QuickBooks Online has more than 5 million users globally, but it isn’t the best accounting software choice for every small business. Self-employed entrepreneurs and micro-business owners, especially, might find that QuickBooks competitors offer simpler solutions at a lower price point. Other options can accommodate an unlimited number of users, unlike QuickBooks, and provide a similarly robust feature set.
Here are the best QuickBooks alternatives for small businesses, including what sets them apart and who might find them most useful.
Our Nerdy picks for
Best QuickBooks Alternatives
Product | Promotion | Learn more | ||
|---|---|---|---|---|
Xero Learn more on Xero's secure website | 4.5/5 Best for Simplicity, unlimited users | $13/month Additional pricing tiers (per month): $37, $70. | 75% off for first three months or free 30-day trial. | Learn more on Xero's secure website |
FreshBooks Learn more on FreshBooks' secure website | 3.5/5 Best for Freelancers and independent contractors | $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 |
Zoho Books | 4.0/5 Best for Zoho app users | $0 Additional pricing tiers (per month): $20, $50, $70, $150, $275. | 14-day free trial of the Premium plan. | |
Wave Accounting | 3.5/5 Best for Free QuickBooks alternative | $0 Free (Wave makes money via paid money management products). | N/A | |
Sage 50cloud | Best for Desktop QuickBooks alternative | $57/month Additional pricing tiers (per month): $92, $152.42. | 40% off for the first year | |
NetSuite | Best for Enterprise solutions | N/A | N/A |
Our pick for
Simplicity, unlimited users
Xero
Learn more
on Xero's secure website
Starting at
$13/month
Additional pricing tiers (per month): $37, $70.
Promotion
75% off
for first three months or free 30-day trial.
Business owners who prefer ease of use and simplicity will appreciate Xero’s minimalist design and jargon-free language. Like QuickBooks Online, it's widely used, which makes it easy to find accountants who support it. Unlike QuickBooks Online, whose highest-tier plan caps users at 25, Xero allows unlimited users at all plan levels — and at a lower price point. If you want less expensive software that competes with QuickBooks Online’s rich feature set, Xero could be a good fit.
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.
- Limits on bills and invoices with the entry-level plan (five and 20 monthly, respectively).
Our pick for
Freelancers and independent contractors
FreshBooks
Learn more
on FreshBooks' secure website
Starting at
$17/month
Additional pricing tiers (per month): $30, $55, custom.
Promotion
30-day free trial
or monthly discount (terms vary).
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. The software lets you log time, track mileage, snap photos of expense receipts, set up recurring invoices, send automatic payment reminders and accept payments online through FreshBooks Payments, Stripe or PayPal. 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.
- 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 $10 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
Zoho app users
Zoho Books
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
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. Higher-tier plans also include extra features you don’t find across the board, like customizable workflow rules for email alerts and the ability to let your clients approve or comment on timesheets before adding billable hours to an invoice. 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.
- Email support in free plan; 24/5 phone and chat support in paid plans.
- Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
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
Free QuickBooks alternative
Wave Accounting
Starting at
$0
Free (Wave makes money via paid money management products).
Promotion
N/A
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. Still, it can be sufficient for businesses with straightforward financials, especially if your main objectives are keeping tabs on expenses, sending invoices and tracking income.
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.
- Only receive customer support with a human if you subscribe to Wave’s paid services (payroll, payments, advisor, etc.).
- No third-party integrations or additional plans to increase functionality.
Our pick for
Desktop QuickBooks alternative
Sage 50cloud
Starting at
$57/month
Additional pricing tiers (per month): $92, $152.42.
Promotion
40% off for the first year
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. Entrepreneurs who are newer to accounting will also appreciate having a dedicated account representative and free training modules to help them get used to the software.
Pros
- Advanced inventory tracking and job costing features in all plans.
- Industry-specific features for construction, manufacturing and distribution businesses.
- Phone and chat support, plus a dedicated account representative in all plans.
Cons
- Runs on Windows operating systems only.
- Lowest-tier plan doesn’t include audit trails.
Our pick for
Enterprise solutions
NetSuite
Promotion
N/A
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.
- Industry-specific software solutions for a wide range of businesses, including nonprofits, advertising and digital marketing, consulting, retail and food and beverage.
Cons
- Pricing is not transparent.
- Setup fee.
What is the best alternative to QuickBooks?
The best QuickBooks alternative for your business depends on your budget, the type of business you run and which features you need. In other words, the right fit will vary from business to business. In terms of QuickBooks’ biggest competitors though, Xero is a strong contender. It offers a lot of the same key features as QuickBooks at a lower price point and is growing in popularity in the U.S. Your accountant or bookkeeper will almost certainly be familiar with QuickBooks, but they might also know the ins and outs of Xero.
Is there a free alternative to QuickBooks?
If the cost of QuickBooks is too steep, there are plenty of other options with lower price points. One of the best free accounting software options is Wave Accounting. It’s not as scalable as QuickBooks, but it can accommodate solopreneurs and, in some cases, businesses with a handful of employees. It has income and expense tracking, invoicing, basic reports and bank feeds, and lets you add as many collaborators as you need for free. Just remember it doesn’t integrate with third-party apps for payroll or point-of-sale systems.
How QuickBooks compares to the alternatives
The following comparison articles explain the major differences between QuickBooks Online and its competitors.
» MORE: Best apps for small businesses
Last updated on February 17, 2023
Methodology
NerdWallet’s accounting software ratings favor products that are easy to use, have a robust feature set and can grow with your business. Ratings are based on weighted averages of scores in several categories, including scope of features and integrations, customer support and cost, among others. 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. Simplicity doesn't always translate into ease of use. Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one.
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