Best Accounting Software for Small Businesses of July 2022
Double-entry accounting is a must. Also consider reporting capabilities, scalability and ease of use.
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The best accounting software for small businesses helps you keep detailed, accurate books. Specifically, these programs use double-entry accounting, generate useful reports, provide live support, integrate with your business apps and can accommodate growth. If you plan to hire an accountant, you’ll also want software that’s widely used.
Here are NerdWallet’s picks for the best accounting software for small businesses.
The best accounting software for small businesses helps you keep detailed, accurate books. Specifically, these programs use double-entry accounting, generate useful reports, provide live support, integrate with your business apps and can accommodate growth. If you plan to hire an accountant, you’ll also want software that’s widely used.
Here are NerdWallet’s picks for the best accounting software for small businesses.
Best Accounting Software for Small Businesses
Product | Best for | Starting at | Promotion | Learn more |
---|---|---|---|---|
![]() QuickBooks Online Shop now on QuickBooks Online's secure website | Best for Overall accounting software | $25/mo Additional pricing tiers (per month): $50, $80, $180. | 50% off for first three months or free 30-day trial. | Shop now on QuickBooks Online's secure website |
![]() FreshBooks Accounting Shop now on FreshBooks Accounting's secure website | Best for Mobile-friendly option | $15/mo Additional pricing tiers (per month): $25, $50, custom. | 60% off 60% off for first six months | Shop now on FreshBooks Accounting's secure website |
![]() Xero Shop now on Xero's secure website | Best for Unlimited users | $12/mo Additional pricing tiers (per month): $34, $65. | 30- | Shop now on Xero's secure website |
![]() Zoho Books Learn more on NerdWallet's secure website | Best for Low-cost, high-value | $0 Additional pricing tiers (per month): $20, $50, $70. | N/A | Learn more on NerdWallet's secure website |
![]() Wave Accounting Learn more on NerdWallet's secure website | Best for Free option | $0 Free (Wave makes money via payment processing). | N/A | Learn more on NerdWallet's secure website |
Our pick for
Overall accounting software
Our pick for
Mobile-friendly option
Our pick for
Unlimited users
Our pick for
Low-cost, high-value

on NerdWallet's secure website
Zoho Books

Starting at
$0Additional pricing tiers (per month): $20, $50, $70.
Promotion
N/Aon NerdWallet's secure website
Our pick for
Free option

on NerdWallet's secure website
Wave Accounting

Starting at
$0Free (Wave makes money via payment processing).
Promotion
N/Aon NerdWallet's secure website
Our picks for best accounting software
Our pick for: overall accounting software
Price:
Simple Start: $25 per month.
Essentials: $50 per month.
Plus: $80 per month.
Advanced: $180 per month.
QuickBooks Online is cloud-based and well-suited to smaller businesses, although it can scale up as your company does, from the Simple Start package (one user, two accounting firms) up to Advanced (up to 25 users and three accounting firms, plus advanced features). The program integrates with hundreds of apps, in addition to connecting easily with other products in the Intuit family handling payroll and payment processing. There's also a separate version for self-employed individuals (starting at $15 per month with 50% off in the first three months).
Our pick for: mobile-friendly option
Price:
Lite: $15 per month.
Plus: $25 per month.
Premium: $50 per month.
Select: custom pricing.
Aside from general accounting functions, FreshBooks’ mobile app allows you to respond to clients' questions and get notified when they view or pay invoices or when invoices are overdue.
And with its double-entry accounting features, it's also a candidate for a larger spectrum of companies, getting generally strong industry reviews for its intuitive, easy-to-use interface. Entirely cloud-based, it covers the basics and includes some attractive automated features and reports. If you need to have more than one person access the system, be sure you factor that into the price.
Our pick for: unlimited users
Price:
Early: $12 per month.
Growing: $34 per month.
Established: $65 per month.
In addition to allowing unlimited users, Xero lets you set up different permissions for each user so employees only have access to what's relevant to their job. By contrast, QuickBooks Online Advanced allows just 25 users and three accounting firms.
The New Zealand-based company, which has accounting software that is a market leader in some parts of the world, is working to make inroads in the U.S. too. It offers a full certification program for accountants (like QuickBooks does), with more than 100,000 accountants and bookkeepers using Xero — which makes it easier for Xero customers to find outside help.
Our pick for: low-cost, high-value
Price:
Free: $0 per month.
Standard: $20 per month.
Professional: $50 per month.
Premium: $70 per month.
Zoho’s interface is easy to learn and use, and the option to automate workflows — for example, to send an email alert if an estimate exceeds a certain amount, or to apply a discount or late fee in certain cases — makes it stand out as an attractive choice. (You can create 10 automated workflows under the Professional plan and up to 200 workflow rules in the Premium plan.)
Zoho is perhaps best-known for its customer relationship management, or CRM, and productivity apps, which integrate well with its accounting software. It's possible to create contacts on Zoho Books based on new leads in Zoho CRM, for instance.
Our pick for: free option
Price: Free.
In addition to its accounting functions, Wave has a separate, free invoicing product that adds unlimited invoices and automated invoice reminders. The company, which was purchased by H&R Block in 2019, makes money through payroll and payment processing, a service you can tack on (starting at 2.9% plus 60 cents per transaction). The payroll add-on starts at $20 per month in states where Wave's tax services aren't available and $35 per month in states where Wave will handle your payroll taxes.
How to choose accounting software for your small business
Last updated on March 31, 2022
To recap our selections...
NerdWallet's Best Accounting Software for Small Businesses of July 2022
- QuickBooks Online: Best for Overall accounting software
- FreshBooks Accounting: Best for Mobile-friendly option
- Xero: Best for Unlimited users
- Zoho Books: Best for Low-cost, high-value
- Wave Accounting: Best for Free option
Frequently asked questions
Accounting software helps small-business owners keep track of where their business’s money is coming from and going to. It also ensures that the business’s financial data is accurate and up-to-date, which is especially important come tax season. Just as importantly, software makes accounting tasks much easier to understand. Without it, you’d have to debit one account and credit another for every transaction — most products will do this behind the scenes for you.
More resources on accounting basics:
QuickBooks Online is NerdWallet’s pick for overall accounting software, but that doesn’t mean it’s the right fit for every business. Wave might be sufficient for very small businesses, and people who already use Zoho business apps might find that Zoho Books is the most convenient option. It depends on which features matter most to you, and which user interfaces are easiest for you to navigate.