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).
Here are some of the key features you should look for in the best accounting software for small business use:
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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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.
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.
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Apart from the free plan, these are the paid plans offered by this accounting software solution:
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.
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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.
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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.
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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:
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.
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.
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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.
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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.
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Sage offer a 3-month free window for new users across all plans. Here are the details of the 2 plans offered by Sage:
*Conversions are done at a 1:1 conversion rate as of June 17, 2024.
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.
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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.
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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.
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Here are the plans that it offers:
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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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.
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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.
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Here are the pricing plans offered by Kashoo:
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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.
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Here’s what Wave’s pricing looks like:
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.
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.
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Here are the plans offered by ZipBooks:
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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.
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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:
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Here are the plans offered by Holded. Please note that the prices are half off (50% off) for the first 3 months.
*Conversions are done at a 1:1 conversion rate as of June 17, 2024.
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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:
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Pro Tip: If you need a Mac-specific accounting solution with a full set of advanced features, then go with AccountEdge.
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:
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Here are the pricing plans offered by OneUp:
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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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.
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Reckon One offers a 50% discount to new users for the first 6 months. Here are the plans that you can choose from:
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.
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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.
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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.
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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.
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FreeAgent offers a 50% discount for the first six months for new users.
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.
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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.
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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:
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:
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:
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.
Disclaimer: This content contains affiliate links, which means we’ll earn a commission when you click on them (at no additional cost to you).
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