Best Online Accounting Software Provider Shortlist
I researched over a hundred online accounting software providers and, using a set of strict criteria, condensed the list down to the 12 best tools. Here's my list (in no particular order):
- QuickBooks Online - Best comprehensive small business solution
- Xero - Best for a range of integrations
- FreshBooks - Best for service businesses
- BlackLine - Best for internal control features
- TallyPrime - Best for global operations
- Zoho Books - Best for budgeting
- Wave - Best free accounting software
- FreeAgent - Best for automation
- Aplos - Best for nonprofits
- TrulySmall - Best for small businesses needing simple financial management
- BQE CORE - Best for service firms
- Veryfi - Best for managing time & expenses
Online accounting software saves time and effort and provides valuable insights for better decision-making.
In this article, I'll provide an up-to-date overview of the best online accounting software options. It'll help you compare them and make an informed decision about which one will work best for your business online accounting software
What is Online Accounting Software?
Online accounting software is a web-based solution that has become increasingly popular due to its five unique features: accessibility, real-time financial data, automation of key accounting processes like invoicing, expense tracking and reconciliation, scalability, and integration with other business tools.
Online accounting software is best for small to medium-sized businesses, freelancers, and startups.
Overviews of the Best Online Accounting Software for 2023
Here, I'll expand on each of the online accounting tools that made my top 12 shortlist. I have purposely kept each section brief and followed a structure allowing you to compare their key features easily.
1. QuickBooks Online - Best comprehensive small business solution
QuickBooks Online is easy to use, even for people with no accounting experience, and is especially suited to the needs of small business owners and solopreneurs. All plans include a mobile app, user support, and app integration.
QuickBooks Online is an excellent choice for small business owners and freelancers needing basic accounting and bookkeeping.
Why I picked QuickBooks Online
I selected QuickBooks Online as an excellent online accounting software option because of its comprehensive features, ease of use, and popularity among small businesses and professionals.
With its intuitive interface and user-friendly design, QuickBooks Online is easy to navigate. The platform offers helpful tutorials and resources to help users make the most of its features.
QuickBooks Online Standout Features and Integrations
Standout features include invoicing, expense tracking, bank reconciliation, inventory management, payroll processing, automated sales tax calculations and scalability (it grows with your business). It also offers reporting and analytics tools, enabling businesses to gain real-time financial insights.
Integrations include over 700 business apps and services, including many CRM, payment processing, and time-tracking tools.
Pricing: From $15 per month
Free trial: 30-day free trial
- Breadth and quality of features
- Issues with transition from QuickBooks Desktop
- Occasional customer support issues
2. Xero - Best for a range of integrations
Xero is a global small business platform that offers comprehensive accounting features and is easy to use, even for people without accounting experience. Zero's mobile app allows users to access their financial information from anywhere.
Overall, Xero is an excellent choice for small and micro business owners and freelancers.
Why I picked Xero
I included Xero among the top online accounting software options because of its comprehensive features, user-friendly interface, and strong support for small businesses. Xero offers various accounting features, including invoicing, expenses, payroll, inventory, bank connections, third-party integrations and analytics and reporting tools. It also helps automate data entry and payment reminders.
Xero users have access to its versatile dashboards and excellent mobile app.
Xero Standout Features and Integrations
Standout features include comprehensive accounting and bookkeeping features, real-time financial analytics and reporting, access to compliance tools, automation features and versatile business dashboards. It also offers users excellent support and education resources, including courses, guides, webinars, video tutorials and the help of a dedicated advisor to get you started.
Integrations include CRM systems (Salesforce and HubSpot); e-commerce platforms (Shopify, WooCommerce, and BigCommerce); payment gateways, including PayPal, Stripe, and Square; HR solutions like Gusto, Zenefits, and BambooHR; project management and time tracking tools such as Trello, Asana, and Toggl Track and many others.
Pricing: From $13 per month
Free trial: 30-day free trial
- Intuitive user interface
- Custom integrations and add-ons
- Real-time reporting
- Issues with inventory management
- No phone call support
3. FreshBooks - Best for service businesses
FreshBooks is an online accounting platform designed for small service businesses. Its invoicing capabilities are a standout feature, allowing users to create professional invoices, track payments, and set up automatic payment reminders.
FreshBooks is an excellent choice for small business owners needing simple yet comprehensive accounting software.
Why I picked FreshBooks
I included FreshBooks in the shortlist of the best online accounting software options because of its user-friendly interface, time-saving features, and strong support for small businesses and freelancers. Its customization options, cloud-based accessibility, seamless integration with third-party apps, and reliable security measures make it an ideal choice for service businesses.
FreshBooks Standout Features and Integrations
Standout features include customized and branded invoices and cost estimates, time and expense tracking, payment processing, financial reporting, and collaboration tools. FreshBooks also has time-saving features like recurrent invoicing and late payment reminders.
Integrations include CRM systems (Salesforce, HubSpot, and Capsule), e-commerce platforms (Shopify and WooCommerce), Payment processing (PayPal, Stripe, and Square), time tracking tools (Trello, Basecamp, and Toggl Track), and marketing tools (Mailchimp and Zapier).
Pricing: from $6.80 per month
Free trial: 30-day free trial
- Branded and recurrent invoicing features
- Reporting and dashboards
- Reliability and adaptability
- Occasional lag in automatic payments
- Mobile app needs improvements
4. BlackLine - Best for internal control features
BlackLine is a cloud-based financial accounting software providing account reconciliation, journal entry management, and financial reporting. BlackLine's user-friendly platform offers helpful automation features, reducing manual data entry and minimizing errors.
A standout feature of BlackLine is its ability to integrate with many ERP and financial systems, making it a flexible solution for businesses with complex accounting needs.
BlackLine is an excellent tool for process standardization and internal control.
Why I picked BlackLine
I picked BlackLine for its automation features, intercompany accounting, and improved accuracy and transparency of financial operations. It is user-friendly and intuitive to use.
BlackLine Standout Features and Integrations
Standout features include automated account reconciliations, intercompany accounting, real-time reporting, journal entry management, compliance and control features and real-time, flexible, personalizable dashboards.
Integrations include a range of Enterprise Resource Planning (ERP) systems and other financial applications such as: SAP ERP systems, Oracle ERP systems, Microsoft Dynamics ERP solutions, Workday Financial Management and many more.
Pricing: Contact Blackline for customized pricing.
Free trial: None
- Reconciliation dashboard
- Real-time detailed reporting
- Some integrations are very technical
5. TallyPrime - Best for global operations
TallyPrime is designed for global small and medium companies and prides itself on its simplicity. It offers a suite of accounting features and inventory management tools.
Its standout feature is the ability to handle multiple currencies and languages, making it an excellent choice for enterprises with global operations.
Overall, TallyPrime is a comprehensive and easy-to-use online accounting software solution for global small and medium-sized businesses.
Why I picked TallyPrime
I selected TallyPrime for its easy-to-use interface, efficient inventory management, multi-currency transactions, and tax compliance tools. It is a versatile solution that simplifies complex accounting tasks, offers real-time reporting and analysis, and caters to diverse industry requirements.
TallyPrime Standout Features and Integrations
Standout features include efficient inventory management, multi-currency support, financial reporting, real-time business dashboards, and ease of use.
Integrations can be developed to include e-commerce platforms like Shopify, WooCommerce, and Magento, CRM systems such as Salesforce, Zoho CRM, and HubSpot, and tax management tools and government portals to simplify tax filing and ensure regulatory compliance. TallyPrime offers limited direct integration capabilities with third-party applications compared to other accounting software.
Pricing: From $81 for 3 months
Free trial: 7-day free trial
- User-friendly interface
- Customizable reporting
- Superb customer support
- Limited invoicing template options
6. Zoho Books - Best for budgeting
Zoho Books is the online accounting platform for growing businesses today, offering invoicing, expense tracking, inventory management, and financial reporting. Zoho Books' user-friendly interface and automation features make it easy to use.
A standout feature of Zoho Books is that it integrates with other Zoho apps, making it a part of an extensive suite of business applications.
Zoho Books is an excellent project management accounting software for managing budgets, billing, timeline tracking, and forecasting.
Why I picked Zoho Books
I chose Zoho Books for its comprehensive features, including customizable invoicing, automated expense tracking, inventory management, multi-currency support, and tax compliance tools. Zoho Books integrates with other Zoho applications making it an especially appropriate option for entrepreneurs.
Zoho Books Standout Features and Integrations
Standout features include customizable invoicing, tracking invoice and expense status, recurrent invoices and automated payment reminders, inventory management, multi-currency transactions, automatic tax calculations and tax report generation, and mobile access. The real-time dashboard visualizes cash flow, income and expenses, your top expenses, and project status.
Integrations include other Zoho applications, payment gateways, including PayPal, Stripe, Square, and 2Checkout, CRM systems such as Salesforce, HubSpot, and Pipedrive, expense management solutions like Expensify, Receipt Bank, and Pleo, workflow tools such as Zapier, Automate.io, and Microsoft Flow and others.
Pricing: Contact Zoho for custom pricing.
Free trial: 14-day free trial
- Clean and clear layout
- Simple external banking feeds
- Integration with other Zoho products
- Customer support
- Can't customize automated reports
- Inventory feature needs improvement
7. Wave - Best free accounting software
Wave is a popular accounting software for small businesses and freelancers. It provides features including invoicing, expense tracking, and financial reporting.
Wave's standout feature is that it is free, making it an attractive option for small businesses with limited budgets. Despite being free, Wave offers helpful automation features like bank connections, payment reminders, and automatic report generation.
Overall, Wave is an excellent choice for businesses and freelancers with no payroll needing a reliable accounting software solution that won’t break the bank.
Why I picked Wave
I selected Wave for its user-friendly, feature-rich, and cost-effective online accounting solution geared towards small businesses, freelancers, and entrepreneurs. Wave offers free invoicing, expense tracking, and basic bookkeeping functionalities.
Wave Standout Features and Integrations
Standout features include customizable invoices with unlimited invoicing capabilities at no cost, double-entry accounting, account reconciliation, financial reports, receipts scanning, user-friendly interface.
Integrations include a limited but essential set of third-party tools and services such as Wave payments, Wave payroll and receipts, Zapier and Etsy.
Free trial: N/A
- Basics are easy and quick
- Helpful tech support
- Simple to use
- Website occasionally freezes
- Limited data entry automation
8. FreeAgent - Best for automation
FreeAgent is an award-winning accounting software option for small businesses, freelancers, and contractors. It helps manage day-to-day administrative and accounting processes and offers features like invoicing, expense tracking, project management, and financial reporting.
FreeAgent's standout feature is its automation capabilities, saving your business time by reducing manual data entry. It also offers integrations with other business applications, such as PayPal, Stripe, and Dropbox, so you can manage your business operations from a single platform.
FreeAgent is a good fit for businesses looking for a comprehensive accounting software solution with automation capabilities and integrations.
Why I picked FreeAgent
I selected FreeAgent for its automation capabilities and the opportunities it offers small businesses and freelancers to manage day-to-day administration and accounting painlessly. It is a comprehensive and user-friendly online accounting solution.
FreeAgent Standout Features and Integrations
Standout features include customizable invoicing features, including branding and recurrent invoices, multi-currency support, tax compliance and forecasting, time tracking and project management, intuitive dashboard and reporting.
Integrations include payment gateways such as PayPal, Stripe, and GoCardless, CRM systems like Capsule CRM and Tactile CRM; e-commerce platforms such as Shopify and WooCommerce, time tracking tools like Toggl, Harvest, and TimeCamp, expense management solutions like Receipt Bank and Expensify, workflow tools such as Zapier and Integromat and others.
Pricing: From $24 per month, free if you have a business account with NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle.
Free trial: 30-day free trial
- Intuitive and easy to use
- Sends reminders
- One-stop solution for all accounting needs
- Mobile app is slightly buggy
- Doesn't scale—strictly for small and micro-businesses
9. Aplos - Best for nonprofits
Aplos is a cloud-based accounting software designed specifically for nonprofit organizations. It offers fund accounting, donation tracking, and financial reporting. Aplos is easy to use and has a user-friendly interface.
Additionally, Aplos offers a range of integrations with other nonprofit software. For example, it links with donor management and fundraising systems, making it easy to manage operations from a single platform.
Overall, Aplos is an excellent choice for nonprofits seeking a comprehensive and easy-to-use online accounting software solution.
Why I picked Aplos
I chose Aplos for its specialized focus on non-profit organizations and churches, providing a tailored and user-friendly online accounting solution to address their unique financial management needs.
Aplos Standout Features and Integrations
Standout features include fund accounting allowing users to track and report on individual funds and donations, donor management tools, customizable online giving forms, event registration and ticketing features designed to comply with FASB accounting standards for non-profit organizations.
Integrations include QuickBooks Online, Gusto, a payroll and HR management platform, Church Community Builder, Kindful, a donor management and fundraising platform, DonorSearch, Txt2Give and Zapier.
Pricing: From $79 per month
Free trial: 15-day free trial
- Easy to use
- Scales for larger churches and nonprofits
- Relevant integrations
- Could do with user interface improvements
- Reporting is limited and not customizable
10. TrulySmall Accounting - Best for small businesses needing simple financial management
TrulySmall Accounting automates bookkeeping tasks for small business owners. It uses machine learning to reconcile expenses and bank statements, provide real-time reports with one click, and match receipts to transactions.
This online accounting tool is known for its affordability and user-friendly interface. TrulySmall also offers integrations with other business applications, making it easy to manage your operations from a single platform.
TrulySmall Accounting is an excellent choice for small businesses looking to automate their bookkeeping using an affordable and easy-to-use accounting software solution.
Why I picked TrulySmall Accounting
I picked TrulySmall Accounting for its simplified approach to accounting, expense tracking and scanning, which specifically caters to the needs of small businesses, solopreneurs, and freelancers.
TrulySmall Accounting Standout Features and Integrations
Standout features include easily customizable invoicing, simplified expense management, essential bookkeeping features, allowing users to invite team members or external accountants to collaborate on their financial data, receipt scanning, bank-level security measures to protect users' financial data, real-time dashboard and mobile app.
Integrations: Truly small Accounting does not offer direct integrations with third-party applications.
Pricing: From $20 per month
Free trial: 14-day free trial
- Bank connections
- Automated reconciliation
- Receipt scanning
- Pricey for what it is
11. BQE CORE - Best for service firms
BQE CORE is a cloud-based accounting software designed specifically for professional service firms. It offers time and expense tracking, invoicing, project management, and financial reporting.
BQE CORE is known for its flexible reporting capabilities. It also offers a range of integrations with other business applications, making it easy to manage operations from a single platform.
BQE CORE is a reliable accounting software solution ideal for professional service firms.
Why I picked BQE CORE
I included BQE CORE in the top online accounting software solutions for its comprehensive project management and accounting features designed to cater to the unique needs of professional service firms, such as architects, engineers, consultants, and legal professionals.
BQE CORE Standout Features and Integrations
Standout features include time and expense tracking, project management, resource scheduling and forecasting capabilities, customizable real-time reports and dashboards, tools tailored for various professional service industries, a user-friendly interface, and mobile app.
Integrations include popular accounting software like QuickBooks and Xero, payment gateways like Stripe, Authorize.Net, and PayPal, CRM systems like Salesforce and HubSpot, cloud storage solutions like Google Drive, Dropbox, and OneDrive, email clients like Microsoft Outlook and Gmail, and Zapier.
Pricing: Contact BQE CORE for customized pricing.
Free trial: 15-day free trial
- Easy to track processes in one place
- Ability to customize invoicing and reporting
- Excellent customer support
- Time-consuming to learn
- Invoice editing not user friendly
12. Veryfi - Best for managing time & expenses
Veryfi Receipts OCR & Expenses is an artificial intelligence-powered receipt and expense tracking software for businesses of all sizes. It uses advanced Optical Character Recognition (OCR) technology to extract data from receipts, invoices, and other financial documents, making it easy to track expenses.
Veryfi Receipts OCR & Expenses offers automatic categorization, real-time expense tracking, and integrations with popular online accounting software like QuickBooks and Xero.
Overall, Veryfi Receipts OCR & Expenses is a user-friendly solution for businesses looking to make their expense tracking more efficient.
Why I picked Veryfi
I picked Veryfi for its innovative approach to automating bookkeeping and expense management, utilizing AI and machine learning to cater to the needs of small businesses, freelancers, and contractors.
Veryfi Standout Features and Integrations
Standout features include using AI and machine learning to extract data from receipts and invoices in real-time, automatic categorization of transactions, mileage tracking using GPS, document management, encryption and secure data storage, modern and intuitive interface and mobile app.
Integrations include popular accounting software like QuickBooks, Xero, and FreshBooks, Expensify, a leading expense management software; payment gateways such as Stripe, and cloud storage solutions like Google Drive, Dropbox, OneDrive, and Zapier.
Pricing: From $15 for up to 300 scans per month, free for up to 30 scans per month
Free trial: None
- Retailer identification
- Duplicate receipts verification (and deletion)
- Ease of integrations
- Disrupted services on occasion
- Tier prices jump steeply
Other Online Accounting Software Options
The market for online accounting software has grown significantly in recent years, and there are estimates that it now accounts for a substantial proportion of the overall accounting software market. This growth can be attributed to the increased demand for user-friendly, cost-effective, and scalable solutions that cater to the unique needs of today’s businesses.
Here are a few more worthwhile options that didn't make the best online accounting software providers list:
- Sage 50Cloud Accounting - Best for automation and security
- NetSuite - Best for resource planning
- Sage Intacct - Best for using AI
- SAP Business One - Best for financial forecasting
- Acumatica - Best for managing financial data
- Odoo ERP - Best open-source accounting software
- ZarMoney - Best for flexibility
I researched and compared dozens of online accounting software tools to create a long list of options. Next, I considered specific software features and condensed the list further by looking at how easy the software is to use and the technical support available for onboarding, training, and maintenance, narrowing the initial list of close to 100 to the best 12 options.
Here's an overview of the primary selection and evaluation criteria I used to develop my list of the best online accounting software for this article:
Online accounting software typically shares core functionality features, including:
- Invoicing features and automation
- Expense tracking and scanning
- Bank reconciliation
- Financial reporting and visualization
- Tax compliance
- Real-time data
- Customizable dashboards
- Mobile apps
- Bank-level data security
Apart from the core functionality, different online accounting software solutions have features that make them stand out. For instance, some offer solutions for a specific industry, others are especially good for automation and integrations, and yet others offer unique features like resource tracking.
Advanced functionality and standout features are not good if the software takes months to learn and is challenging to use. Online accounting solutions benefit from intuitive and user-friendly interfaces and easy-to-use mobile apps.
Online accounting software core functionality is magnified and enhanced by integrating easily with CRM systems, other accounting software, payroll software, payment gateways, e-commerce platforms, HR systems, document management tools and others.
Integrations mustn't be overly technical.
Customer support is an essential feature of online accounting software. This includes education and learning resources, dedicated support during onboarding, and technical support in case of problems during use.
Online accounting software providers usually claim to have excellent customer support. The truth is, some do, and some don’t—it is important to dig deep and even test the level of support.
Price and Value
Online accounting software is generally cheaper than offline accounting options (and costs are distributed since you usually will pay a subscription). Still, higher-end online accounting solutions can cost between &50 and &500 per month, with some offering custom pricing that can be higher.
Assessing and matching your needs to the available software options is essential. You may find that a basic plan, or even a free option, is more than adequate to accommodate your business’s accounting and bookkeeping needs.
What are the benefits of using online accounting software?
What is the most popular online accounting software?
Which software is easiest to use?
Selecting the right online accounting software will help to ensure your company’s financial processes are efficient, accurate, secure, and scalable.
Now it is up to you.
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