain advanced features required by larger enterprises. 
• Additionally, some users may find limited integrations with third-party applications, restricting seamless data flow between different systems. 
• Security concerns over storing financial data on the cloud might also deter potential users who prioritize data privacy.

6) Sage Intacct

Sage Intacct is a cloud-based accounting software solution designed for contractors. It offers a robust and scalable platform that enables businesses to streamline financial management processes and gain real-time visibility into their financial performance. As a cloud-based solution, Sage Intacct allows users to access their financial data securely from anywhere, promoting collaboration and efficiency.

Features:

• Sage Intacct comes with a range of powerful features to simplify financial operations. 
• It includes comprehensive financial reporting and analysis tools, accounts payable and receivable management, multi-currency support, and automation for core accounting tasks. 
• The software also offers advanced functionality for project accounting, contract management, and revenue recognition, making it suitable for industries like professional services, nonprofits, and wholesale distribution.

Pros:

• Cloud-based accessibility ensures easy access and collaboration for remote teams.
• Robust financial reporting and analytics help in making informed business decisions.
• Scalability allows the software to grow with the business.
• Integration capabilities with other business systems enhance efficiency.

Cons:

• The cost might be a concern for smaller businesses.
• Customization options may require technical expertise.
• Some users might prefer a more intuitive user interface.

7) Oracle

Oracle accounting software is a robust and comprehensive solution designed to streamline financial processes and provide accurate and real-time insights into an organization’s financial health. Developed by Oracle Corporation, a leading technology company, this software caters to the needs of businesses of all sizes and industries. It offers a wide range of accounting functionalities, including general ledger management, accounts payable and receivable, financial reporting, budgeting, and cash flow management.

Features:

• Oracle accounting software boasts a plethora of features that enhance efficiency and accuracy in financial management. 
• It provides advanced automation capabilities, such as automated journal entries and reconciliation processes, reducing the manual workload and minimizing errors. 
• The software supports multi-currency transactions, allowing businesses with global operations to handle international finances seamlessly. 
• It also offers robust security features to safeguard sensitive financial data, ensuring compliance with regulatory standards.

Pros: 

• Oracle Accounting Software provides excellent data security, regular updates, and reliable customer support. 
• Its scalability accommodates business growth, and its integration capabilities enhance overall efficiency. 
• Furthermore, its financial reporting tools offer valuable insights for informed decision-making.

Cons: 

• The main drawback of Oracle Accounting Software is its high cost, which may be prohibitive for small businesses. 
• Implementation and customization can be complex, demanding specialized IT expertise. 
• Some users may also find the interface overwhelming, necessitating thorough training for optimal usage.

8) Neat

Neat accounting software is a powerful and user-friendly solution designed to streamline financial management for contractor businesses of all sizes. It offers a comprehensive set of tools and features to simplify bookkeeping, invoicing, expense tracking, and financial reporting. Neat aims to automate time-consuming tasks, allowing users to focus on core business activities and make informed financial decisions.

Features:

• It enables users to easily create and send professional invoices, track expenses, and manage receipts by scanning and digitizing them. 
• The software integrates with popular accounting systems, facilitating seamless data transfer and eliminating the need for manual data entry. Neat’s robust reporting capabilities provide real-time insights into business finances, allowing for better analysis and forecasting. 
• Additionally, it ensures compliance with tax regulations, reducing the risk of errors and penalties.

Pros:

• User-friendly interface and intuitive navigation make it accessible for users of all levels of accounting expertise.
• Automates time-consuming tasks, freeing up time for more critical business activities.
• Efficient receipt management and expense tracking features help reduce manual effort and improve accuracy.
• Integration with other accounting systems enhances productivity and data accuracy.
• Robust reporting and analytics enable better financial decision-making.

Cons:

• Some advanced accounting features may be limited compared to more specialized accounting software.
• The software’s pricing structure may not be suitable for small businesses with tight budgets.
• Customization options may be limited, making it less flexible for specific business needs.
• Customer support options may vary, and response times may not always be immediate.

9) Plooto

Plooto is a versatile cloud-based accounting software that simplifies financial processes for contractor businesses of all sizes. It offers a comprehensive suite of tools designed to streamline payments, bill management, and cash flow management. Plooto aims to eliminate the need for manual data entry and paperwork, providing an efficient and automated solution for financial tasks.

Features:

• Plooto boasts a range of powerful features to enhance accounting processes. With Plooto, users can easily send and receive electronic payments, reducing the reliance on traditional methods like checks. 
• It integrates seamlessly with popular accounting platforms, enabling smooth data synchronization. 
• The software facilitates automated bill payments, ensuring timely and accurate payments to vendors. 
• Plooto also offers multi-currency support, making it convenient for businesses operating internationally. 
• Its intuitive interface and user-friendly dashboard make navigation effortless for users.

Pros:

• One of the main advantages of Plooto is its simplicity and ease of use. It requires minimal training and technical expertise, making it accessible to individuals with varying levels of accounting knowledge. 
• Plooto’s integration capabilities with other accounting systems are highly beneficial, allowing for smooth data transfer. 

Cons:

• On the downside, Plooto’s pricing structure may not be suitable for small businesses with limited budgets. 
• Additionally, while Plooto offers robust payment features, it may lack some advanced accounting functionalities required by larger enterprises. 
• Nevertheless, for businesses seeking a user-friendly and efficient solution for payment processing and cash flow management, Plooto can be a valuable asset.

10) Melio

Melio Accounting Software is a comprehensive financial management solution designed for small and medium-sized contractor businesses. It offers a user-friendly interface and powerful features that simplify bookkeeping and streamline financial processes. Melio aims to help businesses manage their finances efficiently, saving time and improving accuracy.

Features:

• Melio Accounting Software provides a range of features to meet the diverse needs of businesses. 
• It offers automated invoicing and billing, expense tracking, bank reconciliation, and financial reporting. 
• Users can easily create and send professional invoices, track payments, and manage cash flow effectively. 
• The software integrates with various accounting systems and banks, allowing for seamless data synchronization.

Pros:

• Melio Accounting Software is known for its intuitive interface, making it accessible to users with varying levels of accounting knowledge.
• The software automates several financial processes, reducing manual work and saving time for business owners and accountants.
• Melio integrates with popular accounting systems and banks, enabling smooth data transfer and synchronization.

Cons:

• While suitable for small and medium-sized businesses, Melio may not offer the same level of scalability for larger enterprises with complex financial requirements.
• Some advanced accounting features, such as multi-currency support or advanced inventory management, may be lacking compared to more robust accounting software options.

How to choose the best accounting software for your contractor business?

Choosing the best accounting software for your contractor business is crucial. Consider these factors to make the right decision:

1) Identify your business needs: Start by determining what specific accounting tasks you want the software to handle, such as invoicing, payroll, or inventory management.

2) Consider scalability: Think about the future growth of your business and choose software that can accommodate your expanding needs. Scalability ensures you won’t outgrow the software quickly.

3) Assess integration capabilities: Check if the accounting software can integrate with other tools you already use, such as CRM software or e-commerce platforms. Integration streamlines data flow and avoids manual data entry.

4) Read user reviews: Look for reviews and testimonials from other business owners who have used the accounting software you are considering. Their experiences can provide valuable insights.

Why mesha is the best accounting software for contractors?

Mesha is an all-in-one accounting software designed for global companies and contractors that helps save time by automating your accounting and bookkeeping. Here are the 4 core reasons why you should choose mesha for all your accounting needs:

1) For multi-entity business needs: mesha understands the complexities of multi-entity businesses and offers tailored solutions. It allows businesses to manage multiple entities within a single platform, simplifying financial operations. This feature saves time and effort by consolidating data and providing a comprehensive view of the overall financial health.

2) Integration capabilities: mesha’s integration capabilities are top-notch. It seamlessly integrates with various third-party applications, such as accounting systems, cards, payrolls, etc., streamlining processes and ensuring data accuracy. This integration enhances productivity and eliminates the need for manual data entry or transfers between different systems.

3) All-in-one finance dashboard: With mesha, businesses can access an all-in-one finance dashboard that provides a holistic view of their financial activities. This dashboard includes features like real-time reporting, cash flow management, expense tracking, and invoice management. By having all essential financial information in one place, businesses can make informed decisions quickly and efficiently.

4) Cost-effective & scalability: mesha is a cost-effective accounting software solution that offers scalability. It provides different pricing plans, allowing businesses to choose the one that suits their budget and requirements. As the business grows, Mesha easily scales up to accommodate increased data volume and user demands without compromising performance.

Conclusion

In conclusion, choosing the best accounting software for contractors is crucial. By considering your specific needs and budget, you can find a solution that streamlines your financial processes. Remember to assess the software’s features, such as invoicing, expense tracking, and financial reporting. Also, don’t forget to read user reviews and seek recommendations from trusted sources. By making an informed decision, you can save time, improve accuracy, and gain valuable insights into your company’s financial health. Invest in the right accounting software and take control of your finances today!

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