6 Best QuickBooks Alternatives in 2023 (Free & Paid)
This article is part of a larger series on Accounting Software.
Zoho Books and Xero are our top QuickBooks alternatives because these two software products offer features similar to QuickBooks. Zoho Books takes the top spot because of its scalability and mobile app functionality while Xero is ranked second given its price, user capacity advantage, and worldwide popularity.
Here are the top six alternatives to QuickBooks:
- Zoho Books: Best overall QuickBooks alternative with an outstanding mobile app
- Xero: Best for unlimited users
- FreshBooks: Best for service-based businesses and freelancers
- Wave: Best free QuickBooks alternative
- Sage 50cloud: Best QuickBooks Desktop alternative for multi-company accounting
- QuickBooks Self-Employed: Best for self-employed tax filing
Best QuickBooks Alternatives Compared
Software | Monthly Pricing | Number of Users | Track Inventory & Cost of Goods Sold (COGS) | Reconcile Bank Accounts | Create & Customize Invoices | Track Personal Income Tax | Manage Fixed Assets | Network of Experts | Track Project Income & Expense |
---|---|---|---|---|---|---|---|---|---|
$30 to $200 | 1 to 25 | ✓ | ✓ | ✓ | ✕ | ✕ | QuickBooks ProAdvisors | ✓ | |
$0 to $275 | 1 to 15 | ✓ | ✓ | ✓ | ✕ | ✕ | Zoho Books Advisors | ✓ | |
$13 to $70 | Unlimited | ✓ | ✓ | ✓ | ✕ | ✕ | Xero Advisors | ✓ | |
$17 to $55 or custom priced | Only 1 ($11 per month, per added user) | ✕ | Requires a bank feed connection | ✓ | ✕ | ✕ | ✕ | ✓ | |
Free | Unlimited | ✕ | ✓ | ✓ | ✕ | ✕ | Wave Advisors | ✕ | |
$57.17 to $389.67 | 1 to 10 users | ✓ | ✓ | ✓ | ✕ | ✕ | ✕ | ✓ | |
$15 to $35 | 1 only | ✕ | ✕ | Limited | ✓ | ✕ | QuickBooks ProAdvisors | ✕ | |
Are you looking for something different? Check out our list of the best small business accounting software.
Zoho Books: Best Overall QuickBooks Alternative With an Outstanding Mobile App
Pros
- Has a free version for users with less than $50,000 in annual revenues
- Scalable pricing plans
- Mobile accounting app is more functional than QuickBooks’ app
- Dedicated portal for customers to view and settle invoices
Cons
- Additional fee for more users
- Project accounting and inventory management are available only in higher plans
- Managing unpaid bills is not available in the Free and Starter plan
- Limited invoices in the Free and Standard plan
Plans & Pricing
Zoho Books offers six tiers:
- Free: Includes one user plus one accountant and up to 1,000 invoices per year for businesses with less than $50,000 in annual revenues
- Standard: $20 per month for up to three users and 5,000 invoices
- Professional: $50 per month for up to five users and unlimited invoices
- Premium: $70 per month for up to 10 users and unlimited invoices
- Elite: $150 per month for up to 10 users
- Ultimate: $275 per month for up to 15 users and unlimited invoices
Free trial: 14 days for any paid plan
Add-ons:
- Additional users: $3 per user, per month
- Receipts scanning: $10 for 50 scans per month
- Snail mail credits for sending invoices: $2 per credit
Xero: Best for Unlimited Users
Pros
- Unlimited users for all plans
- More affordable than QuickBooks Online
- Extensive integration choices within the Xero App Store
- Simpler interface than QuickBooks Online
Cons
- Not popular in the US
- Requires highest plan to enjoy all features similar to QuickBooks Online
- Requires third-party integration via Gusto for payroll
Plans & Pricing
Xero has three pricing plans that include unlimited users:
- Early: $13 per month for 20 invoices and five bills
- Growing: $37 per month for unlimited invoices and bills
- Established: $70 per month for unlimited invoices and bills, plus multicurrency, receipt capture, and project tracking
Free trial: 30 days
FreshBooks: Best for Service-based Businesses & Freelancers
Pros
- Intuitive and user-friendly interface
- Excellent customer service
- Project accounting features include built-in time tracker
- Outstanding invoice customization features
Cons
- Additional fee for adding more users
- Cannot track inventory and COGS
- No class tracking for income and expenses
Plans & Pricing
FreshBooks plans include one user regardless of the plan. However, more users can be added:
- Lite: $17 per month for five billable clients
- Plus: $30 per month for 50 billable clients
- Premium: $55 per month unlimited billable clients
- Select: Custom pricing for unlimited billable clients and specialized features
New users get 70% off for three months.
Add-ons:
- Additional team members: $11 per person, per month, in all plans
- Advanced payment options: $20 monthly in Plus and Premium; included in Select
- Gusto Payroll: Contact provider for more information
Wave: Best Free Alternative to QuickBooks
Pros
- Free forever
- Easy and straightforward to set up
- Receipt capture
Cons
- No customer service by phone or email
- No inventory tracking
- Not suitable for businesses with complex accounting needs such as tracking inventory, project accounting, or separating expenses by class or location
- Reports are ugly and cannot compare multiple periods
Pricing
Wave is totally free for accounting and invoicing. However, the following transaction fees apply and are similar to fees found in paid software:
- Credit card payments: 2.9% + 60 cents per transaction or 3.4% + 60 cents per AMEX transaction
- Bank payments: 1% per transaction but a minimum of $1 fee
Sage 50cloud: Best QuickBooks Desktop Alternative for Multicompany Accounting
Pros
- Consolidated financial statements for multiple companies
- Competitive inventory management features
- Option to connect the software to the cloud
Cons
- Desktop software by default even if cloud access is possible
- Difficult for users without solid accounting software experience
- Not a popular choice and limited support in the US
Plans & Pricing
There are three pricing plans to choose from. You can evaluate Sage 50cloud by clicking “Take a test drive” on its website, which will allow you to access a hosted version of it with sample data:
- Pro Accounting: $57.17 per month for one user only
- Premium Accounting: $92 to $211.67 per month for one to five users
- Quantum Accounting: $152.42 to $389.67 per month for one to 10 users
Custom pricing is available for 11 users and up.
Sage currently offers a 40% discount for new customers for the first year.
QuickBooks Self-Employed: Best for Self-employed Tax Filing
Pros
- Perfect for tracking personal and business expenses
- Track mileage
- Export Schedule C income and loss to TurboTax
Cons
- Not a full bookkeeping software
- Not ideal for self-employed individuals selling inventory
- Cannot generate financial statements
Plans & Pricing
- Self-Employed: $15 per month
- Self-Employed Tax Bundle: $25 per month
- Self-Employed Live Tax Bundle: $35 per month
Note: QuickBooks Self-Employed isn’t part of our case study of the best small business accounting software. Hence, it isn’t scored.
How We Evaluated Alternatives for QuickBooks
We rated the accounting software products on this list based on their capabilities to be a substitute for QuickBooks. Moreover, we included the insights we gathered from our case study to show you what we think about these solutions based on the case study criteria.
10% of Overall Score
Because QuickBooks can be expensive for some small businesses, we considered pricing as a factor in our decision. However, we didn’t give it much weight since we wanted to focus more on similar features that alternative software products can provide.
30% of Overall Score
For general features, we further divided this section into six categories that can also be found in our case study:
- General features (20%): Here, we focused on the difficulty of setting up accounting software, including setting up a chart of accounts, recording fiscal year-end, user restrictions, and much more.
- Banking features (20%): For banking, we wanted to primarily see if it allows bank feed connections and bank reconciliation.
- A/P features (20%): We considered how easy it is for users to manage bills, keep track of vendors, and pay bills conveniently.
- A/R features (20%): We considered invoicing, customer account management, and customer payment options in this section.
- Tax features (10%): Since most accounting software—including QuickBooks—doesn’t have e-filing and e-payment for taxes, we devoted more attention to the software’s ability to add sales tax items and sales tax tracking in the ledger.
- Reporting features (10%): We enumerated in our case study a list of fundamental reports that an accounting software program should have.
15% of Overall Score
QuickBooks is one of the accounting software services today with robust inventory management. That’s why we’re giving this feature more emphasis than those mentioned above. We considered especially the software’s capability to track the cost of ending inventory and COGS.
15% of Overall Score
We considered project accounting because this criterion focuses more on service-oriented companies. We wanted to see if QuickBooks alternatives can provide the same functionality as QuickBooks provides in its project accounting features.
15% of Overall Score
QuickBooks Online is one of the most user-friendly accounting software interfaces available today. Even small business owners without an accounting background can learn and use the software in no time, so we wanted to recommend alternatives to QuickBooks with similar ease of use.
We further divided this section into three subcriteria:
- Customer service (30%): We wanted to see if the software company has multiple communication channels open to end users, such as contact numbers, live chat person, chatbots, self-help information, and email support.
- Support network (50%): QuickBooks has a great support network of independent QuickBooks ProAdvisors, so we also wanted to give this subcriteria emphasis since most small businesses prefer DIY accounting.
- Expert opinion (20%): This part is based on our expert’s subjective opinion of the software’s ease of use.
5% of Overall Score
The mobile app must have competitive features that can complement the web-based or desktop accounting software. We didn’t give this a significant weight because we focused more on the software product’s main features. However, we still think that an outstanding app enhances overall user experience.
10% of Overall Score
We looked at user reviews to gain useful insights from actual users of the software product. We weighed in the actual feedback from customers in making this buyer’s guide.
Frequently Asked Questions (FAQs)
Why should I look for an alternative to QuickBooks?
QuickBooks isn’t a one-size-fits-all accounting software. While QuickBooks is our best small business accounting software, the subscription cost can be a main factor why you should look for an alternative. Moreover, QuickBooks features may be too complex for your needs. Hence, you should look for a simpler QuickBooks alternative.
What makes QuickBooks popular?
Aside from its features, QuickBooks has a vast network of certified public accountants (CPAs), bookkeepers, and firms that offer accounting support through the QuickBooks ProAdvisor program. This program helps businesses get access to professional accounting help, locally and internationally. You can check out our article on how to find a QuickBooks ProAdvisor.
Bottom Line
QuickBooks dominates the market for small business accounting—but it isn’t always the best answer, and there are many alternatives to QuickBooks to consider. Depending on your budget, required features, and industry, you might find an alternative software that will meet your needs better.