The best small business accounting software fits within your budget, is easy to use, and allows you to track both income and expenses. The accounting software you choose should also include the ability to produce detailed financial statements and other reports to give you insight into the financial health of your business.
In this article, we’ll discuss the features we like and what’s missing from the top small business accounting software solutions.
Top Accounting Software Options
Accounting Software | Best For |
|---|---|
(Best overall) Small businesses that need accounting software that scales as they grow | |
Small and medium-size businesses (SMBs) on a tight budget that need a free option with all the basic accounting software features | |
Solopreneurs and freelancers who need to streamline their accounts receivable but don’t need accounts payable | |
Small businesses looking for a product similar in features to QuickBooks Online | |
Businesses that use other Zoho products, like Zoho CRM | |
Businesses in niche industries like construction, retail, and nonprofits | |
Startup businesses looking to move to accounting software from spreadsheets or manual bookkeeping | |
Solopreneurs and freelancers who need contract features and tax preparation assistance | |
Businesses that sell through online platforms like Amazon, Etsy, and eBay |
Accounting Software
The key to choosing the right accounting software is making sure the software includes the features you need to manage your business finances. Not every business is the same, and not all businesses have the same financial requirements.
If you’re not sure what your business needs in an accounting software solution beyond a few financial reports, it’s important to speak to someone knowledgeable who can help you determine your accounting software requirements. This could be the person who does your books or a professional consultant, such as an accountant, who can speak with you about your business and recommend what to look for in an accounting software product that would be useful for your business. Once you know what to look for, you will need to make a few decisions.
An important decision you will need to make is whether you want a cloud-based application or a desktop solution. Many vendors of accounting software now offer their products as cloud-based applications, which means you can use the tools on any computer with a browser and an internet connection. However, if you prefer desktop software, there are still some options available to you. Make sure you choose software that is compatible with your operating systems, such as Mac’s iOS or Microsoft’s Windows, if you prefer desktop accounting software.
Probably the most important decision you will make when choosing an accounting software product is how much you can afford to pay. You will need to consult your budget and be honest about what you can afford on a monthly or annual basis for your accounting software. Pricing ranges on accounting software can vary greatly, so it’s important to know at the beginning what your guidelines are.
Once you know what you need and can afford, look through the software solutions we’ve reviewed here. One of these is sure to meet your needs and fit within your budget.
QuickBooks Online: Best Small Business Accounting Software Overall
 | Features We Like | What’s Missing |
Access from anywhere | No free version | |
User-friendly | Payroll is an add-on at an extra cost | |
Receipt capture and organization tools | No industry-specific tools | |
Pricing
| ||
Features We Like | What’s Missing |
Access from anywhere | No free version |
User-friendly | Payroll is an add-on at an extra cost |
Receipt capture and organization tools | No industry-specific tools |
Pricing:
| |
QuickBooks Online is a great choice for most small businesses. It is very easy to use and share your data with certified public accountants (CPAs), tax professionals, or other necessary parties. With the tiered subscription levels, QuickBooks Online can scale as your business grows or your needs change without having to transfer your data to another software provider. There are also many applications, add-ons, and extensions that work seamlessly with QuickBooks Online to fill in any gaps in functionality. Learn how to use QuickBooks Online with our free tutorials or compare pricing plan details in our QuickBooks Online comparison guide.
Wave: Best Free Small Business Accounting Software
 | Features We Like | What’s Missing |
Always free | No integrations or add-ons | |
Unlimited users | Limited customization | |
Run multiple businesses with one account | Some transactions can be cumbersome to enter | |
Pricing
| ||
Features We Like | What’s Missing |
Always free | No integrations or add-ons |
Unlimited users | Limited customization |
Run multiple businesses with one account | Some transactions can be cumbersome to enter |
Pricing
| |
Wave is a good choice for your small business’s accounting needs if you are a service-based company that does not need to track inventory. Wave also offers payroll and payment processing for a fee, but the basic accounting, invoicing, and receipt scanning features are all completely free. Wave is one of the few accounting software solutions you can use to run multiple businesses from one account. For other free accounting software recommendations, read our article that discusses the six best free accounting software options.
FreshBooks: Best Accounting Software for Solopreneurs & Freelancers
 | Features We Like | What’s Missing |
Access from anywhere | No A/P | |
Time tracking features | Limited users | |
Project tracking features | Limited clients | |
Pricing
| ||
Features We Like | What’s Missing |
Access from anywhere | No accounts payable |
Time tracking features | Limited users |
Project tracking features | Limited clients |
Pricing
| |
FreshBooks is ideal for freelancers who want a quick and easy way to invoice their clients and accept payments online. For service-based businesses who need to track their billable hours, FreshBooks makes it easy to turn tracked hours into billed hours on an invoice. In addition, if your financial tracking and reporting needs are not complex, FreshBooks may be just right for your small business.
Xero: Best QuickBooks Alternative Small Business Accounting Software
 | Features We Like | What’s Missing |
Unlimited users | Customer support is slow to respond | |
Many add-ons and integration options | Reconciliation tools are only for bank accounts | |
Hubdoc for bill and receipt capture | Reports have limited customization options | |
Pricing
| ||
Features We Like | What’s Missing |
Unlimited users | Customer support is slow to respond |
Many add-ons and integration options | Reconciliation tools are only for bank accounts |
Hubdoc for bill and receipt capture | Reports have limited customization options |
Pricing
| |
Xero is ideal for small businesses that do not want to use QuickBooks. However, if you need to send out more than five invoices, enter more than five bills, and reconcile more than 20 bank transactions every month, the Early pricing tier is virtually useless to you. Most small businesses will need to subscribe to the Growing or Established plans, which are more expensive. One of the best things about Xero is that it includes inventory tracking right out of the gate. If you’re looking for more alternatives to QuickBooks, read our article on the 10 best QuickBooks alternatives.
Zoho Books: Best Accounting Software for Zoho Users
 | Features We Like | What’s Missing |
Time tracking tools | A/P features are not included with all plans | |
Includes budgeting module | Large learning curve | |
Integrates seamlessly with other Zoho products | Limited reporting tools | |
Pricing
| ||
Features We Like | What’s Missing |
Time tracking tools | Accounts payable features are not included with all plans |
Includes budgeting module | Large learning curve |
Integrates seamlessly with other Zoho products | Limited reporting tools |
Pricing
| |
Zoho Books is the best accounting software solution for small businesses that already use Zoho products such as Zoho CRM, Zoho Inventory, or Zoho Projects. Zoho Books has multicurrency and multilanguage tools at all subscription levels, allows for tracking and reporting of sales tax, and has some built-in tools for creating workflows and automation.
QuickBooks Desktop Premier: Best Accounting Software for Niche Industries
 | Features We Like | What’s Missing |
Industry-specific tools | Large learning curve | |
Fast transaction processing | Annual subscription fee or one-time purchase price | |
Manage multiple companies with one account | Pricing options are expensive for a small business | |
Pricing
| ||
Features We Like | What’s Missing |
Industry-specific tools | Large learning curve |
Fast transaction processing | Annual subscription fee or one-time purchase price |
Manage multiple companies with one account | Pricing options are expensive for a small business |
Pricing
| |
QuickBooks Desktop Premier is a software package that is installed on your computer—rather than being accessed from a web browser like other options on this list. Desktop software does not require an internet connection to use and usually processes entries much faster than online software. Backup and recovery tools, as well as software updates, are also included with the Premier Plus 2020 and Enterprise 20.0 annual subscription options. If you’re wondering whether QuickBooks Online or QuickBooks Desktop is better for your business, read our in-depth comparison.
ZipBooks: Best Bookkeeping Software for Startup Businesses
 | Features We Like | What’s Missing |
Works with many integrations | Does not include A/P features | |
Easy and intuitive interface | Limited mobile app | |
Includes a time tracking tool | Lacks sufficient training materials | |
Pricing
| ||
Mobile Apps:iOS | ||
Features We Like | What’s Missing |
Works with many integrations | Does not include accounts payable features |
Easy and intuitive interface | Limited mobile app |
Includes a time tracking tool | Lacks sufficient training materials |
Pricing
| |
Mobile Apps:iOS | |
ZipBooks is a simple software solution for self-employed individuals and small to medium-sized businesses (SMBs). It offers many of the features you need as a startup business but is also a good option for established businesses that don’t have complicated bookkeeping requirements. The ZipBooks user interface is clean and intuitive, allowing you to track customers and vendors, send invoices, and collect payments quickly and easily.
Bonsai: Best Alternative Accounting Software for Freelancers
 | Features We Like | What’s Missing |
Proposal features | No A/P features | |
Contract tools | Limited integration options | |
Includes a client relationship manager | Templates have limited customization options | |
Pricing
| ||
Features We Like | What’s Missing |
Proposal features | No accounts payable features |
Contract tools | Limited integration options |
Includes a client relationship manager | Templates have limited customization options |
Pricing
| |
Bonsai is built specifically for freelancers. The software comes with templates for proposals and contracts, making it easy to send information to your clients quickly and get started on projects. With the Workflow Plus plan, you can invite subcontractors to specific projects and include their time in your billing to the customer. Bonsai also comes with client management and project organization tools.
GoDaddy Online Bookkeeping: Best Bookkeeping Software for Online Retailers
 | Features We Like | What’s Missing |
Pricing that fits any budget | No true accounting features | |
Mileage and time tracking tools | No reconciliation functionality | |
Integration with ecommerce platforms | No A/P | |
Pricing
| ||
Features We Like | What’s Missing |
Pricing that fits any budget | No true accounting features |
Mileage and time tracking tools | No reconciliation functionality |
Integration with ecommerce platforms | No accounts payable |
Pricing
| |
GoDaddy Online Bookkeeping is made specifically with the online retailer in mind. GoDaddy Online Bookkeeping imports sales data automatically from your linked Amazon, PayPal, eBay, and Etsy accounts. The mobile app allows you to accept payments with your smartphone, making it easy to participate in trade shows or vendor events. This software package also has unique tools to help you prepare your Schedule C at tax time.
Do You Need Industry-specific Accounting Software?
If you work in an industry with unique bookkeeping needs, there are many industry-specific accounting software solutions to choose from. Click on your industry in the list below to find out more about the accounting software options made for your industry:
- Churches: Church accounting software should allow for tracking donor contributions as well as preparing annual giving statements for members’ taxes.
- Real estate: A good real estate accounting software solution should allow for mileage tracking, income and expense reporting by property, and have property management software integration options.
- Restaurants: With restaurant accounting software, you should be able to track sales and expenses for multiple locations or segments, integrate with point-of-sale (POS) software, and allow for tip reporting.
- Construction/contractors: With construction software, it’s important to be able to track income and expenses by project or job as well as calculate payroll and taxes for employees or contractors.
- Farmers/agriculture: Accounting software for the farming industry should include ways to track profits by crop or product as well as manage inventory.
- Nonprofits (not church specific): Nonprofit accounting software packages should allow for grant fund tracking, detailed reporting, and donor contributions.
- Trucking: Trucking software for accounting should include features for tracking loads, running trip reports, invoicing customers, mileage tracking and reporting, and tracking income and expenses.
- Law firms: Law firm accounting software should allow you to track billable hours, manage client billing, manage general accounting, and handle trust (IOLTA) accounting at a minimum.
- Freelancers: Accounting software for freelancers should include time tracking capabilities, invoicing features, and the ability to accept electronic payments from your clients.
- Online retailers: The best accounting software for e-commerce has built-in integration capabilities for online sales platforms like eBay, Amazon, and Etsy.
Often, mainstream accounting software solutions can work for any industry. The important thing to note when researching accounting software options is whether you can customize the pieces you need to fit your industry. If the accounting software you’re considering doesn’t allow a customized chart of accounts, for example, it may be time for you to consider a software package built specifically for your industry.
Which Accounting Software Features Are You Looking For?
You may be looking for software that is especially good at one particular function. If that’s the case, we have you covered there as well. Click on the feature you need from the list below to learn more about accounting software for specific functionalities.
- Time tracking: Accounting software with time tracking capabilities that allow you to transfer tracked hours to a customer’s bill easily
- Easy to use: Simple software without a huge learning curve or tons of features you don’t need
- Invoicing: This software should allow for emailing invoices and accepting online payments
- Free: Best free software for managing your small business finances
Online Bookkeeping Services
Are you tired of thinking about which accounting software to choose? Let a professional do it for you. Several companies provide online bookkeeping services at prices affordable for most small businesses. You can communicate remotely with your bookkeeper, or team of bookkeepers, and always have access to the information you need. For additional information on online bookkeeping services, what they provide, and how much they cost, read our guide to the eight best online bookkeeping services.
How We Evaluated Accounting Software for Small Businesses
We looked at over three dozen accounting software products and compared them based on:
- Cost: The software should be affordable for small to large-size businesses
- User-friendliness: Anyone without bookkeeping knowledge should be able to set up and use the program
- Ability to pay bills: The package allows you to enter and pay bills
- Invoicing customers: The solution can create invoices and track payments
- Paying employees: The system includes payroll processing or the ability to add it when you are ready to hire employees
- Accepting online payments: The software allows customers to pay their invoices online
- Connecting bank and credit card accounts: You can download transactions from your bank or financial institution
- Running key financial statements: Supports generating profit and loss, balance sheet, and statement of cash flow reports
- Reviews: We read countless user reviews to understand the pros and cons of each software solution
Bottom Line
When it comes to choosing the best accounting software for your small business, there are many options available. It takes an investment of time and money to find an accounting software solution that fits your business’s needs. We’ve identified QuickBooks Online as the best accounting software overall for small businesses because of its affordability, versatility, and scalability.
Lease Force
Please is it true that Quickbooks start given problem when transactions entered are in billion ranges i.e above 1 billion figures?
Secondly do you have a review for Sage Accounting Online too?
Thank you
Olu
Amanda Norman
Hi Lease Force,
Thanks for stopping by the site! We do have a reviews page for Sage Accounting. I’ve included the link below.
Sage Business Cloud Accounting
Best wishes,
Mandy, Moderator
Arista Consulting
Hi, Very Informative Blog!! I really appreciate your efforts of writing very deep information related to accounting software for small businesses. I am very impressed with your way of explaining each and everything very clearly. Thanks for sharing.
Eileen Maki
Thanks for stopping by! I’m glad you found the article informative.
~ Eileen
Marine Scott
Hi!
Informative blog. I appreciate the way you have described and mentioned all the terms of accounting software. In this Era, choosing the best accounting software for business is the most important part. Every business owners, CPAs, accountants want to manage their finances in easy, fast and in a secure way because nowadays solving the accounting problems with the help of paperwork is less effective. So the best software is needed to manage accounting activities and as about to choose the best one, my recommendation is QuickBooks. It is the most popular accounting software in the world which is used for small to medium-sized businesses. It is user-friendly as well as helps in tracking expenses. You can use it to pay bills, tax filing, generate reports for planning, invoice customer, and more.
Eileen Maki
Hi Marine,
Thank you for your comment. I’m glad you liked the article. You’re right, QuickBooks does hold the market share in the accounting software arena. It’s a great solution for small business owners.
Thanks for stopping by and reading the article!
~ Eileen
DINESH ARORA
Thanks for a very useful blog. Please do look at AlignBooks and evaluate. Find pretty comprehensive and being offered at dirt cheap price. Would love to hear ur valued comments, post evaluation. Regards
Amanda Norman
Glad you enjoyed the post, Dinesh. Thanks for suggesting AlignBooks. If you’re interested in having a software or service added to our site you can visit our Reviews page. Just scroll down to the bottom of the page, fill out the form and we’ll get back with you.
Thanks for stopping by.
Mandy, Moderator
Shreya Verma
Hi Crystalynn! Thank you for sharing such a knowledgeable blog with us. I appreciate the work you do for this site. I am also using one of the accounting software for the last 10 months named BTHAWK.
I do every task related to accounting starting from bookkeeping tasks till making financial statements like balance sheet, trading & P&L, etc. Through BTHAWK, I also able to file tax returns online.
So I would suggest you have a look at it once. Besides this, I like this blog site as it always gives me a chance to read informative content.
Keep blogging and looking for more content in the future.
bthawk.com, GST Billing Software-BTHAWK
Thank You.
Amanda Norman
Hi Shrenya,
So glad you find the articles helpful.
Thanks for sharing your experience! Best wishes.
Mandy, Moderator