18 Best Accounting Software for Small Businesses (& Why They Work)
Best Accounting Software for Small Businesses Shortlist
Based on my research and selection criteria, here are the best accounting software for small businesses available on the current market:
Our one-on-one guidance will help you find the perfect fit.
If you're managing your business's finances with a collection of spreadsheets... watch out for sharks.
That's right, sharks.
Y'know, the slick-haired, silver-tongued tech bros who walk into—then walk all over—operators with archaic financial systems, charging an arm and a leg to "modernize your business". The business sharks.
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.
You don't need to be aggressively sold to, though; you can find an accounting software for your small business that helps you keep more accurate, timely records, scale your operations, and stay compliant—without paying for shark repellent.
To help you do this, I've gathered and reviewed the best accounting software for small businesses available on the market right now.
What is Accounting Software for small businesses?
Accounting software for small businesses often comes with the same features and benefits as standard accounting software, but generally for a cheaper price. This means it can help you:
- Generate reports that streamline and automate financial processes
- Give you the ability to check in on how your business is doing in real-time
- Keep a clean general ledger (& audit trail)
- Help manage your accounts payable and receivable functions
- Expedite the end-of-year tax filing process
Why Trust Our Accounting Software Reviews
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.
We invest in deep research to help our audience make better software purchasing decisions. We’ve tested more than 2,000 tools for different finance use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent & our accounting software review methodology.
Best Accounting Software for Small Businesses Comparison Chart
In case you’re morally opposed to scrolling further and don’t find my dry wit “plucky and interesting”, here’s a shortcut: a quick overview of the tools I’ve covered, how much they cost, and links to go check them out for yourself.
If you really do love me (or just want to read a deeper analysis on each of these tools), keep on going.
| Tools | Price | |
|---|---|---|
| Xero | From $15/month (billed annually) | Website |
| QuickBooks Online | From $15/user/month | Website |
| Zoho Books | From $15/month (billed annually) | Website |
| FreshBooks | From $10/month (billed annually) | Website |
| BlackLine | Pricing upon request | Website |
| Xledger | Pricing upon request | Website |
| Patriot Accounting | From $20/month | Website |
| Sage Intaact | Pricing upon request | Website |
| Kashoo | From $20/month | Website |
| WAVE | From $16/user/month | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose an Accounting Software for Small Businesses
There's a reason the sharks do what they do—selecting software is overwhelming. You want the best system, at the best price, complete with all the features you need (and a few you don't need, but really do like).
To help keep your head screwed on straight while you look at the options, keep the following factors top-of-mind:
The Problem You're Solving
Begin by pinpointing the specific financial and operational challenges you aim to address, as your business stands right now. Once that's clear, make a list of the most likely features you'll need if your business grows the way you intend.
Who's Going To Use the Software
Is it just for you or do you have a small team of executives?
To accurately assess costs and requirements needed for you small business bookkeeping software, figure out who's going to be using the software and how many licenses will be needed. It's a good idea to determine whether you want to prioritize ease of use for less financially-savvy users, or advanced features for a subset of power users.
Which Tools Need To Get Along
Evaluate which tools you currently use, that the business accounting software will need to integrate with—such as ERP systems, CRM tools, or HR software. Decide what existing tools will remain and which ones can be replaced by the new accounting solution.
Your Ideal Outcomes
Finally, be clear on what the software needs to deliver to be deemed successful.
This could be specific capabilities you want to gain or processes you want to improve—plus, determine metrics you'll use to measure success. For example, an important outcome might be shortening the time it takes to close your books at the end of the year, so you'd use "number of days to prepare EOY financials" as your guiding metric.
Best Accounting Software for Small Businesses Reviews
Ah, yes, the pièce de résistance.
Here are my in-depth overviews of the best small business accounting software that my team and I chose, complete with information about each solution’s features, pricing, integrations, customer support, usability, and overall value. Plus, we’ve even wiggled in some pros and cons to help you compare each option.
If these 10 don’t work for you, don’t worry. You’ll also find a list of 8 other tools that didn’t quite make my cut, below the main overview.
Xero is a New Zealand-based cloud accounting platform for fast-growing small and medium-sized businesses. Its three pricing plans let you upgrade to get new features as your business expands.
Why I Picked Xero: Xero doesn’t have the most features of any accounting software out there. However, its three plans are designed for growing businesses, letting you upgrade as your business expands.
Xero Standout Features and Integrations
Standout features include bank reconciliations, bill and receipt capture, bulk transaction reconciliation, business snapshots, invoicing, multi-currency tracking, and project management.
Integrations include Bill.com, Dubsado, Expensify, Float Cashflow Forecasting, HubDoc, HubSpot CRM, Microsoft Outlook, Shopify, Stripe, and Timely. Xero also offers payroll through Gusto as a paid add-on to its core plans. Plus, you can connect a paid Zapier account to unlock even more integrations.
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. You can even hire a remote bookkeeper through Quickbooks if you need one.
Quickbooks Standout Features and Integrations
Standout features include accountant access, bank reconciliations, income and expense tracking, inventory tracking, invoicing, financial reporting, and live bookkeeping services.
Several core Quickbooks functions can be customized to suit different industries, although Quickbooks itself does not offer industry-specific features.
I really like that QuickBooks has been specifically designed so that you don’t need any accounting experience whatsoever to be able to use it.
Integrations are available with over 750 business applications, from internal systems to eCommerce websites. These include Amazon Business, eBay, Etsy, Gusto, MailChimp, Method:CRM, PayPal, RewardBuilder, Shopify, and Square.
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 robust 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: The software allows users to create and manage invoices, including recurring invoices and partial invoices for out-of-stock items. This feature is particularly beneficial for businesses that require regular billing cycles, ensuring that invoices are sent out on time and payments are tracked efficiently.
Zoho Books Standout Features and Integrations
Standout features include expense tracking, bank reconciliation, inventory management, project expenses, billable hours, time-tracking, multi-currency support, and automated alerts.
Integrations include Stripe, PayPal, Authorize.Net, Payflow Pro, Payments Pro, 2Checkout, Braintree, and a range of Zoho products, like Zoho CRM and Zoho People.
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.
FreshBooks’s bookkeeping side is easy enough to learn on your own—perfect for small service businesses that may not have an accountant.
FreshBooks Standout Features and Integrations
Standout features that help service businesses handle their accounting include custom invoicing, mileage tracking, a mobile app, payment management, project management, and time-tracking.
I like that it also helps service businesses craft proposals, send estimates, and manage clients.
Integrations include a massive number of business applications through the FreshBooks app store. Some of the top integrations include Calendly, HubSpot CRM, GSuite, MailChimp, Shopify, Slack, Squarespace, Toggl, WooCommerce, and ZenDesk. You can connect a paid Zapier account to access even more integrations.
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 a comprehensive 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. I think that’s definitely a worthwhile feature for companies that are already using SAP because BlackLine’s SAP integration unlocks BlackLine’s prized Smart Close feature.
BlackLine Standout Features and Integrations
Standout features include everything involved in financial closing, especially the Smart Close feature you unlock when you integrate BlackLine and SAP.
I like how Smart Close standardizes the closing process by eliminating many manual tasks usually involved in financial closing. It can also automate the accounts receivable process and help larger organizations with intercompany financial management.
Integrations include Acumatica, Intacct, Epicor, Microsoft Dynamics, Oracle, PeopleSoft, Quickbooks, Sage, SAP, and Workday. Integrating with SAP unlocks BlackLine’s Smart Close feature.
BlackLine can integrate with several other accounting and ERP systems as well.
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 robust 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. As a vendor, Xledger caters to a variety of sectors including nonprofits, professional services, and finance sectors.
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.
Xledger Standout Features and Integrations
Features include real-time reporting, automation of core financial processes, scalable cloud architecture, integrated project management, advanced budgeting and forecasting, multi-currency and multi-entity support, robust security protocols, comprehensive audit trails, and intuitive dashboards for financial analytics.
Xledger natively integrates with several other tools and platforms to provide a seamless workflow experience. These integrations include Microsoft Excel, Salesforce, Power BI, Bank APIs for automated banking transactions, HR systems, procurement software, project management tools, customer relationship management (CRM) systems, electronic payment processing platforms, and tax compliance software.
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. The software provides essential features such as bookkeeping, payroll integration, expense tracking, invoicing, and tax preparation, making it accessible even for those without extensive accounting knowledge.
Why I Picked Patriot Accounting: Patriot Accounting has 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.
Patriot Accounting Standout Features and Integrations
Standout features include credit card payments, ACH payments, account reconciliation, recurring invoices, payment reminders, profit and loss statements, tax filing, direct deposits, employee portals, and smart suggestions.
Integrations include Stripe and bank connections via Plaid.
Pros and cons
Pros:
- Mobile-friendly platform
- Range of payroll features
- User-friendly interface
Cons:
- Limited scalability
- Lacks 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 is 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: The software 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.
Sage Intacct Standout Features and Integrations
Standout features include automated project billing, resource management, detailed project costing, time and expense management, and anomaly detection using AI.
Integrations include AvidXchange, BILL, Emburse Nexonia, Expensify, Stampli, Yooz, Ottimate, BlueSnap, Workday Adaptive Planning, Solver, Martus, True Sky, Salesforce, and HubSpot.
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
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.
Kashoo Standout Features and Integrations
Standout features include invoicing, expense tracking, invoice templates, comprehensive reports to analyze cash flow and financial performance, multi-currency support, and budgeting tools.
Integrations include Square, Stripe, Bluepay, FreshBooks Classic, SurePayroll, PaymentEvolution, Paychex, ANZ, Bank Australia, ING, and Bankwest.
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
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: The platform offers features like automatic transaction imports from bank accounts, a customizable chart of accounts, and expense tracking. Its double-entry accounting system ensures accuracy, while its ability to generate comprehensive financial reports like profit and loss statements and balance sheets helps you maintain a clear understanding of their financial health.
Wave Standout Features and Integrations
Standout features include invoicing, receipt scanning, payroll management, payment processing, and tax calculation tools.
Integrations include PayPal, Google Sheets, Etsy, Stripe, and Shopify.
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 a few more worthwhile accounting software for small businesses that didn’t make the list:
Accounting Software for Small Businesses Selection Criteria
When choosing accounting software, there's nothing more important than system functionality. How well does it actually complete the jobs it claims to perform... and how easy does it make your life in the process?
My team and I have personally tried and researched these tools to ensure they meet the highest standards for the finance function. Here's how we evaluate each accounting software option:
Core Accounting Software Functionality - 25% of total weighting score
Common features for accounting software typically include general ledger, accounts payable and receivable, bank reconciliation, expense management, financial reporting, payroll processing, budgeting and forecasting, tax management, multi-currency support, and integration capabilities.
To be considered for inclusion on my list of the best accounting software for small businesses, the solution had to support the ability to fulfill common use cases.
- Managing financial transactions
- Generating standard financial reports
- Handling payroll and tax calculations
- Tracking expenses and budgets
- Integrating with other business systems
Additional Standout Features - 25% of total weighting score
- Advanced financial planning and analysis (FP&A) capabilities
- Comprehensive project management integration
- Robust security features for data protection
- Enhanced automation for routine tasks
- Customizable reporting and dashboards
Usability - 10% of total weighting score
- Intuitive interface design
- Easy navigation with clear menu structures
- Minimal clicks to perform key functions
- User-friendly dashboards
- Mobile accessibility for on-the-go management
Onboarding - 10% of total weighting score
- Availability of training videos and tutorials
- Interactive product tours for new users
- Templates to streamline initial setup
- Chatbots for real-time assistance
- Webinars for in-depth training sessions
Customer Support - 10% of total weighting score
- Availability of 24/7 customer support
- Multiple support channels (phone, email, chat)
- Comprehensive knowledge base
- Quick response times
- Personalized support options
Value For Money - 10% of total weighting score
- Competitive pricing models
- Transparent pricing structure
- Feature-to-price ratio
- Flexible payment options
- Discounts for long-term commitments
Customer Reviews - 10% of total weighting score
- Positive feedback on reliability and performance
- High ratings for customer satisfaction
- Testimonials on ease of use
- Reviews highlighting effective customer support
- Recommendations based on real-world use cases
Trends in Accounting Software for Small Businesses
As with pretty much any other online tool, accounting software has evolved rapidly with the advent of easily adopted AI.
Reviewing recent product updates, press releases, and release logs from leading tools reveals several other key trends, such as:
- The features and functionalities that are most in demand,
- Those that are emerging as novel, and
- The ones that are becoming less important.
Here's what stood out the most:
Intelligent Automation and AI Integration
- AI-Powered Analytics and Insights: Accounting software for small businesses are increasingly integrating AI to provide predictive analytics and actionable insights, enabling owners to make data-driven decisions with greater accuracy.
- Automated Financial Processes: Automation of routine financial tasks, such as invoicing and reconciliation, is becoming standard, reducing manual workload and minimizing errors. Most small business accounting software come with payroll integration also to help ensure smooth operations for all financial management tasks.
Enhanced User Experience
- Intuitive User Interfaces: Recent updates focus on improving user interfaces to be more intuitive and user-friendly, enhancing overall productivity and user satisfaction.
- Mobile Accessibility: There is a growing emphasis on mobile-friendly accounting solutions, allowing financial professionals to manage tasks on the go with seamless synchronization.
- Cloud-Based Solutions: Along with mobile accessibility, online accounting software for small businesses is becoming more prevalent. With online and cloud-based solutions, users can access their business bookkeeping software at any time on any device.
Advanced Security Measures
- Robust Data Security: Some of the best accounting software for small businesses now use advanced security protocols, including encryption and multi-factor authentication, to protect sensitive financial data from cyber threats.
- Compliance Management: Enhanced features for regulatory compliance ensure businesses can easily adhere to industry standards and legal requirements.
Expanded Integration Capabilities
- Seamless Third-Party Integrations: Modern accounting software emphasizes seamless integration with other business tools and platforms, streamlining workflows and ensuring data consistency across systems.
- APIs and Customization Options: The availability of APIs and customizable modules allows businesses to tailor accounting systems to their specific needs, improving flexibility and functionality.
Sustainability and Environmental Impact
- Green Accounting Initiatives: Sustainability features, such as carbon footprint tracking and resource optimization, are being integrated into accounting software to support environmentally conscious business practices. This type of feature can benefit you regardless of whether you're a small consulting firm or a newly built service company.
- Energy Management Modules: Tools for monitoring and managing energy consumption within enterprises are becoming more prevalent, reflecting a growing focus on sustainability.
Features Aging Out
- Standalone Tax Management: As integration with broader financial systems improves, standalone tax management features are diminishing, pushing businesses to adopt more integrated solutions.
- Basic Financial Reporting: Okay, not quite aging out... but changing. Basic financial reporting remains essential, but there is a growing emphasis on advanced analytics and visualization tools that offer deeper insights and greater value.
Features of Accounting Software for Small Businesses
Modern accounting systems for small businesses often include a range of features, such as general ledger management, small business invoicing, budgeting, payroll management, and reporting tools—but not all features are created equal.
Here are the most important features to look for when shopping for your next small business financial software:
- General Ledger - A central repository for all financial transactions, helping maintain organized and accurate financial records.
- Accounts Payable and Receivable - Tracks money owed to and by the business, ensuring timely payments and collections to maintain healthy cash flow.
- Bank Reconciliation - Compares internal records with bank statements, identifying discrepancies to prevent errors and fraud.
- Expense Management - Tracks and categorizes expenses, helping control costs and ensure accurate recording for financial oversight.
- Financial Reporting - Generates essential financial statements, providing insights into financial performance for informed decision-making.
- Payroll Processing - Calculates and processes employee salaries, ensuring timely and accurate payments and compliance with tax regulations.
- Budgeting and Forecasting - Helps create and monitor budgets and forecasts, aiding in financial planning and resource allocation.
- Tax Management - Assists with calculating and filing taxes, ensuring compliance with tax laws and reducing the risk of penalties.
- Multi-Currency Support - Handles transactions in multiple currencies, facilitating international business operations and accurate financial reporting.
- Integration Capabilities - Seamlessly connects with other business systems, ensuring smooth data flow and enhancing overall efficiency.
Benefits of Accounting Software for Small Businesses
Accounting software for small businesses can do a lot, but it shouldn't be looked at to do everything. Here are the 5 main benefits you'll likely experience once you're set up with an accounting system for small businesses.
- Enhanced Accuracy - Accounting software reduces the risk of human errors by automating data entry and calculations, ensuring financial records are precise and reliable.
- Time Efficiency- Automating routine financial tasks such as invoicing, payroll, and reconciliation saves significant time, allowing financial professionals to focus on strategic activities.
- Real-Time Financial Insights - With real-time reporting and dashboards, accounting software provides immediate visibility into financial performance, enabling timely and informed decision-making.
- Improved Compliance - Built-in compliance features help businesses adhere to tax regulations and industry standards, reducing the risk of fines and legal issues.
- Better Cash Flow Management - Accounting software offers tools for tracking receivables and payables, helping businesses manage their cash flow more effectively and maintain financial stability.
By leveraging these benefits, you can improve your financial management processes, enhance operational efficiency, and make more strategic decisions.
Costs & Pricing for Accounting Software
| Plan Type | Cost | Common Features | Who Is It For? |
|---|---|---|---|
| Free | $0/user/month (duh) | - Basic invoicing - Expense tracking - Limited reporting | Freelancers, sole proprietors |
| Basic | $10-$20/user/month | - General ledger - Accounts payable and receivable - Bank reconciliation - Basic financial reports | Small businesses |
| Standard | $30-$50/user/month | - Payroll processing - Budgeting and forecasting - Multi-currency support | Growing small to mid-sized businesses |
| Premium | $60-$100/user/month | - Advanced reporting - Integrations with CRM and ERP systems - Enhanced security features | Mid-sized to larger businesses |
| Enterprise | Custom pricing | - Dedicated support - Advanced customization - Comprehensive compliance management - Large-scale transaction processing | Large enterprises, businesses with complex needs |
Of course, these are just generalized ranges to give you a bit of an idea about what you'll be paying for, and getting, with each type of software.
If you're seeing a few options that could work for you, I recommend reaching out to the vendor directly to get the details.
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?
No accounting platform is “the best” for everyone. That depends on many things, like your industry, company size, vendors and suppliers, products and services, and more.
So compare each carefully and grab a free demo or a free trial if you can. Your accounting and finance team might be able to help you pick one, too. They’re the ones who will use it, after all.
In the meantime, subscribe to our email newsletter for the latest accounting and finance resources and insights.