Wave Starter and Zoho Books Free are our top two free accounting software. Wave is free for all types of businesses while Zoho Books’ free version is limited to companies that make less than $50,000 in annual revenue. We also identified other best free software programs for specific businesses, including ZipBooks and Zoho Invoice:
- Wave: Best overall free accounting software
- Zoho Books: Best for free accounting software that can be scaled easily
- Baselane: Best free rental-specific accounting software for independent landlords
- ZipBooks: Best for assisted bookkeeping with free accounting software
- GnuCash: Best open-source accounting software
- NCH Express Accounts: Best free desktop accounting software for businesses with five or fewer employees
- Zoho Invoice: Best free software for managing invoices
Wave now offers a new paid plan, Wave Pro for $16 per month. However, its Starter plan is still free and offers basic accounting, invoicing, and bill tracking. Some features in the free version, like unlimited user access and bank feeds, have moved to the paid plan. However, Wave still remains our top choice for small businesses seeking free accounting software.
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Best Free Accounting Software for Small Business Compared
Software | Free Plan Limitations | Availability of Premium Plans | Accessibility | Bookkeeping Functionality | Mobile App | Standout Free Features |
---|---|---|---|---|---|---|
Only one user | ✓ | Cloud | ✓ | ✓ |
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Only for businesses with less than $50,000 in revenue; only one user | ✓ | Cloud | ✓ | ✓ |
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Only one user | ✕ | Cloud | ✓ | ✕ |
| |
Only one user | ✓ | Cloud | ✓ | ✕ |
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Only one user | ✕ | Desktop only (Windows, Linux, and Mac) | ✓ | ✕ |
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Limited to companies with five employees | ✓ | Desktop only (Windows and Mac) | ✓ | ✕ |
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None; includes unlimited users | ✕ | Cloud | ✕ | ✕ |
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Retailers need accounting software that tracks their cost of goods sold (COGS), which the free software on our list won’t do. We highly recommend any business with significant inventory to subscribe to QuickBooks Online Plus or Advanced for high-quality inventory accounting in easy-to-use software. QuickBooks Online tops our list of the best retail accounting software.
Wave Starter: Best Overall Free Accounting Software
Pros
- Has a free plan for one user
- Is easy to set up and use
- Lets you easily create and track vendor bills and customer invoices
- Offers payroll and bookkeeping assistance for a fee
- Lets you automate late payment reminders
Cons
- Requires the paid plan to connect your bank accounts
- Can only add one user in the free version
- Lacks advanced features, like project tracking and inventory management
- Has a very limited mobile app
Why We Chose Wave Starter
Wave Starter is our top choice because it offers many accounting features for free. It allows you to create and send unlimited bills, estimates, and invoices, track income and expenses, and invoice customers on the go with its mobile app. While the Starter plan doesn’t allow automatic connections to your bank and credit card accounts, you can import your bank and credit card transactions from your monthly statements.
Another benefit to Wave is that users now have the flexibility to upgrade to the paid plan once they outgrow the free version. For instance, if you often process a high volume of receipts, you can upgrade to the paid version for only $16 per month and capture and scan unlimited receipts.
Wave’s free plan has been downgraded to a single user. However, it may not be a significant concern for many small businesses with basic accounting needs, as they often need only one user to work on their accounting.
Zoho Books: Best for Scalability
Pros
- Free plan for businesses with less than $50,000 in annual revenue
- Competitive features
- Can reconcile bank accounts even when checks are outstanding
- Robust mobile app
Cons
- Free plan is only for a single user
- Billing, inventory, and project accounting is available only in the Professional and Premium paid plans
- Custom reports and budgeting is available only in the Professional Plan
Why We Chose Zoho Books
Because of Zoho Books’ six plans, you can upgrade to any tier, depending on the kind of features you need. Its free version has a $50,000 annual revenue limit, and as your business outgrows the features offered in the free subscription, you can easily upgrade to paid tiers without a software conversion. We also recommend it because of its excellent customer support and outstanding mobile app functionality.
However, because of its limited A/P features, Zoho Books didn’t score well, and the free version also doesn’t offer any project accounting features. Wave would be a better decision for both as it scored higher in each category. It also doesn’t put a limit on your annual revenue like Zoho Books does.
Baselane: Best Rental-specific Accounting Software for Independent Landlords
Pros
- Responsive customer service via phone, email, and live chat
- Software is free for both landlords and tenants
- Easy to use with intuitive dashboard
Cons
- No tenant screening features
- No mobile app
- No access for accountants
Why We Chose Baselane
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, so we suggest seeking out other free software like Wave, which allows for unlimited seats.
ZipBooks: Best for Assisted Bookkeeping That Comes With a Free Plan
Pros
- Bookkeeping service comes with ZipBooks plan for free
- Easy to use, even for nonaccountants
- Able to attach receipts to transactions
- Unlimited customers and vendors
Cons
- No mobile app
- Can only connect one bank or credit card account
- Cannot import transactions from comma-separated values (CSV) or spreadsheet files
- No inventory tracking features
Why We Chose ZipBooks
If you think you might need bookkeeping assistance, ZipBooks is a great option because it is the only provider in this guide that offers assisted bookkeeping in addition to its free plan. Its assisted bookkeeping gives you access to a personal bookkeeper and tax filing assistance. And if you sign up for this plan, you’ll receive ZipBooks’ software for free.
We also recommend ZipBooks as an alternative to Zoho Books Free because ZipBooks Free doesn’t have a revenue cap per year. ZipBooks is also a good pick if you don’t sell inventory because the software doesn’t have inventory tracking features.
GnuCash: Best Open-source Accounting Software
Pros
- Outstanding cash management and amortization features
- Free and customizable
- No internet connection required
Cons
- Requires programming expertise to modify or enhance the source code
- No option to remotely share data with another user
- Very hard to use compared to the other software in this guide
- Customer support is software manual only
Why We Chose GnuCash
GnuCash is a niche software for those who prefer open-source software, and we feel it is one of the best open-source accounting software that exists because it helps you manage and track your bank accounts, stocks, income, and expenses. Its features include statement reconciliation, scheduled transactions, double-entry accounting, and a checkbook-style register for tracking cash flow.
It is free to download and can be installed on multiple operating systems like Linux and FreeBSD. As open-source software, it can be reprogrammed to have additional capabilities beyond the vanilla version. However, while it has many strong bookkeeping features, it is also more difficult to use compared to the other software in this guide.
NCH Express Accounts: Best Free Desktop Accounting Software for Businesses With 5 or Fewer Employees
Pros
- Reconcile bank and credit card accounts even when timing differences exist
- Free for companies with fewer than five employees (not users)
- Easy to use considering it’s a traditional accounting software program
Cons
- Cannot establish a live connection with your bank or credit card account
- Remote access to your program requires configuration of your firewall and router
- No mobile app
- Steep learning curve for non-accountants
Why We Chose NCH Express Accounts
If you find GnuCash complicated to use, NCH Express Accounts is an easier desktop alternative. We selected it as the best free desktop accounting software because it’s free if you have five or fewer employees, and it’s packed with features found in paid solutions.
Its A/P, A/R, and bank reconciliation features are especially strong, and it integrates seamlessly with other NCH products, like Express Invoice Plus. However, we recommend it only if you or your bookkeeper have experience in using accounting programs as it is not beginner-friendly.
Microsoft Excel is a helpful tool to supplement your free accounting software by providing some of the missing accounting functions. Read our guide on how to use Excel for accounting to learn how to track invoices, bills, COGS, and inventory costs. Plus, you get a free downloadable template.
Zoho Invoice: Best for Managing Invoices
Pros
- Totally free with no limitations or in-app purchases
- Perfect for Zoho users
- Easy to use for freelancers
Cons
- Cannot manage incoming invoices from suppliers
- Not a full accounting system
- No mobile app
Why We Chose Zoho Invoice
Compared to the other software on this list that all provide some type of bookkeeping functionality, Zoho Invoice is not a full accounting system. It is full-featured invoicing software that is free for companies of any size with no ads or in-app purchases. This makes it ideal for most freelancers and gig workers who only need a solution for tracking and managing invoices for their income.
It can integrate with other Zoho apps, such as Zoho Books and Zoho Inventory, to increase productivity and collaboration. Its features include project billing, reporting, and template customization.
How We Evaluated Free Accounting Software for Small Businesses
We evaluated the best free accounting software in terms of general features and whether they have the basic functions of paid solutions, such as bank feeds and bank reconciliations. Our scores are based only on the features provided in the free version of each platform. We evaluated the free plan for each software across 15 different categories and summarized them as follows:
5% of Overall Score
Software is rated based on its price for various levels of users, including one, three, and five users. It is also awarded points if it offers a free trial or discount for new users and if monthly vs annual plans are available.
53% of Overall Score
10% of Overall Score
5% of Overall Score
A good mobile app should be able to perform all the same functions as the computer interface.
20% of Overall Score
7% of Overall Score
We include the average user review score for each software collected from large third-party websites dedicated to the collection of user reviews, such as Software Advice, SourceForge, and G2.
Choosing the right free accounting software for your small business is an important decision. Here are some considerations to help you make an informed decision:
- Your business needs: Make a list of the specific accounting tasks you need the software to handle. This may include invoicing, expense tracking, financial reporting, and payroll.
- User-friendliness: Opt for software that is user-friendly and intuitive. You don’t want to spend too much time learning complex accounting processes.
- Scalability: Choose software that can grow within your business. As your business expands, your accounting needs may become more complex, so it’s beneficial to have software that can accommodate this growth.
- Integration with other software: Check if the accounting software integrates with other tools you use, such as payment processors, ecommerce platforms, or CRM systems. Seamless integration can save you time and reduce manual entry.
- Cloud-based vs desktop: Decide whether you want a cloud-based or desktop accounting solution. Cloud-based options offer accessibility from anywhere with an internet connection, while desktop solutions might offer more control over data but limit accessibility.
- Customer support: Consider the level of customer support offered by the provider. Check if they offer support through phone, chat, or email, and whether there are additional costs for support services.
- Free version limitations: Understand the limitations of the free version. Some free accounting software may have restrictions on the number of users, transactions, or features. Ensure that the free version meets your current needs and allows for future growth.
- Security and compliance: Ensure the software complies with relevant data protection and privacy regulations. Look for features like data encryption and regular software updates to enhance security.
Frequently Asked Questions (FAQs)
If you are a budget-conscious small business or freelancer and only need simple accounting, like income and expense tracking and invoicing, then you should consider free accounting software. Don’t use free tools if you buy and sell goods as you’ll need to calculate your COGS by hand.
When looking for the best free accounting software, determine the features you need and find out which programs offer those. Do you require an invoicing solution? Do you have multiple users? Do you want the ability to manage projects? Other factors you should consider include ease of use, customer support, and user reviews.
Small businesses should look for essential features, such as income and expense tracking, invoicing, and reporting. Also, check for a free mobile accounting app—which is important in today’s digital age. We recommend Zoho Books’ mobile app because it allows you to perform many basic functions, such as sending invoices, recording bills, accepting payments, and recording time worked.
Bottom Line
Wave is the overall best free accounting software for small businesses because it offers many basic bookkeeping features for free. Zoho Books also has a great plan but is limited to businesses with less than $50,000 in annual gross receipts.