Best Accounting Softwarefor Small Business
We compared 8 leading options on price, invoicing, expense tracking, inventory, payroll, and more. Use the comparison table and monthly cost calculator below to find the right fit for your business size and budget.
Software Comparison Table
All 8 options compared on 10 key features. Pricing shown is billed monthly (annual billing typically saves 15 to 20 percent).
| Software | Starting Price | Free Tier | Invoicing | Expense Tracking | Bank Reconciliation | Payroll Integration | Inventory | Project Tracking | Multi-Currency | Reporting | Mobile App | Tax Prep Support |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QuickBooks Online Small businesses wanting the most integrations and accountant familiarity | $35/mo | Trial | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Xero Growing businesses and those with international operations | $15/mo | Trial | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
FreshBooks Freelancers, consultants, and agencies who invoice clients | $19/mo | Trial | ✓ | ✓ | ✓ | ✓ | - | ✓ | ✓ | ✓ | ✓ | ✓ |
Wave Very small businesses and freelancers who need free accounting software | Free | Yes | ✓ | ✓ | ✓ | ✓ | - | - | - | ✓ | ✓ | - |
Zoho Books Small businesses already in the Zoho ecosystem or wanting value for money | Free | Yes | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Sage 50 Accounting Product-based small businesses needing offline access and deep inventory | $58.92/mo | Trial | ✓ | ✓ | ✓ | ✓ | ✓ | - | ✓ | ✓ | - | ✓ |
Kashoo Sole traders and very small businesses wanting simplicity over features | $20/mo | Trial | ✓ | ✓ | ✓ | - | - | - | ✓ | ✓ | ✓ | - |
Patriot Software US small businesses that want accounting and payroll from one provider at low cost | $20/mo | Trial | ✓ | ✓ | ✓ | ✓ | - | - | - | ✓ | - | ✓ |
QuickBooks Online
The market leader with the widest accountant and bookkeeper support
Strengths
- +Largest ecosystem of third-party integrations (750+)
- +Nearly every accountant and bookkeeper knows it
- +Robust payroll add-on (QuickBooks Payroll)
Watch Out For
- !Most expensive option in its category
- !Prices increase significantly at renewal
Best for: Small businesses wanting the most integrations and accountant familiarity
Free tier: 30-day free trial
Xero
Clean interface, unlimited users on every plan, strong UK and Australia support
Strengths
- +Unlimited users on every plan (no per-seat pricing)
- +Clean, modern interface that non-accountants find intuitive
- +Hubdoc receipt capture included
Watch Out For
- !Starter plan invoice and bill limits frustrate growing businesses
- !US payroll requires a third-party integration
Best for: Growing businesses and those with international operations
Free tier: 30-day free trial
FreshBooks
Invoicing-first accounting built for service businesses and freelancers
Strengths
- +Best-in-class invoicing with automatic payment reminders
- +Built-in time tracking linked directly to invoices
- +Client portal for invoice viewing and payment
Watch Out For
- !Client limits on lower tiers are restrictive
- !No inventory management
Best for: Freelancers, consultants, and agencies who invoice clients
Free tier: 30-day free trial
Wave
Genuinely free accounting, invoicing, and receipt scanning for small businesses
Strengths
- +Genuinely free core accounting and invoicing
- +No transaction limits or user caps on free plan
- +Clean interface easy to learn
Watch Out For
- !No inventory management
- !No project tracking
Best for: Very small businesses and freelancers who need free accounting software
Free tier: Free forever (invoicing, accounting, receipts)
Zoho Books
Feature-rich accounting at a fair price, with a strong free tier for micro-businesses
Strengths
- +Free tier with meaningful features for micro-businesses
- +Best value paid plans in the market
- +Deep integration with Zoho CRM, Zoho Projects, and 50+ Zoho apps
Watch Out For
- !Interface less polished than FreshBooks or Xero
- !Support quality inconsistent
Best for: Small businesses already in the Zoho ecosystem or wanting value for money
Free tier: Free for businesses with revenue under $50k/year
Sage 50 Accounting
Desktop-based accounting with serious inventory and manufacturing capabilities
Strengths
- +Works offline without internet dependency
- +Extremely detailed inventory with serial number and lot tracking
- +Long-standing product with large accountant familiarity in North America
Watch Out For
- !Primarily desktop-based with limited mobile access
- !Older interface compared to cloud-native competitors
Best for: Product-based small businesses needing offline access and deep inventory
Free tier: 30-day free trial
Kashoo
Simple, affordable cloud accounting for very small businesses
Strengths
- +Very affordable for micro-businesses
- +Clean, uncluttered interface
- +Good multi-currency support even on standard plan
Watch Out For
- !No payroll integration
- !No inventory management
Best for: Sole traders and very small businesses wanting simplicity over features
Free tier: 14-day free trial
Patriot Software
Affordable US-focused accounting tightly integrated with its own payroll
Strengths
- +Very competitive pricing for US businesses
- +Native payroll integration with strong US tax compliance
- +Unlimited users on all plans
Watch Out For
- !US-only (no multi-currency or international support)
- !No inventory management
Best for: US small businesses that want accounting and payroll from one provider at low cost
Free tier: 30-day free trial
Monthly Cost Calculator
Tell us about your business and the features you need. We will show you the monthly cost for each software at the right tier, and flag any options that do not cover your requirements.
Results
8 of 8 options meet your requirementsPrices shown are billed monthly. Annual billing typically reduces cost by 15 to 20 percent. Payroll, additional users, and add-ons are priced separately by most vendors.
How we picked these 8 options
We looked at software with at least 10,000 active small business users, transparent public pricing, and at least two years of continuous product updates. Niche tools, industry-specific ERP systems, and spreadsheet-based solutions were excluded.
Annual billing vs. monthly billing
Every provider we list offers discounts for annual billing, typically 15 to 20 percent. QuickBooks discounts can reach 50 percent in the first year. Annual billing is worth considering once you have used a platform for at least one quarter and are confident it fits your workflow.
Hidden costs to watch for
Most platforms charge extra for payroll, additional admin users, advanced inventory, payment processing fees (typically 2.9% plus $0.30 per transaction), and premium support. Budget an additional $20 to $80 per month beyond the base plan price for a realistic total cost of ownership.