For many new and small businesses it is not necessary to purchase accounting software, usually Microsoft Excel or a similar package will suffice. Even though accounting software may not be needed, you will still need to account for your business, hence my blog post and video series on How to Create a Bookkeeping Spreadsheet using Excel.
I have used a number of different bookkeeping templates in the past, the tutorial video series explains how to create the best template that I have used to date.
The bookkeeping spread sheet template will account for assets, liabilities, expenses and sales. It will even have an automated profit and loss account and balance sheet. Don't let the financial terms scare you off, watch the tutorial, it is easier than it may sound.