Accounting software helps you track how money moves in and out of your small business. The best accounting software makes it easy to keep a detailed financial record so that you’re ready come tax season. It also includes tools for streamlining accounting tasks, like the invoice process, and gaining insight into your business’s financial health.
To choose the right option for you, think about the present and future versions of your business — your accounting software should be able to support both. Right now, check that it’s within your budget and is compatible with your point-of-sale and/or payroll software, as well as your accountant’s system. Based on how much you expect your small business to grow, keep an eye on scalability, too.
Here are NerdWallet’s picks for the best small-business accounting software, including why we selected each product, monthly price details and features checklists for easy product comparisons.
250+ small-business products reviewed and rated by our team of experts.
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Objective and comprehensive business accounting software ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including accounting, payment processing and payroll. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Our Nerdy picks for
Best Accounting Software for Small Businesses
Product | Best for▼ | Starting at▼ | Promotion | Learn more |
---|---|---|---|---|
QuickBooks Online Learn more on QuickBooks Online's secure website | 5.0/5 Best for Overall accounting software | $30/month Additional pricing tiers (per month): $60, $90, $200. | 50% off for first three months or free 30-day trial. | Learn more on QuickBooks Online's secure website |
Zoho Books Learn more on Zoho Books' secure website | 4.5/5 Best for Startup accounting software | $0 Additional pricing tiers (per month): $20, $50, $70, $150, $275. | 14-day free trial of the Premium plan. | Learn more on Zoho Books' secure website |
FreshBooks Learn more on FreshBooks' secure website | 4.5/5 Best for Freelancers | $19/month Additional pricing tiers (per month): $33, $60, custom. | 30-day free trial or monthly discount (terms vary). | Learn more on FreshBooks' secure website |
Xero Learn more on Xero's secure website | 5.0/5 Best for Simple accounting software | $15/month Additional pricing tiers (per month): $42, $78. | 30-day free trial or monthly discount (terms vary). | Learn more on Xero's secure website |
Striven Learn more on Striven's secure website | 3.5/5 Best for Industry-specific features | $35/month Per user. Additional pricing tiers per user (per month): $70. | 7-day free trial | Learn more on Striven's secure website |
Sage 50 Accounting Learn more on Sage 50 Accounting's secure website | 3.5/5 Best for Desktop accounting software | $59/month Additional pricing tiers (per month): $96.58, $160. | Discount for the first year (terms vary). | Learn more on Sage 50 Accounting's secure website |
QuickBooks Enterprise | 4.0/5 Best for Enterprise accounting software with advanced reporting capabilities | $1,481/year Additional pricing tiers (per year): $1,922; $2,363; $4,668. Adding users or cloud access costs extra. | 30-day free trial | |
Wave Accounting | 3.5/5 Best for Free accounting software | $0 Additional pricing tiers (per month): $16 | N/A | |
Odoo | 4.0/5 Best for All-in-one business management app | $0 For use of a single app. Additional pricing tiers per user (per month): $38.90, $58.40. | Monthly discount for the first 12 months. | |
ZarMoney | 3.5/5 Best for Inventory management features | $15/month Additional pricing tiers (per month): $20, $350. | 15-day free trial | |
TrulySmall Accounting | 3.0/5 Best for Accounting software for sole proprietors | $20/month | 14-day free trial |
Our pick for
Overall accounting software
QuickBooks Online is a popular accounting software that ticks all the boxes. It offers a range of features that are scalable and easy to use, complies with accounting standards, allows for easy sharing with accountants, integrates with top payroll and bookkeeping software, offers live customer support and keeps costs reasonable.
QuickBooks Online
5.0
NerdWallet rating
on QuickBooks Online's secure website
Starting at
$30/month
Additional pricing tiers (per month): $60, $90, $200.
Promotion
50% off
for first three months or free 30-day trial.
QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set, scalability and ability to accommodate small businesses with more complex financial needs. With millions of users worldwide, your accountant will likely be familiar with it.Read full review
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations, including live, in-house bookkeeping.
- Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.
- Daily phone support and 24/7 chat support in all plans.
Cons
- Expensive compared with the competition.
- Limited account users with each plan.
Read full review
Our pick for
Startup accounting software
Zoho Books offers one of the largest selections of paid plan tiers among competitors, including a free plan. For this reason, and because of Zoho's suite of additional business software that will integrate seamlessly with its accounting software, Zoho Books is a great choice for startups and young businesses that intend to grow quickly.
Zoho Books
4.5
NerdWallet rating
on Zoho Books' secure website
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
Zoho Books packs an impressive collection of features and capabilities for an affordable price, and higher-tier plans let users automate workflows and track project profitability. It’s an especially good choice for users that already use the company’s other in-house apps and for businesses that want software with multilingual capabilities (Zoho Books supports 10 languages).Read full review
Pros
- Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
- Email support in free plan; phone and chat support in paid plans.
- Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
- Add accounting widgets to your phone’s home screen; track time using your Apple Watch.
Cons
- Fewer third-party integrations and reports than some competitors.
- No plan includes more than 15 users (can add additional users for a fee).
Read full review
Our pick for
Freelancers
With strong invoicing and project tracking features and a low-cost plan designed specifically for freelancers, FreshBooks’ accounting software makes great sense for those looking to efficiently manage finances for a business of one.
FreshBooks
4.5
NerdWallet rating
on FreshBooks' secure website
Starting at
$19/month
Additional pricing tiers (per month): $33, $60, custom.
Promotion
30-day free trial
or monthly discount (terms vary).
FreshBooks is a simple and affordable option for freelancers and very small businesses that don’t require many users and prioritize being able to operate on the go via mobile app. It’s an especially inexpensive choice for those who can work within lower-tier plans’ billable client limits, and all plans include time tracking.Read full review
Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Lacks features that quickly growing companies need, like audit trails for accountants to review.
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Read full review
Our pick for
Simple accounting software
Accounting itself can be complex, but that doesn’t mean the software should be. Xero is another popular accounting software product that stands out for its clean design, user-friendly experience and automation capabilities.
Xero
5.0
NerdWallet rating
on Xero's secure website
Starting at
$15/month
Additional pricing tiers (per month): $42, $78.
Promotion
30-day free trial
or monthly discount (terms vary).
Xero allows unlimited users at every subscription tier, a valuable feature for businesses where several users may need at least limited access to the system to run reports or analyze performance. Xero also has a customizable analytics dashboard that lets each user rearrange or hide panels.Read full review
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No phone number for customer support listed.
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Read full review
Our pick for
Industry-specific features
Striven offers versions of its software that are tailored to particular industry needs. From manufacturing, legal and field services to consulting, retail, education and others, Striven has designed the features your business most needs in its accounting, CRM and inventory software.
Striven
3.5
NerdWallet rating
on Striven's secure website
Starting at
$35/month
Per user. Additional pricing tiers per user (per month): $70.
Promotion
7-day free trial
Striven offers cloud accounting software that is designed to be able to grow with your business. The robust software includes features for general ledger, accounts payable and receivable, automated invoicing and can handle multi-currency transactions. The software also includes industry-specific features for a variety of business types.
Pros
- Offers industry-specific features for consulting businesses, nonprofits, manufacturing companies, professional services and more.
- Tools to ensure tax compliance.
- Other features include inventory tracking, reporting, invoicing, project management tools and the ability to categorize transactions using classes.
- Customer support available by phone and live chat.
Cons
- Monthly costs could add up quickly if you require multiple users.
- No mobile app.
- Limited third-party integrations available; no POS or payroll integrations.
Our pick for
Desktop accounting software
If you prefer a locally installed software option to access solely from your desktop business hardware, rather than a cloud solution you can access from any device anywhere, Sage 50 Accounting offers strong accounting tools for your needs. And if you later decide you're ready to make the move to the cloud, Sage offers cloud solutions as well.
Sage 50 Accounting
3.5
NerdWallet rating
on Sage 50 Accounting's secure website
Starting at
$59/month
Additional pricing tiers (per month): $96.58, $160.
Promotion
Discount for the first year
(terms vary).
Sage 50 Accounting is a desktop product that has to be locally installed. It includes advanced inventory and job costing features in the higher-tier plans as well as some features specific to construction and manufacturing.Read full review
Pros
- Advanced inventory tracking and job costing features.
- Industry-specific features for construction, retail and professional services businesses.
- Phone and chat support, plus a dedicated account representative in all plans.
Cons
- Lowest-tier plan doesn’t include audit trails.
Read full review
Our pick for
Enterprise accounting software with advanced reporting capabilities
Businesses that fall on the larger end of the spectrum of small- to medium-size businesses may find they quickly outgrow some of the free and low-cost accounting software options on the market. They may find a worthy solution in QuickBooks Enterprise, desktop enterprise accounting software with cloud-access add-on options. It’s costlier than any of the other options on this list, but it’s built to fulfill the more sophisticated accounting needs of larger businesses.
QuickBooks Enterprise
4.0
NerdWallet rating
Starting at
$1,481/year
Additional pricing tiers (per year): $1,922; $2,363; $4,668. Adding users or cloud access costs extra.
Promotion
30-day free trial
As far as locally installed desktop accounting software goes, QuickBooks Enterprise is one of the most feature-rich. While QuickBooks Online and other cloud-based products are typically easier to use, they don’t usually come with industry-specific features like QuickBooks Enterprise does. These include specialized reporting for construction companies, nonprofits, manufacturers, wholesalers and distributors. Read full review
Pros
- Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules.
- More than 200 reports, including industry-specific options for various industries.
- 24/7 phone and chat support.
Cons
- Outdated user interface.
- Limited direct, third-party integrations for payroll software and popular point-of-sale systems.
- Annual subscriptions are expensive; each additional user license costs extra.
Read full review
Our pick for
Free accounting software
Wave offers free accounting and free invoicing. If you're a newer or smaller business with simple accounting needs, Wave's free software will likely meet your requirements. And as your business grows, if you find you're in need of payroll software and/or the ability to accept online payments for the invoices you're sending out, Wave offers paid plans for those solutions.
Wave Accounting
3.5
NerdWallet rating
Starting at
$0
Additional pricing tiers (per month): $16
Promotion
N/A
Wave’s free accounting software lets you create an unlimited number of customizable invoices and estimates, as well as bookkeeping records, and includes a free mobile app for invoicing. It can be a simple solution for small, service-based businesses.Read full review
Pros
- Free plan available.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails.
- Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No third-party integrations, mileage tracking feature or ability to accept in-person card payments.
Read full review
Our pick for
All-in-one business management app
Odoo is an ecosystem of business software applications that are intended to smoothly integrate with one another. Because the core software is developed through the open-source model, thousands of business professionals and coders work together to ensure seamless integration of all of Odoo’s apps.
Odoo
4.0
NerdWallet rating
Starting at
$0
For use of a single app. Additional pricing tiers per user (per month): $38.90, $58.40.
Promotion
Monthly discount
for the first 12 months.
If you just want to use Odoo’s accounting app alone, you and an unlimited number of users can do so for free. If, however, you have need for any of Odoo’s dozens of other open-source business apps (for inventory, sales, marketing, manufacturing, HR and more), then you can choose a paid plan to open your access to the full library of apps that integrate seamlessly.
Pros
- Unlimited users.
- Vast library of directly integrated apps means the software can grow with your business.
- Open-source model encourages regular testing and improvement of the software.
Cons
- Paid plan is required to access the full list of features for most apps and any additional apps.
- Phone support is only available for database emergencies.
Our pick for
Inventory management features
If your business involves managing inventory, particularly moving and tracking stock within and across warehouses, then ZarMoney’s accounting software, which includes tools for managing warehouse inventory, is a solid choice.
ZarMoney
3.5
NerdWallet rating
Starting at
$15/month
Additional pricing tiers (per month): $20, $350.
Promotion
15-day free trial
ZarMoney is a competitively priced integrated accounting software solution with features that extend beyond basic accounting to include accounts payable (AP), accounts receivable (AR), inventory management and team collaboration tools.
Pros
- Inventory management tools are robust enough to support multiple warehouses.
- Other features include invoicing, automated billing and the ability to categorize transactions by class and location.
- Weekday phone support available in all plans.
Cons
- No mobile app.
- Limited number of integrations.
Our pick for
Accounting software for sole proprietors
Many accounting programs on this list are scalable, meaning they have multiple plans that can accommodate small businesses as they grow. Some businesses plan to stay very small, though, and only need basic accounting software that’s simple to use.
TrulySmall Accounting
3.0
NerdWallet rating
Starting at
$20/month
Promotion
14-day free trial
TrulySmall Accounting is made for very small, one-person businesses that complete 500 transactions or fewer per year. It’s simple enough to not be overwhelming, but still includes reconciliation tools and bank feeds — similar to its larger competitors — that simplify the bookkeeping process. However, know that TrulySmall Accounting doesn’t integrate with other business apps.
Pros
- Features include basic reporting, mobile app, invoicing and reconciliation tools.
- No cap on the number of users or invoices.
- Phone, chat and email support.
Cons
- Not a good fit for growing businesses, due to lack of audit trails and third-party integrations.
- Can’t tag transactions to enable more granular reporting.
- No inventory management or mileage tracking features.
Our picks for the best accounting software
QuickBooks Online
Best overall accounting software
Is QuickBooks Online right for your business? With millions of users worldwide, QuickBooks Online is likely to be familiar to your accountant. Its strong feature set, along with its ability to scale up and integrate with a wide range of products, make it valuable to self-employed entrepreneurs and larger small businesses alike. But it comes at a higher cost than many of its competitors. Read our full QuickBooks Online review.
$30 per month for the Simple Start plan.
$60 per month for the Essentials plan.
$90 per month for the Plus plan.
$200 per month for the Advanced plan.
» MORE: Explore all QuickBooks plans and pricing
QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set and scalability. In addition to core accounting capabilities, it has robust reporting and transaction tracking tools, invoicing capabilities, inventory management features and mobile app functionality.
In particular, entrepreneurs trying to measure performance in different segments of their business will like QuickBooks’ granular transaction tracking tools that let you group transactions by department or location, among other categories. Reporting capabilities increase with each plan, but even the least expensive Simple Start plan includes more than 50 reports.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
🤓 Nerdy Tip
Many of the household accounting software names, such as QuickBooks, Xero and Zoho Books, can be classified as integrated accounting software solutions. This means that in addition to maintaining a general ledger and assisting with day-to-day bookkeeping, the software includes functions for tracking accounts receivable and accounts payable, reconciling bank transactions (often with some level of automation for convenience and time-saving), managing inventory and purchase orders and handling the billing process.
» MORE: Best alternatives to QuickBooks
Xero
Best simple accounting software
Is Xero best for your business? If you appreciate simplicity and don’t want to dedicate much time to learning how to navigate a product, Xero is a great choice. It also stands out for allowing unlimited users at every subscription tier. Read our full Xero Accounting review.
$15 per month for the Early plan.
$42 per month for the Growing plan.
$78 per month for the Established plan.
Xero is another reliable product when it comes to standard accounting capabilities. It also has excellent reporting features and a capable mobile app as well as a customizable dashboard that lets each user rearrange or hide panels according to their preferences.
Xero allows an unlimited number of users on a single account at each plan level, a valuable feature in situations where several users need some level of access to the system. And you can assign them different permission levels: For example, one user might only be able to create invoice drafts and submit time entries, while another can view reports but not edit transactions. Competitors’ plans limit how many users you can add, or they charge an additional monthly fee for each user, which can add up quickly. Xero offers a large number of integrations, too.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
» MORE: Best alternatives to Xero
Zoho Books
Best startup accounting software
Is Zoho Books best for your business? Zoho Books packs in an impressive collection of features and capabilities for an affordable price. It’s an especially good fit if you already use other Zoho suite products (like Zoho CRM, Zoho Inventory or Zoho Commerce), since they directly integrate, but third-party integrations are limited compared with the competition. Read our full Zoho Books review.
$0 per month for the Free plan.
$20 per month for the Standard plan.
$50 per month for the Professional plan.
$70 per month for the Premium plan.
$150 per month for the Elite plan.
$275 per month for the Ultimate plan.
Unlike some competitors, none of Zoho Books’ plans put a limit on billable clients, and even its free plan lets you send up to 1,000 invoices per year. On top of that, the free option offers a customer portal, automatic payment reminders, mileage tracking and the ability to schedule reports. Higher-tier plans let users automate workflows and track project profitability, and give access to advanced inventory and analytics tools.
The software’s mobile-first features — such as the ability to send invoices by iMessage or add widgets to your phone’s home screen to easily access timers and overdue invoices — really help set it apart, though. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
🤓 Nerdy Tip
To find startup accounting software that will best serve your business at any stage, consider scalability as well as strong customer support. You will also want to choose software that uses the accrual basis accounting method for recording transactions. It’s a more detailed (and therefore more involved) method of accounting, but for many businesses — especially those tracking a large amount of inventory and those in need of a business loan — it’s the preferred method.
FreshBooks
Best for freelancers
Is FreshBooks best for your business? FreshBooks lets users view invoices, respond to clients’ questions and send payment reminders, all from its mobile app. It’s especially cost-effective for freelancers who can work within the confines of client limits in the lower-tier plans. Read our full FreshBooks review.
$19 per month for the Lite plan.
$33 per month for the Plus plan.
$60 per month for the Premium plan.
Custom pricing for the Select plan.
With standout invoicing features and client management resources, FreshBooks is a great accounting solution for freelancers, particularly if you have 50 or fewer total clients and can therefore opt for the Lite or Plus plan. Your clients can even choose to create their own accounts. This lets them save and comment on invoices, save their payment information, invite others to access the account and collaborate on projects they’ve been invited to view.
Unlike some competitors that require you to pay extra for a time-tracking module, all FreshBooks plans come with unlimited time tracking. You can start a timer from within the mobile app to log hours spent on a particular project or sync data from tools like Asana and Trello.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✖ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
» MORE: Best alternatives to FreshBooks
Sage 50 Accounting
Best desktop accounting software
Is Sage 50 Accounting best for your business? If you’re newer to accounting, you’ll appreciate the dedicated account representative and free training modules Sage offers at all plan levels. This desktop accounting product is best for entrepreneurs, particularly in construction or manufacturing trades, who don’t require the anytime, anywhere access that cloud software offers. Read our full Sage 50 Accounting review.
$58.92 per month, for 1 user, for the Pro Accounting plan.
$96.58 per month, for 1 user, for the Premium Accounting plan.
$160 per month, for 1 user, for the Quantum Accounting plan.
Prices increase with each additional user.
Sage 50 Accounting, unlike some of its competitors, offers inventory management and job costing features at all plan levels. Also included with every plan is Sage’s own cybersecurity offering, which will keep tabs on your business credit score and monitor for data breaches. Business owners working in construction or manufacturing may be especially drawn to Sage 50’s advanced inventory, job costing, reporting and budgeting capabilities.
Sage 50 Accounting advertises “cloud-connected capabilities,” which refers to a few features of the software that reach beyond typical desktop software functionality: bank feeds, which flow all your business transactions into the software to assist with the reconciliation process; data backups in the cloud for safeguarding your important financial information; and remote data access so you, your team and your accountant can securely access your data from devices other than the machine the software is locally installed on (though perhaps not simultaneously or seamlessly).
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✅ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✖ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
🤓 Nerdy Tip
Also sometimes called on-premise software, desktop accounting software must be locally installed on a specific computer and can only be accessed from that one device or location. For some small-business owners, this type of program feels more secure than online accounting software from a data protection perspective, though regular manual backups are necessary to protect against total loss of data in the event of a technology failure.
Wave Accounting
Best free accounting software
Is Wave Accounting best for your business? Wave is free accounting software that can be a sufficient solution for entrepreneurs with small, service-based businesses who need a simple way to invoice clients and separate business and personal expenses. However, if you need built-in mileage tracking, time tracking or a billable expense feature, it’s probably not the right choice. Read our full Wave Accounting review.
$0 for the Starter plan.
$16 per month for the Pro plan.
Wave is a simple solution for very small businesses that need a place to consolidate bookkeeping records and invoices, but don’t have to log more than a handful of transactions each day. The free version of the accounting software lets you track income and expenses, send unlimited invoices and automatically send reminders for late online payments. It also gives you access to more than a dozen pre-built financial reports, including a profit and loss statement and balance sheet.
If you don’t want to manually enter transactions into Wave, you can opt for the Pro plan to link an unlimited number of bank and credit card accounts for automated reconciliation. The paid plan offers more competitive online payment processing rates, too (starting at 2.9% per transaction vs. the free plan’s 2.9% + $0.60 per transaction).
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✖ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✖ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✖ |
Project tracking features | ✖ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
Live customer support | ✖ |
» MORE: Best free accounting software
QuickBooks Enterprise
Best for enterprise accounting software with advanced reporting capabilities
Is QuickBooks Enterprise best for your business? If you run a well-established midsize business that would benefit from industry-specific reporting capabilities and advanced inventory management, then QuickBooks Enterprise may suit your needs. It’s pricier than most other options on this list, however, especially if you want to add cloud access to the desktop-based software. Read our full QuickBooks Enterprise review.
$1,481 per year for the Silver plan.
$1,922 per year for the Gold plan.
$2,363 per year for the Platinum plan.
$4,668 per year for the Diamond plan.
With QuickBooks Enterprise, business owners can set up volume discounts and customize pricing rules according to sales rep, item category or customer in the Platinum plan and up. The same plans help speed up the inventory count process by allowing businesses to use mobile devices as barcode scanners. And unlike some competitors that only track single inventory items, QuickBooks Enterprise lets you track inventory parts plus assemblies. You can also track the cost of goods sold and adjust inventory for loss or shrinkage.
It is possible to purchase cloud access so your team can better collaborate and access the software and its data from anywhere, but costs add up quickly with an additional monthly charge per user.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✅ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
Striven
Best for industry-specific features
Is Striven best for your business? Striven is strong on core accounting features but stands out among the competition with versions of its software built specifically for the needs of a wide array of industries including IT services, legal services, retail and e-commerce, nonprofits, manufacturing and others.
$35 per month per user for the Standard plan.
$70 per month per user for the Enterprise plan.
With Striven’s integrated accounting software, you have access not only to your general ledger and standard reports like profit and loss but also to tools for accounts receivable and accounts payable plus billing, order management and more. Striven’s accounting software will also help ensure your business is operating in a tax-compliant manner by automating tax calculations and giving you access to various tax reports.
Striven has designed accounting solutions tailored to a dozen industries. Its retail solution, for example, includes CRM, inventory management and marketing features to integrate with its accounting platform. But its nonprofit solution includes tools for managing records and scheduling events and even includes a donation portal. And because it’s a cloud-based system, you’ll be able to access your real-time accounting and other business data on the go from anywhere.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✖ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✅ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✖ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
Live customer support | ✅ |
Odoo
Best all-in-one business management app
Is Odoo best for your business? If your business deals with inventory or online selling, requires project or employee management, or would benefit from tools to help with digital marketing (and what business wouldn’t, these days?), then you may find great value in choosing an accounting software solution that exists within an ecosystem of seamlessly integrated apps. That’s where Odoo’s open-source software shines.
$0 per month for use of a single app.
$38.90 per user per month for access to all apps.
$58.40 per user per month for access to all apps across multiple companies plus Odoo’s external API.
Odoo offers a wealth of business software applications — spanning finance, sales, marketing, e-commerce, inventory, HR and more — within a single platform. All of these are built on Odoo’s core open-source infrastructure, but only some of its many apps are offered as truly free, open-source software — and in many cases, the features of those will be limited. For a single monthly subscription price (and a comparatively reasonable one, at that), however, you can get access to the Enterprise version of all of Odoo’s apps. These work much the same as any other cloud software applications: Odoo hosts the app and your data in its cloud, you can access your apps from any desktop and mobile device at any time, plus you’ll get additional perks such as unlimited customer support and automatic upgrades to the latest versions of the software.
You can trial the free, open-source version of the accounting app to get a feel for the user experience and a limited number of its features, but note that for a long-term accounting software solution, you’ll want to switch to the paid Enterprise version of the application.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✖ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✖ |
🤓 Nerdy Tip
Like its name suggests, open-source software is open to the public, meaning anyone can access and tweak its code. This makes it more customizable than typical closed-source, or proprietary, software, that you purchase, download and work with as-is. Open-source products, like Odoo, are ideal for business owners who know how to code and want to play a hands-on role in customizing the product to fit their business needs.
» MORE: Best business software
ZarMoney
Best for inventory management features
Is ZarMoney best for your business? ZarMoney’s integrated accounting software helps you manage inventory, accounts receivable, accounts payable and team collaboration in addition to your day-to-day bookkeeping operations. Its lower-tier plans come at an affordable price. It lacks a mobile app, however, and is extremely limited on third-party app integrations.
$15 per month for the Entrepreneur plan.
$20 per month for the Small Business plan.
$350 per month for the Enterprise plan.
ZarMoney is cloud accounting software that aims to compete with the bigger, well-known names in accounting software. If QuickBooks plans are too pricey for you and you don’t require a mobile app, then ZarMoney is a strong contender for your small business accounting needs. It can handle all your standard accounting functions, including use of the double-entry accounting method; the ability to generate profit and loss statements, balance sheets and aging reports; the option to customize your chart of accounts as well as your dashboard; and the ability to create bank rules to help the software auto-categorize your transactions for smoother reconciliation.
Additionally, ZarMoney is strong on inventory features, particularly for managing warehouse stock. The software’s built-in team communication tools help keep all your departments on the same page as you track and manage stock across multiple warehouses.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✖ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✖ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
Live customer support | ✅ |
» MORE: Best inventory management software
TrulySmall Accounting
Best accounting software for sole proprietors
Is TrulySmall Accounting best for your business? If you run a small business on the side and complete no more than 500 transactions per year, TrulySmall Accounting can help you keep your finances in order.
$20 per month for the Accounting plan.
TrulySmall also offers standalone Invoices and Expenses plans for businesses that opt out of the Accounting plan. They cost $8.99 per month each.
TrulySmall Accounting keeps bookkeeping simple by focusing on the essentials: invoicing, reporting, reconciliation tools, bank feeds and automatic transaction categorization. This is useful for contractors, freelancers and other one-person businesses that only require the basics — and especially for those that need to operate on the go. TrulySmall Accounting’s mobile app lets you send invoices, reach out for customer support, view profit and loss statements and snap photos of receipts to create new expense transactions.
Due to its lack of integrations, however, it’s not intended for businesses that use other business management or payments products, like POS systems, inventory software and payroll software.
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✖ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✖ |
Project tracking features | ✖ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
Live customer support | ✅ |
» MORE: Best online bookkeeping services
What is accounting software?
Accounting software is like a database for all of your business’s financial transactions. It helps you follow basic accounting principles so that you can keep your books up to date and in order, which is especially important come tax season. Most software uses double-entry accounting, meaning it factors in assets, liabilities and equity, in addition to revenue and expenses.
You can use accounting software to do the following:
Enter and organize financial transactions.
Record income and expenses.
Reconcile accounts.
Generate financial statements and reports.
Keep track of how much money you’re owed and vice versa.
Most accounting software goes beyond these tasks with additional built-in modules for invoicing, bill-pay and inventory management, among other functions. The more your accounting software becomes a one-stop shop for these financial chores, the fewer integrations you need to consider.
Many of the options above are cloud-based accounting software, also known as online accounting software, and can be accessed from multiple computers or mobile devices with an internet connection. This makes it easy to collaborate with other users and your accountant, and empowers you to send invoices, collect online payments and view real-time financial data on the go.
Learn more about how accounting software works
You’ll get the most out of your accounting software if you understand its main use cases and which features to look for. If used correctly, it can help minimize manual data entry and simplify tedious back-office tasks.
» MORE:What is accounting software?
How to choose accounting software
Ideally, your accounting software will make your day-to-day routine easier through automation. Here are some key factors to consider when researching and choosing the best accounting software for your small business.
Accessibility: Cloud-based software enables access through any device with an internet connection. This generally allows for easier collaboration with accountants and seamless integration with other business software. Desktop-based software, however, can only be accessed from a single computer.
Scalability: Take a look at products’ plan offerings, including how many employees and users the software can support, to make sure you can upgrade to a more robust version of the software as your business grows. If you anticipate rapid or high growth, consider accounting software for medium-sized businesses.
Your budget: Determine how much your business can afford to spend monthly on accounting software in conjunction with other recurring costs, like utilities, rent and additional software subscriptions for a POS system or payroll, for example. If you’re a solopreneur and want to keep costs down, check out our list of best accounting software for freelancers and the self-employed.
Ease of use: Accounting software that isn’t intuitive and user-friendly can take up an unnecessary amount of your time or discourage you from using it as often as you should to keep your finances in order. Test out free trials of accounting software, request a demo and watch tutorial videos to get a feel for navigating the software.
Integrations: Think about the other types of software you already use or plan to use, and check to see if direct integrations are available between those products and the accounting software you’re considering. If not, you may need to pay for an indirect integration or manually transfer data from one product to another.
Customer support: Think about what time of the day you’re most likely to reach out for assistance and how you’d like to communicate with customer service representatives. Free accounting software options typically offer less robust customer support solutions than paid products do.
Sharing with your accountant: If you’re working with an outside accountant, take note of how easy (or not) a product makes it for you to share your financial details and reports with your accountant. Many popular accounting software products allow you to easily share access, but some require upgrades to costlier plans for this access and some products only enable you to export data to be sent to your accountant.
How much does accounting software cost?
Accounting software for small businesses can cost anywhere from $0 for the basics to $200 or more per month for the most advanced plans. The picks listed above include both free and paid products, and most options have multiple plans at different price points. Here are a handful of factors that could impact how much you’re paying for accounting software:
Sign-up discountsAs a new customer, you can sometimes choose between a monthly discount or a free trial. If you go with the monthly discount, understand exactly how much more you’ll be paying when the introductory period is up.
Payment frequencyYou might be able to save money by committing to a yearly subscription — instead of a monthly one — and paying the total annual cost upfront. However, there’s a chance you won’t be reimbursed if you pay upfront and decide to cancel before the year is up. If you’re considering an annual subscription, make sure to read the fine print. The prices listed above apply to month-to-month subscriptions.
Number of usersIn some cases, you’ll need to pay a monthly fee per additional user. Factor in how many users an accounting software product includes, how much it costs to add additional users and how many people in your business need to have access to the software.
IntegrationsMake a list of the integrations you’ll require and check to see if they’re built into your accounting software already. If not, you might need to pay a monthly subscription fee to connect one program to another.
Accounting software features
Determining which accounting tools you require will depend on your business type, size and industry, among other factors. Here are some features to keep top of mind as you compare options.
Double-entry accounting: This means your accounting software enters a balancing debit or credit for each transaction, so that you don’t have to do it manually.
Chart of accounts: Most accounting software comes with a built-in chart of accounts you can use to categorize transactions. You should be able to add or remove accounts as needed.
Income and expense tracking: Tracking money-in and money-out transactions is central to bookkeeping.
Online bank connections: You may have the option to automatically pull transactions from your business’s bank and credit card accounts into your software. This reduces time and error from manual entry.
Reconciliation tools: Some accounting software products will automatically match your bank and credit card statements with the transactions in your accounting software to ensure alignment, meaning you only have to look them over and approve.
Accountant access: Cloud-based accounting software makes it easy to invite your accountant to look over your books remotely.
Reporting: Look for report templates — think a profit and loss statement, balance sheet and cash flow statement — along with reports on aged receivables and sales tax. You should be able to customize them by date so that you can compare time periods.
Invoicing: The ability to invoice clients from your accounting software is key for service-based businesses. You want to be able to customize invoices with your logo, easily turn estimates into invoices, add terms and due dates, and accept online payments. While it might not be as convenient, third-party invoicing software is also available.
Integrations: To minimize manual data entry, you’ll want to integrate your accounting software with the rest of your business software ecosystem so they can exchange information automatically. This may include your point-of-sale software, payroll software, inventory software and third-party time or mileage tracking tools.
Mobile app: Accounting software for freelancers, for example, often includes mobile apps for iOS and Android devices that let you track time and miles. Accounting apps are also convenient for sending invoices on the go and snapping photos of receipts and other documents.
Inventory tracking: It’s not uncommon for accounting software to include basic inventory management in lower-tier plans, though you might have to pay extra or integrate with a third-party app to sync in-store and online sales.
Bill management: Just like you keep track of how much money your business is owed, you may need to keep tabs on what your business owes. Bill management features can help you schedule payments so you don’t risk late fees.
Project tracking: Service-based businesses may want insight into each job’s profitability, so they know how to best spend their time.
Industry-specific features: Many of the popular accounting products can work well for a variety of business types and sizes, but they do come with limits. If you work in an industry with more stringent tax requirements, such as the nonprofit sector or legal professions, or in a field that benefits from detailed and specialized financial reporting, such as construction or manufacturing, then accounting software designed specifically with those needs in mind may be the way to go.
Accounting software by industry
If you’d like to shop by industry, check out NerdWallet’s picks for:
Best church accounting software.
Best construction accounting software.
Best e-commerce accounting software.
Best farm accounting software.
Best hotel accounting software.
Best law firm accounting software.
Best manufacturing accounting software.
Best nonprofit accounting software.
Best property management accounting software.
Best accounting software for restaurants.
Best accounting software for retailers.
Best accounting software for SaaS businesses.
Best trucking accounting software.
Compare NerdWallet’s top accounting software picks by features
To help determine which accounting software is best for your business, start by comparing each product’s maximum user limit, invoicing capabilities, time-tracking tools, inventory tracking features and phone support availability.
Maximum users | Invoicing | Time tracking | Inventory tracking | Phone support | |
---|---|---|---|---|---|
5.0 NerdWallet rating | Up to 25 in Advanced plan. | Unlimited. | Can manually enter time in Essentials plan and higher; automatic time tracking costs extra. | Yes, but only in Plus plan and higher. | Yes, available seven days a week. |
5.0 NerdWallet rating | Unlimited. | 20/month in Early plan; unlimited in higher-tier plans. | Yes, but only in Established plan. | Yes. | Does not provide a phone number, but a rep will call if necessary. |
4.5 NerdWallet rating | Up to 15 in Ultimate plan. Additional users cost extra. | 1,000/year in free plan; up to 100,000/year in paid plans. | Yes, in paid plans. | Yes, Zoho Inventory offers free, integrated plans. | Yes, available weekdays in paid plans. |
4.5 NerdWallet rating | Up to two in Select plan. Additional users cost extra. | Unlimited, but Lite and Plus plans cap number of billable clients. | Yes. | Yes. | Yes, available weekdays. |
3.5 NerdWallet rating | Free plan is limited to one user. Must subscribe to paid plan to add additional users. | Unlimited. | No. | No. | No live support available unless you subscribe to a paid Wave product. |
3.5 NerdWallet rating | Up to 40 in Quantum Accounting plan. | Unlimited. | No. | Yes. | Yes, available weekdays. |
4.0 NerdWallet rating | Up to 40, but each user license costs extra. | Unlimited. | Yes, but only in Diamond plan and fees apply. | Yes. | Yes, available 24/7. |
3.5 NerdWallet rating | Unlimited, but each user license costs extra. | Unlimited. | Yes. | Yes. | Yes, available weekdays. |
3.5 NerdWallet rating | Unlimited. | No. | No. | No. | No. |
3.5 NerdWallet rating | 30+ in Enterprise plan. | Unlimited. | No. | Yes. | Yes, available weekdays. |
3.0 NerdWallet rating | Unlimited. | Unlimited. | No. | No. | Yes. |
Frequently asked questions
QuickBooks Online is NerdWallet’s pick for best overall accounting software, but that doesn’t mean it’s the right fit for every business. Another option — like FreshBooks, Xero and Sage 50 — may make sense for your small business depending on which features matter most to you, and which user interfaces are easiest for you to navigate.
NerdWallet likes Xero for its simplicity and ease of use. Its clean layout, global search function and customizable dashboard are a plus, especially for accounting novices.
Chances are, there will be some sort of learning curve no matter what software you select. Testing out free demos and free trials can help you get a feel for these products’ usability before committing to them.
Wave Accounting is no-cost software that covers basic accounting and invoicing. It doesn’t offer time or mileage tracking or a billable expense feature, but it does allow for unlimited users and recurring invoicing. Zoho Books also offers a free monthly subscription plan along with several paid plan options, starting at a competitively low cost of $20 per month.
The cheapest paid accounting software on our list is OneUp, which offers its lowest-tier plan — designed for self-employed professionals — at $9 per month. This plan allows for a single user and offers no direct customer support, but it does include all of the software’s features. OneUp also has several additional pricing tiers.
Free accounting software can be a great solution for micro businesses that don’t have a large volume of transactions and only need income and expense tracking, basic reporting and invoicing. But even if the basics are sufficient for your business, remember that free products have their downsides.
For example, Wave’s free accounting plan lacks audit trails, third-party integrations and live customer support. It also doesn’t offer additional plans if your business grows in the future, which means you could eventually have to transfer your data to another provider.
Basic accounting software will suit your daily, weekly or monthly bookkeeping needs along with your monthly and end-of-year reporting requirements. It may also include some simple invoicing and/or time and expense tracking. It should be quick to learn and easy to use.
If you’re in search of accounting software to just cover the basics, many free and low-cost plan options from some of the more well-known products, like Wave and Xero, will provide you a chart of accounts and some standard accounting reports such as a profit and loss statement (income statement), balance sheet and cash flow statement. Even basic accounting software typically offers at least some automation capabilities to help with the reconciliation process. Many basic accounting software options will also enable you to easily grant your accountant access to the software for end-of-year reporting and tax preparation; otherwise, the software should at least provide you the option to easily compile and print reports for your accountant.
Accounting software is key to keeping a finger on the pulse of your business’s financial health. It makes sense of all of your business’s money-in and money-out transactions, reveals historical trends and gives you the granular insight you need to make informed, data-driven decisions.
Here are several other ways you can use accounting software to make your day-to-day routine easier.
Quickly generate reports: For example, you can easily pull up built-in reports to make sure you’re within your budget and dig into which products or services have the best margins.
Centralize business operations: You can complete other tasks — like creating invoices, sending them and accepting payments — from within the program, as opposed to having to hop from a spreadsheet to an invoice generator and back.
Collaborate with your accountant: Grant your accountant remote access to your account via email, so that they can look over your books, provide expert feedback and make necessary adjustments in real time.
Prepare for tax filing: When tax season comes, you’ll need organized and current financial information, which accounting software helps maintain year round.
Maintain accurate financial records: Accounting software makes it easy to record transactions as you go, because it automatically pulls in your business’s bank and credit card transactions. You can use it to reconcile accounts and calculate things like sales tax, too.
Automate processes: Accounting software is often more accurate than spreadsheets because it minimizes manual accounting tasks, like balancing debits and credits. In the long run, this can save you both time and money.
» MORE: Best apps for small businesses
At a minimum, most small businesses should consider hiring a small-business accountant or tax advisor to help them file taxes. You might not communicate with them on a regular basis, but they can help ensure you’re factoring in the correct income and expenses, benefitting from all relevant small-business tax deductions and credits, and meeting filing deadlines. Small-business accountants can also provide financial advice, assist you in applying for loans and help you interpret financial reports.
Unlike accountants, bookkeepers usually communicate with businesses on a more regular basis and help with various back-office tasks including invoicing, recording transactions, managing accounts payable and reconciling monthly bank statements. Starting out, your business might not have the budget for a full-time bookkeeper, and you may handle some of the work yourself. However, your business will likely benefit from hiring a bookkeeper part-time to verify that your chart of accounts is set up in a way that makes sense for your specific business. You may also work with them periodically to review your books and ensure transactions are being categorized correctly. That way, your taxes will be easier to file and you’ll ideally even save some time.
When choosing accounting software, be sure that your accountant or bookkeeper is familiar with the program you’re considering and that you’re able to add them as an account user so they can access your books and make necessary adjustments. If you’re not yet working with outside help, consider each software’s user base and whether they offer training or other resources that your future bookkeeper or accountant can leverage.
Last updated on May 8, 2024
Methodology
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.