NerdWallet independently reviewed 12 free accounting software products. Zoho Books tops our list because its free plan is packed with features. Plus, Zoho can grow alongside your business (albeit, for a cost).
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
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It undergoes a thorough review process involving writers and editors to ensure
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Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
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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.
Advertiser disclosure
You’re our first priority.
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We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
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Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
75+ categories of best business software selections.
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.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
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).
Zoho Books tops our list because of its feature-packed free plan and scalability. While it has the capacity to grow with your business, its free plan also has the necessary features to get your small business off the ground (which is good, since businesses that already make more than $50,000 in annual revenue aren't eligible for this plan).
You can use it to send up to 1,000 invoices per year, accept online payments through Stripe and PayPal, send estimates and recurring invoices, manage 1099 contractors and create bank rules for categorizing transactions. There’s also a mobile app that allows you to send invoices through iMessage or add widgets to your iPhone’s home screen so that you can easily access overdue invoices.
In addition to its free plan, Zoho Books has five paid plans — which is easily more than most of its competitors offer. The lowest-tier paid plan, for example, gives you access to reporting tags, customized reporting and phone and chat support (whereas the free plan offers support only by email).
Higher-tier plans include more advanced features, like workflow rules, purchase orders, cash flow forecasting and custom roles. And you can integrate with a wide range of other Zoho suite products, like Zoho CRM, Expense and Inventory (additional subscription fees may apply).
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).
Zoho Books tops our list because of its feature-packed free plan and scalability. While it has the capacity to grow with your business, its free plan also has the necessary features to get your small business off the ground (which is good, since businesses that already make more than $50,000 in annual revenue aren't eligible for this plan).
You can use it to send up to 1,000 invoices per year, accept online payments through Stripe and PayPal, send estimates and recurring invoices, manage 1099 contractors and create bank rules for categorizing transactions. There’s also a mobile app that allows you to send invoices through iMessage or add widgets to your iPhone’s home screen so that you can easily access overdue invoices.
In addition to its free plan, Zoho Books has five paid plans — which is easily more than most of its competitors offer. The lowest-tier paid plan, for example, gives you access to reporting tags, customized reporting and phone and chat support (whereas the free plan offers support only by email).
Higher-tier plans include more advanced features, like workflow rules, purchase orders, cash flow forecasting and custom roles. And you can integrate with a wide range of other Zoho suite products, like Zoho CRM, Expense and Inventory (additional subscription fees may apply).
Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
Lacks features that quickly growing companies need, like audit trails.
Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
No mileage tracking feature and must use Zapier for third-party integrations.
Wave was previously our top overall pick for free accounting software, but the platform has moved a number of features (including bank transaction imports and the ability to add users) to its paid plan. One thing that remains free is invoices, and if your business transacts mostly in that fashion, Wave makes it pretty easy.
Wave’s free plan lets you generate an unlimited number of estimates and invoices and customize them with your business logo. And with Wave’s mobile app, you can do your invoicing from anywhere. Wave can also generate the most important financial statements (profit and loss, balance sheet and cash flow statement) along with reports on sales tax, payroll, aged receivables and aged payables.
Wave’s paid plan option gives you access to more features, like automated payment reminders; automated transaction import and reconciliation; and additional users for easy collaboration and sharing with your accountant. On top of that, the software offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services.Wave offers its own payroll software and payment processing, but you can’t integrate with third-party options.
Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
Lacks features that quickly growing companies need, like audit trails.
Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
No mileage tracking feature and must use Zapier for third-party integrations.
Wave was previously our top overall pick for free accounting software, but the platform has moved a number of features (including bank transaction imports and the ability to add users) to its paid plan. One thing that remains free is invoices, and if your business transacts mostly in that fashion, Wave makes it pretty easy.
Wave’s free plan lets you generate an unlimited number of estimates and invoices and customize them with your business logo. And with Wave’s mobile app, you can do your invoicing from anywhere. Wave can also generate the most important financial statements (profit and loss, balance sheet and cash flow statement) along with reports on sales tax, payroll, aged receivables and aged payables.
Wave’s paid plan option gives you access to more features, like automated payment reminders; automated transaction import and reconciliation; and additional users for easy collaboration and sharing with your accountant. On top of that, the software offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services.Wave offers its own payroll software and payment processing, but you can’t integrate with third-party options.
Open-source software is customizable, according to your business’s needs.
Run reports — like a balance sheet and profit and loss statement — and display results as a bar chart, pie chart or scatter plot.
Supports double-entry accounting.
Cons
Less automated than some competitors. Checkbook-style register can make entering transactions tedious.
Outdated user interface.
Not capable of multiuser access.
Support is only available via chat and email forums and user guides; no dedicated customer support team.
GnuCash is appealing for its fully free software and benefits that come with open-source technology, like faster iteration and improvement due to its crowdsourced development and testing. However, GnuCash will also require some familiarity with coding, as well as some comfort with using a checkbook-style register and entering transactions manually. Among other capabilities, you can split transactions and customize how the register is displayed.
GnuCash is desktop-based, meaning it must be locally installed on your computer. It’s compatible with both Windows and Mac operating systems, but it cannot be accessed remotely like cloud-based software can.
Open-source software is customizable, according to your business’s needs.
Run reports — like a balance sheet and profit and loss statement — and display results as a bar chart, pie chart or scatter plot.
Supports double-entry accounting.
Cons
Less automated than some competitors. Checkbook-style register can make entering transactions tedious.
Outdated user interface.
Not capable of multiuser access.
Support is only available via chat and email forums and user guides; no dedicated customer support team.
GnuCash is appealing for its fully free software and benefits that come with open-source technology, like faster iteration and improvement due to its crowdsourced development and testing. However, GnuCash will also require some familiarity with coding, as well as some comfort with using a checkbook-style register and entering transactions manually. Among other capabilities, you can split transactions and customize how the register is displayed.
GnuCash is desktop-based, meaning it must be locally installed on your computer. It’s compatible with both Windows and Mac operating systems, but it cannot be accessed remotely like cloud-based software can.
Free plan capped at 25 invoices per month and can track no more than 25 products or services.
Free plan accommodates just one user.
Must manually import bank statements.
ProfitBooks stands out among its competitors with robust inventory management capabilities that let you generate purchase orders and email them to vendors from within the software, transfer stock between warehouses, group items into batches and assign expiration dates to perishable goods.
Inventory aside, you can choose from a variety of invoice templates, add custom fields and automatically calculate taxes. The platform also lets you accept online invoice payments via card or PayPal, but note that you can’t exceed 25 invoices per month with the free plan. While you can manually import bank statements into ProfitBooks and reconcile accounts from there, the process isn’t as seamless compared to products with online bank feeds that automatically pull in transactions. This is where the company’s paid remote bookkeeping service may come in handy, as the bookkeeper will handle this tedious manual work for you.
As your small business grows, you can upgrade to ProfitBooks’ SMB plan, which includes unlimited users, lets you send unlimited invoices and allows you to track unlimited customers, products and services.
ProfitBooks
Best for Inventory management
Starting at
$0
Additional pricing tiers (per month): $20.
Promotion
N/A
Pros
Run more than 40 financial reports.
Manage inventory.
In-app chat and email support available.
Cons
Free plan capped at 25 invoices per month and can track no more than 25 products or services.
Free plan accommodates just one user.
Must manually import bank statements.
ProfitBooks stands out among its competitors with robust inventory management capabilities that let you generate purchase orders and email them to vendors from within the software, transfer stock between warehouses, group items into batches and assign expiration dates to perishable goods.
Inventory aside, you can choose from a variety of invoice templates, add custom fields and automatically calculate taxes. The platform also lets you accept online invoice payments via card or PayPal, but note that you can’t exceed 25 invoices per month with the free plan. While you can manually import bank statements into ProfitBooks and reconcile accounts from there, the process isn’t as seamless compared to products with online bank feeds that automatically pull in transactions. This is where the company’s paid remote bookkeeping service may come in handy, as the bookkeeper will handle this tedious manual work for you.
As your small business grows, you can upgrade to ProfitBooks’ SMB plan, which includes unlimited users, lets you send unlimited invoices and allows you to track unlimited customers, products and services.
Brightbook
Best for Freelancers and self-employed professionals
Starting at
$0
Promotion
N/A
Pros
Send unlimited invoices.
Add unlimited users.
Run basic reports, like a profit and loss statement and tax report.
Cons
Does not use double-entry accounting.
Must manually import bank statements.
You can use Brightbook’s free accounting software to send quotes to clients, convert them to invoices, bill for time, add discounts or taxes and accept payments through PayPal.
The dashboard gives you quick insights, like money owed to you and cash flow. It’s a plus whenever free products come with reporting capabilities, but Brightbook offers fewer reports than some competitors. Because it’s a single-entry system, for example, you won’t find a balance sheet. However, you can view basic reports on profit and loss, taxes, sales, bills and expenses.
Although you won’t find a formal account for liabilities in Brightbook, you can still upload your bills to the software so you can keep track of what you owe vendors and suppliers. And once you’ve paid a bill, just check it off as “paid.”
Brightbook
Best for Freelancers and self-employed professionals
Starting at
$0
Promotion
N/A
Pros
Send unlimited invoices.
Add unlimited users.
Run basic reports, like a profit and loss statement and tax report.
Cons
Does not use double-entry accounting.
Must manually import bank statements.
You can use Brightbook’s free accounting software to send quotes to clients, convert them to invoices, bill for time, add discounts or taxes and accept payments through PayPal.
The dashboard gives you quick insights, like money owed to you and cash flow. It’s a plus whenever free products come with reporting capabilities, but Brightbook offers fewer reports than some competitors. Because it’s a single-entry system, for example, you won’t find a balance sheet. However, you can view basic reports on profit and loss, taxes, sales, bills and expenses.
Although you won’t find a formal account for liabilities in Brightbook, you can still upload your bills to the software so you can keep track of what you owe vendors and suppliers. And once you’ve paid a bill, just check it off as “paid.”
Odoo
4.1
Best for Customization
Starting at
$0
For use of a single app. Additional pricing tiers per user (per month): $31.10, $46.80.
Promotion
Monthly discount
for the first 12 months.
Pros
Unlimited users.
Vast library of directly integrated apps means the software can grow with your business.
Open-source model encourages regular testing and improvement of the software.
Cons
Paid plan is required to access the full list of features for most apps and any additional apps.
Phone support is only available for database emergencies.
Odoo is an ecosystem of business software that promises to integrate seamlessly. Because the software is developed through the open-source model, thousands of business professionals and coders work together to ensure all of the apps that Odoo offers play together smoothly.
Odoo’s accounting software syncs with your bank to easily track transactions, enables automated payment reminders, offers a variety of reports and ways to access them and displays all your key financial information in a single clear dashboard. With Odoo, an unlimited number of users can manage invoices, accounts receivable and accounts payable, bills and cash. And because Odoo’s library of apps includes dozens of apps for business functions such as website building, CRM, point of sale, inventory, HR and marketing, you can custom build the complete business software solution you need — without the headache of connecting multiple third-party apps.
Odoo
Best for Customization
4.1
Starting at
$0
For use of a single app. Additional pricing tiers per user (per month): $31.10, $46.80.
Promotion
Monthly discount
for the first 12 months.
Pros
Unlimited users.
Vast library of directly integrated apps means the software can grow with your business.
Open-source model encourages regular testing and improvement of the software.
Cons
Paid plan is required to access the full list of features for most apps and any additional apps.
Phone support is only available for database emergencies.
Odoo is an ecosystem of business software that promises to integrate seamlessly. Because the software is developed through the open-source model, thousands of business professionals and coders work together to ensure all of the apps that Odoo offers play together smoothly.
Odoo’s accounting software syncs with your bank to easily track transactions, enables automated payment reminders, offers a variety of reports and ways to access them and displays all your key financial information in a single clear dashboard. With Odoo, an unlimited number of users can manage invoices, accounts receivable and accounts payable, bills and cash. And because Odoo’s library of apps includes dozens of apps for business functions such as website building, CRM, point of sale, inventory, HR and marketing, you can custom build the complete business software solution you need — without the headache of connecting multiple third-party apps.
Free plan includes direct integration with Square and PayPal for payment processing.
Cons
Free plan lets users connect to only one bank account.
Limited to one user in the free plan.
Free plan doesn’t include live customer support.
Competitors, like Zoho Books and Wave, only include automatic bank feeds if you subscribe to a paid plan, but ZipBooks allows you to connect to one bank account for free. Since transactions from that account are automatically imported, you don’t have to remember to kick off the process yourself each month. Similar to Zoho Books, ZipBooks also integrates with Square and PayPal for online payments.
Aside from payment options, free plan subscribers can also integrate with business apps like Gusto and Slack. Some competitors, like Wave, offer their own in-house payroll software, but it’s hard to find a free product that integrates with a popular third-party alternative like Gusto. In addition to offering these integrations, ZipBooks lets you snap photos of your expense receipts, track customer and vendor details, and send custom quotes and invoices. But you’ll have to subscribe to a paid plan to schedule recurring invoices and send automated payment reminders.
Free plan includes direct integration with Square and PayPal for payment processing.
Cons
Free plan lets users connect to only one bank account.
Limited to one user in the free plan.
Free plan doesn’t include live customer support.
Competitors, like Zoho Books and Wave, only include automatic bank feeds if you subscribe to a paid plan, but ZipBooks allows you to connect to one bank account for free. Since transactions from that account are automatically imported, you don’t have to remember to kick off the process yourself each month. Similar to Zoho Books, ZipBooks also integrates with Square and PayPal for online payments.
Aside from payment options, free plan subscribers can also integrate with business apps like Gusto and Slack. Some competitors, like Wave, offer their own in-house payroll software, but it’s hard to find a free product that integrates with a popular third-party alternative like Gusto. In addition to offering these integrations, ZipBooks lets you snap photos of your expense receipts, track customer and vendor details, and send custom quotes and invoices. But you’ll have to subscribe to a paid plan to schedule recurring invoices and send automated payment reminders.
Manager
Best for Desktop-based free accounting software
Starting at
$0
Additional pricing tiers (per month): $59 for cloud edition.
Promotion
14-day free trial
of cloud edition.
Pros
Send unlimited invoices.
Run reports, including a balance sheet, profit and loss statement, aged payables, aged receivables, cash flow statement.
Email support available.
Cons
Must upgrade to cloud edition to support multiple users.
Must manually import bank statements.
Manager is another free accounting option, and it offers software both for desktop and cloud access. It supports cash and accrual accounting and lets you manage purchase orders, track accounts receivable and payable, send invoices, and run an array of reports. In addition to the basic reports — like an income statement and balance sheet — you can generate reports on inventory, fixed assets, suppliers, customers and changes in equity. Other more advanced features include the ability to create separate tax codes for different line items in invoices, track inventory and assign production stages to items.
Manager
Best for Desktop-based free accounting software
Starting at
$0
Additional pricing tiers (per month): $59 for cloud edition.
Promotion
14-day free trial
of cloud edition.
Pros
Send unlimited invoices.
Run reports, including a balance sheet, profit and loss statement, aged payables, aged receivables, cash flow statement.
Email support available.
Cons
Must upgrade to cloud edition to support multiple users.
Must manually import bank statements.
Manager is another free accounting option, and it offers software both for desktop and cloud access. It supports cash and accrual accounting and lets you manage purchase orders, track accounts receivable and payable, send invoices, and run an array of reports. In addition to the basic reports — like an income statement and balance sheet — you can generate reports on inventory, fixed assets, suppliers, customers and changes in equity. Other more advanced features include the ability to create separate tax codes for different line items in invoices, track inventory and assign production stages to items.
Jump to
How we choose the best free accounting software
Our writers and editors gather more than 30 pieces of data for each accounting software product we rate. This list only includes products that have permanent $0-per-month plans. Free trials or discounts that expire do not count.
To make our picks, the remaining products needed to fill an industry-specific niche or stand out for a particular feature. We also wanted options that checked off most of these boxes:
Basic income and expense tracking.
Reporting.
Unlimited invoicing.
Cloud access.
Live customer support.
Double-entry accounting.
Some of the products we chose don’t include all of these features. That’s to be expected, though. Free products excel at pricing. But they just don’t have all the valuable features of their paid counterparts (e.g., inventory tracking, advanced reporting, integrations, automated bank feeds).
This is why we don’t score free accounting software products that aren’t on our list of the overall best accounting software. On paper, they may score below our typical threshold for recommendation. However, they can still offer value to very small businesses that only need the basics.
What free accounting software we consider
NerdWallet's editorial team has evaluated more than 50 accounting software options, but this list only includes the free ones. That means we’re working with a much smaller market.
We focus on well-known accounting software products, like Wave and Zoho Books, that have free plan tiers. But we also look at more niche options that have a smaller market share and don’t charge a monthly fee.
≡ Full list of accounting software products
Our writers and editors have covered or considered the following free accounting software:
If free options aren't robust enough to accommodate your business as it grows, consider testing out a paid accounting software product with a free trial. That way, you can try it out before committing. Here are some of our top choices:
NerdWallet has a full-time team of small-business writers and editors. The free accounting software market doesn’t change as much as the market for paid products. But we still do our due diligence.
This mostly involves reviewing product information regularly. We do at least one full audit each year and reach out to providers if needed. Some updates happen off-cycle — like Wave’s addition of a paid plan with features that were once free. We make those changes as soon as they happen.
Who is free accounting software for?
Free accounting software is sufficient for just a small subset of businesses. Think service-based freelancers, contractors and people with side hustles. These types of businesses often transact via invoice. And free accounting software products often include some type of invoicing feature that gets the job done.
Sometimes, free accounting software can also work for businesses that don’t transact via invoice. But the business has to be very small and complete just a handful of sales each week. A good example would be someone selling homemade bread at a farmers’ market just one day per week.
If your business uses a POS system or has employees, free accounting software likely won’t cut it.
💬 Why I didn’t choose free accounting software
"Free accounting software sounds great. But in reality, it has a pretty niche market.
"When my husband opened a brewery, I had to decide if a free product would cut it. I decided it wouldn’t for the following reasons:
It’s generally less automated and requires more manual data entry.
Many products don’t have direct integrations with payroll software or POS systems. This is crucial.
I was more familiar with user interfaces of paid products, like QuickBooks Online and Xero.
"Ultimately, software should make it easier to run your business. If a free program doesn't, a paid option will likely be the better choice to save you time and help ensure accuracy.
"You can usually opt for free trials of paid versions before committing to get a better idea of how user-friendly and capable the software is. And don’t forget to ask sales representatives about sign-up promotions — paid products typically offer discounts for the first several months."
Even though you’re not investing money when picking free accounting software , you are investing your time. Follow these steps to find a solution that can accommodate your business in all of its stages.
1. List your must-have features. Free accounting software should have some combination of the following features:
The ability to automatically import your bank transactions so that you can categorize them.
Third-party integrations or in-house software options for payments, payroll, etc.
However, it often lacks features you’d find in paid products — think inventory management, advanced reporting and live support. If a free system doesn’t have everything you require, you’ll need to consider add-ons, upgraded versions or a different product altogether.
2. Evaluate whether you need cloud and/or mobile access. Most accounting software is cloud-based, meaning it's accessible anywhere there’s an internet connection. If this level of access is important to you, look for platforms with robust mobile websites or accounting apps. If you plan on only using your free accounting software from a single computer, though, a desktop-based option may work.
3. Think about your business’s growth potential. Your accounting needs might be modest today, but they may not stay that way forever. If you think your business will grow in the future, make sure your accounting software offers higher-tier plans or add-ons that can scale with your company.
4. Check in with your accountant. While accountants typically work with paid products like QuickBooks Online or Xero, they may be familiar with some of the free ones listed here, too. If you plan to work with an accountant come tax time, ask if they have experience with the free products you’re considering. And if you don’t plan to do your own bookkeeping, ask your bookkeeper the same.
Frequently asked questions
How does free accounting software work?
Accounting software makes it easier to categorize transactions and keep your books organized for tax season. Since it tracks your income and expenses, it also helps you stay on top of your business’s financial health. Free accounting software generally comes with basic reports, invoicing features and other tools like online bank connections, which help you record money coming into and out of your business.
Free accounting software companies often make their money from additional paid services that generate income. Wave, for example, has a free and paid plan. It also charges fees for online payments, bookkeeping support, payroll software and coaching.
Does my small business need accounting software?
In most cases, small businesses benefit greatly from accounting software — free or not. It can take manual bookkeeping tasks off your hands and simplify how you record transactions. Accounting software is also less susceptible to human error than spreadsheets. If there is a discrepancy, you can use audit trails to track down the source. Just know that some free accounting software, like Wave, does not have an audit trail feature.
What features should free accounting software include?
Free accounting software should come with most of the features you’re looking for, and if it doesn’t, it’s probably worth subscribing to a paid product instead. While you’re unlikely to find features like advanced reporting, job costing or mileage tracking, a handful of products still generate basic double-entry accounting reports and support unlimited invoicing.
Other common tools, like online bank connections, help speed up the reconciliation process. And make sure to consider integrations — free accounting software should be compatible with how you choose to accept payments.
Last updated on October 9, 2025
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.
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