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23 Best Accounting Software for Small Business Needs in 2024

Brett Shapiro

Word Count: words | Est. Reading Time: 62 mins

The best accounting software for small business owners helps track income and expenses, send invoices and late payment reminders, and keep their business finances in check.

Good accounting software solutions also help with sales taxes, expense management, financial reporting, and more, which is great because outsourcing these services can cost a lot of money. Clearly, the benefits of accounting software are numerous.

The key challenge, however, is finding the best accounting software for your business that suits your needs and budget.

Don’t know where to start? We’ve got you covered.

In this article, we’ve curated a list of the top accounting apps to help you make an informed decision for your service based businesses.

But before we get to that, you must first understand what makes a great accounting app and the key features that you should consider.

Disclaimer: This content contains affiliate links, which means we’ll earn a commission when you click on them (at no additional cost to you).

What Are the Key Features of Good Small Business Accounting Software?

Here are some of the key features you should look for in the best accounting software for small business use:

Billing and Invoices: Your accounting app should be able to send automatic invoices and late payment reminders and should support recurring billing. This streamlines the process of sending invoices and helps ensure you get paid on time.
Core Accounting: Accounts receivable and payables, bank reconciliation, and general ledger are some core accounting data features that every small business accounting software should have. These are the nuts and bolts that allow you to record financial information accurately.
Inventory Management: The best accounting software for small business operations integrates inventory management with billing and invoicing to provide a seamless workflow. This is especially important if you track inventory and need to stay on top of stock levels and costs.
Tax Management: The best accounting software for small business needs should be able to do complex sales tax calculations and ensure compliance with rules and regulations. Streamlining tax prep can save you major headaches come tax time.
Budgeting and Forecasting: Accounting apps that can assess financial reports for the current year and forecast a budget for the next year are really useful. They also help with personal finance planning so you can make informed decisions.
Analytics and Reporting: In-depth analytics and customized financial reporting are must-have features of the best accounting software for small business owners.
Error Resolution: The best accounting software for small business operations should be able to detect and fix errors and do complex calculations automatically.

Other than these features, you should also consider the price, user-friendliness, and customer support before you make your choice. Think about what essential features your business needs in order to track expenses, manage vendors, handle purchase orders, track receipts, and generate reports.

Mobile apps are also increasingly important, especially for service based businesses with teams on the go. Scanning receipts, mobile signatures, and the ability to track mileage and manage expenses from anywhere, anytime, can really streamline processes for many smaller businesses.

Now that you have a fair idea of what to look for, let’s get to our top picks for the best accounting software for small business owners available on the market today.

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Best Accounting Software for Small Business Needs

Here is our list of the best accounting software for small business operations. This includes both free and paid options that will be great for your small business needs.

We recommend making a list of requirements before you go through this list to find the best option for your small business. Also, consider the number of user accounts, compatible devices, and pricing plans before you make your choice.

With that in mind, let’s get started.

1. Zoho Books

Image via Zoho Books

Zoho Books is an end-to-end accounting software solution that is great for both small businesses and enterprises. Apart from a full suite of accounting features, it also offers financial features.

The free plan allows you to manage invoices, orders, bills, payments, credit notes, and more. However, advanced features like inventory management and advanced analytics are available only with the paid plans.

So, what makes Zoho Books one of the best free accounting software for a small business?

For one, the platform has a free forever plan with all the basic accounting functionalities a small business would need initially. Once your business grows, you can upgrade to paid plans.

Also, if you’re using any of the other tools in the Zoho Suite, like Zoho CRM and Zoho Analytics, you’ll be able to access them all on a single platform.

Read our detailed Zoho Books review to learn more about this tool.

Key Features

Invoice management (up to 1,000 invoices per year on the free plan)
Online and offline payments
Expense and mileage tracking
Bank reconciliation
Automated payment reminders
Basic analytics and reports
Integration with all Zoho apps and some other apps
Advanced inventory management
Advanced analytics and reporting
Email, voice, and chat support

Pros

Invoicing features like multilingual invoicing and recurring invoices are available with the free plan.
Offers a lot of basic accounting features, even with the free plan.
Multiple pricing plans to cater to clients with different needs and budgets.
Full suite of accounting features and customization options, more than most other accounting software solutions offer.

Cons

The free plan can have only 1 user and 1 accountant.
Only email support is available with the free plan.

Tool Level

Intermediate

Usability

Easy to use

Pricing

Apart from the free plan, these are the paid plans offered by this accounting software solution:

Standard: $20/month
Professional: $50/month
Premium: $70/month

2. QuickBooks

Image via QuickBooks

QuickBooks Online is another of the best accounting software for small business needs. Though affordable, QuickBooks Online does not offer a free plan. It offers a 30-day free trial if you want to test out its features.

QuickBooks offers a full suite of accounting features and is great not just for small businesses but also for large ones.

With QuickBooks Online, you can easily manage expenses, create purchase orders, track inventory, and generate financial reports.

It also has mobile apps that allow you to handle accounting data and financial information on the go. These apps come equipped with features like mobile signatures, scanning receipts, and the ability to track mileage automatically.

Another big advantage is the ability to integrate with 750+ third party applications, which really allows you to customize it for your specific needs. Whether you need CRM software, time tracking, project management tools, or other software, chances are it integrates with QuickBooks Online.

All in all, QuickBooks Online is a powerful solution for small business accounting, offering unmatched depth, flexibility, and essential features. The company also provides solid customer support, tutorials, and other resources.

While it may be overkill for some smaller businesses, it’s an excellent choice for growing businesses that want an all-in-one accounting app that can scale with them over time.

Here are the features offered by this accounting software solution and some of its pros and cons.

Key Features

Income and expense tracking
Invoice and payment management
Tax deductions
General reports
Receipt captures
Mileage tracking
Cash flow calculations
Tax calculations and estimates
Bill management
Inventory management
Business analytics
Workflow automation

Pros

Offers a generous 30-day free trial.
Competitive pricing for a full suite of features and 50% off for the first three months.
Flexible tiered pricing to cater to the needs of all types of businesses.

Cons

Does not have a free forever plan.
Can have more advanced analytics and reporting features

Tool Level

Advanced

Usability

Easy to use

Pricing

Here are the paid plans offered by QuickBooks. Please note that these are available for 50% off for the first three months and after that, normal prices will apply.

Simple Start: $15/month ($30 after discount window)
Essentials: $30/month ($60 after discount window)
Plus: $45/month ($90 after discount window)
Advanced: $100/month ($200 after discount window)

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3. Xero

Image via Xero

Xero is another top contender for the best accounting software for small business owners. It is top-rated by users on review sites like Trustpilot.

And that’s why Xero makes it to the “best accounting software for small businesses” list.

Even the starter plan offers powerful features like sending invoices, expense management, and bank reconciliation. Plus, Xero integrates with over 1,000+ third party apps, including time tracking, mobile signatures, scanning receipts, and more.

In collaboration with Gusto, Xero also offers comprehensive payroll services as an add-on for an extra $40.

While it provides all the important features a small business would need, it is not designed for large enterprises.

For growing businesses looking for feature rich accounting software at an affordable price point, Xero is definitely worth considering.

Check out some of its features, pros, and cons to decide if it has what you want from an accounting software solution.

Key Features

Invoice management
Bulk bank reconciliation
Bills and receipts tracking
Project and expense tracking
Inventory and order management
Multi-currency transactions
In-depth analytics and reporting

Pros

Offer a 30-day free trial.
Has a simple, user-friendly interface.
Offers tons of features at competitive prices.
Even the basic plan allows bank reconciliation.
Offers 24/7 online support.

Cons

Multi-currency transactions are only possible with the most expensive plan.
Reporting could be more visual and advanced.

Tool Level

Beginner

Usability

Easy to use

Pricing

You can access all the features of this accounting software solution for free for 30 days and cancel anytime, no questions asked. Apart from that, Xero offers a 75% discount on all plans for the first 6 months. Here are the paid plan details:

Early: $3.75/month ($15 after discount period)
Growing: $10.50/month ($42 after discount period)
Established: $19.50/month ($78 after discount period)

Pro Tip: If you want the capabilities of a premium accounting software solution for the price of a basic one, go with Xero. It has everything a small business would need.

4. FreshBooks

Image via FreshBooks

If you want an accounting software solution that has advanced features but is easy to use, then FreshBooks should be your first choice. It’s among the best choices for solopreneurs or consultants who need a single-user account.

It offers everything you need for accounting and bookkeeping, from expense tracking to automated payments. It’s also just as affordable as the tools already discussed, if not more. For beginners seeking to learn more about small business bookkeeping, consider exploring small business bookkeeping for beginners.

Even its most basic plan allows you to send unlimited invoices and estimates and track unlimited expenses.

Key Features

Unlimited invoices, estimates, and proposals
Unlimited automatic expense tracking
Bank reconciliation
Automatic receipt capturing
Mobile mileage tracking
Automated late payment reminders
Customizable email marketing features
Recurring billing and client retainers
Advanced analytics and reporting
White-labeling options

Pros

The cheapest plan also has great features like unlimited invoice and expense tracking.
Offers a 30-day free trial for all features.
Allows subscription-based payments, which most other accounting software don’t.
Also available as iOS and Android apps.

Cons

Advanced payments are only available as an add-on for $20/month or free with the top-tier plan.
Need to pay extra for every new user account, which can spike the costs, especially for large businesses.

Tool Level

Beginner/Intermediate/Expert

Usability

The tool is extremely easy to use, despite offering advanced features.

Pricing

After the free 30-day trial, you can upgrade to one of the following paid plans:

Please note that these prices are for a single user account and for every additional user, you need to pay $11 extra. There is a 60% discount for the first 4 months and here are the pricing details.

Lite: $7.60/month ($19 after discount period)
Plus: $13.20/month ($33 after discount period)
Premium: $24/month ($60 after discount period)
Let’s Talk: Custom pricing

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5. Sage Business Cloud Accounting

Image via Sage Business Cloud Accounting

Sage is another online accounting software solution that’s best for a small business.

The accounting tool is part of a suite of Sage products that include payroll, HR, and CRM solutions.

Sage Accounting was designed for small to medium-sized businesses, and the pricing plans reflect that.

The best services you’ll find while using this tool are invoicing and payroll, among others.

Key Features

Invoice management
Income tracking
Automatic back reconciliation
Quotes and estimates
Cash flow forecast
Multicurrency transactions
Email, voice, and chat support

Pros

Offers a protracted free trial.
One of the most budget-friendly accounting software for a small business.
It’s a cloud-based accounting solution with multiple useful integrations.

Cons

Offers only basic accounting features.
Suitable only for very small businesses.

Tool Level

Beginner

Usability

Anyone can use this accounting software solution without much training.

Pricing

Sage offer a 3-month free window for new users across all plans. Here are the details of the 2 plans offered by Sage:

Accounting Start: €15/month ($16/month)
Accounting: €31/month ($33.20/month)

*Conversions are done at a 1:1 conversion rate as of June 17, 2024.

6. Neat

Image via Neat

Neat is a financial management toolkit with accounting, invoicing, and financial document management capabilities. It has everything a small business would need to manage its accounts and finances.

However, it is best suited for self-employed individuals or very small businesses, as it offers a single plan with no advanced features.

So if you’re looking for a simple tool to help store your financial documents and track your expenses, then this tool is for you.

What are the features that it offers?

Check it out.

Key Features

Invoice and payment management
Free ACH or bank transfers
Custom invoice templates
Receipts and expense tracking
Analytics and custom reports
Secure cloud storage for financial documents

Pros

Offers a 14-day free trial
Provides a decent set of features for a low price

Cons

Offers only a single plan
Not suitable for mid-sized or large businesses

Tool Level

Beginner

Usability

Easy-to-use accounting software solution for solopreneurs and microbusinesses.

Pricing

Neat’s plan costs $200/year. However, you can get some advanced features for an extra fee. These include:
- VIP Service: An extra $50/year for guided training, a dedicated support team, and exclusive offers.
- Automated insights: An extra $150/year for automatic account reports, real-time insights, importing bank account activity, etc.

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7. ZarMoney

Image via ZarMoney

This is an all-in-one accounting software solution with invoicing, inventory management, billing, and payment capabilities.

You can use it to create and send custom invoices and have your customers pay directly by clicking the “pay now” option in invoices. Its advanced analytics and reporting feature gives you access to 40+ customizable reports.

Overall, it has a comprehensive set of features and plans suitable for both small and large businesses, making it among the best accounting software on the market.

In fact, it offers a premium plan for enterprises. This plan comes with an extensive set of advanced features, a dedicated account representative, specialized training, and priority support.

Despite having tons of advanced features, the user interface is simple and the tool is easy to use for small business owners or accountants.

Key Features

Core accounting features
Billing and payment processing
Invoicing and estimates
Bookkeeping
Inventory management
Accounts receivable
Order management
Analytics and reporting
And more!

Pros

Provides a 14-day free trial (no credit card required).
Offers industry-specific solutions for ecommerce and other industries.
ZarMoney is an end-to-end solution suitable for all types of businesses.
Integrates seamlessly with tools like Mailchimp, Zapier, Shopify, Stripe, and other applications.

Cons

The Enterprise plan is quite expensive but offers a lot of advanced features.
Not enough reporting capabilities for cash-only businesses.

Tool Level

Expert

Usability

Despite having tons of advanced features, the user interface is simple and the tool is easy to use for small business owners or accountants.

Pricing

Small Business: $20/month for two users (Additional users cost $10/month each)
Enterprise: $350/month for 30+ users

8. Patriot

Image via Patriot

Patriot is a payroll and accounting software for small businesses, but both products are sold separately, so you can choose only accounting if you prefer that.

Like the other best accounting software for small business operations on this list, it also offers a 30-day free trial without any obligation.

What makes it one of the best accounting software for small business operations?

Patriot’s features and pricing plans are designed with small businesses in mind. It offers only 2 plans, both of which are affordable and offer great value for money. The tool is also mobile-friendly.

Key Features

Unlimited custom invoices
Bank reconciliations
Recurring billing
Payment reminders
Income and expense tracking
Receipts management
Estimates
Error identification and corrections

Pros

Provides expert support with both plans.
Is one of the most cost-effective options for a small business.
Offers tons of features for the price point.
Provides a 30-day free trial.
Simple, no-frills, and transparent pricing.

Cons

Suitable only for small businesses.
Lacks inventory tracking and management.

Tool Level

Intermediate

Usability

This accounting software solution is user-friendly, according to customer reviews.

Pricing

Here are the plans that it offers:

Basic: $20/month
Premium: $30/month

Pro Tip: If you are looking for budget-friendly options with the best accounting features, consider Patriot. However, if inventory tracking is a crucial feature for you, skip it.

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9. LessAccounting

Image via LessAccounting

This is an accounting and invoicing software solution that provides basic invoicing features for free. However, for a full suite of features, you’ll need to invest in a paid plan.

Why did we include it in our list of the best free accounting software for small business needs?

Because it is an easy-to-use tool with a clean interface that provides basic invoicing and payment capabilities that most small businesses need.

It provides a simple way for consultants, freelancers, and small business owners to handle their own bookkeeping or get help from their experts.

Less Accounting also offers templates you can use as a starting point and edit to produce unique business proposals. You can then quickly convert these proposals into invoices for your clients.

Moreover, even its paid plans are not very expensive and it is an overall good accounting software solution for a small business.

Key Features

Unlimited custom invoices
Customer management
Payments with Stripe, Paypal, and Square
Expense tracking
Estimates
Tax reports
Unlimited team members
Bank reconciliation
Time tracking
Bookkeeping
Late payment reminders

Pros

Easy-to-use intuitive interface
Powerful reporting and analytics capabilities

Cons

Advanced features like analytics, bank reconciliation, etc. come with paid plans
Relatively expensive plans

Tool Level

Beginner

Usability

Easy to use

Pricing

Simple Bookkeeping: $199/month (up to 2 financial accounts)
Growth Bookkeeping: $299/month (up to 4 financial accounts)
Business Bookkeeping: $399/month (5 to 10 financial accounts)
Tailored Bookkeeping: Custom quote

10. Kashoo

Image via Kashoo

This is a simple accounting software solution for small businesses. It offers different apps for different small business accounting needs, from invoicing to advanced accounting.

You can simply track your invoices and expenses if you’re a small business, and you can get automated accounting as your business grows. Small businesses can get the TrulySmall Accounting package, while larger ones can get the Kashoo plan.

If you’re a small business owner looking for budget-friendly accounting software for your small business, then you should definitely consider Kashoo.

Here are some of its best features.

Key Features

Manages invoices
Excellent for accepting payments
Tracks income and clients
Reporting and other accounting features come with the paid plans

Pros

Invoicing is completely free forever
Paid plans offer a free trial and competitive pricing

Cons

Only caters to small businesses; not suitable for enterprises

Tool Level

Beginner

Usability

It is one of the accounting software programs for small businesses that is easy to use.

Pricing

Here are the pricing plans offered by Kashoo:

TrulySmall Accounting: $216/year
Kashoo: $324/year

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11. Wave

Image via Wave

Unlike other accounting software on this list, Wave offers separate tools for different accounting functions. These include invoicing, accounting, banking, payments, and payroll. It also offers advisory services.

What makes it one of the best accounting software for small business operations?

The invoicing, accounting, and banking tools are completely free for use by anyone. In fact, it is one of the accounting software programs that offers the most features for free.

What’s more?

You can track your expenses easily on the go with their mobile receipts. The feature allows you to scan receipts and back them up in the cloud.

Let’s look at some of Wave’s key features.

Key Features

Invoice management
Custom invoices
Automated reminders
Income and expense tracking
Reports like overdue invoices, profit & loss, etc.
Simplified taxation
Instant payouts

Pros

Invoicing, accounting, and banking features are 100% free to use
The tool offers almost everything a small business needs to get started
Also offers advisory services to improve your accounting and bookkeeping skills

Cons

Best suited for Sole Proprietors in the US and not larger businesses or businesses in other countries

Tool Level

Beginner

Usability

Easy to use.

Pricing

Here’s what Wave’s pricing looks like:

Starter: Free
Pro: $16/month

Pro Tip: If you have a sole proprietorship in the States, this is the best option for you. Start with the free features and add more features as the need arises.

12. ZipBooks

Image via ZipBooks

ZipBooks is one of the free accounting software programs that offers a forever-free plan but with limited features. You can send unlimited invoices, manage unlimited customers, and view basic reports with the free plan.

You can customize your invoices and include your logo, brand colors, and contact information. You can also keep track of client payment and invoice history, late balances, and taxes.

What’s more?

ZipBooks provides you with reports and analytics that give actionable insights to help you make data-driven decisions.

The paid plans are also quite affordable and provide decent features. Check out the features, pros, and cons of this accounting tool and see if it fits your needs.

Key Features

Unlimited custom invoicing
Recurring billing
Automated payment reminders
Core accounting features
Smart client management
Square and PayPal integrations
Multicurrency payments
Receipt tracking
Bookkeeping
Custom reports

Pros

Enables unlimited transactions and invoicing for free.
Offers a free forever plan with basic accounting features.
Is easy to use.

Cons

Lacks advanced features (like inventory management) and integrations.

Tool Level

Beginner

Usability

The tool is easy to use.

Pricing

Here are the plans offered by ZipBooks:

Starter: Free
Smarter: $15/month
Sophisticated: $35/month
Accountant: Custom pricing

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13. Lendio

Image via Lendio

This is one of the best accounting software solutions that offers a free plan. With Lendio’s free plan, you can send invoices, manage income and expenses, and generate profit and loss reports.

Lendio also helps you connect your bank account easily so that your costs and revenue are imported automatically. This way, you get real-time insights that you can act on right away.

It also provides easy access to a profit-and-loss statement, balance sheet, tax summary, and accounts receivable reports. You also get funding options for your small business.

The paid plan allows access to financial insights and forecasts and an expense categorization feature. It also supports payment integrations with PayPal, Square, and Stripe.

Key Features

Invoice management
Income and expense tracking
Financial insights
Expense categorization
Multicurrency payments

Pros

Simple and easy to use
Robust set of accounting features
Customizable reporting
Time tracking capabilities

Cons

Offers only basic features, not suitable for mid-sized or large businesses.

Tool Level

Beginner

Usability

It is easy to use.

Pricing

Available on demand

14. Holded

Image via Holded

Holded is another one of the best accounting software solutions that provides multiple pricing tiers for different types of clients. It has a free plan, an affordable plan for freelancers, and multiple plans for businesses of different sizes.

Besides accounting and invoicing, you get project management features like Kanban boards, lists, and Gantt charts. You also get to automate most of your accounting processes for greater accuracy.

Holded’s free plan has invoicing and expense tracking features, while the paid plans offer tons of other accounting features like personalized client portals and more invoices.

Accountants and bookkeepers can request payments from clients, give estimates to prospects, and generate financial reports using Holded’s invoicing module.

Here’s a list of key features:

Key Features

Invoice and expense tracking
Project management
Core accounting features
CRM tools
Payment reminders
Bookings management
Recurring invoices
Tax calculations
Cash management
Inventory management
HR management

Pros

Offers a free plan as well as a 14-day free trial on the paid plans.
An all-in-one solution catering to all types of business.
Industry-specific solutions for ecommerce businesses.
Multiple free integrations.

Cons

Only the top-tier plan provides unlimited invoicing.
The free plan doesn’t have much to offer.

Tool Level

Intermediate

Usability

Some users complain about the translation feature not working perfectly, which could be difficult for non-Spanish users.

Pricing

Here are the plans offered by Holded. Please note that the prices are half off (50% off) for the first 3 months.

Plus: €7.50/month ($8/month)
Basic: €14.50/month ($15.50/month)
Standard: €29.50/month ($31.60/month)
Advanced: €49.50/month ($53/month)
Premium: €99.50/month ($106.60/month)
Custom ERP: Custom billing

*Conversions are done at a 1:1 conversion rate as of June 17, 2024.

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15. AccountEdge

Image via AccountEdge

If you’re looking for a great accounting software solution designed specifically for Mac laptops, then look no further than AccountEdge.

It is a premium solution that allows you to choose your home currency and calculates taxes according to your region’s rules. The analytics reports are also customizable and give you the exact information you’ll need for your specific tax forms.

AccountEdge comes with relatively cost-effective plans that allow access to its full suite of features. It also offers an ERP solution with customized pricing if you want an all-in-one solution for your small business.

AccountEdge offers features for the following business function:

Key Features

General ledger
Banking
Sales
Payments
Time billing
Invoicing
Payroll
Purchases
Mileage tracking
Inventory
Contacts

Pros

The most comprehensive accounting software solution, suitable for all types of businesses.
Features like inventory management and seamless payments make it great for ecommerce businesses as well.

Cons

Compatible only with Mac laptops.
Doesn’t allow unlimited users.

Tool Level

Expert

Usability

There are tons of learning resources available, which make it easy to understand and use the tool even as a beginner.

Pricing

AccountEdge Pro: $20/month
AccountEdge Network Edition: $30/month
AccountEdge Hosted: $50/month

Pro Tip: If you need a Mac-specific accounting solution with a full set of advanced features, then go with AccountEdge.

16. OneUp

Image via OneUp

Another accounting and bookkeeping software solution that would be best for your small business is OneUp. You can use this tool to overcome the challenges of financial accounting for your startup.

This accounting software solution considerably reduces the time required to handle accounting tasks by automating some of them. It will sync with your business bank accounts and automatically validate entries, making bookkeeping feel like a breeze.

For instance, you get an automated inventory management tool that allows you to review and send orders to suppliers with a single click.

You can also receive the inventory when a vendor shipment comes in, and it will be updated in Square and any other relevant integrations.

What makes it one of the best accounting software for small business needs? The fact that it offers a full set of features at an affordable price.

Here’s a list of OneUp’s main features:

Key Features

Invoicing
Inventory management
Core accounting
Bank reconciliation
Cash flow and profit reporting
Bookkeeping
Customer relationship management (CRM)

Pros

Offers a 30-day free trial.
All plans include the same features but differ in terms of the number of users.
All plans except the basic (Self) one offer one-on-one customer support.
Can be accessed from all devices.

Cons

Provides only basic reporting and no advanced analytics.
Does not offer time-tracking and billing.

Tool Level

Intermediate

Usability

The user interface could be cleaner and more user-friendly.

Pricing

Here are the pricing plans offered by OneUp:

Self: $9/month (1 user)
Pro: $19/month (2 users)
Plus: $29/month (3 users)
Team: $69/month (7 users)
Unlimited: $169/month (unlimited users)

Pro Tip: If you’re a freelancer and you need single-user access, then this is one of the most affordable options for you.

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17. Reckon One

Image via Reckon One

This is one of the most affordable accounting software programs, perfect for a small business. Apart from basic accounting features, it also offers project management, payroll, and time tracking.

Want to know the best part?

Reckon One is power-packed with features and still offers competitive prices. Not just that, it also offers 50% off on all plans for the first six months, making it extremely cost-effective.

You get professional invoices with a “Pay now” prompt for credit card payments to increase cash flow. Timesaving tools like recurring invoices, payment reminders, and templates also ensure that your customers pay you on time.

It is suitable for businesses of all sizes and offers custom plans for enterprises that want to build their own packages. Overall, it’s an all-in-one accounting solution with something for everyone.

Key Features

Unlimited invoicing and billing
Income and expense tracking
Tax reporting
1000 bank transactions
Unlimited payroll
Budgets and forecasts
Unlimited timesheets and employee expenses
Analytics and reporting

Pros

It’s a cloud-based solution with mobile access.
Offers a 30-day free trial
Simple, user-friendly interface.
Industry-specific accounting solutions.

Cons

Lacks inventory management.
Some useful features come only with the premium plans.

Tool Level

Intermediate

Usability

It is easy to use, with tons of learning resources available on the website for beginners.

Pricing

Reckon One offers a 50% discount to new users for the first 6 months. Here are the plans that you can choose from:

Accounting Essentials: $6/month ($12 after discount window)
Accounting Plus: $10/month ($20 after discount window)
Accounting Premium: $17.50/month ($35 after discount window)

18. GnuCash

Image via GnuCash

This is the only open-source accounting software solution on this list and it’s the only one you’ll need. GnuCash provides tons of features and is compatible with Linux, Mac, Microsoft Windows, and other devices.

It is regularly updated by a community of developers, who also provide support for using this software solution in the best possible way. However, it lacks the dedicated customer support provided by other tools on this list.

Key Features

Double-entry accounting
Financial reporting
Transaction matching/validating
General ledger
Bank reconciliation
Invoicing
Multi-currency bill payments
Tax calculations
Payroll
Stocks and mutual funds

Pros

All features are completely free to use.
Can work offline, after downloading.
Compatible with all types of desktops and laptops.

Cons

No dedicated customer support as it’s an open-source solution.
It’s a single-user solution.

Tool Level

Expert

Usability

It’s not the easiest-to-use small business accounting software solution on this list, but after an initial learning curve, it becomes relatively easy.

Pricing

It is a completely free open-source solution.

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19. Odoo Accounting

Image via Odoo

Odoo Accounting is a comprehensive accounting software solution that’s part of the larger Odoo suite of business management tools. This makes it the right software for small businesses that want an integrated approach to managing their operations.

With Odoo Accounting, you can handle all your financial needs in one place, from invoicing and expense management to financial reporting and tax preparation. Odoo Accounting is designed to automate many of the tedious tasks associated with accounting, saving you time and reducing the risk of errors.

One of the standout features of Odoo Accounting is its user-friendly interface. Even if you don’t have a background in accounting, you’ll find the software easy to navigate and use.

What’s more?

The dashboard provides a clear overview of your financial situation, with key metrics like cash flow, income, and expenses displayed in an easy-to-understand format.

Key Features

Invoicing and billing
Expense tracking
Bank reconciliation
Financial reporting
Tax preparation
Inventory management
Purchase orders and vendor management
Mobile app for on-the-go accounting

Pros

Comprehensive accounting features
User-friendly interface
Integrates with other Odoo apps
Suitable for businesses of all sizes

Cons

Can be more expensive than some other accounting software options
Requires some training to fully utilize all features

Tool Level

Intermediate to Advanced

Usability

More advanced features may require some training

Pricing

One App Free: $0
Standard: $31.10/user/month (includes fees for other Odoo apps and features)
Custom: $46.80/user/month (includes fees for other Odoo apps and features)

20. TallyPrime

Image via TallyPrime

TallyPrime is one of the best accounting software for small business owners and service based businesses. Developed by Tally Solutions, a leading Indian software company, TallyPrime offers a range of features to help you manage your finances, inventory, and statutory compliance.

The software supports all types of accounting methods, including cash-based, accrual-based, and mixed-mode. It also offers advanced features like multi-currency support, bank reconciliation, and financial reporting.

With TallyPrime, you can generate over 400 different types of reports, including balance sheets, profit and loss statements, and cash flow statements.

Key Features

Advanced accounting capabilities
Multi-currency support
Robust inventory management
Statutory compliance management for Indian taxes and regulations
Unique “Go To” navigation functionality
Customizable invoicing and reporting
Multiple billing formats

Pros

Comprehensive accounting and inventory management features
Strong statutory compliance support for Indian businesses
Unique navigation and customization options
Regular updates to reflect changes in tax laws and regulations

Cons

Primarily designed for Indian businesses, may not be as suitable for international companies
Limited third-party integrations compared to some other accounting software

Tool Level

Intermediate to Advanced

Usability

Steep learning curve due to the breadth of features and options

Pricing

Silver rental: $306/year
Gold Rental: $918/year

21. FreeAgent

Image via FreeAgent

FreeAgent is without a doubt one of the best accounting software for small business operators, freelancers, and independent contractors.

This UK-based platform offers a comprehensive set of tools to help you manage your finances, including invoicing, expense tracking, and project management.

One of the standout features of FreeAgent is its focus on automation. Thanks to this, FreeAgent can take the hassle out of accounting with features like automatic bank reconciliation, recurring invoices, and real-time financial insights.

What’s more?

FreeAgent is also a great accounting software pick when it comes to preparations for tax season. The software includes tools to help you calculate and file your self-assessment tax return (for UK users), as well as VAT returns.

It also generates real-time tax estimates, so you always know how much you owe and can avoid any surprises come tax time.

Key Features

Invoicing and billing
Expense tracking and mileage tracking
Time tracking and project management
Self-assessment tax and VAT return filing (UK)
Real-time tax estimates
Mobile apps for iOS and Android
Bank reconciliation and cash flow management
Multi-currency support

Pros

Simple and easy to use, even for those without accounting experience
Robust set of accounting features for small businesses and freelancers
Mobile apps for on-the-go financial management
Affordable pricing plans

Cons

Some limitations on customization options for invoices and reports
Payroll features are only available for UK users

Tool Level

Beginner to Intermediate

Usability

Very user-friendly and easy to navigate

Pricing

FreeAgent offers a 50% discount for the first six months for new users.

Flat rate of $13.50/month ($27 after discount elapses)

22. Oracle NetSuite

Image via Oracle NetSuite

Oracle NetSuite is the complete business management package. While it’s targeted primarily at larger businesses and enterprises, this tool can also be a good fit for growing small businesses that need a more advanced solution.

NetSuite offers a full range of accounting features, including a general ledger, accounts payable and receivable, financial reporting, and more.

It also comes with extra modules for tasks like inventory management, order management, and HR, making it a true all-in-one solution for managing your business operations.

But that’s not all!

NetSuite also has an impressive cloud-based architecture. Because the software is hosted in the cloud, you can access it from anywhere with an internet connection. This makes it easy to manage your finances on the go and collaborate with remote team members in real-time.

Key Features

General ledger
Accounts payable and receivable
Advanced financial reporting and analytics
Inventory management and order management
Financial planning and budgeting tools
Cloud-based architecture
High customizability
HR management

Pros

Comprehensive suite of accounting and business management tools
Highly scalable to accommodate business growth
Powerful reporting and analytics capabilities
Cloud-based for easy access and collaboration

Cons

More expensive than many other accounting software options
Can be complex to set up and require significant training

Tool Level

Advanced

Usability

Steep learning curve due to advanced features and customization options

Pricing

Pricing is based on specific business needs and requires a custom quote

23. Vic.ai

Image via Vic.ai

Vic.ai is an AI-powered accounting software that automates and streamlines accounts payable and accounts receivable processes for small businesses and larger ones alike.

Caoitalizing on its artificial intelligence and machine learning capabilities, Vic.ai aims to reduce manual data entry, minimize errors, and provide real-time insights into your financial performance.

One interesting feature of Vic.ai is its proprietary intelligent invoice processing. The software can automatically capture, read, and categorize incoming invoices, extracting key data points like vendor names, amounts, and due dates.

It can also match invoices to purchase orders and receipts, reducing the need for manual reconciliation.

Key Features

AI-powered invoice processing
Intelligent approval workflows for invoices and expenses
Real-time financial analytics
Vendor management tools
Supports electronic payment methods like ACH and virtual cards
Robust integration capabilities

Pros

Automates and streamlines AP and AR processes, saving time and reducing errors
Provides real-time visibility into financial performance with AI-powered analytics
Improves vendor relationships with electronic onboarding and payment options
Scalable solution that can grow with your business needs

Cons

Requires significant setup and configuration to match your specific AP and AR processes
May require changes to your existing vendor management and payment workflows

Tool Level

Advanced

Usability

Requires some training to fully utilize AI-powered features and automation workflows

Pricing

Available on demand

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FAQs

Q1. What are some of the best accounting software for a small business?

Here are our top five picks for the best accounting software for a small business:

Zoho Books: Best for accountants who need mobile access
QuickBooks Online: Best overall, suitable for all types of businesses
Xero: Most value-for-money option for micro-businesses
FreshBooks: The most user-friendly and simple-to-use accounting software
Wave: Best free accounting software for a small business

Q2. Which accounting software is the easiest to use?

FreshBooks is one of the easiest accounting software programs to use, making it perfect for beginners. It is especially useful for freelancers and self-employed professionals.

Q3. What software do most accountants use?

QuickBooks, Xero, FreshBooks, and Zoho Books are some of the most popular small business accounting software used by accountants worldwide.

Q4. Which is the best free accounting software?

Wave is the best free accounting software solution for a small business, as it offers tons of invoicing, accounting, and banking features for free.

Here are our top five picks for free small business accounting software:

Wave: Best free accounting software overall
Zoho Books: Best free accounting software with mobile access
LessAccounting: Best free software in terms of user-friendliness
ZipBooks: Best free accounting software for invoicing for small businesses
GnuCash: Best free open-source accounting software

Q5. What are the key features of the best accounting software?

Here are some of the features of the best accounting software for a small business:

Core accounting and general ledger
Unlimited custom invoicing
Bank reconciliation
Multi-currency payments
Inventory management
Income and expense tracking
Time tracking
Mileage tracking
Contact management
Multi-user and multi-device access
And more!

Wrapping Up

Accounting and bookkeeping are the two most tedious yet important business functions, especially for a small business. But if you have the right accounting software to help you, these processes can become extremely streamlined.

Choose from our top picks for the best accounting software for small business operations and manage your accounts like a pro. Compare the features, user-friendliness, customer support, and compatible devices before you make a selection.

Also, don’t forget to utilize the free trials before you commit to any tool. It will help you check out the user interface and understand how easy or difficult it is to use a particular tool.

Which small business accounting software solution will you choose? Comment below.

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Brett Shapiro

Brett is an entrepreneur with over a decade of experience in establishing and running successful businesses. Over the course of good career he has established over 10 successful businesses and SBHQ is his latest project. With SBHQ he aims to provide all the useful resources a small business owner may need to create a successful business.