Xero is my favourite and recommended accounting tool especially for SMEs. It is affordable, easy to use and does not require expert knowledge of accounting to use. I particularly like that it is cloud based and be accessed from anywhere or any device (mobile or PC).
It is also very useful in creating/tracking invoices and receivables. The dashboard gives you a snapshot of the business at any point in time and allows you generate quick reports as required.
Best of all, it allows you link your bank account automatically matching payment against purchases to aid reconciliation.