Skip to content

Best Cloud Accounting Software of 2024

Last updated on July 19, 2024
Written By Hillary Crawford, Karrin Sehmbi

Lead Writer, Content Management Specialist

Edited By Sally Lauckner

Assigning Editor

Cloud accounting software provides modern automation options and lets you access your business’s finances from anywhere, including your couch.
Cloud accounting software enables you to access your financial data from anywhere with an internet connection, which is why most of the best accounting software for small businesses is cloud-based rather than desktop-based. With cloud accounting software, you and any other authorized users can run reports, enter transactions, send invoices, reconcile accounts and monitor your business’s finances from any internet-enabled device. Many popular cloud accounting software products also offer mobile apps that let you do most of these tasks from your phone.
Here are NerdWallet’s picks for the best cloud accounting software and how each stands out from the competition.

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

250+ small-business products reviewed and rated by our team of experts.
95+ years of combined experience covering small business and personal finance.
75+ categories of best business software selections.
Objective and comprehensive business accounting software ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including payroll, accounting and payment processing. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.

Best Cloud Accounting Software

Sort by

Default

Best Cloud Accounting Software

Sort By

Close

QuickBooks Online

5.0 

Best for Overall cloud accounting software

Starting at
$35/month

Additional pricing tiers (per month): $65, $99, $235.

Promotion
70% off

for first three months or free 30-day trial.

Learn more

on QuickBooks' website

QuickBooks Online

Best for Overall cloud accounting software

5.0 
Starting at
$35/month

Additional pricing tiers (per month): $65, $99, $235.

Promotion
70% off

for first three months or free 30-day trial.

Learn more

on QuickBooks' website

Xero

5.0 

Best for Business performance tracking

Starting at
$20/month

Additional pricing tiers (per month): $47, $80.

Promotion
95% off for 3 months

plus get a $300 Amazon voucher (terms apply).

Learn more

on Xero's website

Xero

Best for Business performance tracking

5.0 
Starting at
$20/month

Additional pricing tiers (per month): $47, $80.

Promotion
95% off for 3 months

plus get a $300 Amazon voucher (terms apply).

Learn more

on Xero's website

Zoho Books

4.5 

Best for Scalability

Starting at
$0

Additional pricing tiers (per month): $20, $50, $70, $150, $275.

Promotion
14-day free trial

of the Premium plan.

Learn more

on Zoho Books' website

Zoho Books

Best for Scalability

4.5 
Starting at
$0

Additional pricing tiers (per month): $20, $50, $70, $150, $275.

Promotion
14-day free trial

of the Premium plan.

Learn more

on Zoho Books' website

FreshBooks

4.5 

Best for Freelancers and self-employed professionals

Starting at
$19/month

Additional pricing tiers (per month): $33, $60, custom.

Promotion
75% off

for 3 months. 30-Day Money Back Guarantee.

Learn more

on FreshBooks' website

FreshBooks

Best for Freelancers and self-employed professionals

4.5 
Starting at
$19/month

Additional pricing tiers (per month): $33, $60, custom.

Promotion
75% off

for 3 months. 30-Day Money Back Guarantee.

Learn more

on FreshBooks' website

Wave Accounting

3.5 

Best for Free cloud accounting software

Starting at
$0

Additional pricing tiers (per month): $16

Promotion
N/A

Wave Accounting

Best for Free cloud accounting software

3.5 
Starting at
$0

Additional pricing tiers (per month): $16

Promotion
N/A

Odoo

4.0

 

Best for Open-source cloud accounting software

Starting at
$0

For use of a single app. Additional pricing tiers per user (per month): $31.10, $46.70.

Promotion
Monthly discount

for the first 12 months.

Odoo

Best for Open-source cloud accounting software

4.0

 
Starting at
$0

For use of a single app. Additional pricing tiers per user (per month): $31.10, $46.70.

Promotion
Monthly discount

for the first 12 months.

A closer look at our picks for the best cloud accounting software

QuickBooks Online

Best overall cloud accounting software
NerdWallet star rating:
Why we picked it: 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 project 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 Essentials plan or up to connect more than a single online sales channel, access inventory tracking features and track employee time. Make sure to factor this into your budget if any of these features are on your must-have list. Read our complete QuickBooks Online review.

Xero

Best for business performance tracking
NerdWallet star rating:
Why we picked it: Xero offers a long list of features at a competitive price point. In particular, it has excellent reporting features and a customizable dashboard that lets each user rearrange or hide panels according to their preferences. The dashboard has a clean and simple interface that makes it easy to track business performance and glean valuable insight to make data-backed decisions.
Xero also stands out among much of the competition for allowing unlimited users at every subscription tier, a valuable feature in situations where several users need some level of access to the system. Additionally, it offers a full catalog of third-party apps and software integrations. Read our full Xero Accounting review.

Zoho Books

Best for scalability
NerdWallet star rating:
Why we picked it: Unlike some competitors, Zoho Books doesn’t put a limit on billable clients, and even its free plan lets you send up to 1,000 invoices per year. The free option also offers a customer portal, automatic payment reminders, mileage tracking and the ability to schedule reports. Zoho Books offers five additional plan tiers ranging in price and functionality. For this reason, Zoho’s cloud accounting software is a strong choice for startups and businesses that are planning for rapid growth. And because Zoho has an entire suite of products (like Zoho CRM, Zoho Inventory and Zoho Commerce), you will likely find most of the software capabilities your business needs as it expands.
The software also offers some useful mobile 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. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices. Read our Zoho Books review.
» Not sure if Zoho is the right choice for you? Check out our list of the top Zoho Books alternatives.

FreshBooks

Best for freelancers and self-employed professionals
NerdWallet star rating:
Why we picked it: FreshBooks is especially useful for freelancers because it lets users view and send invoices, respond to clients’ questions and track mileage and expenses, 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 or Trello.
FreshBooks is especially cost-effective for freelancers who can work within the confines of the billable client limits within lower plan tiers. Premium and Select plans allow for unlimited billable clients. Read our full FreshBooks review.

Wave Accounting

Best free cloud accounting software
NerdWallet star rating:
Why we picked it: 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. With the free Starter plan, you can create and send invoices as well as access reports and a dashboard. To set up recurring invoices, send automatic late payment reminders and more, you’ll need to upgrade to the paid Pro plan. The software also offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services. Read our Wave Accounting review.

Odoo

Best open-source cloud accounting software
NerdWallet star rating:
Why we picked it: If you’re interested in the benefits of open-source software — including customizability, faster time to market on new and improved products and a large community of users and developers to turn to for software support — then Odoo may be a great solution for your business. It offers affordable pricing plans, including a free plan that allows you and an unlimited number of users access to one app (for example, accounting) at no cost.
Odoo’s accounting software handles invoicing, billing and automated bank reconciliation — all within a clear, user-friendly interface that’s easy to update in real time. You’re also able to access features and reports, such as your chart of accounts, tax forms, audit files and more, that are pre-configured to the specific requirements of your business location.
If the open-source model appeals to you but you don’t have a developer on your team or coding experience yourself, Odoo offers a variety of training and implementation packages, based on the size of your business and the complexity of your software needs. And because Odoo is a collection of software applications designed and developed to work seamlessly with one another, you will have great flexibility and customizability available to build the business software solution you need.

How to choose cloud accounting software

When selecting cloud accounting software, you’ll want to consider your business’s size, financial tracking needs and budget. Here are a few additional tips for navigating the decision-making process:
  • Consider how much your business may grow. Narrow down your options to software that can accommodate your operations now and down the road. When you’re first starting out, free accounting software can be enticing, but if you plan to grow your business over time, you may find that your accounting needs outgrow the capabilities of strictly free software. Some products, like Zoho Books, Wave Accounting and Odoo, offer free plans as well as paid plans, so the software can scale with your business over time.
  • Check in with your accountant. Be sure they’re familiar and comfortable with the cloud accounting software you’re considering. They may even be able to recommend their preferred product if you’re finding it difficult to make a decision. You might also ask whether they prefer direct access to the software as that may affect the plan tier you choose. Many accounting software products limit the number of users by plan tier, though some, like QuickBooks Online, allow accountant access separate from user limits. 
  • Explore the software integrations available. Many cloud accounting programs offer at least a handful of integrations with other software to help link multiple aspects of your business, including payroll, point of sale and payment processing. Before deciding which cloud accounting software is best for your small business, you’ll want to understand the software integrations available to you and whether there’s additional cost associated with them.

Can your small business benefit from cloud accounting software?

Most businesses will benefit from the flexibility of cloud accounting software versus locally installed, desktop-based accounting software. Small-business owners can enter sales and run reports remotely, as opposed to having to go into an office. Similarly, freelancers can send invoices from their phones and accept payments on the go.
Regardless of what type of business you run, cloud accounting software makes it easier to collaborate with other users, including your accountant. They can access the software remotely, you don’t have to manually import their changes and some products even enable you and your accountant to work within the software simultaneously. Separately, your accounting software won’t take up space on your hard drive, since all of the data is stored in the cloud and you don’t have to install anything.
Unless there’s a specific reason you prefer desktop-based accounting software, going with a cloud-based product is usually more convenient and can be less expensive than desktop software, especially if you need to provide access to multiple users.
Cloud accounting software isn’t limited to just one computer, and you don’t have to buy additional user licenses to use it on multiple devices. Often, this makes it more cost effective and convenient than desktop-based accounting software.
Other benefits include cloud-based accounting features, like online bank feeds that automatically import new transactions from your connected bank accounts. Plus, you don’t risk losing all of your data if your computer’s hard drive fails.
Last updated on July 19, 2024

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.

Frequently Asked Questions

Close
Business software made simple

Compare features, pricing, and expert reviews for your business software needs - all in one place.

Close
Business software made simple

Compare features, pricing, and expert reviews for your business software needs - all in one place.