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
on QuickBooks Online's secure website
$30/month
Additional pricing tiers (per month): $60, $90, $200.
50% off
for first three months or free 30-day trial.
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
on Xero's secure website
$15/month
Additional pricing tiers (per month): $42, $78.
30-day free trial
or monthly discount (terms vary).
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
on Zoho Books' secure website
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
14-day free trial
of the Premium plan.
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
on FreshBooks' secure website
$17/month
Additional pricing tiers (per month): $30, $55, custom.
30-day free trial
or monthly discount (terms vary).
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
on Sage 50 Accounting's secure website
$59/month
Additional pricing tiers (per month): $96.58, $160.
Discount for the first year
(terms vary).
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
$0
Free (Wave makes money via paid money management products).
N/A
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
$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
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
$35/month
Per user. Additional pricing tiers per user (per month): $70.
7-day free trial
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
$9/month
Additional pricing tiers (per month): $19, $29, $69, $169.
30-day free trial
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
- $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.
Xero
- $15 for the Early plan.
- $42 for the Growing plan.
- $78 for the Established plan.
Zoho Books
- $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.
FreshBooks
- $17 for the Lite plan.
- $30 for the Plus plan.
- $55 for the Premium plan.
Sage 50 Accounting
- $58.92 for the Pro Accounting plan.
- $96.58 for the Premium Accounting plan.
- $160 for the Quantum Accounting plan.
Wave Accounting
QuickBooks Enterprise
- $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.
Striven
- $35 per month per user for the Standard plan.
- $70 per month per user for the Enterprise plan.
OneUp
- $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.
- 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.
Accessibility
Sharing with your accountant
Scalability
Your business’s budget
Integrations
Ease of use
Customer support
- 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.
Small-business accounting software
Enterprise resource planning software
Cloud-based accounting software
Desktop accounting software
Integrated accounting software
Industry-specific accounting software
- 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. |
- 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.