Accounting software helps you track how money moves in and out of your small business. The best accounting software makes it easy to keep a detailed financial record so that you’re ready come tax season. It also includes tools for streamlining accounting tasks, like the invoice process, and gaining insight into your business’s financial health.
To choose the right option for you, think about the present and future versions of your business — your accounting software should be able to support both. Right now, check that it’s within your budget and is compatible with your point-of-sale and/or payroll software, as well as your accountant’s system. Based on how much you expect your small business to grow, keep an eye on scalability, too.
NerdWallet independently reviewed accounting software products before determining our top picks. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. We collect these data points 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.
See our methodology for a more detailed rundown.
Here are NerdWallet’s picks for the best small-business accounting software and why we like each product, plus tips on how to choose the right software for your business’s specific needs.
Best Accounting Software for Small Businesses
Product | Promotion | Learn more | ||
|---|---|---|---|---|
QuickBooks Online Learn more on QuickBooks Online's secure website | 5.0/5 Best for Overall accounting software | $30/month Additional pricing tiers (per month): $60, $90, $200. | 50% off for first three months or free 30-day trial. | Learn more on QuickBooks Online's secure website |
Xero Learn more on Xero's secure website | 5.0/5 Best for Simple accounting software | $15/month Additional pricing tiers (per month): $42, $78. | 30-day free trial or monthly discount (terms vary). | Learn more on Xero's secure website |
Zoho Books Learn more on Zoho Books' secure website | 4.5/5 Best for Startup accounting software | $0 Additional pricing tiers (per month): $20, $50, $70, $150, $275. | 14-day free trial of the Premium plan. | Learn more on Zoho Books' secure website |
FreshBooks Learn more on FreshBooks' secure website | 4.5/5 Best for Freelancers | $17/month Additional pricing tiers (per month): $30, $55, custom. | 30-day free trial or monthly discount (terms vary). | Learn more on FreshBooks' secure website |
Sage 50 Accounting Learn more on Sage 50 Accounting's secure website | 3.5/5 Best for Desktop accounting software | $59/month Additional pricing tiers (per month): $96.58, $160. | Discount for the first year (terms vary). | Learn more on Sage 50 Accounting's secure website |
Wave Accounting | 3.5/5 Best for Free accounting software | $0 Free (Wave makes money via paid money management products). | N/A | |
QuickBooks Enterprise | 4.0/5 Best for Large businesses with advanced inventory and reporting needs | $1,410/year Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra. | 30-day free trial | |
Striven | Best for Industry-specific features | $35/month Per user. Additional pricing tiers per user (per month): $70. | 7-day free trial | |
OneUp | Best for Automated bookkeeping | $9/month Additional pricing tiers (per month): $19, $29, $69, $169. | 30-day free trial |
Our pick for
Overall accounting software
QuickBooks Online is a popular accounting software that ticks all the boxes. It offers a range of features that are scalable and easy to use, complies with accounting standards, allows for easy sharing with accountants, integrates with top payroll and bookkeeping software, offers live customer support and keeps costs reasonable.
QuickBooks Online
Learn more
on QuickBooks Online's secure website
Starting at
$30/month
Additional pricing tiers (per month): $60, $90, $200.
Promotion
50% off
for first three months or free 30-day trial.
QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set and scalability. It has robust reporting and transaction tracking tools, invoicing capabilities, inventory management features and mobile app functionality.
In particular, entrepreneurs trying to measure performance in different segments of their business will like QuickBooks Online’s granular transaction tracking tools that let you group transactions by department or location, among other categories. Reporting capabilities increase with each plan, but even the least expensive Simple Start plan includes more than 50 reports. These features, along with QuickBooks Online’s ability to scale up and integrate with a wide range of products, make it valuable to self-employed entrepreneurs and larger small businesses alike. And with millions of users worldwide, your accountant will likely be familiar with it.
The software’s biggest downside is its cost. You have to subscribe to the Plus plan or up to record billable expenses and access inventory tracking features, and time tracking software isn’t included. Make sure to factor this into your budget if any of these features are on your must-have list.
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations, including live, in-house bookkeeping.
- Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.
- Daily phone support and 24/7 chat support in all plans.
Cons
- Expensive compared with the competition.
- Limited account users with each plan.
Our pick for
Simple accounting software
Accounting itself can be complex, but that doesn’t mean the software should be. Xero is another popular accounting software product that stands out for its clean design, simple and intuitive user experience and automation capabilities.
Xero
Learn more
on Xero's secure website
Starting at
$15/month
Additional pricing tiers (per month): $42, $78.
Promotion
30-day free trial
or monthly discount (terms vary).
If you appreciate simplicity and don’t want to dedicate much time to learning how to navigate a product, Xero is a great choice. It has excellent reporting features and a capable mobile app as well as a customizable dashboard that lets each user rearrange or hide panels according to their preferences. It offers a large number of integrations, too.
Xero also stands out for allowing unlimited users at every subscription tier, a valuable feature in situations where several users need some level of access to the system. And you can assign them different permission levels: For example, one user might only be able to create invoice drafts and submit time entries, while another can view reports but not edit transactions. Competitors’ plans limit how many users you can add, or they charge an additional monthly fee for each user. If you have a large team, those fees can add up quickly.
Just know that if you need mileage and time tracking, you’ll need to subscribe to the highest-tier Established plan.
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 phone number for customer support listed.
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Our pick for
Startup accounting software
Zoho Books offers one of the largest selections of paid plan tiers among competitors, including a free plan. For this reason, and because of Zoho's suite of additional business software that will integrate seamlessly with its accounting software, Zoho Books is a great choice for startups and young businesses that intend to grow quickly.
Zoho Books
Learn more
on Zoho Books' secure website
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
Zoho Books packs in an impressive collection of features and capabilities for an affordable price, and higher-tier plans let users automate workflows and track project profitability. Unlike some competitors, none of Zoho Books’ plans put a limit on billable clients, and even its free plan lets you send up to 1,000 invoices per year. On top of that, the free option offers a customer portal, automatic payment reminders, mileage tracking and the ability to schedule reports.
The software’s mobile-first features — such as the ability to send invoices by iMessage or add widgets to your phone’s home screen to easily access timers and overdue invoices — really help set it apart, though. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices.
The software is an especially good fit for entrepreneurs who already use other Zoho suite products (like Zoho CRM, Zoho Inventory or Zoho Commerce), since they directly integrate. Third-party integrations, however, are limited compared with the competition.
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 and reports than some competitors.
- No plan includes more than 15 users (can add additional users for a fee).
Our pick for
Freelancers
With strong invoicing and project tracking features and a low-cost plan designed specifically for freelancers, FreshBooks’ accounting software makes great sense for those looking to efficiently manage finances for a business of one.
FreshBooks
Learn more
on FreshBooks' secure website
Starting at
$17/month
Additional pricing tiers (per month): $30, $55, custom.
Promotion
30-day free trial
or monthly discount (terms vary).
FreshBooks is especially useful for freelancers because it lets users view invoices, respond to clients’ questions and send payment reminders, all from its mobile app. Clients can also choose to create their own accounts. This lets them save and comment on invoices, save their payment information, invite others to access the account and collaborate on projects they’ve been invited to view.
Unlike some competitors that require you to pay extra for a time-tracking module, all FreshBooks plans come with unlimited time tracking. You can start a timer from within the mobile app to log hours spent on a particular project or sync data from tools like Asana and Trello.
FreshBooks is especially cost-effective for freelancers who can work within the confines of client limits in the lower-tier plans.
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
- Lacks features that quickly growing companies need, like audit trails for accountants to review.
- 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.
Our pick for
Desktop accounting software
If you prefer a locally installed software option to access solely from your desktop business hardware, rather than a cloud solution you can access from any device anywhere, Sage 50 Accounting offers strong accounting capabilities for your needs. And if you later decide you're ready to make the move to the cloud, Sage offers cloud solutions as well.
Sage 50 Accounting
Learn more
on Sage 50 Accounting's secure website
Starting at
$59/month
Additional pricing tiers (per month): $96.58, $160.
Promotion
Discount for the first year
(terms vary).
Sage 50 Accounting is a desktop product that has to be locally installed, but it includes features you’d find in cloud-based software, like automated bank reconciliation. This makes it a good solution for small-business owners who are hesitant to adopt an entirely cloud-based system or don’t have reliable internet access. Entrepreneurs who are newer to accounting will also appreciate having a dedicated account representative and free training modules to help them get used to the software.
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.
Our pick for
Free accounting software
Wave offers free accounting and free invoicing. If you're a newer or smaller business with simple accounting needs, Wave's free software will likely meet your requirements. And as your business grows, if you find you're in need of payroll software and/or the ability to accept online payments for the invoices you're sending out, Wave offers paid plans for those solutions.
Wave Accounting
Starting at
$0
Free (Wave makes money via paid money management products).
Promotion
N/A
Unlike some “freemium” software products, Wave doesn’t put out a bare-bones free product as bait, then load it down with costly upgrades. The free accounting software lets you add unlimited collaborators, along with unlimited bank and credit card connections. You can create and send invoices through the app, as well as set up recurring invoices and track client communication and payment history. The software also offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services.
Wave can be a sufficient solution for entrepreneurs with small, service-based businesses who need a simple way to invoice clients and separate business and personal expenses. However, if you need built-in mileage tracking, time tracking or a billable expense feature, it’s probably not the right choice.
Pros
- Free.
- Unlimited partners, collaborators and accountants.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails. There are no additional plans to increase functionality.
- Must subscribe to Wave’s paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No third-party integrations, mileage tracking feature or ability to accept in-person card payments.
Our pick for
Large businesses with advanced inventory and reporting needs
Businesses that fall on the larger end of the spectrum of small- to medium-size businesses may find they quickly outgrow some of the free and low-cost accounting software options on the market. They may find a worthy solution in QuickBooks Enterprise, desktop software with cloud-access add-on options. It’s costlier than any of the other options on this list, but it’s built to fulfill the more sophisticated accounting needs of larger businesses.
QuickBooks Enterprise
Starting at
$1,410/year
Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra.
Promotion
30-day free trial
As far as locally installed desktop accounting software goes, QuickBooks Enterprise is one of the most feature-rich. While QuickBooks Online and other cloud-based products are typically easier to use, QuickBooks Enterprise includes specialized reporting for construction companies, nonprofits, manufacturers, wholesalers and distributors. It has more complex inventory tracking and pricing capabilities built in, too.
Business owners can set up volume discounts and customize pricing rules according to sales rep, item category or customer in the Platinum plan and up. The same plans help speed up the inventory count process by allowing businesses to use mobile devices as barcode scanners. And unlike some competitors that only track single inventory items, QuickBooks Enterprise lets you track inventory parts plus assemblies. You can also track the cost of goods sold and adjust inventory for loss or shrinkage.
It is possible to purchase cloud hosting for QuickBooks Enterprise, but it can be expensive, starting at $171 per month for one user. If you operate multiple stores or an online business and want to be able to manage your finances from anywhere, a cloud-based accounting software might be a better fit.
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.
- 24/7 phone and chat support.
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.
Our pick for
Industry-specific features
Striven offers versions of its software that are tailored to particular industry needs. From manufacturing, legal and field services to consulting, retail, education and others, Striven has designed the features your business most needs in its accounting, CRM and inventory software.
Striven
Starting at
$35/month
Per user. Additional pricing tiers per user (per month): $70.
Promotion
7-day free trial
Striven offers cloud accounting software that, like QuickBooks, is designed to be able to grow with your business. The robust software includes features for general ledger, accounts payable and receivable, automated invoicing and can handle multi-currency transactions. Pull reports on profit and loss, profitability, new opportunities, inventory and more. Striven’s accounting software will also help ensure your business is operating in a tax-compliant manner by automating tax calculations and giving you access to various tax reports.
In addition to these and other standard accounting software features, Striven has built versions of its software specific to the needs of a wide array of industries including IT services, legal services, retail and e-commerce, nonprofits, manufacturing and others. Its retail solution, for example, includes CRM, inventory management and marketing features to integrate with its accounting platform. But its nonprofit solution includes tools for managing records and scheduling events and even includes a donation portal. And because it’s a cloud-based system, you’ll be able to access your real-time accounting and other business data on the go from anywhere.
Pros
- Industry-specific features that seamlessly integrate with the accounting software.
- Can process multi-currency transactions.
- Tools to ensure tax compliance.
- Customer support available by phone and live chat.
Cons
- Monthly costs could add up quickly if you require multiple users.
Our pick for
Automated bookkeeping
How much time would you save if you didn’t have to manually enter, code and verify each business banking and credit card transaction to keep your books accurate and up to date? OneUp’s accounting software takes much of the manual bookkeeping process off your plate so you can better spend your time on other business needs.
OneUp
Starting at
$9/month
Additional pricing tiers (per month): $19, $29, $69, $169.
Promotion
30-day free trial
OneUp brings a competitively priced solution to the accounting software mix that includes invoicing, inventory and CRM features along with its accounting product. The highlight of OneUp’s accounting solution is its automated bookkeeping capability. While many accounting software tools offer some form of automated expense tracking by connecting your software to your business bank and credit card accounts, OneUp’s tool takes this capability one step further. With a bit of upfront time, you train the software to recognize and auto-categorize your expenses. Once the software is up to speed on your business spending habits (the company indicates hitting this milestone by Day 30), you’ll begin receiving prompts to simply review and validate all bank transactions, including invoices and vendor bills. You can check in daily on profit and cash flow reporting. And at the end of the year, simply give your accountant log-in access to perform an audit or export your financials.
Pros
- Automates a lot of manual bookkeeping work.
- Includes features for inventory management, invoicing and CRM.
- Reasonably priced plans with multiple tiers to fit any small-business setup.
Cons
- Customer support limited to online contact form and intermittently available live chat.
QuickBooks Online
Best overall accounting software
Is QuickBooks Online right for your business? QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set and scalability. And with millions of users worldwide, QuickBooks is likely to be familiar to your accountant. But it comes at a higher cost than many of its competitors. Read our full QuickBooks Online review.
- $30 per month for the Simple Start plan.
- $60 per month for the Essentials plan.
- $90 per month for the Plus plan.
- $200 per month for the Advanced plan.
In addition to industry-standard core accounting capabilities, QuickBooks Online has robust reporting and transaction tracking tools, invoicing capabilities, inventory management features and mobile app functionality.
In particular, entrepreneurs trying to measure performance in different segments of their business will like QuickBooks Online’s granular transaction tracking tools that let you group transactions by department or location, among other categories. Reporting capabilities increase with each plan, but even the least expensive Simple Start plan includes more than 50 reports. These features, along with QuickBooks Online’s ability to scale up and integrate with a wide range of products, make it valuable to self-employed entrepreneurs and larger small businesses alike.
» MORE: Best alternatives to QuickBooks
Xero
Best simple accounting software
Is Xero best for your business? If you appreciate simplicity and don’t want to dedicate much time to learning how to navigate a product, Xero is a great choice. It also stands out for allowing unlimited users at every subscription tier. Read our full Xero Accounting review.
- $15 for the Early plan.
- $42 for the Growing plan.
- $78 for the Established plan.
Xero is another reliable product when it comes to standard accounting capabilities. It also has excellent reporting features and a capable mobile app as well as a customizable dashboard that lets each user rearrange or hide panels according to their preferences.
Xero allows an unlimited number of users on a single account at each plan level, a valuable feature in situations where several users need some level of access to the system. And you can assign them different permission levels: For example, one user might only be able to create invoice drafts and submit time entries, while another can view reports but not edit transactions. Competitors’ plans limit how many users you can add, or they charge an additional monthly fee for each user, which can add up quickly. Xero offers a large number of integrations, too.
Zoho Books
Best startup accounting software
Is Zoho Books best for your business? Zoho Books packs in an impressive collection of features and capabilities for an affordable price. It’s an especially good fit if you already use other Zoho suite products (like Zoho CRM, Zoho Inventory or Zoho Commerce), since they directly integrate, but third-party integrations are limited compared with the competition. Read our full Zoho Books review.
- $0 per month for the Free plan.
- $20 per month for the Standard plan.
- $50 per month for the Professional plan.
- $70 per month for the Premium plan.
- $150 per month for the Elite plan.
- $275 per month for the Ultimate plan.
Unlike some competitors, none of Zoho Books’ plans put a limit on billable clients, and even its free plan lets you send up to 1,000 invoices per year. On top of that, the free option offers a customer portal, automatic payment reminders, mileage tracking and the ability to schedule reports. Higher-tier plans let users automate workflows and track project profitability, and give access to advanced inventory and analytics tools.
The software’s mobile-first features — such as the ability to send invoices by iMessage or add widgets to your phone’s home screen to easily access timers and overdue invoices — really help set it apart, though. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices.
FreshBooks
Best for freelancers
Is FreshBooks best for your business? FreshBooks lets users view invoices, respond to clients’ questions and send payment reminders, all from its mobile app. It’s especially cost-effective for freelancers who can work within the confines of client limits in the lower-tier plans. Read our full FreshBooks review.
- $17 for the Lite plan.
- $30 for the Plus plan.
- $55 for the Premium plan.
With standout invoicing features and client management resources, FreshBooks is a great accounting solution for freelancers, particularly if you have 50 or fewer total clients and can therefore opt for the Lite or Plus plan. Your clients can even choose to create their own accounts. This lets them save and comment on invoices, save their payment information, invite others to access the account and collaborate on projects they’ve been invited to view.
Unlike some competitors that require you to pay extra for a time-tracking module, all FreshBooks plans come with unlimited time tracking. You can start a timer from within the mobile app to log hours spent on a particular project or sync data from tools like Asana and Trello.
Sage 50 Accounting
Best desktop accounting software
Is Sage 50 Accounting best for your business? If you’re newer to accounting, you’ll appreciate the dedicated account representative and free training modules Sage offers at all plan levels. This desktop accounting product is best for entrepreneurs, particularly in construction or manufacturing trades, who don’t require the anytime, anywhere access that cloud software offers. Read our full Sage 50 Accounting review.
- $58.92 for the Pro Accounting plan.
- $96.58 for the Premium Accounting plan.
- $160 for the Quantum Accounting plan.
Sage 50 Accounting, unlike some of its competitors, offers inventory management and job costing features at all plan levels. Also included with every plan is Sage’s own cybersecurity offering, which will keep tabs on your business credit score and monitor for data breaches. Business owners working in construction or manufacturing may be especially drawn to Sage 50’s advanced inventory, job costing, reporting and budgeting capabilities.
Note that while Sage 50 Accounting advertises “cloud-connected capabilities,” this appears to refer to Sage’s remote access service, which allows a single user at a time to access the software and its data from a machine other than the one on which the software was initially installed. This may be most useful when it comes to sharing access with your accountant.
Wave Accounting
Best free accounting software
Is Wave Accounting best for your business? Wave is free accounting software that can be a sufficient solution for entrepreneurs with small, service-based businesses who need a simple way to invoice clients and separate business and personal expenses. However, if you need built-in mileage tracking, time tracking or a billable expense feature, it’s probably not the right choice. Read our full Wave Accounting review.
Free (Wave makes money via paid money management products).
Unlike some “freemium” software products, Wave doesn’t put out a bare-bones free product as bait, then load it down with costly upgrades. The free accounting software lets you add unlimited collaborators and set their viewing and access permissions according to role.
You can also link an unlimited number of bank and credit card accounts for automated reconciliation. Wave’s free software gives you access to more than a dozen pre-built financial reports, including a profit and loss statement and balance sheet.
Many paid accounting products include functions and features for creating, sending and processing invoices. Wave offers free invoice software alongside its free accounting software. With it you can centralize all your client information and communications and send automated payment reminders. To collect online payment through the invoices, however, you’ll need to subscribe to Wave’s payment processing service. Wave even offers a free mobile app so you can access the accounting and invoicing features on the go and view a dashboard for at-a-glance financial updates.
QuickBooks Enterprise
Best for large businesses with advanced inventory and reporting needs
Is QuickBooks Enterprise best for your business? If you run a well-established midsize business that would benefit from industry-specific reporting capabilities and advanced inventory management, then QuickBooks Enterprise may suit your needs. It’s pricier than most other options on this list, however, especially if you want to add cloud access to the desktop-based software. Read our full QuickBooks Enterprise review.
- $1,410 per year for the Silver plan.
- $1,830 per year for the Gold plan.
- $2,250 per year for the Platinum plan.
- $4,400 per year for the Diamond plan.
With QuickBooks Enterprise, business owners can set up volume discounts and customize pricing rules according to sales rep, item category or customer in the Platinum plan and up. The same plans help speed up the inventory count process by allowing businesses to use mobile devices as barcode scanners. And unlike some competitors that only track single inventory items, QuickBooks Enterprise lets you track inventory parts plus assemblies. You can also track the cost of goods sold and adjust inventory for loss or shrinkage.
It is possible to purchase cloud access so your team can better collaborate and access the software and its data from anywhere, but costs add up quickly with an additional monthly charge per user.
Striven
Best for industry-specific features
Is Striven best for your business? Striven is strong on core accounting features but stands out among the competition with versions of its software built specifically for the needs of a wide array of industries including IT services, legal services, retail and e-commerce, nonprofits, manufacturing and others.
- $35 per month per user for the Standard plan.
- $70 per month per user for the Enterprise plan.
With Striven’s integrated accounting software, you have access not only to your general ledger and standard reports like profit and loss but also to tools for accounts receivable and accounts payable plus billing, order management and more. Striven’s accounting software will also help ensure your business is operating in a tax-compliant manner by automating tax calculations and giving you access to various tax reports.
Striven has designed accounting solutions tailored to a dozen industries. Its retail solution, for example, includes CRM, inventory management and marketing features to integrate with its accounting platform. But its nonprofit solution includes tools for managing records and scheduling events and even includes a donation portal. And because it’s a cloud-based system, you’ll be able to access your real-time accounting and other business data on the go from anywhere.
OneUp
Best for automated bookkeeping
Is OneUp best for your business? If you appreciate the convenience and time-savings that automation processes can offer and don’t mind investing time upfront to train the software, OneUp’s accounting solution may work well for you. OneUp offers a handful of plan options at a reasonable price point.
- $9 per month for the Self plan.
- $19 per month for the Pro plan.
- $29 per month for the Plus plan.
- $69 per month for the Team plan.
- $169 per month for the Unlimited plan.
While many accounting software tools offer some form of automated expense tracking by connecting your software to your business bank and credit card accounts, OneUp’s tool takes this capability one step further. With a bit of upfront time, you train the software to recognize and auto-categorize your expenses. Once the software is up to speed on your business spending habits (the company indicates hitting this milestone by Day 30), you’ll begin receiving prompts to simply review and validate all bank transactions, including invoices and vendor bills.
You can check in daily on profit and cash flow reporting. And at the end of the year, simply give your accountant log-in access to perform an audit or export your financials.
Accounting software is like a database for all of your business’s financial transactions. It helps you follow basic accounting principles so that you can keep your books up to date and in order, which is especially important come tax season. Most software uses double-entry accounting, meaning it factors in assets, liabilities and equity, in addition to revenue and expenses.
You can use accounting software to do the following:
- Enter and organize financial transactions.
- Record income and expenses.
- Reconcile accounts.
- Generate financial statements and reports.
- Keep 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.
Ideally, your accounting software will make your day-to-day routine easier through automation. Here are some tips to help ensure that’s the case for your small business:
Accessibility
Most accounting products today are cloud-based, meaning you can access them through any device with an internet connection. This generally allows for easier collaboration with accountants and seamless integration with other business software. However, some accounting products, like QuickBooks Enterprise and Sage 50, are still desktop-run and can only be accessed from a single computer. You need to buy an additional license for each user, which can be expensive.
Sharing with your accountant
If you’re working with an outside accountant, find out which accounting software they work with. Popular accounting software such as QuickBooks and Sage are almost ubiquitous, but other companies, such as Xero and Zoho Books, are making inroads as well. Your accountant can also tell you why they like or dislike certain products, based on their own experience and their clients’ experiences.
Scalability
You want accounting software that can grow with your business. If you're planning to scale, consider accounting software for medium-sized businesses that comes with enough users and can be upgraded to serve a larger organization with more complicated financials. Even if you don’t expect your business to grow exponentially, take a look at products’ plan offerings to make sure you can upgrade to a more robust version of the software should your business’s needs change down the road. Take into account how many employees and users the software can support, too.
Your business’s budget
Determine how much your business can afford to spend monthly on accounting software in conjunction with other recurring costs, like utilities, rent and additional software subscriptions for a POS system or payroll, for example. Some accounting software subscriptions offer first-year discounts — don’t forget to factor in the higher costs you might incur after that introductory period.
If you run a micro business or are self-employed and want to keep costs down, check out our list of best accounting software for freelancers and the self-employed.
Integrations
Before you decide on accounting software, think about the other types of software you plan on using and check to see if direct integrations are available between them. If not, you may need to pay for an indirect integration or manually transfer data from one product to another. Your accounting software should include built-in integrations with your payroll software and POS software, at the very least.
Ease of use
Ease of use shouldn’t be underestimated. If your accounting software isn’t intuitive and easy to work with, it could take up an unnecessary amount of your time, or discourage you from using it as often as you should to keep your finances in order. Test out free trials of accounting software products to get a feel for their user interfaces, and don’t hesitate to reach out to companies for demos. Watching tutorial videos to see how users navigate a product and its dashboard can be helpful, too.
User interface aside, features like online bank feeds and bank rules also contribute to ease of use. Bank feeds automatically pull in your bank and credit card transactions so you don’t have to manually import them, and bank rules can help automate transaction categorization.
Customer support
Think about what time of the day you’re most likely to reach out for assistance and how you’d like to communicate with customer service representatives. Most accounting software products come with phone support, chat support or both, and availability varies. Free accounting software options typically offer less robust customer support solutions. While customer reviews can be hit or miss, they can give you an idea of how easy it is to reach a support representative.
Accounting software for small businesses can cost anywhere from $0 for the basics to $200 or more per month for the most advanced plans. Providers with more than one offering typically make it easy to upgrade to a higher-tier plan if your needs change. Sometimes, you can save money by committing to an annual subscription, instead of paying month-to-month. In certain cases, adding extra users and integrations can make subscriptions more costly. Selecting add-on features can also quickly increase the price. In other words, the monthly cost you see upfront doesn’t always tell the whole story.
Narrowing down your small-business accounting software options according to cost is a practical way to stay within budget. The picks listed here include both free and paid products, and most options have multiple plans at different price points. Free options typically offer fewer features or limited functionality compared with paid products but can be a viable option for some businesses.
Here are a handful of factors that could impact how much you’re paying for accounting software:
- Sign-up discounts. As a new customer, you can sometimes choose between a monthly discount or a free trial. If you go with the monthly discount, understand exactly how much more you’ll be paying when the introductory period is up.
- Payment frequency. You might be able to save money by committing to a yearly subscription — instead of a monthly one — and paying the total annual cost upfront. However, there’s a chance you won’t be reimbursed if you pay upfront and decide to cancel before the year is up. If you’re considering an annual subscription, make sure to read the fine print. The prices listed above apply to month-to-month subscriptions.
- Number of users. In some cases, you’ll need to pay a monthly fee per additional user. Factor in how many users an accounting software product includes, how much it costs to add additional users and how many people in your business need to have access to the software.
- Integrations. Make a list of the integrations you’ll require and check to see if they’re 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
With so many accounting software products on the market, it’s important to know how to differentiate between them all. Here’s a rundown of the different types of accounting software to help you narrow down your choices.
Small-business accounting software
Small-business accounting software is built with smaller operations, freelancers and the self-employed in mind. It’s designed to help you and/or your accountant manage your day-to-day business finances and prepare for filing your business taxes. Many products will also enable some amount of forecasting to help you plan for various financial scenarios.
Enterprise resource planning software
Unlike small-business accounting software, enterprise resource planning (ERP) systems centralize accounting tasks on top of a variety of other business operations, such as human resources and manufacturing. While ERP software, like the products offered by Oracle and SAP, can be used by businesses of all sizes, it is typically better suited to large, global or high-growth-potential companies. This is because of its higher cost and the greater investment required to implement and manage the software.
Cloud-based accounting software
Most of the options above are cloud-based accounting software and can be accessed from multiple computers or mobile devices with an internet connection. This makes it easy to collaborate with other users and your accountant, and empowers you to send invoices, collect payments and view real-time financial data on the go.
Desktop accounting software
Also sometimes called on-premise software, desktop accounting software must be locally installed on a specific computer and can only be accessed from that one device or location. For some business owners, this type of accounting software feels more secure from a data protection perspective, though regular manual backups are necessary to protect against total loss of data in the event of a technology failure. Desktop accounting software, however, does make collaboration more difficult and prevents you from accessing up-to-date financial information when you’re away from your desk.
Integrated accounting software
Many of the household accounting software names, such as QuickBooks, Xero and Zoho Books, can be classified as integrated accounting software solutions. This means that in addition to maintaining a general ledger and assisting with day-to-day bookkeeping, the software includes functions for tracking accounts receivable and accounts payable, reconciling bank transactions (often with some level of automation for convenience and time-saving), managing inventory and purchase orders and handling the billing process.
Using an integrated accounting solution reduces the time, hassle and human error involved in manually inputting financial data from multiple parts of your business into your accounting software. Instead, data from all the business functions mentioned above automatically feeds into your integrated accounting software so you always have a real-time view of the financial health of your business.
Industry-specific accounting software
Many of the popular accounting products can work well for a variety of business types and sizes, but they do come with limits. While they carry all the general accounting features — such as the ability to generate basic financial reports like profit and loss statements and balance sheets as well as tools for invoicing, inventory management and project tracking — they can’t give you access to more industry-specific tools without third-party software integrations.
If you work in an industry with more stringent tax requirements, such as the nonprofit sector or legal professions, or in a field that benefits from detailed and specialized financial reporting, such as construction or manufacturing, then accounting software designed specifically with those needs in mind may be the way to go.
If you’d like to shop by industry, check out NerdWallet’s picks for:
Determining which accounting software features you require will depend on your business type, size and industry, among other factors. Here are some features to keep top of 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.
- Chart of accounts: Most accounting software comes with a built-in chart of accounts you can use to categorize transactions. You should be able to add or remove accounts as needed.
- Income and expense tracking: Tracking money-in and money-out transactions is central to bookkeeping.
- Online bank connections: You may have the option to automatically pull transactions from your business’s bank and credit card accounts into your software. This reduces time and error from manual entry.
- Reconciliation tools: Some accounting software products will automatically match your bank and credit card statements with the transactions in your accounting software to ensure alignment, meaning you only have to look them over and approve.
- Accountant access: Cloud-based accounting software makes it easy to invite your accountant to look over your books remotely.
- Reporting: Look for report templates — think a profit and loss statement, balance sheet and cash flow statement — along with reports on aged receivables and sales tax. You should be able to customize them by date so that you can compare time periods.
- Invoicing: The ability to invoice clients from your accounting software is key for service-based businesses. You want to be able to customize invoices with your logo, easily turn estimates into invoices, add terms and due dates, and accept online payments. While it might not be as convenient, third-party invoicing software is also available.
- Integrations: To minimize manual data entry, you’ll want to integrate your accounting software with the rest of your business software ecosystem so they can exchange information automatically. This may include your point-of-sale software, payroll software, inventory software and third-party time or mileage tracking tools.
- Mobile app: Accounting software for freelancers, for example, often includes mobile apps that let you track time and miles. Accounting apps are also convenient for sending invoices on the go and snapping photos of receipts and other documents.
- Inventory tracking: It’s not uncommon for accounting software to include basic inventory management in lower-tier plans, though you might have to pay extra or integrate with a third-party app to sync in-store and online sales.
- Bill management: Just like you keep track of how much money your business is owed, you may need to keep tabs on what your business owes. Bill management features can help you schedule payments so you don’t risk late fees.
- Project tracking: Service-based businesses may want insight into each job’s profitability, so they know how to best spend their time.
Accounting software comparison: Features of NerdWallet's top picks
Maximum users | Invoicing | Time tracking | Inventory tracking | Phone support | |
|---|---|---|---|---|---|
 5.0 NerdWallet rating | Up to 25 in Advanced plan. | Unlimited. | Can manually enter time in Essentials plan and higher; automatic time tracking costs extra. | Yes, but only in Plus plan and higher. | Yes, available seven days a week. |
 5.0 NerdWallet rating | Unlimited. | 20/month in Early plan; unlimited in higher-tier plans. | Yes, but only in Established plan. | Yes. | Does not provide a phone number, but a rep will call if necessary. |
 4.5 NerdWallet rating | Up to 15 in Ultimate plan. Additional users cost extra. | 1,000/year in free plan; up to 100,000/year in paid plans. | Yes, in paid plans. | Yes, Zoho Inventory offers free, integrated plans. | Yes, available weekdays in paid plans. |
 4.5 NerdWallet rating | Up to two in Select plan. Additional users cost extra. | Unlimited, but Lite and Plus plans cap number of billable clients. | Yes. | Yes. | Yes, available weekdays. |
 3.5 NerdWallet rating | Unlimited. | Unlimited. | No. | No. | No live support available unless you subscribe to a paid Wave product. |
 3.5 NerdWallet rating | Up to 40 in Quantum Accounting plan. | Unlimited. | No. | Yes. | Yes, available weekdays. |
4.0 NerdWallet rating | Up to 40, but each user license costs extra. | Unlimited. | Yes, but only in Diamond plan and fees apply. | Yes. | Yes, available 24/7. |
 | Unlimited, but each user license costs extra. | Unlimited. | Yes. | Yes. | Yes, available weekdays. |
 | Unlimited in the Unlimited plan. | Unlimited. | No. | Yes. | No. |
Accounting software is key to keeping a finger on the pulse of your business’s financial health. It makes sense of all of your business’s money-in and money-out transactions, reveals historical trends and gives you the granular insight you need to make informed, data-driven decisions.
Here are several other ways you can use accounting software to make your day-to-day routine easier.
- Quickly generate reports: For example, you can easily pull up built-in reports to make sure you’re within your budget and dig into which products or services have the best margins.
- Centralize business operations: You can complete other tasks — like creating invoices, sending them and accepting payments — from within the program, as opposed to having to hop from a spreadsheet to an invoice generator and back.
- Collaborate with your accountant: Grant your accountant remote access to your account via email, so that they can look over your books, provide expert feedback and make necessary adjustments in real time.
- Tax preparation: When tax season comes, you’ll need organized and current financial information, which accounting software helps maintain year round.
- More accurate financial records: Accounting software makes it easy to record transactions as you go, because it automatically pulls in your business’s bank and credit card transactions. You can use it to reconcile accounts and calculate things like sales tax, too.
- Automate processes: Accounting software is often more accurate than spreadsheets because it minimizes manual accounting tasks, like balancing debits and credits. In the long run, this can save you both time and money.
If you have concerns about whether accounting software keeps your data secure, know that it’s standard practice for the software to encrypt your financial data, require a password and let you choose who else can access your account, if anyone. Cloud accounting software, which is becoming the norm, stores your information online using remote servers, whereas desktop accounting software saves it to your local hard drive. There are data security risks associated with both, but cloud accounting software is typically more convenient because it lets you access your data from any device with internet access. Cloud accounting companies also use firewalls to protect data and scan servers regularly for breaches.
» MORE: Best apps for small businesses
Last updated on December 6, 2023
Methodology
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. Ratings are based on weighted averages of scores in several categories, including range of features, cost, ease of use, accounting standards compliance, scalability, ease of sharing with accountants, integrations, customer support, pricing transparency and availability of a free trial period. 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.
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 NerdWallet’s pick for best overall accounting software, but that doesn’t mean it’s the right fit for every business. Another option — like FreshBooks, Xero and Sage 50 — may make sense for your small business depending on which features matter most to you, and which user interfaces are easiest for you to navigate.
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 is no-cost software that covers basic accounting and invoicing. It doesn’t offer time or mileage tracking or a billable expense feature, but it does allow for unlimited users and recurring invoicing. 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.
The cheapest paid accounting software on our list is OneUp, which offers its lowest-tier plan — designed for self-employed professionals — at $9 per month. This plan allows for a single user and offers no direct customer support, but it does include all of the software’s features. OneUp also has several additional pricing tiers.
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. It also doesn’t offer additional plans if your business grows in the future, which means you could eventually have to transfer your data to another provider.
