Running a small business is no easy task. From managing day-to-day operations to staying on top of expenses and payments, there’s a lot that demands your attention. One area where you can significantly lighten your load is accounting. But here’s the thing: keeping track of finances manually or with outdated methods is a surefire way to lose time and create unnecessary stress. You need accounting software that works for you, not the other way around.
What’s the best accounting software for small businesses? The answer depends on your needs. Whether you’re after simplicity, affordability, or advanced features, there’s an option designed just for you. By picking the right one, you’ll not only streamline your accounting but also free up time to focus on growing your business.
We’ve taken a look at some of the best accounting software options out there, evaluating them based on ease of use, pricing, and features relevant to small businesses. Here’s what you need to know before making your choice.
If you’ve ever searched for accounting software, you’ve probably come across QuickBooks Online. It’s popular, and for good reason—it’s one of the most comprehensive accounting tools on the market today.
QuickBooks Online is a full-featured platform that caters to a wide range of business sizes, but it’s particularly suited for small businesses. It offers tools for tracking income and expenses, invoicing, accepting payments, managing payroll, and even inventory. Everything you need in one place, without being overwhelming.
The interface is user-friendly, and you can customize the dashboard to see the information that matters most to you. Plus, the mobile app is a standout feature, meaning you can check your financials or send an invoice while on the go.
QuickBooks Online has several pricing tiers. For small businesses just starting, the Simple Start plan starts at $30/month, but you might find value in higher tiers as your business grows.
If you want a trusted, all-in-one solution that’s scalable, QuickBooks Online should be at the top of your list.
Xero has carved out a space in the accounting world by being an entirely cloud-based system that’s particularly attractive to modern businesses.
Xero shines when it comes to automation. From bank reconciliations to invoice reminders, it helps minimize repetitive tasks. You can also track projects, expenses, and even manage your payroll (with an additional add-on). It’s particularly good for businesses with multiple users—there’s no limit to the number of team members you can add.
The design is clean and intuitive. Xero doesn’t overwhelm you with too many features upfront but makes everything accessible when you need it. Even if you’re new to accounting software, you’ll find it easy to navigate.
Xero’s pricing starts at $13/month for the Early plan, which is a great starting point. For growing businesses, you may want to look into their Established plan at $70/month to access more advanced features.
Xero is perfect if you’re after a modern, flexible, cloud-based solution that works well for teams and automates many of your tasks.
FreshBooks is another strong contender, particularly if you run a service-based business such as freelancing, consulting, or offering digital services.
What makes it great?
FreshBooks is designed to make managing client relationships and invoices as seamless as possible. It stands out for its time-tracking features and expense management. You can easily log hours worked for each client and generate invoices based on that time. It also integrates well with payment gateways like Stripe, making it easy for clients to pay you.
It’s simple. FreshBooks’ clean interface and automation make it easy to track your billable hours, expenses, and client communications all in one place. Even if you’re not a numbers person, it won’t take long to get the hang of it.
The Lite plan starts at $17/month for smaller operations, but most service-based businesses will benefit from the Plus plan at $30/month, which supports more clients and additional features.
If your focus is on managing client invoicing and time tracking with ease, FreshBooks is a strong choice. It simplifies billing, helping you stay on top of your payments without the headache.
Not every small business is ready or able to invest in accounting software. That’s where Wave comes in—it’s completely free, making it ideal for solopreneurs or very small businesses that want to get a grip on their finances without breaking the bank.
Wave offers a surprising amount of functionality for a free product. You can track income and expenses, create invoices, and even accept payments (for a small processing fee). Wave also generates reports to help you understand your business’s financial health at a glance.
Wave’s interface is beginner-friendly. It won’t overwhelm you with options, and most features are simple to set up. The dashboard is also well laid out, helping you focus on what’s most important for your business.
Wave is free for accounting and invoicing, though you’ll pay transaction fees for accepting credit card payments (2.9% + $0.30 per transaction).
If you’re running a small operation or just starting out and need a basic but reliable accounting solution, Wave is the obvious choice. It’s free, functional, and gets the job done.
Zoho Books is part of the Zoho suite of business tools, making it a fantastic option for small businesses already using or interested in the Zoho ecosystem.
Zoho Books offers everything from expense tracking and invoicing to project management and tax management. It’s well-integrated with other Zoho apps, so if you’re using Zoho CRM or other business tools, Zoho Books allows seamless collaboration across your systems.
Zoho Books is intuitive and flexible. While there may be a bit of a learning curve if you’re not already in the Zoho system, the integration options make it easier to manage all aspects of your business in one place.
Pricing starts at $15/month, making it a cost-effective solution, especially if you’re already using Zoho’s other business tools.
For businesses that want an integrated solution that covers more than just accounting, Zoho Books is a great fit. The seamless integration with other apps and the wide range of features makes it a strong choice for growing businesses.
The right accounting software can be a game changer for your business. Whether you need something free and simple like Wave, or a comprehensive, all-in-one platform like QuickBooks, the best option depends on what you value most. Take the time to assess your business’s specific needs, and don’t be afraid to start small. Your future self (and your growing business) will thank you for it!
