5 Best Small Business Budgeting Software 2023
This article is part of a larger series on Accounting Software.
The best small business budgeting software must let users budget income and expenses, categorize budgets in classes and locations, create budget reports, and provide different options to forecast amounts. Additionally, it should be easy to use to give users a more meaningful budgeting experience. With that in mind, here are the five best budgeting software for small businesses:
- Zoho Books: Best overall small business budgeting software with detailed budgeting features
- Xero: Best for large budgeting teams
- QuickBooks Online: Best for simple budgeting
- PlanGuru: Best standalone software for advanced budgeting
- YNAB: Best for freelancers and self-employed individuals
Small Business Budgeting Software Compared
Software | Monthly Pricing | Free Trial | Number of Users | Class or Location Budgets | Actual vs Budget Reports | Is Accounting Software? | Budget Formula (Adjust Budgeted Amounts By) |
|---|---|---|---|---|---|---|---|
 | $70 to $275 | 14 days | 10 or 15 | ✓ | ✓ | Yes |
|
 | $13 to $70 | 30 days | Unlimited | ✓ | ✓ | Yes |
|
 | $90 or $200 | 30 days | 5 or 25 | ✓ | ✓ | Yes | Manually setting adjustments (spreadsheet or manual computation) |
 | $99 or $299 | N/A | 1 or 3 ($29 per added user) | ✓ | ✓ | No |
|
 | $14.993 | 4 days | 1 only | Via categories | ✓ | No | Manually setting amounts within the software |
Zoho Books: Best Overall Small Business Budgeting Software With Detailed Budgeting Features
Overall Score:
4.3 / 5
Pros
- Accounting software by default
- Project sales by a fixed amount or by percentage increments
- Prefill budgets based on actual amounts
- Supports exports for older Microsoft Excel versions (1997–2004)
Cons
- Lacks advanced budgeting features like roll forward budgeting and multiyear budgets
- Not a dedicated budgeting software
- No complex forecasting features
Plans & Pricing
Zoho Books has six pricing plans, but the Free, Standard, and Professional plans lack budgeting features. The plans with budgeting are:
- Premium: $70 per month for up to 10 users
- Elite: $150 per month for up to 10 users
- Ultimate: $275 per month for up to 15 users
You can try these plans for free for 14 days. Also, you can add more seats at $5 per user, per month.
We ranked Zoho Books as our overall best small business budgeting software because of its flexibility and scalability. You get 10 or 15 users in its three plans with budgeting features and the option to add more for only $5 per seat monthly. Additionally, Zoho Books makes budgeting easier for small businesses since there are options to add increments per budget period. This feature also autofills per period, which reduces the time spent needed to complete a budget spreadsheet even more.
Besides budgeting, Zoho Books is primarily accounting software. That’s why we find the combination of accounting and budgeting convenient because all data needed for budgeting are in the same ecosystem. Zoho Books also has workflow rules, validation rules, and advanced inventory features that can be helpful for small business accounting. Overall, we picked Zoho Books because it is easy to use, especially for DIY small business owners.
- Budget formula: Zoho Books lets you autofill budget periods by a fixed amount, specific amount, or percentage increment. This feature is good because you don’t have to do the calculations manually in a separate spreadsheet.
- Multiple budgeting filters: You can filter specific accounts for budgeting. This feature enables you to take a deep dive into budgeting for specific accounts and transactions affecting these accounts. Zoho Books can also filter by class or location.
- Outstanding mobile app: Zoho Books tops our list of best mobile accounting apps. You can track key performance indicator (KPI) dashboards and generate reports through the app. It also works perfectly with iOS devices since you add widgets to your iPhone’s home screen. The app can also send notifications to your Apple Watch, so you can stay on top of everything even when you’re away from your laptop.
Budget Autofill Feature (Source: Zoho Books)
- Those looking for a vast network of accounting support: QuickBooks Online has a vast network of ProAdvisors who can help small businesses with ordinary accounting tasks and provide advisory in maximizing the features of QuickBooks Online. With a ProAdvisor, you can ask them to help you in budgeting and provide expert assistance in utilizing QuickBooks Online’s budgeting features.
- Those who need more ways to project budgeted amounts: PlanGuru can use growth rates and historical averages as a basis for projections. You can use these data points instead of inputting predetermined amounts and percentages.
- Those who want to manage personal finances: YNAB is a personal finance tool that can help individuals manage personal, household, and other necessary expenses.
Xero: Best for Large Budgeting Teams
Overall Score:
4.3 / 5
Pros
- Accounting software by default
- Good for unlimited users
- Affordable plans for small businesses
- Supports budget increments when creating budgets
- Wide range of integration options via Xero App Store
Cons
- Lacks advanced budgeting features, such as roll forward budgeting and multiyear budgets
- Not a dedicated budgeting software
- No complex forecasting features
Plans & Pricing
All Xero plans include budgeting and are good for unlimited users:
- Early: $13 per month
- Growing: $37 per month
- Established: $70 per month
You can try Xero for free for 30 days.
Xero is our top pick for large budgeting teams because it has unlimited users. Its convenient actual vs budget comparisons make it easier to access these figures without creating a separate report for it. We like this because it reduces the work needed to be done just by assembling a unique report.
Overall, pricing is Xero’s main advantage against all the picks in the guide. For only $70 per month at the highest plan, it’s by far the most affordable pick for small business budgeting (except YNAB, because it’s mainly for personal budgeting). You also get the powerful accounting features of Xero and access to Xero Advisors for assisted bookkeeping.
- Budget formula: Xero’s budget worksheet lets you adjust budgeted amounts by fixed or variable amounts. The budget formula feature can be used for forecasting and reduces the amount of time needed to complete the budget worksheet.
- Flexible actual vs budget comparisons: Xero has a more user-friendly approach in actual vs budget comparisons. You can compare actual results with budgeted amounts on the same screen where you generate basic reports. For example, you can generate an actual vs budgeted income statement on the same screen where you generate an income statement.
- Unlimited custom reports: Xero offers unlimited custom reports, which are useful for creating specific budgets per class, location, department, or personnel.
Budget Variance Report on Xero (Source: Xero)
- Those looking for an outstanding mobile app: Xero’s mobile app has limited functionality that can be used for budgeting. We recommend Zoho Books for its outstanding mobile app with KPI dashboards for tracking outstanding balances.
- Those who freelance: Since Xero is accounting software, its features and accounts cater more to businesses. YNAB is more suitable for freelancers because it can help in budgeting personal and freelancing income and expenses.
- Those who want extensive reporting and data visualization: Though Xero can create unlimited custom reports, these reports are limited to the available parameters within Xero. PlanGuru is a better pick for specialized reporting since the software can also include graphs and charts.
QuickBooks Online: Best for Simple Budgeting
Overall Score:
3.9 / 5
Pros
- Accounting software by default
- Vast network of QuickBooks ProAdvisors
- Excellent inventory and project accounting features
- Excellent bank reconciliation module
- Free template for importing comma-separated values (CSV) file budgets
Cons
- No budget autofilling based on budget formula
- Not ideal for making a budget within the software due to manually filling out budget amounts
Plans & Pricing
QuickBooks Online has four plans, but only Plus and Advanced are ideal for budgeting. The regular prices after the 30-day free trial are:
- Plus: $90 per month for up to five users
- Advanced: $200 per month for up to 25 users
You can try QuickBooks Online for free for 30 days or sign up right away to get 50% off for three months plus a free guided setup from a QuickBooks expert.
As our best small business accounting software, QuickBooks Online offers a wide array of features in accounting and bookkeeping. Its budgeting features may not be as powerful as Xero or Zoho Books, but users can still make a simple budget.
We picked QuickBooks Online because of its powerful accounting features, which can complement budgeting. With the help of a vast network of ProAdvisors, your small business can access professional advisory services from certified public accountant (CPA) ProAdvisors.
- Budget based on actual figures: QuickBooks Online can use actual figures as a basis for your budget totals. It presents actual values automatically at year-to-date for easy referencing.
- Auto split budgeted amounts: You can split budgeted amounts across periods on QuickBooks Online, which will divide the budget totals automatically by the number of months or quarters.
- Budget by specific account: You select specific accounts by clicking the checkbox on the far left of the worksheet. This feature is helpful if you want to focus only on specific accounts instead of budgeting for all accounts.
Budget Worksheet (Source: QuickBooks Online)
- Those who need built-in budget formula functions: QuickBooks Online lacks a budget formula within the budget worksheet. Meanwhile, Zoho Books has budget formula functions that can automatically compute budget increments for each period.
- Those subscribed to QuickBooks Online seeking a more powerful budgeting solution: If you’re an existing user and find QuickBooks Online’s budgeting features lacking, PlanGuru can integrate with QuickBooks Online. This integration lets you import accounting data from QuickBooks Online and use it for budgeting in PlanGuru.
PlanGuru: Best Standalone Software for Advanced Budgeting
Overall Score:
3.5 / 5
Pros
- Supports imports from Xero, QuickBooks, and Microsoft Excel
- Includes basic to complex budgeting features, such as business valuations and growth rate formula
- Can create multiyear budgets
- Comprehensive report builder that can generate graphs
Cons
- Expensive plan for businesses with multiple departments
- Steep learning curve
- Not ideal for freelancers
Plans & Pricing
PlanGuru has no free trial but offers a 30-day money-back guarantee.
- Single Entity: $99 per month for one user
- Multi-Department Consolidations: $299 per month for three users
You can add more seats at $29 per user monthly.
PlanGuru is one of the dedicated budgeting software on our list—with YNAB being the other. We chose it as a niche pick for users wanting to do a deep dive into budgeting. It contains advanced budgeting features that incorporate forecasting and projection methods, growth rate formula, and a comprehensive report building tool. It also supports imports from Xero, QuickBooks, and Microsoft Excel.
We highly recommend PlanGuru as software solely for budgeting. It has a powerful report builder that you’ll not find in Zoho Books or Xero. It is ideal if you want to include more factors and assumptions when creating budgets, as it gives you more ways to manipulate your budget and gives detailed insights into specific areas of the budget.
- Complex projection and forecasting methods: PlanGuru gives you more options to budget different accounts. You can project amounts using growth rates, percentages of previous account balance, rates based on historical trends and averages, or specific assumptions.
- Comprehensive reporting: PlanGuru’s report builder lets you choose multiple chart types per report, different data types, comparison figures, and period of report. Other software on this list don’t have this feature, making PlanGuru more powerful in terms of reporting.
- Flexible imports: For QuickBooks Online or Xero users, PlanGuru can still be a worthy budget software for a small business. Although PlanGuru doesn’t have direct integration with these software platforms, importing data is easy. You can also import using an Excel file as long as you follow the required format.
Selecting Projection Methods (Source: PlanGuru)
- Those who need a more affordable option: PlanGuru is pricey compared to other options in this guide. We recommend choosing either Zoho Books or Xero if price is a concern.
- Those with no accounting software: Without accounting software, it’s hard to assemble data for budgeting even if you’re using spreadsheets. Direct imports from accounting software are easier and more convenient than CSV imports. If you want to save on costs, we highly recommend getting accounting software with budgeting features instead, such as Zoho Books.
- Those looking for personal financing and budgeting: PlanGuru’s comprehensive budgeting features are not fit for personal use. YNAB is our pick for personal budgeting since it can budget for personal expenses and connect personal accounts.
YNAB: Best for Freelancers & Self-employed Individuals
Overall Score:
2.4 / 5
Pros
- Connect multiple bank accounts and credit cards
- Budget by categories
- Manage debt, spending, and investments
- Manage personal income and expenses
Cons
- Only for freelancers or self-employed, not larger businesses
- No budget formula and assumptions
- Doesn’t integrate with accounting software
Plans & Pricing
YNAB (You Need A Budget) is priced at $14.99 per month or $99 per year and is good for only one user. You can try YNAB for 34 days for free. There’s also a prorated money-back guarantee if you cancel the annual plan.
We picked YNAB as a budgeting tool for freelancers and self-employed individuals. We know that freelancers often mix their personal and professional transactions in one or two bank accounts. Some also use personal credit cards for professional expenses. YNAB is a good choice if you don’t like maintaining accounting software but would like a platform to budget your income and expenses.
Overall, YNAB offers comprehensive features for budgeting personal and self-employed finances. It helps users determine where their income goes, how much income is allocated for expenses, and how much should be left after budgeting everything.
We have a guide on how to separate business and personal finances if you need help in this area and want to simplify tax season and avoid potential issues with the IRS.
- Create and edit custom account titles: YNAB comes with a set of account titles but you can edit the titles to match your lifestyle and profession.
- Set spending targets: If you have frequent expenses like utilities or transportation, you can set targets in YNAB on a weekly or monthly basis. For example, let’s assume you visit clients weekly. You can set a target of $200 every week for transportation expenses.
- Auto-assign money: YNAB looks at your spending and budget targets and auto-assigns money to these expense items. YNAB allocates money from your bank balance automatically so that you don’t have to do it manually. In this way, you’ll immediately see how much cash is left afterward. However, this feature doesn’t automatically deduct cash from your account—it only plans your cash outflows, so you still have to pay your bills before due dates.
YNAB Dashboard on Mobile and Tablet (Source: YNAB)
- Those who aren’t self-employed: YNAB caters mostly to personal finances—and businesses might not benefit from YNAB’s features. Accounting software like QuickBooks Online, Xero, or Zoho Books are more suitable for businesses.
- Those who need comprehensive budgeting: PlanGuru is better at creating comprehensive budgets based on multiple budgetary assumptions.
How We Evaluated the Best Small Business Budgeting Software
In evaluating small business budgeting software, we considered pricing, basic budgeting features, advanced budgeting features, and ease of use. Here is the rubric for evaluation:
10%
Pricing
25%
Accounting Features
20%
Basic Budgeting Features
35%
Advanced Budgeting Features
10%
Ease of Use
10% of Overall Score
In evaluating pricing, we heavily considered the additional cost it would bring to small businesses. Getting a new budgeting software means more monthly or annual subscriptions. Hence, three of our top picks are accounting software with budgeting features while two are specialized software for budgeting.
25% of Overall Score
Having accounting features within the budgeting software is a big plus since it doesn’t require integration. It is also a cost saver since you get two features in one software package. We put more weight on software with accounting and budgeting features. However, we still gave points for standalone budgeting software with direct or indirect integration into accounting software.
20% of Overall Score
Basic budgeting features must include an interactive worksheet that would let users plot budgets for different periods. We also put more weight on the software’s capability to import budgets or integrate with accounting software for faster access to historical data. Other features we considered are:
- Budgeting by income statement, balance sheet, or cash flow statement
- Budget prefilling or autofilling for reduced data entry
- Budget personalization such as the ability to add, edit, or delete budget line items
35% of Overall Score
Advanced budgeting features take a deeper look at more complicated aspects of budgeting. We considered financial modeling, comprehensive reporting, complex projection and forecasting methods, and multiyear budgeting. While most small businesses might not need advanced features, using advanced tools can help businesses predict future performance.
10% of Overall Score
The main objective of this criterion is to evaluate the difficulty of using the software. We considered that some do-it-yourself (DIY) business owners might want to do the budgeting since they know the ins and outs of business. Hence, the user experience must not be too difficult for them, and they should be able to navigate and use all budgeting tools easily. Aside from that, we also considered user reviews, customer service, support network, and accessibility as additional criteria.
*Percentages of overall score
Frequently Asked Questions (FAQs)
Budgeting software makes budgeting easier as it automatically performs the needed calculations without creating a formula. Traditionally, managers and analysts create budgets using a spreadsheet. But with complexities in formula and the need to interconnect multiple sheets, budgeting using spreadsheets can be a nightmare.
Budgets can be either financial or operating. Financial budgets focus on capital inflows and outflows, cash flow, financing, and investment plans. Meanwhile, operating budgets focus on operations such as sales forecasting, production planning, and resource allocation.
Bottom Line
Overall, the best small business budgeting software has features that let users create budgets from within the platform. It should automate basic calculations and reporting formatting to make the experience easy for users. Zoho Books is our top pick because it contains the ideal blend of features for small business budgeting. Otherwise, PlanGuru is a good choice for businesses that want to perform a deep budgeting analysis.
