The best accounting software help businesses track income and expenses, send invoices and late payment reminders, and keep their business finances in check.
Good accounting software solutions also help with taxes and payroll, 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.
Given the large number of options available, we’ve made the job easier for you by curating a list of the best accounting software.
But before we get to that, you must first understand what makes accounting software great 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:
Other than these features, you should also consider the price, user-friendliness, and customer support before you make your choice.
Now that you have a fair idea of what to look for, let’s get to our top picks for the best accounting software available in the market today.
Here is our list of top accounting software for small businesses. 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
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 on 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 is yet another best accounting software for small businesses. Though affordable, QuickBooks does not offer a free plan. It offers a 30-day free trial if you want to test out its features.
QuickBooks also offers a full suite of accounting features and is great not just for small businesses but also for large ones. These features include online billing, expense tracking, and financial reporting.
Despite not having a free plan, QuickBooks remains a favorite among freelancers because its starter plans are cost-effective and have outstanding features.
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.
Image via Xero
This is one of the most popular accounting software for small businesses. 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 with its lowest-tier plan, you get features like:
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.
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 free for 30 days and cancel anytime, no questions asked. Here are the paid plans 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’d 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.
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 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 50% off discount for the first 6 months and here are the pricing details.
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 basic plan starts at $10 and offers invoice management, income tracking, and automatic bank reconciliation.
The second plan costs $25 and offers additional features. However, with a 70% discount for the first 6 months, it costs just $7.50, which is even lower than the price of the basic plan.
The best services you’ll find while using this tool are invoicing and payroll, among others.
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Here are the details of the 2 plans offered by Sage:
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 customer 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 amongst the best accounting software in 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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Here are the details:
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 other best accounting software for small businesses on this list, it also offers a 30-day free trial without any obligation.
What makes it one of the best accounting software for a small business?
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.
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 best free accounting software for a small business?
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 them 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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Apart from the free plan, here are the plans that this accounting software solution offers:
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:
Image via Wave
Unlike other accounting software in 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 a small business?
The invoicing, accounting, and banking tools are completely free for use by anyone. In fact, it is one of the accounting software that offer 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 that offer 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 your 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:
Image via Lendio
This is one of the best accounting software solutions that offer 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 pid plan allows access to financial insights and forecasts and expense categoriation feature. It also supports payment integrations with PayPal, Square, and Stripe.
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Apart from the free plan, it offers only one paid plan:
Image via Holded
Holded is another one of the best accounting software solutions that provide multiple pricing tiers for different types of clients. It has a free plan and 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 more 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
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Here are the plans offered by Holded. Please note that the prices are half (50% off) for the first 3 months.
*Conversions are done at a 1:1 conversion rate as of August 31, 2023
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.
Unlike other accounting software, AccountEdge Pro is available for a flat one-time fee and allows up to 10 users to access 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 a small business? 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.
Image via Reckon One
This is one of the most affordable accounting software, 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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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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1. 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:
2. Which accounting software is the easiest to use?
FreshBooks is one of the easiest accounting software to use, perfect for beginners. It is especially useful for freelancers and self-employed professionals.
3. 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.
4. 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:
5. 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 a small business 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 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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