19 Best Accounting Software for Small Businesses in 2025 Reviewed
Best Accounting Software for Small Businesses Shortlist
Here’s my shortlist of the best accounting software for small businesses:
Our one-on-one guidance will help you find the perfect fit.
Accounting is the backbone of any business, but let's be honest—it's not fun. Managing finances can be stressful, and when you're running a small business, this only continues to add to the hundreds of other things on your plate. Not only are you facing time constraints, but financial processing is huge learning curve on its own, with businesses being required to know about tax compliance regulations, data security concerns, and more.
Thankfully, that's where accounting software for small businesses comes in.
As a fintech and digital transformation expert, I understand the importance of a good accounting software for small businesses. It's not just beneficial to your business, but to your overall financial well-being.
Need expert help selecting the right tool?
With one-on-one help, we guide you to your top software options. Narrow down your software search & make a confident choice.
With the right accounting solution, you can ensure your company remains compliant, that your data is accurate, and that your vendor and invoice payments are handled on time.
Now, I know time is of the essence: that's why I took the liberty of testing and reviewing the top accounting software for small businesses available on the market. Leveraging my knowledge of financial operations, I aim to provide you with an unbiased look at the solutions that can help you relieve that stress and make accounting work for you.
Let's get started.
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We've been testing and reviewing accounting software since 2023, on a mission to make it easier to manage business finances. As financial operators ourselves, we know how critical (and difficult) it is to make the right decision when selecting software.
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Best Accounting Software for Small Businesses Summary
This comparison chart summarizes pricing details for my top accounting software for small businesses selections to help you find the best one for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 |  Xero Xero’s accounting interface shows the most critical information in your main dashboard. Other key accounting areas are accessible via the top menu. | Best for fast-growing businesses | 30-day free trial | From $1.40/month | Website |
| 2 |  QuickBooks Online QuickBooks offers a robust feature set within a customizable interface that’s easy to navigate. | Best for small businesses | 30-day free trial | From $10.50/month (for 3 months, then $35/month) | Website |
| 3 |  Zoho Books Zoho Books' invoice management features include tracking invoice statuses and setting up recurring invoices. | Best for comprehensive invoicing and billing | Free trial + free plan available | From $15/month (billed annually) | Website |
| 4 |  FreshBooks FreshBooks lets service-based companies customize their invoices to fit their brand and preferences and to look more professional to clients. | Best for service-based businesses | 30-day free trial | From $10/month (billed annually) | Website |
| 5 |  BlackLine Here is a screen within the BlackLine-SAP integration’s Smart Close integration. This screen lets you set up automations for low-level and manual financial closing tasks. | Best for mid-sized businesses | Free demo available | Pricing upon request | Website |
| 6 |  Xledger Xledger is a cloud-based finance software company offering comprehensive business management tools. | Best for multi-entity financial management | Free demo | Pricing upon request | Website |
| 7 |  Patriot Accounting Patriot offers different types of reports, including profit and loss statements. | Best for flexible accounting methods | Free demo available | From $20/month | Website |
| 8 |  Kashoo You can review and categorize transactions directly within Kashoo's inbox. | Best for automated bookkeeping | 14-day free trial | From $20/month | Website |
| 9 |  Sage Intaact The main dashboard of Sage Intacct gives you an overview of key accounting metrics. | Best for real-time financial insights | Free trial available | Pricing upon request | Website |
| 10 |  WAVE The main dashboard of Wave provides an overview of financial metrics and key performance indicators, including bills, cashflow, and profit and loss. | Best for freelancers | Free plan available | From $16/user/month | Website |
Best Accounting Software for Small Businesses Reviews
Below are my detailed summaries of the best accounting software for small businesses that made it onto my shortlist. My reviews offer an in-depth look at the key features, pros & cons, integrations, and ideal use cases of each tool to help you find the best one for you.
Xero is a cloud-based accounting software designed for small to medium-sized businesses. It's popular for its user-friendly interface and scalability, catering to self-employed individuals and growing enterprises.
Why I picked Xero: Xero scales seamlessly with increasing financial complexities, offering a cloud-based infrastructure that adapts to dynamic operational needs. Its intuitive interface and automation streamline financial management, enabling businesses to focus on growth without being bogged down by manual processes.
Standout features & integrations:
Features include online invoicing that helps you manage and automate invoicing tasks from any device. Your team can also access data from over 21,000 banks, facilitating easier bank reconciliation processes. Additionally, expense management is simplified, offering a way to handle claims and reimbursements efficiently.
Integrations include HubSpot, Shopify, Squarespace, Mailchimp, PayPal, Stripe, Gusto, Microsoft 365, Google Workspace, and Square.
Pros and cons
Pros:
- Real-time collaboration
- Unlimited users allowed
- Strong payment features
- Clean and simple UI
Cons:
- Limited customizations
- Multi-currency not available on all plans
QuickBooks is an accounting software platform for smaller businesses across nearly every industry. This platform supports most core bookkeeping and accounting functions, while users can purchase other functions, such as payroll, as add-ons.
Why I Picked QuickBooks: QuickBooks continues to be the most widely used accounting software among small business owners. It’s easy to set up and use—you can probably do it without professional implementation, although they can help you if you need it. Plus, QuickBooks has several plans. You can start small and upgrade to higher plans as your budget and needs grow, or even hire a remote bookkeeper through the software if needed.
Standout features & integrations:
Features include the ability to manage your finances with tools that let you track income and expenses, automate tasks like invoicing and payments, and generate insightful financial reports. You can also benefit from the user-friendly dashboard that offers a clear view of your business's financial health at a glance. Additionally, QuickBooks provides mobile access, so you can stay connected to your finances wherever you are.
Integrations include PayPal, Shopify, Square, TSheets, HubSpot, Expensify, Stripe, Mailchimp, Bill.com, and Salesforce.
Pros and cons
Pros:
- Automated bank reconciliation features
- Easy to learn and use
- Offers both cloud-based and desktop solutions
Cons:
- Pricier than industry peers
- Must upgrade to add users
Zoho Books is a strong accounting software designed to cater to small and medium-sized enterprises by providing a comprehensive suite of financial management tools. This cloud-based platform facilitates diverse functions such as invoicing, expense tracking, inventory management, and customizable financial reporting.
Why I picked Zoho Books: Zoho Books simplifies the entire invoicing and billing process, allowing you to manage everything from creation to payment in one place. It’s designed to handle various billing needs, making it easy to tailor invoices and manage recurring payments efficiently. This ensures you can focus on your business without worrying about tracking payments or following up manually.
Standout features & integrations:
Features include expense tracking to help you categorize and monitor your business spending. You can also automate recurring invoices and payment reminders to save time and keep cash flow steady. Plus, the client portal makes it easy for your customers to view and pay their invoices directly.
Integrations include Zoho CRM, Zoho Projects, Zoho Inventory, Stripe, PayPal, Square, Slack, G Suite, Office 365, and Shopify.
Pros and cons
Pros:
- Customizable invoices
- Facilitates transactions in various currencies
- Automates various accounting processes
Cons:
- Mobile version lacks features on the desktop version
- May not be ideal for larger enterprises
FreshBooks is a cloud-based accounting software platform for freelancers and small service-based businesses. It supports several features service businesses need (proposals, estimates, time tracking) and sells some functions as add-ons.
Why I picked FreshBooks: FreshBooks is a top choice for small service businesses, like freelancers or digital marketing agencies, thanks to its billing and invoicing emphasis. Not to mention its affordability and other features like client management and time tracking. Additionally, FreshBooks’s bookkeeping side is easy enough to learn on your own—perfect for small service businesses that may not have an accountant.
Standout features & integrations:
Features include invoicing that lets you customize and track your billing, expense tracking to keep all your receipts and spending in one place, and time tracking to help you bill clients accurately. You can also use project management tools to collaborate with your team or clients directly within the platform. Plus, its reporting options give you a clear view of your finances with easy-to-read summaries and details.
Integrations include Shopify, Stripe, Gusto, HubSpot, Square, Trello, Zoom, Asana, Google Drive, and PayPal.
Pros and cons
Pros:
- Several features for managing projects and clients
- Easy to learn
- High degree of invoice customization
Cons:
- No inventory management
- Limited mobile app
BlackLine is a cloud-based accounting and financial automation platform streamlining the entire financial close process. This platform can automate accounts receivable and financial closing and supports intercompany accounting management.
Why I picked BlackLine: BlackLine is not an advanced piece of accounting software—it aims to streamline and modernize the financial close, one of accounting’s largest tasks. As such, BlackLine can complement your general ledger accounting software and take a lot of weight off your accounting and finance teams. Overall, it's definitely a worthwhile feature for companies that are already using SAP because BlackLine’s SAP integration unlocks BlackLine’s prized Smart Close feature.
Standout features & integrations:
Features include account reconciliation to help you match transactions and keep your books accurate. You can also use task management to track your financial close processes and assign responsibilities to your team. Additionally, the journal entry automation saves you time by eliminating manual data entry and reducing errors.
Integrations include SAP, Workday, NetSuite, Sage, QuickBooks, Xero, Microsoft Dynamics, Coupa, and Adaptive Insights.
Pros and cons
Pros:
- Offers several intercompany accounting management features
- Automates most of the accounts receivable process
- Accelerates and improves the financial close process
Cons:
- Very little accounts payable automation
- Only handles accounting and finance tasks
Xledger provides a strong cloud-based solution primarily designed for businesses looking to streamline their financial management processes. This platform is tailored for organizations that require powerful automation, real-time data access, and scalability to adapt to growing and changing business needs.
Why I picked Xledger: As accounting software, Xledger excels in delivering extensive automation for financial operations, reducing the need for manual entry and minimizing errors. It supports complex financial management requirements with features like multi-entity consolidation, real-time reporting, and advanced budgeting tools. The software is particularly noted for its strong compliance features and the ability to handle various currencies and tax regulations, making it suitable for global businesses.
Standout features & integrations:
Features include simplified recurring billing that automates repetitive invoicing tasks, saving you time and minimizing errors. You can choose flexible delivery options, sending invoices via email as PDFs or through traditional mail. For multi-entity corporations, Xledger automatically generates accounts payable entries for invoicing between entities, ensuring accuracy and efficiency.
Integrations include Salesforce, Microsoft Dynamics CRM, GoldFinch, JPMorgan Chase, Wells Fargo, Bank of America, and other major banks.
Pros and cons
Pros:
- High degree of automation for financial processes
- Comprehensive multi-entity and multi-currency support
- Real-time financial reporting and analytics
Cons:
- Potentially high cost for smaller businesses
- Slight learning curve for new users
Patriot Accounting is an online accounting software specifically designed for small businesses.
Why I picked Patriot Accounting: Patriot Accounting provides flexibility in accounting methods, allowing you to toggle between cash-basis, modified cash-basis, and accrual accounting. This adaptability ensures that businesses can choose the most appropriate accounting method for their financial tracking and reporting needs. The software also includes automatic bank transaction imports and departmental tracking for income and expenses.
Standout features & integrations:
Features include a simple three-step payroll process, which makes managing payroll straightforward for your team. You can easily handle overtime, bonuses, and time-off accruals, ensuring your payroll needs are met without extra hassle. Moreover, Patriot Accounting allows you to customize user permissions, providing secure access to payroll data for your employees.
Integrations include QuickBooks, Xero, and Gusto.
Pros and cons
Pros:
- Mobile-friendly platform
- Range of payroll features
- User-friendly interface
Cons:
- Limited scalability
- Lacks advanced features
Kashoo is a cloud-based accounting software designed specifically for small business owners. It offers a range of features that simplify financial management, including invoicing, expense tracking, and automated bookkeeping.
Why I picked Kashoo: One of the key advantages of Kashoo is its automated bookkeeping functionality. This feature reduces the manual effort required to manage financial records, allowing you to import bank feeds, categorize transactions, and reconcile accounts in one place. The software also supports over 5,000 banks worldwide, making it highly adaptable for various business banking needs.
Standout features & integrations:
Features include an intuitive user interface that makes managing your finances straightforward. You can also easily track expenses and income, providing an advanced view of your financial health. In addition, Kashoo offers automated bank reconciliation, helping you save time and reduce errors when matching your transactions with your bank statements.
Integrations include Square, Stripe, PaymentEvolution, SurePayroll, FreshBooks, QuickBooks, Xero, Paychex, and Wave.
Pros and cons
Pros:
- Mobile app available
- Complies with both Canadian and U.S. regulations
- Good automated features
Cons:
- Does not offer integrated payroll management
- Limited advanced features
Sage Intacct is a versatile project accounting tool beneficial for a wide range of industries and business sizes, particularly those with project-centric operations. It's highly useful for mid-sized to large enterprises in sectors such as construction, consulting, engineering, software development, hospitality, healthcare, and real estate development.
Why I picked Sage Intacct: Sage Intacct provides real-time financial insights through customizable reports and dashboards, which can be tailored to the specific needs of a business. This level of customization and real-time data availability aids in more informed decision-making and strategic planning. Additionally, Sage Intacct supports multi-entity and multi-currency management, making it ideal for businesses with complex financial structures and international operations.
Standout features & integrations:
Features include intelligent general ledgers to simplify your accounting processes by automating entries and providing real-time insights. Additionally, its advanced dashboards and reporting tools offer over 150 pre-built reports, allowing your team to customize and analyze data effectively.
Integrations include Salesforce, ADP, Bill.com, Avalara, Expensify, Stripe, Square, Shopify, Nexonia, and MineralTree.
Pros and cons
Pros:
- Extensive configurations and automation features
- Cloud deployment
- Shared chart of accounts
Cons:
- May not be ideal for smaller businesses
- Extensive features may come with a learning curve
Wave is an accounting software designed for small businesses, freelancers, and entrepreneurs. It offers essential tools to manage finances, making it a budget-friendly choice for those seeking simple yet effective accounting solutions.
Why I picked Wave: Wave offers a simple, cost-effective way to manage finances without overwhelming you with unnecessary complexity. It’s tailored to meet the needs of individuals running solo businesses, making it easy to handle invoicing, expenses, and payments in one place. This allows freelancers to stay focused on their work while maintaining clear financial organization.
Standout features & integrations:
Features include double-entry accounting, which simplifies tracking your business finances by automatically balancing debits and credits. You can also send customizable invoices to fit your brand, and automated payment reminders ensure timely payments from your clients. Additionally, Wave allows you to connect multiple bank accounts and credit cards, automating the capture of bills and expenses.
Integrations include PayPal, Etsy, Shoeboxed, BlueCamroo, HubSpot, Zapier, Mailchimp, Google Sheets, Slack, and QuickBooks.
Pros and cons
Pros:
- Automated bookkeeping features
- User-friendly interface for non-technical users
- Offers a free forever plan
Cons:
- Limited integrations
- Not ideal for larger businesses
Other Accounting Software for Small Businesses Options
Here are some additional accounting software for small businesses that didn’t make it onto my shortlist, but are still worth checking out:
- ZipBooks
For nonprofits
- NetSuite
For large enterprises
- InvoiceBerry
For beginning freelancers
- ZarMoney
For all-in-one services
- AccountEdge
For Mac and Windows users
- Aplos
For churches and non-profits
- TrulySmall
For simplistic accounting
- Neat
For receipt and document management
- OneUp Accounting
For automatic processing
Accounting Software for Small Businesses Selection Criteria
When selecting the best accounting software for small businesses to include in this list, I considered common buyer needs and pain points like ease of use and cheaper overall costs. I also used the following framework to keep my evaluation structured and fair:
Core Functionality (25% of total score)
To be considered for inclusion in this list, each solution had to fulfill these common use cases:
- Manage invoices and billing
- Track expenses and income
- Generate financial reports
- Handle payroll processing
- Support tax preparation
Additional Standout Features (25% of total score)
To help further narrow down the competition, I also looked for unique features, such as:
- Mobile access for managing finances on the go
- Integration with third-party applications
- AI-driven financial insights
- Customizable dashboards and reports
- Multi-currency support
Usability (10% of total score)
To get a sense of the usability of each system, I considered the following:
- Intuitive user interface
- Ease of navigation between features
- Availability of templates for common tasks
- Responsiveness of customer support within the interface
- Customization options for different user roles
Onboarding (10% of total score)
To evaluate the onboarding experience for each platform, I considered the following:
- Availability of training videos and tutorials
- Interactive product tours for new users
- Access to dedicated onboarding specialists
- Availability of migration tools for data import
- Comprehensive user guides and documentation
Customer Support (10% of total score)
To assess each software provider’s customer support services, I considered the following:
- Availability of 24/7 support channels
- Response time for customer inquiries
- Access to a comprehensive knowledge base
- Availability of live chat support
- User feedback on support experiences
Value For Money (10% of total score)
To evaluate the value for money of each platform, I considered the following:
- Comparison of pricing plans with competitors
- Assessment of feature offerings at each pricing tier
- Availability of discounts for annual subscriptions
- Evaluation of free vs. paid plan limitations
- Overall satisfaction with pricing transparency
Customer Reviews (10% of total score)
To get a sense of overall customer satisfaction, I considered the following when reading customer reviews:
- User feedback on software reliability
- Satisfaction with feature set and updates
- Comments on ease of use and learning curve
- Reports on customer support efficacy
- Overall value for money feedback
How to Choose Accounting Software for Small Businesses
It’s easy to get bogged down in long feature lists and complex pricing structures. To help you stay focused as you work through your unique software selection process, here’s a checklist of factors to keep in mind:
| Factor | What to Consider |
|---|---|
| Scalability | Ensure the software grows with your business. Look for features that accommodate increased transactions and users without extra costs or complications. |
| Integrations | Check if the tool integrates with other platforms your team uses, like CRM or payroll systems, to streamline data flow and reduce manual entry errors. |
| Customizability | Choose software that lets you tailor reports or dashboards to fit your business needs, making it easier for your team to track the metrics that matter. |
| Ease of Use | Look for intuitive interfaces and straightforward navigation so your team can focus on tasks instead of learning complex systems. Consider user reviews. |
| Budget | Compare pricing models and consider total costs, including setup and training. Opt for a solution that fits your financial constraints without surprises. |
| Security Safeguards | Prioritize software with robust security measures, like encryption and regular backups, to protect sensitive financial data from unauthorized access. |
Trends in Accounting Software for Small Businesses
In my research, I sourced countless product updates, press releases, and release logs from different accounting software for small businesses vendors. Here are some of the emerging trends I’m keeping an eye on:
- AI-Powered Insights: Many accounting software solutions are now incorporating AI to provide predictive analytics and insights. This helps small businesses forecast financial trends and make informed decisions.
- Blockchain for Security: As security becomes a priority, some vendors are exploring blockchain technology to safeguard financial data. This ensures that transactions are transparent and tamper-proof, which is particularly beneficial for businesses managing sensitive information.
- Customizable Dashboards: Businesses are increasingly demanding personalized experiences, prompting software to offer customizable dashboards. These allow users to tailor their view, focusing on the metrics that matter most to their business.
- Subscription-Based Billing Management: With the rise of subscription models, many accounting tools are adding features to manage recurring billing and subscriptions. This is crucial for small businesses that rely on subscription services for steady revenue.
- Real-Time Collaboration: Features enabling real-time collaboration are gaining traction. These allow multiple users to work on financial data simultaneously, improving teamwork and efficiency.
What is Accounting Software for small businesses?
Accounting software for small businesses is a type of solution designed to help small business owners manage their financial tasks like invoicing, expense tracking, and tax preparation.
These tools are typically used by small business owners, accountants, and bookkeepers to keep their finances organized and accurate. Invoicing, automated expense tracking, and reporting features help with saving time, reducing errors, and simplifying financial management.
Features of Accounting Software for Small Businesses
When selecting accounting software for small businesses, keep an eye out for the following key features:
- General Ledger Management: Helps in maintaining a comprehensive record of all financial transactions, providing a clear financial overview of the business.
- Accounts Payable and Receivable: Allows businesses to efficiently manage incoming and outgoing payments, ensuring smooth cash flow.
- Financial Reporting: Aids in generating detailed financial reports which are essential for strategic planning and decision-making.
- Bank Reconciliation: Helps in matching the company's financial records with bank statements, ensuring accuracy in financial data.
- Budgeting and Forecasting: Provides tools for planning future financial needs and tracking financial performance against the budget.
- Tax Management: Assists in preparing and filing taxes, which helps in staying compliant with tax regulations.
- Inventory Management: Allows businesses to monitor and manage stock levels, ensuring they meet demand without overstocking.
- Payroll Processing: Automates the calculation and processing of employee wages, saving time and reducing errors.
- Expense Tracking: Helps in recording and categorizing business expenses, facilitating better expense management and control.
- Invoicing and Billing: Streamlines the creation and management of invoices, aiding in timely billing and payment collection.
Benefits of Accounting Software for Small Businesses
Implementing accounting software for small businesses provides several benefits for your team and your business. Here are a few you can look forward to:
- Time Savings: Automates repetitive tasks like invoicing and payroll, freeing up time for other important business activities.
- Accuracy: Reduces human errors with automatic calculations and data entry, ensuring financial records are precise.
- Financial Insights: Generates real-time reports and analytics to help make informed business decisions.
- Tax Compliance: Simplifies tax processes with integrated tax features that ensure compliance with regulations.
- Cash Flow Management: Tracks income and expenses in real-time to better manage your cash flow and financial health.
- Expense Tracking: Easily categorizes and tracks expenses, helping you to maintain a clear view of where money is going.
- Scalability: Adapts to business growth with features that support increasing volumes of transactions and data.
Costs and Pricing of Accounting Software for Small Businesses
Selecting accounting software for small businesses requires an understanding of the various pricing models and plans available. Costs vary based on features, team size, add-ons, and more. The table below summarizes common plans, their average prices, and typical features included in accounting software for small businesses solutions:
Plan Comparison Table for Accounting Software for Small Businesses
| Plan Type | Average Price | Common Features |
|---|---|---|
| Free Plan | $0 | Basic invoicing, expense tracking, and limited reports. |
| Personal Plan | $10-$25/user/month | Invoicing, expense tracking, basic reporting, and limited customer support. |
| Business Plan | $25-$75/user/month | Advanced reporting, multi-user access, project tracking, and integrations. |
| Enterprise Plan | $75-$150/user/month | Customizable dashboards, advanced analytics, dedicated support, and security features. |
Frequently Asked Questions
Here are answers to a few FAQs about accounting software for small businesses:
What is the difference between desktop accounting software and online accounting software?
Which is considered to be the best small business bookkeeping software?
Is free accounting software suitable for small businesses?
Can accounting software for small businesses help with tax preparation?
Is accounting software worth it for a sole proprietor or freelancer?
What's Next?
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