Best Free Accounting Software

Wave Starter is a great choice for small businesses because it offers a robust set of accounting features for free with no size limitations on your business. You can create and send unlimited bills, estimates, and invoices, track income and expenses, and manage invoices on the go with the mobile app. Although it doesn’t support automatic bank and credit card connections, you can still import transactions from your monthly statements.

Wave now offers an upgrade path for those who need more. If you process a high volume of receipts, you can switch to Wave Pro for $16 per month, which includes unlimited receipt scanning and capturing.

The free plan is limited to a single user, which might not be an issue for many small businesses with basic accounting needs. For those requiring multiple users and not wanting to pay $16 per month for the Pro plan, NCH Express could be a good alternative, as it is free for companies with up to five employees.

Standout Features

The free features that we like the most are the following:

• Managing unpaid bills: A/P is Wave’s strongest feature. It makes it easy for users to track bills, purchases, and vendors. You can also enter unpaid bills and expenses and then track them until paid.
• Invoicing: Despite being free, Wave is good at invoicing. You can customize invoices in different ways, such as choosing from various templates, including your logo, and adding a personalized message.
• Mobile app for invoicing and payment processing: While not as robust as those in pricier apps like QuickBooks Online, Wave’s mobile app allows you to create and send invoices and accept payments on the go.
• Simplicity: Wave has a simple and user-friendly interface that is easy to navigate even for beginners. You can master using all of its features in less than a week

Use Cases

• Freelancers on a budget: Wave Free is good for one user only, and it is perfect for freelancers who don’t want to commit to paid subscriptions. Even though it’s free, Wave offers a double-entry accounting system and imposes no annual revenue limits like Zoho Books Free.
• Access to payroll assistance: Users can take advantage of Wave Payroll, which includes pay calculations, automatic direct deposits, W-2 and 1099-NEC reporting, and new hire reporting. Check out our review of Wave Payroll to know more about this service.

In my experience, Wave really stands out for its value and reporting. I’ve found that the free version works best for freelancers, especially since it’s limited to just one user. Even with this restriction, the value it provides is impressive. The dashboard is easy to navigate, and I appreciate the variety of reports it offers—beyond standard financial statements, you can generate reports like sales by customer, expenses by vendor, and aging reports.

However, there are a few areas where it falls short. Setting up Wave is mostly a do-it-yourself process, which I feel affects its ease of use and usability. Its project accounting features are also pretty limited—you can’t track income and expenses by project. While I don’t see that as a deal-breaker, especially if project tracking isn’t a priority, it’s worth noting. What concerns me most is the bank reconciliation. It only works smoothly when there are no timing differences between your books and bank statements. In comparison, I’ve found that Zoho Books, even on its free plan, handles bank reconciliation much better.

Zoho Books’ free version is a great option for businesses with annual revenue under $50,000. What stands out is the seamless upgrade path. As your business grows and needs more features, you can easily move to one of the five paid tiers without worrying about a complicated software conversion. I also recommend Zoho Books for its excellent customer support and the exceptional functionality of its mobile app, which makes managing your finances on the go much easier.

Standout Features

Here are the free features that you’ll get from Zoho Books’ free plan:

• Invoice customization: Zoho Books’ invoice customization feature is commendable. Users can manipulate the look and feel of the invoices—you can add a logo, change the template, colors, and font styles, and add a personalized message after the invoice.
• Mobile app: Zoho Books’ mobile app is the best among all the programs we’ve reviewed. It lets you do regular tasks like sending invoices, entering bills, and receiving payments. Users can also view reports, track time, and categorize bank feed expenses on the mobile app.
• Zoho integrations: The free version can be integrated with other Zoho apps, including Zoho CRM, Zoho People, Zoho Expense, and Zoho Inventory.

Use Cases

• Businesses looking for an outstanding mobile app: If you’re looking for accounting software with a powerful mobile app, Zoho Books is a great choice. Its mobile app handles all the essential accounting tasks, like sending invoices, entering bills, and recording billable time, making it incredibly convenient for managing your finances on the go.
• Freelancers or small businesses with less than $50,000 annual revenues: Businesses or freelancers that earn less than $50,000 a year can enjoy Zoho Books’ free version. This version contains all essential features suitable for freelancers’ accounting needs at no additional cost.

I found Zoho Books to be strong in its banking and A/R features. The free plan allows you to connect bank accounts, upload bank statements, and handle bank reconciliations efficiently. On the A/R side, it includes all the essential invoicing tools, though it lacks custom fields. Considering it’s a free version, I think that’s a reasonable trade-off.

However, the free plan has its limitations in integrations and A/P. Features like bill creation and recurring billing are reserved for higher-tier plans. The integrations are also somewhat restricted, though they might still meet the needs of some users.

If neither Zoho Books Free nor Wave Starter fits your requirements, I’d recommend exploring their paid plans for access to more advanced features.

We selected Baselane as the best rental-specific accounting software because it is a free option for independent landlords and real estate investors wanting an easy-to-use solution for receiving rent payments and managing finances. It has excellent bookkeeping tools, so landlords can track income and expenses to simplify tax preparation, and its online bank account even pays interest and allows landlords to earn cash back on purchases.

Unlike other free software like Zoho Books and Wave, Baselane doesn’t offer a mobile app. It can also only accommodate one user with no option to upgrade to multiple users. If you need more than one user, we suggest seeking out Wave, which allows for unlimited seats for only $16 per month.

Standout Features

Here are a few of Baselane’s notable standout features:

• Bookkeeping software to streamline finances: Baselane automates your bookkeeping and reporting, so you can keep track of all of your finances in one place and track both real-time cash flow and performance.
• Income and expense tracking: With Baselane’s bookkeeping software, you can automatically tag transactions and categorize them by property and Schedule E category.
• Tax package: Baselane’s tax package is a report that can be shared with an accountant or anyone who needs access to your financials. Included reports are Net Operating Cash Flow and a transaction ledger.
• Free checking account: Baselane’s free checking account has features built for landlords, such as the ability to track multiple properties. It also allows you to earn up to 5% cash back debit rewards. To learn more, read our Baselane Business Checking review.
• Tenant screening: Baselane’s tenant background checks include credit reports, criminal history, and evictions.
• Rent collection: Baselane facilitates an easy rent collection feature that allows bank and credit card payments. It also allows Auto Pay where tenants can enroll their bank accounts for an automatic debit arrangement.
• Client management: Tenants have a dedicated portal where they can track rent payments. This portal serves as the main records database for current and past payments for both the landlord and tenant.

Use Cases

• Independent landlords managing multiple properties: Baselane offers a free, easy-to-use platform that simplifies tasks like online rent collection, banking, and accounting, helping landlords save time.
• Financial analysis in property management: Baselane provides features to analyze property performance, offering valuable insights for better decision-making.
• Landlords preparing for property management growth: While Baselane focuses on financial management now, its planned expansion into property management features makes it a promising option for future needs.

Baselane is not evaluated in this rubric because it is not a double-entry accounting software. However, I included it here because it is a good pick for landlords looking for software to track income and expenses to be reported on Schedule E. If you also need to track assets and liabilities, I recommend a double-entry bookkeeping system like Wave.

In my opinion, GnuCash is too hard to use, but open-source software is very popular among a sophisticated segment of users. If you’re confident that open-source accounting software is what you want, then GnuCash is the best available, offering tools to manage bank accounts, stocks, income, and expenses. Some standout features include statement reconciliation, scheduled transactions, double-entry accounting, and a checkbook-style register to track cash flow.

What I appreciate most is that it’s completely free to download and works on multiple operating systems like Linux and FreeBSD. Since it’s open-source, you can even customize it to add features beyond the standard version.

Standout Features

The best free features we like from GnuCash are as follows:

• Open source: Because it’s open-source software, programmers can modify or enhance the source code to strengthen the security or improve functionality. Since the source code is readily available, GnuCash can be redesigned to be a powerful accounting system that’s customized to your needs.
• Cash management: You can track your cash flow easily, reconcile your accounts, and even connect your bank account.
• Amortization schedules: GnuCash’s amortization features help you segregate your long-term loan payments into interest and principal, so you can see how much is deducted from the principal and how much interest you have paid.

Use Cases

• Open-source programmers who want customized accounting software: GnuCash is perfect for users who enjoy the flexibility of open-source software. If you have programming skills, you can tailor it to handle a wide range of accounting needs.
• Businesses needing offline accounting: Since GnuCash is a desktop application, it’s ideal for users who prefer or need to work without an internet connection.
• Managing basic accounts payable tasks: GnuCash lets you enter bills, track their due dates, and print checks for payment, offering a free solution for bill management.

In my assessment, GnuCash performs well in banking features, particularly with its strong bank reconciliation tools. You can reconcile transactions by uploading a bank statement. While setting up a bank feed is an option, connecting your bank requires some technical know-how and is more difficult than with the cloud-based software options in this guide.

GnuCash does require a solid understanding of both accounting and programming. It’s not the most intuitive option, so I wouldn’t recommend it for those without bookkeeping experience. For a free and more user-friendly alternative, Wave is a better choice.

If you find GnuCash too complicated, I’d suggest NCH Express Accounts as an easier-to-use desktop alternative. It’s our top pick for free desktop accounting software because it’s free for businesses with five or fewer employees and includes features you’d typically find in paid solutions.

Its A/P, A/R, and bank reconciliation tools are particularly strong, and it integrates well with other NCH products, like Express Invoice Plus. That said, I’d only recommend it if you or your bookkeeper have some experience with accounting software. Other options like Wave or Zoho Books are a little easier for beginners to navigate.

Standout Features

The best free features of NCH Express are as follows:

• Bank reconciliation: NCH Express Accounts, one of our best bank reconciliation software, provides a true reconciliation function that allows you to reconcile accounts even when there are outstanding checks or deposits in transit. This very basic feature is missing in many free options like Wave and ZipBooks.
• Intuitive workflow diagram: NCH Express Accounts provides a workflow diagram within each accounting function that helps users understand the accounting cycle within the area and shows them where they should enter transactions.

Use Cases

• Small businesses with five or fewer employees: NCH Express Accounts is free for smaller businesses, offering essential accounting tools like A/P, A/R, and bank reconciliation without added costs.
• Businesses needing offline accounting: Since it’s a desktop application, it’s perfect if you prefer working offline or have limited internet access.
• Those who need integrated invoicing and accounting: It works seamlessly with other NCH products, like Express Invoice Plus, giving you an efficient way to manage both invoicing and accounting tasks.

NCH Express Accounts stands out for its A/R and banking features. You can create custom invoices, print and email them, and set up service items. For free software, I’m impressed by its invoicing capabilities. Its bank reconciliation is another strong point, especially since it can effectively handle timing differences.

That said, setting it up isn’t as straightforward as I’d like—it takes some time and effort. If you’re considering this platform, be prepared to dedicate time to the setup process. Another downside is the lack of integrations. If integrations with third-party tools are a priority for you, I’d recommend looking into Wave or Zoho Books instead.

Zoho Invoice is different from the other software on this list because it’s not bookkeeping software—it’s a full-featured invoicing tool. What I like about it is that it’s completely free for businesses of any size, with no ads or in-app purchases. This makes it a fantastic option for freelancers and gig workers like me who just need a simple way to manage and track invoices.

I’ve also noticed how well Zoho Invoice integrates with other Zoho apps, like Zoho Books and Zoho Inventory, which adds a lot of flexibility and productivity. Some of my favorite features include project billing, reporting, and the ability to customize templates to fit my needs.

Standout Features

• Recurring invoices: This feature is often included in the paid or premium version of most accounting software. But with Zoho Invoice, you can get it for free. With this feature, you can skip making weekly, bimonthly, or monthly invoices for repeat customers.
• Built-in time tracker: Zoho Invoice has a timesheet that helps track time for billable projects. This feature is a big plus for freelancers who need to bill by the hour.

Use Cases

• Businesses looking for a standalone invoicing solution: Zoho Invoice is totally free, making it a good pick if you’re looking to use a standalone invoicing software to manage software.
• Gig workers handling client invoices: It’s ideal for those who need a straightforward way to create, send, and track invoices without dealing with bookkeeping tasks or extra costs.
• Businesses needing project-specific billing: With features like billing by hours or milestones, it’s great for service providers working on project-based contracts.

Zoho Invoice is not evaluated in this rubric because it is not a double-entry accounting software. However, I included it here because it is a good pick for users looking for free software for making and sending invoices to clients.