Best 10 Accounting Software for Small Business in 2024
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Table of Contents
- Quick Picks: Best Accounting Software for Small Businesses
- How We Evaluated These Options
- Detailed Reviews
- Feature Comparison
- What to Look For in Small Business Accounting Software
- Frequently Asked Questions
- Final Recommendation
Quick Picks: Best Accounting Software for Small Businesses
- quickbooks-online — Most comprehensive features with excellent integrations
- xero — Best user interface and unlimited users on all plans
- freshbooks — Top choice for service-based businesses and time tracking
- wave — Best free option with solid core accounting features
- netsuite — Most scalable for growing businesses planning rapid expansion
How We Evaluated These Options
We tested each platform’s core accounting features, ease of use, customer support quality, and pricing structure. Our evaluation focused on real-world scenarios small business owners face daily — from invoice creation to tax preparation. We also considered integration capabilities, mobile apps, and scalability for businesses planning to grow.
Detailed Reviews
quickbooks-online — Best Overall for Most Small Businesses
Key Features:
- Full double-entry bookkeeping
- 750+ app integrations
- Inventory tracking
- Project profitability analysis
- Tax preparation integration
- Mobile receipt capture
quickbooks-online dominates the small business accounting space for good reason. The platform handles everything from basic invoicing to complex inventory management with impressive depth. Their app ecosystem is unmatched — you can connect virtually any business tool you’re already using.
The learning curve exists, but QuickBooks provides extensive tutorials and has the largest community of bookkeepers and accountants who know the system. This means easier hiring if you need professional help. The downside is cost — plans start at $30/month and increase quickly as you add features.
Best for established small businesses that need robust features and don’t mind paying for comprehensive functionality.
xero — Best User Experience and Interface
Key Features:
- Unlimited users on all plans
- Bank reconciliation automation
- Multi-currency support
- Real-time collaboration
- Custom invoice branding
- Comprehensive reporting suite
xero wins on pure usability. The interface feels modern and intuitive — you won’t spend hours hunting for basic functions. Their unlimited user policy is genuinely valuable for businesses with multiple team members or external accountants.
The platform excels at bank reconciliation, automatically matching transactions with remarkable accuracy. However, Xero lacks some advanced inventory features that QuickBooks offers, and their customer support can be slow during peak times.
Perfect for businesses prioritizing ease of use and team collaboration over advanced feature sets.
freshbooks — Best for Service-Based Businesses
Key Features:
- Advanced time tracking
- Project management tools
- Client portal access
- Automated late payment reminders
- Expense categorization
- Proposal and estimate creation
freshbooks was built specifically for service providers and it shows. Time tracking integrates seamlessly with invoicing — you can literally turn tracked hours into professional invoices with one click. The client portal allows customers to view project progress and pay online, reducing administrative back-and-forth.
The software handles basic bookkeeping well but lacks advanced features like inventory management or manufacturing cost tracking. It’s also more expensive per user compared to alternatives, though the time-saving features often justify the cost.
Ideal for consultants, agencies, freelancers, and any business that bills for time or project-based work.
wave — Best Free Accounting Software
Key Features:
- Complete double-entry accounting (free)
- Invoice and payment processing
- Receipt scanning via mobile app
- Basic reporting and analytics
- Bank connection (limited institutions)
- Simple payroll add-on available
wave proves that free accounting software doesn’t have to be basic. You get legitimate double-entry bookkeeping, professional invoices, and essential reports without paying monthly fees. Wave makes money through payment processing and payroll services, not software subscriptions.
The free model has limitations — fewer bank connections than paid alternatives, no phone support, and limited advanced features. But for straightforward businesses without complex needs, Wave delivers surprising value.
Perfect for startups, solo entrepreneurs, and businesses with simple accounting needs who want to minimize overhead costs.
zoho-books — Best Value for Growing Businesses
Key Features:
- Multi-user collaboration
- Inventory management
- Purchase order creation
- Client portal
- Automated workflows
- Integration with Zoho ecosystem
zoho-books offers enterprise-level features at small business prices. The inventory management rivals more expensive solutions, and the automated workflows can handle complex approval processes. If you’re already using other Zoho products, the integration is seamless.
The interface feels slightly dated compared to newer competitors, and some users report occasional syncing issues with bank connections. Customer support quality varies depending on your plan level.
Great for businesses outgrowing basic accounting software but not ready for enterprise-level pricing.
netsuite — Best for Scalable Growth
Key Features:
- Complete ERP functionality
- Advanced inventory and supply chain
- Multi-location support
- Customizable dashboards
- Real-time financial consolidation
- Industry-specific modules
netsuite isn’t traditional small business software — it’s an enterprise resource planning (ERP) system that small businesses can grow into. If you’re planning rapid expansion, multiple locations, or complex operations, NetSuite prevents the painful software migration that most businesses face.
The complexity and cost are significant barriers. Implementation requires professional help, and monthly costs start around $99 but typically run much higher with necessary add-ons. The learning curve is steep.
Best for ambitious small businesses with complex operations or clear plans for substantial growth.
sage-50cloud — Best Desktop-Based Solution
Key Features:
- Desktop software with cloud backup
- Advanced inventory tracking
- Job costing capabilities
- Industry-specific versions
- Robust reporting tools
- Data file flexibility
sage-50cloud bridges traditional desktop accounting with modern cloud convenience. You get the processing power and data control of desktop software with automatic cloud backup and remote access capabilities.
The desktop requirement limits mobility and collaboration compared to pure cloud solutions. The interface shows its age, and younger team members may struggle with the older-style navigation.
Ideal for businesses with complex inventory needs, established workflows around desktop software, or data security requirements that favor local storage.
Feature Comparison
| Software | Starting Price | Users Included | Inventory | Time Tracking | Mobile App | Free Trial |
|---|---|---|---|---|---|---|
| QuickBooks Online | $30/month | 1 | Yes | Basic | Excellent | 30 days |
| Xero | $13/month | Unlimited | Limited | No | Very good | 30 days |
| FreshBooks | $17/month | 1 | No | Advanced | Good | 30 days |
| Wave | Free | Unlimited | No | No | Basic | N/A |
| Zoho Books | $10/month | 1 | Yes | Basic | Good | 14 days |
| NetSuite | $99+/month | Varies | Advanced | Yes | Good | Custom demo |
| Sage 50cloud | $56/month | 1 | Advanced | Yes | Limited | 30 days |
What to Look For in Small Business Accounting Software
Core Accounting Features
Your software should handle double-entry bookkeeping, accounts payable/receivable, and basic financial reporting without requiring accounting expertise. Look for automatic bank reconciliation and tax-ready reports that save time during filing season.
Integration Capabilities
Modern businesses use multiple software tools. Your accounting platform should connect with your payment processors, e-commerce platforms, CRM systems, and other business applications you already rely on.
Scalability and User Management
Consider your growth plans. Will you need multiple users? Additional locations? More complex inventory tracking? Switching accounting software later is painful — choose something that can grow with your business.
Mobile Access and Usability
You’ll likely need to access financial information, approve expenses, or create invoices while away from your desk. Strong mobile apps and intuitive interfaces save time and reduce frustration.
Support and Learning Resources
Accounting software problems can halt business operations. Look for multiple support channels, comprehensive help documentation, and active user communities where you can find answers quickly.
Frequently Asked Questions
What’s the difference between cloud-based and desktop accounting software?
Cloud-based software runs in your web browser and stores data on remote servers, allowing access from anywhere with internet. Desktop software installs on your computer and typically offers more processing power but limits mobility. Most modern businesses benefit from cloud-based solutions due to automatic updates, better collaboration, and remote access capabilities.
Can I handle my own bookkeeping without hiring an accountant?
Yes, modern accounting software is designed for non-accountants. However, consider hiring a CPA or bookkeeper for tax planning, complex transactions, and annual filing. Many business owners handle day-to-day entry themselves but consult professionals for strategic financial decisions.
How much should I expect to spend on accounting software?
Basic plans typically cost $10-30 per month for single users. Add $5-15 per month for each additional user. Factor in payment processing fees (usually 2.9% + $0.30 per transaction) if you plan to accept online payments through the platform.
When should I upgrade from free accounting software?
Upgrade when you need features like inventory tracking, advanced reporting, multiple users, or extensive integrations. Also consider upgrading if you’re spending significant time on manual processes that paid software could automate.
Is it difficult to switch accounting software later?
Switching requires data migration, retraining, and workflow adjustments. Most platforms offer migration services, but expect 2-4 weeks of transition time. This is why choosing scalable software initially is important — it prevents the need to switch as you grow.
What accounting software do most accountants recommend?
QuickBooks Online is most widely used by accounting professionals due to its comprehensive features and familiar interface. However, many CPAs also work comfortably with Xero, and some prefer specialized software depending on your industry.
Final Recommendation
For most small businesses, quickbooks-online offers the best combination of features, integrations, and professional support. If budget is tight, wave provides impressive functionality at no cost. Service-based businesses should seriously consider freshbooks for its time tracking capabilities.
The key is matching software complexity to your actual needs. Simple businesses often over-buy features they’ll never use, while growing companies sometimes choose software they’ll quickly outgrow. Start with a free trial of your top two choices — actually use them for real transactions to see which workflow feels more natural for your specific business operations.