QuickBooks Online is the best accounting software for most small businesses because it covers invoicing, bank feeds, reporting and payroll in one place, and most US accountants and bookkeepers can work in it.
Xero is the best alternative for businesses that want unlimited users on every plan,
FreshBooks suits service businesses that bill clients, and
Wave and
Zoho Books are the best free starting points.
Top 10 Accounting Software for Small Business, compared| RANK | ENTRY | BEST FOR | SCORE | FROM |
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| 1 |  QuickBooks OnlineQuickBooks Online comes in four tiers, Simple Start, Essentials, Plus and Advanced, with payroll sold separately under the QuickBooks Workforce name. | Small to medium businesses | 96.9 | $30 per month |
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| 2 |  XeroXero's US pricing page says it is trusted by 5 million customers and lists plans at $27, $59 and $97 a month. | Growing businesses and accountants | 95.5 | $15 per month |
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| 3 |  FreshBooksFreshBooks was founded in Toronto in 2003, and its Lite plan allows invoicing up to 5 clients. | Freelancers and small agencies | 94.2 | $17 per month |
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| 4 |  Zoho BooksZoho Books' free plan covers 1 user plus an accountant and stays available while yearly revenue is at or below $50,000; paid plans start at $15 a month billed annually. | Startups, sole proprietors, or businesses working with independent contractors | 92.8 | Free; paid plans from $15/month |
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| 5 |  WaveWave lists its Starter plan at $0 and Pro at $19 a month or $190 a year in the US. | Sole traders and freelancers | 91.4 | Free |
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| 6 |  Patriot AccountingPatriot lists Accounting Basic at $20 a month and Accounting Premium at $30 a month on month-to-month terms. | US small businesses that want simple, low-cost bookkeeping | 90.0 | From $20/month |
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| 7 |  Odoo AccountingOdoo's free plan includes one app with unlimited users, while its Standard plan includes all apps for one per-user fee. | Small businesses that want accounting tied to inventory and sales in one suite | 88.7 | Free for one app; Standard from $31.10 per user/month |
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| 8 |  PuzzlePuzzle says more than 10,000 companies use it, and its Starter plan is free for the first two months. | Venture-backed startups and their accountants | 87.3 | From $30/month billed annually |
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| 9 |  Oracle NetSuiteNetSuite was founded in 1998 and has been part of Oracle since 2016. | Large enterprises requiring end to end ERP integration | 85.9 | Custom |
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| 10 |  Quicken Business & PersonalQuicken lists Business & Personal at $8.99 a month billed annually, with invoices to unlimited clients and built-in Schedules C, E and F. | Sole proprietors and landlords who manage business and personal money together | 84.4 | From $8.99/month billed annually |
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How to choose
Start from what you need it for. Where each entry fits best:
- QuickBooks Online (#1): Small to medium businesses
- Xero (#2): Growing businesses and accountants
- FreshBooks (#3): Freelancers and small agencies
- Zoho Books (#4): Startups, sole proprietors, or businesses working with independent contractors
- Wave (#5): Sole traders and freelancers
- Patriot Accounting (#6): US small businesses that want simple, low-cost bookkeeping
- Odoo Accounting (#7): Small businesses that want accounting tied to inventory and sales in one suite
- Puzzle (#8): Venture-backed startups and their accountants
- Oracle NetSuite (#9): Large enterprises requiring end to end ERP integration
- Quicken Business & Personal (#10): Sole proprietors and landlords who manage business and personal money together
Each entry's full verdict is below.
The ranking, in detail
01
Smart accounting for modern businesses
QuickBooks Online handles invoicing, expenses, bank feeds, reconciliation, sales tax and reporting, with inventory, projects and advanced reporting on higher tiers. It connects to QuickBooks Workforce for payroll and to a large marketplace of third-party apps.
From $30 per month
PROS- Comprehensive financial reporting
- Extensive third-party app integrations
CONS- Steep learning curve for beginners
- Higher starting price point
- Best for
- Small to medium businesses
- Where it falls short
- Beginners may struggle with its steep learning curve.
- Pick something else if
- you are new to accounting software.
96.9
02
Beautiful accounting software
Xero covers invoicing, bills, bank reconciliation, expense claims and detailed reporting, with an app marketplace for payroll, inventory and payments. Every plan includes unlimited users, which suits businesses that work closely with an outside bookkeeper.
From $15 per month
PROS- Unlimited users on most plans
- Powerful bank reconciliation features
CONS- Receipt capture incurs an extra cost on basic plans
- Transaction limits on lower tiers
- Best for
- Growing businesses and accountants
- Where it falls short
- Receipt capture incurs an extra cost on basic plans.
- Pick something else if
- you need receipt capture without extra costs.
95.5
03
Invoicing and accounting made simple
FreshBooks focuses on invoicing, time tracking, expenses, estimates and client payments, with double-entry accounting reports for tax time. Plans are capped by the number of billable clients, which suits freelancers and small service firms.
From $17 per month
PROS- Very user-friendly interface
- Excellent customer support
CONS- User limits on lower-tier plans
- Can become expensive as you scale
- Best for
- Freelancers and small agencies
- Where it falls short
- Lower-tier plans restrict user limits and costs rise as you scale.
- Pick something else if
- you need unlimited users on a budget.
94.2
04
Affordable, scalable cloud accounting with unlimited billable clients even on free plans
Zoho Books covers invoicing, bills, bank feeds, inventory, projects and reporting, and connects with Zoho's CRM, payroll and other business apps. Its free plan suits very small businesses, and paid tiers add users, automation and more features.
Free; paid plans from $15/month
PROS- Genuinely free plan with no restrictions on billable clients, ideal for bootstrapped startups
- Seamless integration with other Zoho applications for CRM, HR, and inventory management
CONS- Customer support quality is inconsistent across different regions
- User interface can feel cluttered with too many features in the free tier
- Best for
- Startups, sole proprietors, or businesses working with independent contractors
- Where it falls short
- Customer support quality is inconsistent across different regions.
92.8
05
Financial tools built for small business
Wave offers free double-entry accounting and invoicing on its Starter plan, with paid card payments and payroll available as extras. The Pro plan adds automation and extra features for a monthly fee.
Free
PROS- Completely free core software
- Clean and modern dashboard
CONS- Limited inventory tracking
- Customer support is primarily email-based
- Best for
- Sole traders and freelancers
- Where it falls short
- Dedicated bookkeeping support requires a separate Advisors subscription.
- Pick something else if
- you need advanced bookkeeping features included in the base price.
91.4
06
Low-cost US accounting with optional payroll
Patriot Accounting covers income and expense tracking, invoicing and reports for US small businesses, with the Premium plan adding features such as estimates and recurring invoices. It pairs with Patriot's payroll for owners who want both from one vendor.
From From $20/month
PROS- Low flat monthly price
- Pairs with Patriot payroll in one account
CONS- Fewer integrations than QuickBooks or Xero
- Built for US businesses only
- Best for
- US small businesses that want simple, low-cost bookkeeping
- Where it falls short
- Fewer integrations than QuickBooks or Xero.
90.0
07
Open-source accounting inside a full business suite
Odoo Accounting handles invoicing, bank feeds, reconciliation and reporting, and connects natively to Odoo's inventory, sales, CRM and other apps. Businesses can start with one app and add more modules as they grow.
Free for one app; Standard from $31.10 per user/month
PROS- Accounting connects to inventory, sales and CRM out of the box
- Free plan for a single app
CONS- Setup takes more effort than simpler tools
- Fewer US bookkeepers know it
- Best for
- Small businesses that want accounting tied to inventory and sales in one suite
- Where it falls short
- Setup takes more effort than simpler tools.
88.7
08
Automated accounting built for startups
Puzzle is cloud accounting software for startups and small companies that automates transaction categorization and monthly closes, with dashboards for startup metrics. It is built to be shared between founders and their accountants.
From From $30/month billed annually
PROS- Automation reduces manual categorization
- Dashboards built around startup metrics
CONS- Narrower focus than general small business tools
- Higher tiers cost more than mainstream rivals
- Best for
- Venture-backed startups and their accountants
- Where it falls short
- Narrower focus than general small business tools.
87.3
09
The industry standard cloud ERP and order management
NetSuite combines accounting with inventory, order management, CRM and multi-entity consolidation in one cloud ERP. It is a common next step for small businesses that have outgrown QuickBooks or Xero and need more control.
From Custom
PROS- Comprehensive suite covering financials and inventory
- Highly scalable for multinational operations
CONS- Steep learning curve and implementation cost
- Best for
- Large enterprises requiring end to end ERP integration
- Where it falls short
- The steep learning curve and implementation cost may overwhelm smaller teams.
- Pick something else if
- you need a simple setup with low upfront costs.
85.9
10
Business and personal money in one app for sole proprietors
Quicken Business & Personal tracks business and personal finances side by side, with invoicing, profit and loss and cash flow reports, and Schedule C, E and F support for tax time. It suits sole proprietors and landlords more than businesses with staff.
From From $8.99/month billed annually
PROS- Low price for combined business and personal tracking
- Rental property and Schedule C support
CONS- Not built for businesses with employees or inventory
- Few bookkeepers use it for client work
- Best for
- Sole proprietors and landlords who manage business and personal money together
- Where it falls short
- Not built for businesses with employees or inventory.
84.4
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Frequently asked questions
How much does small business accounting software cost?
Entry plans run from free to about $40 a month. Wave and Zoho Books have free plans, FreshBooks starts at $23, Xero at $27 and QuickBooks Online at $38 a month, while NetSuite is quoted and costs far more.
Which accounting software is best for a small business?
QuickBooks Online is the best fit for most US small businesses because it covers the core bookkeeping jobs and most accountants can work in it. Xero is the strongest alternative, and FreshBooks suits service businesses focused on invoicing.
QuickBooks Online or Xero: which is better?
QuickBooks Online has more US accountant support and its own payroll option through QuickBooks Workforce. Xero includes unlimited users on every plan and a clean reconciliation workflow, which suits businesses that share their books with a bookkeeper.
Is there free accounting software for small businesses?
Yes. Wave's Starter plan is free, and Zoho Books has a free plan for businesses with yearly revenue up to $50,000. Odoo also has a free plan that covers a single app.
What features should small business accounting software have?
Look for bank feeds and reconciliation, invoicing, expense tracking, sales tax handling and standard reports such as profit and loss and balance sheet. Check accountant access too: QuickBooks Online and Xero both make it easy to invite a bookkeeper.
Sources
Where we checked each company's facts, and when.
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