Best Accounting Software For Your Online Retail Business
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Issam Siddique
ERP
Apr 21, 2025
Running an online retail business is exciting—you get to sell products, grow your brand, and connect with customers worldwide. But managing finances? That’s a different story. Between tracking sales, handling taxes, and keeping track of invoices, the financial side can quickly become overwhelming. If your finances aren’t well-managed, your business might face serious challenges down the road.
That’s where online retail accounting software comes in. The right software can automate key tasks, save you time, and reduce mistakes. If you already work with an accountant, you likely have a system in place. But if you're just starting, choosing the right tool can be tricky with so many options out there.
Not all accounting software is the same. The right one will simplify invoicing, payment processing, and financial tracking, making your business run smoother. In this blog, we’ll look at some of the best options available, each designed to help you manage your finances with ease.
What is Online Retail Accounting Software?
Online retail accounting software is a financial management tool designed specifically for businesses that sell products online. It helps you track revenue, expenses, taxes, and profits—all in one place—so you can stay organized without the hassle of manual bookkeeping.
Unlike spreadsheets or traditional accounting methods, which are time-consuming and prone to errors, accounting software automates key processes. This includes integrating with eCommerce platforms, managing inventory, generating invoices, and providing real-time financial insights.
Now, let’s explore why choosing the right software is essential for beginners and how it can simplify your business operations.
Why You Need the Right Accounting Software for Your Online Retail Business
Managing an online retail business without proper accounting tools is like driving without GPS—you might reach your destination, but it’ll be stressful, and you’ll probably take a few wrong turns along the way.
From inaccurate bookkeeping to missed tax deadlines, financial mistakes can cost your business time, money, and even legal trouble. The best online retail accounting software keeps everything organized, automates repetitive tasks, and helps you stay on top of your financial health. Here’s how the right accounting software makes a difference:
Tracks Your Sales, Expenses, and Inventory with Ease: Accounting software helps you track your sales, expenses, and inventory levels so you can keep your cash flow in check and ensure you never run out of stock.
Takes the Stress Out of Taxes: Tax regulations can be complex, especially for businesses in Saudi Arabia. Many online retail accounting tools integrate with VAT-compliant systems, helping you stay up-to-date with the Kingdom's tax laws and avoid costly penalties.
Works with Local Payment Systems: The right software integrates with payment platforms in Saudi Arabia, making it easier to process transactions and manage your finances according to local standards.
Syncs with Your Online Store: Whether you sell on Amazon, Shopify, or eBay, integrated accounting software ensures smooth transaction tracking and inventory management.
Reduces Human Error: Automated sales tracking, tax calculations, and expense management eliminate costly mistakes and help you make smarter financial decisions.
Grows with Your Business: Whether you sell on Amazon, Shopify, or eBay, integrated accounting software ensures smooth transaction tracking and inventory management—no manual data entry required.
With these key benefits in mind, it's clear that choosing the right accounting software is a must for your online retail business. That said, let’s see what features one must look for in an online retail accounting software.
8 Features to Look for in Online Retail Accounting Software
When choosing online retail accounting software, it’s important to look for features that meet the unique needs of an online retailer. Here are some key features to prioritize:
Inventory Management: Track stock levels, set reorder points, and monitor product sales to avoid shortages or excess inventory.
eCommerce Integration: Ensure the software connects with platforms like Shopify, Magento, Salla, Zid, and WooCommerce for automatic sales and inventory updates.
POS System Compatibility: If you also have a physical store, ensure the software integrates with POS systems to track both online and in-store sales.
Financial Reporting & Analytics: Get real-time insights into profits, expenses, and business trends to make informed decisions.
Automated Invoicing & Billing: Generate tax-compliant invoices that meet ZATCA’s e-invoicing (Fatoorah) requirements, including QR codes for easier tracking.
Tax & VAT Compliance: Choose software that automatically calculates Saudi Arabia’s VAT and generates VAT-compliant invoices and reports, ensuring legal compliance.
Multi-Currency Support: If you sell internationally, ensure the software handles SAR (Saudi Riyal) and other global currencies for accurate financial tracking.
Expense & Payroll Management:Manage expenses, supplier payments, and employee salaries while ensuring compliance with GOSI (General Organization for Social Insurance).
Arabic Language & Local Support: Opt for software with Arabic and English support for ease of use and smooth communication with local accountants.
As you move forward, these features will help you make a better decision when evaluating the right software for your business needs. Now, let's explore the best accounting software options for beginners.
Top Online Retail Accounting Software Options for Beginners
Choosing the right accounting software depends on your business needs, budget, and the level of automation required. Below is a comparison of the best online retail accounting software options for beginners.
Example: Al Haram, a retail chain with 8 stores in Saudi Arabia, faced challenges with E-invoicing compliance due to high B2C transaction volumes. HAL ERP helped automate invoicing, ensure real-time tax compliance, and meet ZATCA requirements across all stores. Read the full case study here.
2) QuickBooks Online
QuickBooks Online is a popular accounting software solution for small to mid-sized businesses. Its cloud-based system lets you manage finances from anywhere and offers tools for invoicing, tax tracking, and automation. The Online version is preferred over QuickBooks Desktop for its accessibility, automation, and eCommerce platform integration.
Why Choose QuickBooks Online?
Familiar and Trusted: One of the most well-known accounting tools, making support and resources easy to find.
Cloud-Based Convenience: Access your financial data anytime, from anywhere—perfect for remote business management.
Automation & Integrations: Automates financial tasks and integrates with banking, invoicing, payroll, and platforms like Shopify and Amazon.
Live Expert Tax Assistance: Get real-time help from tax professionals to stay VAT and tax-compliant.
Free Guided Setup: This is Designed to help beginners get started without needing extensive accounting knowledge.
Pros:
Easy to use and widely trusted
Strong integration with eCommerce and payment platforms
Live tax support for easier compliance
Advanced automation cuts down on manual work
Cons:
Higher pricing than some alternatives
Some advanced features are only available in the Desktop version
3) Wave Accounting
Wave offers free accounting software with basic features, making it an excellent choice for small businesses, freelancers, and independent contractors. It includes invoicing, expense tracking, and essential accounting tools. While the core features are free, premium add-ons like payroll and payment processing are available for extra functionality.
Why Choose Wave Accounting?
Completely Free for Basic Accounting: Perfect for startups and small businesses on a tight budget.
Unlimited Income & Expense Tracking: Track financial transactions without any restrictions.
Customizable Invoicing: Create branded invoices and easily track payments.
Mobile App for On-the-Go Management: Send invoices, track sales, and manage finances from your smartphone.
User-Friendly Interface: Simple, intuitive dashboard designed for beginners.
Scalable with Paid Add-Ons: Add payroll and advanced reporting when you need them.
Pros:
Free accounting software with essential features
Easy-to-use interface
Mobile app for invoicing and tracking finances
No hidden fees for basic income and expense tracking
Cons:
Lacks advanced reporting and analytics
Limited scalability for larger businesses
No direct integration with eCommerce platforms
4) Xero Accounting
Retail Accounting is another great choice for online retailers. Known for its user-friendly interface and automation features, Xero simplifies accounting tasks like bank reconciliation, invoicing, and expense tracking. It also integrates with eCommerce platforms, banks, and third-party apps, making it a great option for online retailers.
Why Choose Xero?
Intuitive and Easy to Use: A clean, simple interface ideal for beginners.
Automation Features: Automatically imports and categorizes bank transactions, reducing manual data entry.
Unlimited User Access: Allows unlimited team members to collaborate without extra cost.
Bank Reconciliation: Easily match transactions with bank feeds for real-time tracking.
eCommerce and Business Integrations: Integrates with platforms like Shopify, WooCommerce, Stripe, and major banks.
Web-Based & Mobile Access: Manage your finances from any device with an internet connection.
Pros:
Easy to use with strong automation
Unlimited user access for team collaboration
Excellent integration with eCommerce platforms and banks
Customizable financial reporting
Cons:
Customer support is only available via email (no phone support)
Some transactions may require manual reconciliation
Limited payroll options and team member permissions
5) Zoho Books
Zoho Books is an affordable, feature-rich accounting software for small businesses and online retailers. It offers inventory tracking, invoicing, sales management, and financial reporting. With flexible pricing and seamless integration with eCommerce platforms, Zoho Books is an excellent choice for online retailers.
Why Choose Zoho Books?
Affordable Pricing: Includes a free plan and competitive pricing for paid options.
Seamless eCommerce Integration: Connects with Shopify, Stripe, and payment gateways for easy transaction tracking.
Inventory and Invoice Management: Helps you track stock, automate invoices, and manage transactions.
Customizable Workflows: Automate repetitive tasks and set transaction rules to suit your business needs.
24/5 Live Chat Support: Get quick assistance with live chat support (no phone support).
Scalable for Multi-Channel Businesses: Works well for businesses selling across multiple platforms.
Pros:
Affordable, with a free plan available
Strong integration with eCommerce platforms
Customizable workflows for better efficiency
Live chat support for quick help
Cons:
No phone support—only chat and email
Initial setup may take time due to advanced features
6) Freshbooks
FreshBooks is an easy-to-use accounting software designed for freelancers, small online retailers, and independent contractors who need invoicing and billing solutions. It offers expense tracking, time tracking, and mobile invoicing, making it ideal for service-based businesses and small retailers.
Why Choose FreshBooks?
Easy-to-Use Interface: Simple to use, even for those without accounting experience.
Strong Invoicing Capabilities: Create and send professional invoices quickly and easily.
Mobile App for Business on the Go: Generate invoices, scan receipts, and track mileage from anywhere.
Integrates with eCommerce & Payment Platforms: Connects with 100+ third-party apps, including Shopify, Stripe, and PayPal.
Self-Service & Phone Support: Access help articles or contact support via phone Monday to Friday.
Simple Pricing Structure: Clear pricing with no hidden fees.
Pros:
Beginner-friendly with a user-friendly interface
Excellent invoicing and billing features
Strong eCommerce and payment integrations
Regular updates with new features
Cons:
Limited inventory tracking (not ideal for product-heavy businesses)
Only supports single-entry accounting (no double-entry options)
Basic reporting features compared to competitors
To keep your business running smoothly, selecting the right accounting software is key. Let’s see how you can choose one.
How to Choose the Right Accounting Software for Your Online Retail Business
Choosing the right accounting software for your business is easier than it seems. Just follow these simple steps:
Step 1: Identify Your Needs
Basic or Advanced Tools: Do you need basic invoicing, or do you require advanced features like inventory management?
Business Size: Are you a small business, or are you planning to scale?
eCommerce Platforms: Do you sell on platforms like Shopify, Amazon, or others?
Step 2: Look for Key Features
Ease of Use: Choose software that’s simple to navigate and understand.
eCommerce Integration: Ensure it integrates with platforms like Shopify, Amazon, or WooCommerce.
Financial Reporting: Look for tools that can track profits, losses, and taxes.
Tax Support: Ensure the software can help you calculate and comply with taxes.
Step 3: Compare Costs vs. Features
Budget-Friendly: Free tools like Wave are great for startups with limited budgets.
Mid-Range: Zoho Books and FreshBooks offer affordability with helpful automation features.
Premium & Scalable: QuickBooks, Xero, and HAL ERP offer advanced reporting and integrations for growing businesses.
Step 4: Check Support and Setup
Can you easily migrate your data?
Is customer support available (live chat or phone)?
Does it offer a guided setup to help you get started?
Explore features & integrations: Make sure the tool works with your business model.
Check Reviews: Look for user feedback and recommendations to help you make an informed choice.
By following these steps, you'll find the accounting software that best suits your needs and helps your online retail business thrive!
Final Thoughts
Choosing the right online retail accounting software can simplify managing your finances and help you stay on track for growth. As a beginner, it’s important to choose software that fits your current needs but also offers the flexibility to scale with your business.
Start by evaluating your requirements, including budget, integrations with eCommerce platforms, and reporting needs. Whichever option you choose, make sure it supports your business’s growth and evolving demands.
Manage Your Finances with HAL Accounting
Time is money in business, and HAL makes managing your finances easier, whether you run an online store or a physical shop. With real-time data, easy integration, and powerful financial tools, HAL makes managing your retail business effortless.
Create Professional Invoices: Customizable invoices reflecting your brand are just a few clicks away.
VAT Compliance: Ensures complete VAT compliance per Saudi regulations, keeping your business tax-ready.
Cash Flow & Funds Management: Real-time tracking of cash flow and bank statements for full financial control.
Get Paid Faster: With automated billing and secure payment solutions, HAL helps you get paid quickly, improving your cash flow.
Scale with Your Business: As your business grows, HAL grows with you. More sales? More staff? HAL adapts to your needs.
Unique WhatsApp Integration: Stay connected with your business, even on the go. Handle tasks directly via WhatsApp, from anywhere, anytime.
E-Commerce Integration Made Easy: Seamlessly link your online store (Salla/Shopify) with HAL, managing inventory and orders in one place.
To learn more about its features and capabilities, watch this video. Start managing your finances smarter today!
