Best Accounting Software for Small Businesses of January 2026
We looked at more than 50 accounting software products. Our top picks help a variety of small businesses track their money and create detailed records for tax time.
Learn more Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Best accounting software for small businesses
Here are our complete picks, in alphabetical order:
- FreshBooks: Best for freelancers.
- QuickBooks Enterprise: Best for enterprise accounting software with advance reporting capabilities.
- QuickBooks Online: Best for working with an accountant.
- Sage 50 Accounting: Best for desktop accounting software.
- Striven: Best for industry-specific features.
- Xero: Best for simple accounting software.
- Wave Accounting: Best for very small, service-based businesses.
- Zoho Books: Best for free accounting software plan.
| Product | Best for | NerdWallet rating | Starting at | Promotion | Learn more |
|---|---|---|---|---|---|
 Xero | Simple accounting software | $25/month Additional pricing tiers (per month): $55, $90. | 90% off for 6 months. | on Xero's website | |
 QuickBooks Online | Working with an accountant | $38/month Additional pricing tiers (per month): $75, $115, $275. | 50% off for 3 months or free 30-day trial. | on QuickBooks' website | |
 FreshBooks | Freelancers | $21/month Additional pricing tiers (per month): $38, $65, custom. | 60% off for the first 3 months (applies to new FreshBooks subscriptions). | on FreshBooks' website | |
 Zoho Books | Free accounting software plan | $0 Additional pricing tiers (per month): $20, $50, $70, $150, $275. | 14-day free trial of the Premium plan. | on Zoho Books' website | |
QuickBooks Enterprise | Enterprise accounting software with advanced reporting capabilities | $1,703/year Additional pricing tiers (per year): $2,210; $2,717; $5,364. Adding users or cloud access costs extra. | 30-day free trial | on QuickBooks' website | |
 Striven | Industry-specific features | 4.1
/5
| $35/month Additional pricing tiers (per month): $70. | 7-day free trial | on Striven's website |
 Wave Accounting | Very small, service-based businesses | $0 Additional pricing tiers (per month): $19 | N/A | on Wave's website | |
 Sage 50 Accounting | Desktop accounting software | $69/month Additional pricing tiers (per month): $114.33, $198.42. | N/A | on Sage's website |
Our pick for simple accounting software
Xero
Best for Simple accounting software
Starting at
$25/month
Additional pricing tiers (per month): $55, $90.
Promotion
90% off
for 6 months.
on Xero's website
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
QuickBooks Online
Best for Working with an accountant
Starting at
$38/month
Additional pricing tiers (per month): $75, $115, $275.
Promotion
50% off
for 3 months or free 30-day trial.
on QuickBooks' website
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations.
- Robust feature set includes record-keeping, reporting, invoicing and inventory management, plus a capable mobile app.
- Chat and phone support available Monday through Saturday in all plans.
Cons
- Expensive compared with the competition.
- Frequent price increases and a tendency toward upselling.
- Limited account users with each plan.
FreshBooks
Best for Freelancers
Starting at
$21/month
Additional pricing tiers (per month): $38, $65, custom.
Promotion
60% off
for the first 3 months (applies to new FreshBooks subscriptions).
on FreshBooks' website
Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Zoho Books
Best for Free accounting software plan
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
on Zoho Books' website
Pros
- Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
- Email support in free plan; phone and chat support in paid plans.
- Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
- Add accounting widgets to your phone’s home screen; track time using your Apple Watch.
Cons
- Fewer third-party integrations than some competitors.
- No plan includes more than 15 users (can add additional users for a fee).
QuickBooks Enterprise
Best for Enterprise accounting software with advanced reporting capabilities
Starting at
$1,703/year
Additional pricing tiers (per year): $2,210; $2,717; $5,364. Adding users or cloud access costs extra.
Promotion
30-day free trial
on QuickBooks' website
Pros
- Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules.
- More than 200 reports, including industry-specific options for various industries.
- Chat and phone support available seven days a week.
Cons
- Outdated user interface.
- Limited direct, third-party integrations for payroll software and popular point-of-sale systems.
- Annual subscriptions are expensive; each additional user license costs extra.
Striven
Best for Industry-specific features
Starting at
$35/month
Additional pricing tiers (per month): $70.
Promotion
7-day free trial
on Striven's website
Pros
- Offers industry-specific features for consulting businesses, nonprofits, manufacturing companies, professional services and more.
- Other features include inventory tracking, reporting, invoicing, project management tools and the ability to categorize transactions using classes.
- Customer support available by phone and live chat.
Cons
- Monthly costs could add up quickly if you require multiple users.
- No mobile app.
- Limited third-party integrations, especially for payroll.
Wave Accounting
Best for Very small, service-based businesses
Starting at
$0
Additional pricing tiers (per month): $19
Promotion
N/A
on Wave's website
Pros
- Free plan available.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails.
- Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No mileage tracking feature and must use Zapier for third-party integrations.
Sage 50 Accounting
Best for Desktop accounting software
Starting at
$69/month
Additional pricing tiers (per month): $114.33, $198.42.
Promotion
N/A
on Sage's website
Pros
- Advanced inventory tracking and job costing features.
- Industry-specific features for construction, retail and professional services businesses.
- Phone and chat support, plus a dedicated account representative in all plans.
Cons
- Lowest-tier plan doesn’t include audit trails.
- Each additional user increases the monthly cost.
Sort by:
Our pick for simple accounting software
Starting at
$25/month
Additional pricing tiers (per month): $55, $90.
Promotion
90% off
for 6 months.
on Xero's website
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
Our pick for simple accounting software
Xero
Best for Simple accounting software
Best for Simple accounting software
Starting at
$25/month
Additional pricing tiers (per month): $55, $90.
Promotion
90% off
for 6 months.
on Xero's website
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No inbound phone customer support (callbacks are available, though).
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to the highest-tier Established plan to claim expenses.
Starting at
$38/month
Additional pricing tiers (per month): $75, $115, $275.
Promotion
50% off
for 3 months or free 30-day trial.
on QuickBooks' website
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations.
- Robust feature set includes record-keeping, reporting, invoicing and inventory management, plus a capable mobile app.
- Chat and phone support available Monday through Saturday in all plans.
Cons
- Expensive compared with the competition.
- Frequent price increases and a tendency toward upselling.
- Limited account users with each plan.
QuickBooks Online
Best for Working with an accountant
Best for Working with an accountant
Starting at
$38/month
Additional pricing tiers (per month): $75, $115, $275.
Promotion
50% off
for 3 months or free 30-day trial.
on QuickBooks' website
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations.
- Robust feature set includes record-keeping, reporting, invoicing and inventory management, plus a capable mobile app.
- Chat and phone support available Monday through Saturday in all plans.
Cons
- Expensive compared with the competition.
- Frequent price increases and a tendency toward upselling.
- Limited account users with each plan.
Starting at
$21/month
Additional pricing tiers (per month): $38, $65, custom.
Promotion
60% off
for the first 3 months (applies to new FreshBooks subscriptions).
on FreshBooks' website
Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
FreshBooks
Best for Freelancers
Best for Freelancers
Starting at
$21/month
Additional pricing tiers (per month): $38, $65, custom.
Promotion
60% off
for the first 3 months (applies to new FreshBooks subscriptions).
on FreshBooks' website
Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
on Zoho Books' website
Pros
- Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
- Email support in free plan; phone and chat support in paid plans.
- Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
- Add accounting widgets to your phone’s home screen; track time using your Apple Watch.
Cons
- Fewer third-party integrations than some competitors.
- No plan includes more than 15 users (can add additional users for a fee).
Zoho Books
Best for Free accounting software plan
Best for Free accounting software plan
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
on Zoho Books' website
Pros
- Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
- Email support in free plan; phone and chat support in paid plans.
- Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
- Add accounting widgets to your phone’s home screen; track time using your Apple Watch.
Cons
- Fewer third-party integrations than some competitors.
- No plan includes more than 15 users (can add additional users for a fee).
Starting at
$1,703/year
Additional pricing tiers (per year): $2,210; $2,717; $5,364. Adding users or cloud access costs extra.
Promotion
30-day free trial
on QuickBooks' website
Pros
- Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules.
- More than 200 reports, including industry-specific options for various industries.
- Chat and phone support available seven days a week.
Cons
- Outdated user interface.
- Limited direct, third-party integrations for payroll software and popular point-of-sale systems.
- Annual subscriptions are expensive; each additional user license costs extra.
QuickBooks Enterprise
Best for Enterprise accounting software with advanced reporting capabilities
Best for Enterprise accounting software with advanced reporting capabilities
Starting at
$1,703/year
Additional pricing tiers (per year): $2,210; $2,717; $5,364. Adding users or cloud access costs extra.
Promotion
30-day free trial
on QuickBooks' website
Pros
- Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules.
- More than 200 reports, including industry-specific options for various industries.
- Chat and phone support available seven days a week.
Cons
- Outdated user interface.
- Limited direct, third-party integrations for payroll software and popular point-of-sale systems.
- Annual subscriptions are expensive; each additional user license costs extra.
Starting at
$35/month
Additional pricing tiers (per month): $70.
Promotion
7-day free trial
on Striven's website
Pros
- Offers industry-specific features for consulting businesses, nonprofits, manufacturing companies, professional services and more.
- Other features include inventory tracking, reporting, invoicing, project management tools and the ability to categorize transactions using classes.
- Customer support available by phone and live chat.
Cons
- Monthly costs could add up quickly if you require multiple users.
- No mobile app.
- Limited third-party integrations, especially for payroll.
Striven
Best for Industry-specific features
Best for Industry-specific features
Starting at
$35/month
Additional pricing tiers (per month): $70.
Promotion
7-day free trial
on Striven's website
Pros
- Offers industry-specific features for consulting businesses, nonprofits, manufacturing companies, professional services and more.
- Other features include inventory tracking, reporting, invoicing, project management tools and the ability to categorize transactions using classes.
- Customer support available by phone and live chat.
Cons
- Monthly costs could add up quickly if you require multiple users.
- No mobile app.
- Limited third-party integrations, especially for payroll.
Pros
- Free plan available.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails.
- Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No mileage tracking feature and must use Zapier for third-party integrations.
Wave Accounting
Best for Very small, service-based businesses
Best for Very small, service-based businesses
Starting at
$0
Additional pricing tiers (per month): $19
Promotion
N/A
on Wave's website
Pros
- Free plan available.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails.
- Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No mileage tracking feature and must use Zapier for third-party integrations.
Starting at
$69/month
Additional pricing tiers (per month): $114.33, $198.42.
Promotion
N/A
on Sage's website
Pros
- Advanced inventory tracking and job costing features.
- Industry-specific features for construction, retail and professional services businesses.
- Phone and chat support, plus a dedicated account representative in all plans.
Cons
- Lowest-tier plan doesn’t include audit trails.
- Each additional user increases the monthly cost.
Sage 50 Accounting
Best for Desktop accounting software
Best for Desktop accounting software
Starting at
$69/month
Additional pricing tiers (per month): $114.33, $198.42.
Promotion
N/A
on Sage's website
Pros
- Advanced inventory tracking and job costing features.
- Industry-specific features for construction, retail and professional services businesses.
- Phone and chat support, plus a dedicated account representative in all plans.
Cons
- Lowest-tier plan doesn’t include audit trails.
- Each additional user increases the monthly cost.
Jump to
How we choose the best accounting software
What accounting software we consider
How we keep our picks up to date
What is accounting software?
What features are important for accounting software?
How to choose accounting software
How much does accounting software cost?
How we choose the best accounting software
Our writers and editors gather more than 30 pieces of data for each accounting product we rate. This includes details about:
- Cost and pricing transparency.
- Compliance with accounting standards.
- Usability and scalability.
- Customer support.
Accounting software must earn at least four stars to make our list. Our team may still recommend options below that number if they serve a unique purpose. For instance, Wave Accounting gets 3.8 stars but is still a great free option.
Accounting software that receives a NerdWallet rating of 5 stars is outstanding among its competition. It delivers great value to users with a range of features and integrations at an affordable — and transparent — price. It also offers multiple avenues for customer support.
Accounting software that earns 4 to 4.9 stars is excellent. It includes all the standard features and most advanced features but is lacking in areas such as integrations, a mobile app and/or pricing transparency.
Accounting software with a rating of 3 to 3.9 stars is good. It might lack certain features and integrations. But if it's free or less expensive than competitors, it can be worth it for businesses on a tight budget.
Accounting software that we rate below 3 stars is found to be lacking in several key categories, and we therefore won’t typically recommend it.
What accounting software we consider
NerdWallet's editorial team has evaluated more than 50 accounting software options. Our focus is on major players that support most small businesses. This includes big names, like QuickBooks, Xero and Sage. In some cases, we'll review multiple products from these providers.
We look at industry-specific software or companies with less market share as well. Our writers and editors choose which to cover. They base these decisions on conversations with business owners, online trends and other research.
We may not fully rate niche options because of their limited scope. But we include them on relevant pages. For instance, nonprofits and restaurants have very specific — and very different — accounting needs. Our goal is to help each find the best solution for their business.
Our writers and editors have covered or considered the following accounting software:
A2X. Aplos. AppFolio. AccuFund. Axon. Brightbook. Buildertrend. Buildium. Cliniko. Clio. Cloudbeds. DoorLoop. Farm Biz. FarmBooks. FarmRaise. Foundation. FreshBooks. GnuCash. Jonas Enterprise. LandlordStudio. LeanLaw. M3. Manager. MarginEdge. Odoo. OneUp. Oracle NetSuite. PCLaw. Plate IQ. PowerChurch. ProfitBooks. Propertybase. Q7. QuickBooks Enterprise. QuickBooks Online. Realm. Restaurant365. Rigbooks. Sage 50 Accounting. Sage 100 Contractor. Sage Intacct. Striven. Traction. TruckingOffice. TruckLogics. Truck Bytes. TrulySmall Accounting. Viewpoint. Wave Accounting. Xero. Yardi Breeze. ZarMoney. ZipBooks. Zoho Books.
Find options by industry
How we keep our picks up to date
NerdWallet has a full-time team of small-business writers and editors. Here's how they monitor the accounting software landscape:
- Reviewing information for all software regularly. We do a full audit annually. This involves fact-checking product info and reaching out to providers if needed. Some updates happen off-cycle — like the latest QuickBooks price increase. We make those changes as soon as they happen.
- Test-driving software. When possible, we take advantage of free trials. These let us evaluate a software's user experience hands-on. If a software lacks a free trial, we'll do things like watch video tutorials. We work directly with companies to attend product demos and check out new features.
- Gauging sentiment. We lurk on Reddit and other social channels. Many accounting companies have their own online support communities. These offer great insight on current bugs or issues. Our team frequently interviews business owners. We ask them what accounting software they have and why.
- Following news and trends. The accounting software market keeps evolving. AI-powered automation plays a particularly big part in this. We rely on Google Alerts, emails from PR reps, AI-assisted web scraping and more to stay informed.
What is accounting software?
Accounting software is like a database for all of your business’s financial transactions. It helps keep your books up to date, in order and aligned with basic accounting principles. This is especially important come tax season.
Without accounting software, the following crucial financial tasks would be tedious and more vulnerable to human error:
- Entering and organizing financial transactions.
- Recording income and expenses.
- Reconciling accounts.
- Generating financial statements and reports.
- Keeping track of how much money you’re owed and vice versa.
Most accounting software goes beyond these tasks with additional built-in modules for invoicing, bill-pay and inventory management, among other functions. The more your accounting software becomes a one-stop shop for these financial chores, the fewer integrations you need to consider.
💬 Tips for setting up your accounting software
"My husband opened a brewery in 2025, and I've been helping him maintain his books. I’m QuickBooks certified and write about small-business software for a living, but it's still tedious. That’s why I’m not doing it alone.
"As I set up the accounting software, I checked in with a certified public accountant to make sure I was on the right track. More specifically, I asked for feedback on organizing the chart of accounts and categorizing transactions. If these things aren't done correctly, it's difficult to run accurate reports.
"Other small-business owners can benefit from doing the same early on. And ideally, your accountant will have experience in your specific industry, too."
— Hillary Crawford, lead writer covering small business
What features are important for accounting software?
Most accounting software has basic features central to bookkeeping. For instance, you should get a built-in chart of accounts to categorize transactions. Ditto the ability to track money-in and money-out.
But overall functionality differs from product to product. Here are some important features to keep in mind as you compare options:
- Double-entry accounting. This means your accounting software enters a balancing debit or credit for each transaction, so that you don’t have to do it manually. We recommend almost all businesses use double-entry accounting.
- Automatic bank imports. Software may let you automatically pull transactions from your business’s bank and credit card accounts into your software. This reduces time and error from manual entry.
- Business software integrations. These can also minimize manual data entry, and let your business software ecosystem exchange information automatically. Integrations may include your point-of-sale software, payroll software, inventory software and third-party time or mileage tracking tools.
- User access. Some product plans have extremely limited seats. You may get access for only one user, for instance. Other software may offer unlimited access. Most will let you invite your accountant, no matter your user limit.
- Reporting. Many reports will be standard — think a profit and loss statement, balance sheet and cash flow statement. But you should be able to customize them by date so that you can compare time periods.
- Industry-specific features. Some industries have stringent tax requirements — for instance, legal professions. Certain fields, such as construction, may also benefit from detailed and specialized financial reporting. Such businesses may want accounting software designed with their needs in mind.
Compare these features for our top picks
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✅ |
| Accountant access with all plans | ✅ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✅ |
| Industry-specific reports | ✖ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✅ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
| Phone or live chat support in all plans | ✖ |
» MORE: Best alternatives to Xero
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✖ |
| Accountant access with all plans | ✅ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✅ |
| Industry-specific reports | ✖ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✅ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
| Phone or live chat support in all plans | ✅ |
» MORE: Best alternatives to QuickBooks
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✖ |
| Accountant access with all plans | ✅ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✅ |
| Industry-specific reports | ✖ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✅ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
| Phone or live chat support in all plans | ✖ |
» MORE: Best Zoho Books alternatives
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✖ |
| Accountant access with all plans | ✖ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✖ |
| Customizable reports | ✅ |
| Industry-specific reports | ✖ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✅ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
| Phone or live chat support in all plans | ✅ |
» MORE: Best alternatives to FreshBooks
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✖ |
| Accountant access with all plans | ✅ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✅ |
| Industry-specific reports | ✅ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✅ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
| Phone or live chat support in all plans | ✅ |
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✖ |
| Unlimited users with at least one plan | ✖ |
| Accountant access with all plans | ✖ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✅ |
| Industry-specific reports | ✅ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✖ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
| Phone or live chat support in all plans | ✅ |
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✅ |
| Accountant access with all plans | ✖ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✖ |
| Industry-specific reports | ✖ |
| Invoicing features | ✅ |
| Inventory management features | ✖ |
| Project tracking features | ✖ |
| Mobile app | ✅ |
| Wide variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
| Phone or live chat support in all plans | ✖ |
| Double-entry accounting | ✅ |
| Automatic bank imports | ✅ |
| Automatic transaction reconciliation | ✅ |
| Unlimited users with at least one plan | ✖ |
| Accountant access with all plans | ✅ |
| Standard accounting reports in all plans (e.g., P&L, balance sheet, AP and AR) | ✅ |
| Customizable reports | ✖ |
| Industry-specific reports | ✅ |
| Invoicing features | ✅ |
| Inventory management features | ✅ |
| Project tracking features | ✅ |
| Mobile app | ✅ |
| Variety of third-party integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
| Phone or live chat support in all plans | ✅ |
How to choose accounting software
To find the right solution for you, follow these steps:
- Choose between cloud-based and desktop software. Cloud-based software enables access through any device with an internet connection. This makes it easier to collaborate with accountants and integrate with other business software. Desktop-based software is accessible from just one computer. This is only better if you have an unreliable internet connection.
- Make sure it can grow with your business. Pay attention to how many employees and users each plan can support. You'll want the option to upgrade to a more robust version of the software when your needs change. If you anticipate rapid or high growth, consider accounting software for medium-sized businesses.
- Confirm monthly costs fit within your budget. Determine your budget for accounting software and other recurring costs. Some examples include utilities, rent and other software subscriptions. If you’re a solopreneur and want to keep costs down, check out our list of best accounting software for freelancers and the self-employed.
- Test it out for usability. Accounting software that isn’t user-friendly can take up an unnecessary amount of your time. Use free trials, request a demo and watch tutorial videos to get a feel for navigating the software.
- Look for integrations with your other business software. Think about the other types of software you already use or plan to use. Then, see if there are direct integrations between those products and your accounting software. If there aren't any available, you may need to pay for an indirect integration. Another option is manually transferring data from one product to another.
- Consider customer support availability. Think about what time of the day you’re most likely to reach out for assistance. The same goes for whether you prefer chat, phone or email support. Free accounting software options typically offer fewer customer support solutions than paid products.
- Make sure you can grant access to your accountant. Many popular accounting software products make it easy to share your books with your accountant. But some make you upgrade to more expensive plans to access this feature.
How much does accounting software cost?
Accounting software for small businesses can cost anywhere from $0 to $200 or more per month. Our editorial picks include free and paid products, and most options have multiple plans at different price points.
Here are a handful of factors that could impact how much you'll pay:
Sign-up discounts. New customers can sometimes choose between a temporary monthly discount or a free trial. If you go with the discount, understand how much more you’ll pay when the introductory period ends.
Payment frequency. Most software lets you pay month-to-month. But you may be able to save by committing to an annual subscription instead. Just be sure to read the fine print. For instance, a provider might not refund you if you cancel before the year is up.
Number of users. How many people in your business need to have access to your accounting software? In some cases, you’ll need to pay a monthly fee per additional user. Factor in how many users a product includes and how much it costs to add more.
Integrations. Make a list of the integrations you’ll need. Are they built into your accounting software already? If not, you might need to pay a monthly subscription fee to connect one program to another.
» MORE: Best free accounting software
Frequently Asked Questions
In most cases, yes. While you can try using spreadsheets to keep track of your business’s finances, they can become messy and time-consuming. Accounting software is less susceptible to human error and makes it easy to quickly run crucial financial reports, like a profit and loss statement or balance sheet.
On top of that, double-entry accounting software enters debits and credits for you so you don’t have to worry about manually balancing your books. Ultimately, investing in accounting software will save you time and help make sure your books are accurate.
QuickBooks Online is one of the most ubiquitous accounting software products on the market. Xero, FreshBooks and Zoho Books are also used widely.
NerdWallet likes Xero for its simplicity and ease of use. Its clean layout, global search function and customizable dashboard are a plus, especially for accounting novices.
Chances are, there will be some sort of learning curve no matter what software you select. Testing out free demos and free trials can help you get a feel for these products’ usability before committing to them.
Wave Accounting offers a free software plan that covers basic accounting and invoicing. You need to upgrade to its paid plan to automatically import bank transactions and add users, though. Zoho Books also offers a free monthly subscription plan along with several paid plan options, starting at a competitively low cost of $20 per month.
Free accounting software can be a great solution for micro businesses that don’t have a large volume of transactions and only need income and expense tracking, basic reporting and invoicing. But even if the basics are sufficient for your business, remember that free products have their downsides.
For example, Wave’s free accounting plan lacks audit trails, third-party integrations and live customer support.
Methodology
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.