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Best QuickBooks Alternatives for Small Businesses of December 2022
The best QuickBooks alternatives are easy to use, customizable and — in some cases — fill a specific niche.
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QuickBooks Online has more than 5 million users globally, but this accounting product isn’t the best choice for every small business. It can be expensive, and some features, like inventory management, are available only in higher-tier plans. Additionally, users without prior accounting knowledge may experience a learning curve.
Here are the best QuickBooks alternatives for small businesses, arranged by the groups who might find them most helpful.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
Xero stands out for ease of use and intuitiveness, especially for accounting novices. Its minimalist, simple design and jargon-free language are especially popular among small-business owners. Like QuickBooks Online, it's also widely used, which makes it easy to find accountants who support it. However, unlike QuickBooks Online, it doesn’t list a phone number for customer support. Instead, users can seek help online 24/7 and Xero will follow up with a call if necessary.
Pros
Unlimited users in all pricing plans.
Easy sharing with accountants or bookkeepers.
Reconciliation features help automate transaction matching and categorization.
Scalable; integrates with more than 1,000 third-party apps.
Offers more than 80 accounting reports in the U.S.
Cons
No live phone support.
Limits on bills and invoices with the entry-level plan (five and 20 monthly, respectively).
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
With strong invoicing capabilities and an intuitive mobile app, FreshBooks is an affordable alternative for freelancers who might not need all of the features that QuickBooks Online offers. One downside: It comes with a stricter user limit. All plans, except the Select plan, include access for only one user; additional users cost $10 each per month.
Pros
Mobile app stands out for its usability and features, like the ability to respond to clients’ questions from anywhere.
Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Less expensive than some competitors.
Weekday phone support in all plans.
Cons
Lacks features that quickly growing companies need, like audit trails for accountants to review.
Each plan, except the custom pricing option, includes one user; each additional user adds $10 per month.
Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
Zoho Books offers a lot of the same features as QuickBooks Online — like inventory management, reporting tags, invoicing and bank rules — but at a lower price. If you commit to the Zoho ecosystem, you can smoothly integrate its CRM and other software with Zoho Books. If not, its third-party integrations might be limiting.
Pros
Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
Easy sharing with accountants or bookkeepers.
Reconciliation features help automate transaction matching and categorization.
Email support in free plan; 24/5 phone and chat support in paid plans.
Cons
Third-party app integrations are more limited than other choices.
Sage 50cloud 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.
Pros
Scalable; offers more robust software for medium-sized businesses.
Inventory management features in all plans.
Job costing features in all plans.
Phone and chat support, plus a dedicated account representative in all plans.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
Free (Wave makes money via paid money management products).
Promotion
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Wave delivers on most of the basics for micro businesses and self-employed entrepreneurs without requiring expensive add-ons. It’s a good alternative to QuickBooks Online if you’re on a tight budget and run a small operation, but it’s not ideal for scaling your business. Like Xero, there is no phone number available for customer support.
Pros
Free.
Unlimited partners, collaborators and accountants.
Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Simple solution for small, service-based businesses.
Cons
Lacks features that quickly growing companies need, like audit trails and a more automated reconciliation process.
Free plan doesn’t include customer support with a human.
Business owners that foresee extreme growth, like global expansion, may consider a cloud-based enterprise resource planning product like NetSuite, as opposed to accounting software intended only for small businesses. Clients can customize their plans with add-on modules and additional users.
Pros
Can scale to accommodate larger, enterprise businesses.
Offers an array of other software products, like CRM, HR, supply chain management, global business management and commerce software for larger companies.
Cons
Pricing is not transparent.
Setup fee.
How QuickBooks compares to the alternatives
The following comparison articles explain the major differences between QuickBooks Online and its competitors.