What Software Do Small Businesses Use?
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Small businesses use software to handle accounting, customers, marketing, employees, and daily operations without relying on complex enterprise systems. Rather than using one all-in-one platform, most small businesses rely on a combination of tools, each focused on a specific job.
This article explains what software small businesses typically use, how those tools differ by role and industry, and how software needs change as a company grows.
What People Mean by “Small Business Software”
Small business software refers to digital tools built for companies with roughly 1 to 100 employees. These tools help manage money, customers, work, communication, and staff without the cost or complexity of enterprise systems.
Most small business software is designed to be:
- Quick to set up
- Affordable on a monthly basis
- Flexible and easy to replace
- Usable by small teams without IT support
The Software Most Small Businesses Rely On
While every business is different, most small companies end up using the same core types of software.
In practice, this usually includes:
- Tools for accounting and bookkeeping
- Software to manage customers and sales
- Systems for taking payments and sending invoices
- Apps for communication and collaboration
- Simple tools to organize work and tasks
These categories form the backbone of a typical small business software stack.
Managing Money and Bookkeeping
Nearly every small business uses accounting software to keep track of income, expenses, invoices, payroll, and taxes.
This software is commonly used for:
- Sending invoices
- Monitoring cash flow
- Generating financial reports
- Handling payroll and tax preparation
Popular tools in this category include:
- QuickBooks
- Xero
- FreshBooks
For many businesses, accounting software is the first paid tool they adopt.
Keeping Track of Customers and Sales
As soon as a business has regular customers, spreadsheets stop being enough. That’s where customer management software comes in.
This type of software is commonly used to:
- Store customer contact details
- Track conversations and follow-ups
- Manage sales opportunities
- Forecast future revenue
Well-known examples include:
- HubSpot
- Zoho
- Salesforce
Organizing Work and Daily Tasks
To keep work from slipping through the cracks, many small businesses use task or project management software.
These tools help teams:
- Assign responsibilities
- Track progress
- Coordinate projects
- Work together remotely
Common options include:
- Trello
- Asana
- ClickUp
Communication Inside the Business
Email alone rarely scales well once a business grows beyond a few people. Many small companies adopt communication tools to centralize conversations.
These tools are typically used for:
- Team messaging
- Video meetings
- File sharing
- Company-wide updates
Popular platforms include:
- Slack
- Microsoft Teams
- Zoom
Tools Used for Marketing and Promotion
To attract customers, small businesses often rely on a mix of marketing tools rather than a single platform.
These tools are commonly used for:
- Email campaigns
- Website traffic analysis
- Design and branding
- Performance tracking
Examples include:
- Mailchimp
- Google Analytics
- Canva
Getting Paid and Processing Transactions
Taking payments efficiently is critical for both product and service businesses.
Small businesses often use software for:
- Online payments
- In-person transactions
- Recurring billing
- Subscription management
Common choices include:
- Stripe
- PayPal
- Square
Hiring, Payroll, and Employee Management
Once a business starts hiring, manual payroll quickly becomes impractical.
These tools are commonly used for:
- Running payroll
- Tracking hours
- Onboarding employees
- Managing benefits
Examples include:
- Gusto
- BambooHR
- ADP
Software That Depends on the Industry
Beyond general business tools, many small companies rely on software designed specifically for their industry.
Retail and Online Stores
Used to manage products, inventory, and sales.
Examples include:
- Shopify
- WooCommerce
- Lightspeed
Service-Based Businesses
Common in contracting, agencies, and local services.
Examples include:
- Jobber
- ServiceTitan
Restaurants and Hospitality
Used to manage orders, staff, and reservations.
Examples include:
- Toast
- Lightspeed
How Software Choices Change Over Time
As small businesses grow, their software stack usually becomes more structured.
Very small teams (1–5 people)
- Basic accounting software
- Simple customer tracking
- Email and spreadsheets
- Lightweight task tools
Growing teams (5–25 people)
- Dedicated CRM
- Project management software
- Payroll and HR tools
- Marketing automation
Established small businesses (25–100 people)
- More integrated systems
- Advanced reporting
- Access controls and permissions
- Industry-specific platforms
A Quick Overview by Business Area
| Business Area | Typical Software | Common Users |
|---|---|---|
| Finance | Accounting software | Most small businesses |
| Sales | CRM tools | Service and B2B companies |
| Marketing | Email and analytics | Online-focused businesses |
| Operations | Task and project tools | Teams with multiple employees |
| Payments | Payment processors | Product and service businesses |
| HR | Payroll and HR software | Businesses with staff |
Small businesses rarely depend on a single system. Instead, they rely on a set of focused software tools to manage money, customers, work, communication, and employees.
While the specific tools vary by industry and size, the types of software used are remarkably consistent across most small businesses.
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