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Here are our picks for the best accounting software for small business and why we like them, as well as tips on how to choose the right software for your business‘s needs. As a small business owner, you have a lot on your plate, like making business plans, coming up with marketing strategies, keeping customers interested, and keeping track of cash.
This leaves you with little time to do accounting. It can be hard to keep track of and analyse financial information, and that’s where accounting software comes in. Small business accounting software can help you do important accounting tasks and make sure your books are in order all year long.
Before deciding on the best accounting software for small businesses, we looked into and compared different companies. We looked at the capabilities, prices, and how well they fit the industry. Here are our top choices for accounting software for small businesses.
Best Accounting Software for Small Businesses
FreshBooks

The way FreshBooks looks and how easy it is to use are both lies. FreshBooks is a full-featured, double-entry accounting system with a great user experience. FreshBooks is one of the first accounting options that a very small business should think about.
It’s easy enough for new bookkeepers to learn, but it also has all the features that a larger business would need, like payroll. It could be used by very small businesses to do basic things like send invoices, check financial accounts, and keep track of income and expenses.
Features
Pros
- Cloud-based
- User-friendly interface
- Third-party app integration
- Affordable
- Advanced invoicing features
Cons
- Mobile app has limitations
Intuit QuickBooks Online

For many years, Intuit QuickBooks Online has been the best accounting service for small businesses. It combines accounting features that work well with a great user experience. The service stands out because it is easy to change, comes in different versions with hundreds of add-on apps, and has better mobile access than most competitors.
Since Intuit QuickBooks Online is pricey, it is best for small businesses with a budget for technology. It’s simple enough that a bookkeeper with no experience can learn it, but it has enough features that a more demanding user can use its advanced accounting tools.
Features
Pros
- Excellent user experience
- Dual-screen dashboard
- In-depth contact records and transaction forms
Cons
- Expensive
- Confusing toolbar
Wave

Wave is one of only two online accounting services that you can use for free, unless you need payroll and payments, which you have to pay for. Wave uses standard accounting rules and is very good at billing and keeping track of transactions.
It’s one of the most straightforward and easy-to-understand business services out there. It works with more than one currency and has a good set of features for small businesses. It does not, however, have a dedicated tool for tracking time, full mobile access, or inventory management. You can download Wave software from here and use it.
Features
Pros
- No transaction or billing limits
- Run multiple businesses in one account
- Unlimited number of users
- Mobile app available
Cons
- Integrations only through Zapier
- Higher fees for credit cards and ACH payments
Zoho Books

Zoho Books is the accounting part of Zoho’s suite of productivity apps for small businesses. Your accounting data can be tightly linked to many other apps and functions, such as CRM, customer service, and email. In standard bookkeeping areas, Zoho Books is as good as or better than its competitors in terms of usability, flexibility, and depth.
Zoho Books is surprisingly cheap, and it even has a free version. Prices for paid plans went up this year, but it can do at least as much as some of its best competitors. Overall, though, Zoho Books is best for businesses that use some of Zoho’s other apps, but it is still useful in other situations as well.
Features
Pros
- Integrates with other Zoho apps
- Manage 1099 contractors
- Recurring invoices
- Depth and flexibility in every module
- Multiple sales and expense form types
Cons
- Payroll costs extra
- No inventory assemblies
Pabbly

Small and medium-sized businesses can use Pabbly Subscription Billing to manage recurring and subscription billing. This software gives you metrics on your monthly payments, revenue, net revenue, active customers, and new subscriptions that you can use right away.
It also automates your business workflows, how you talk to customers, and how you make invoices, so you can focus on growing your business. One of the best things about Pabbly is that it can be paid for on a subscription basis.
Features
Pros
- Drag-and-Drop Email Builder
- External and Built-In SMTP
- Marketing Automation
- List Management
- Email Tracking
Cons
- Reflecting on the whole episode
Sage 50cloud

Sage 50cloud Accounting is accounting software for small businesses that runs in the cloud and has a lot of customization options and advanced features. Sage 50cloud’s Pro Accounting plan is the cheapest option, costing less than $30 per month.
It is made for smaller businesses that are run by themselves. It can handle a wide range of accounting tasks, such as keeping track of expenses, sending out invoices, and keeping track of inventory. Sage 50cloud Accounting works well with Microsoft Office, and vice versa.
Features
Pros
- In-depth records and transactions
- Advanced inventory management tools
- Excellent support
- Microsoft 365 integration
Cons
- For Windows only
- Resource-heavy
Kashoo

The small business accounting software from Kashoo is meant to help business owners automate a lot of the work that goes into keeping books. The more you use Kashoo, the more it learns about your business through machine learning.
Kashoo looks at everything from how receipts are organised to how sales tax is tracked. This lets the tool make personalised suggestions for how to save money, cut down on waste, and improve overall efficiency. The smart, automated way that Kashoo does accounting won’t be for everyone.
Features
Pros
- Simple, clean user interface
- Good income and expense management
- Project cost tracking
Cons
- Pricey
- Doesn’t use a standard dashboard
FAQS
What type of accounting is best for small business?
Cash basis is the most common way for small businesses to keep track of their money. Most small businesses, with a few exceptions that we’ll talk about later, use the cash basis accounting method to file their tax returns and keep their books.
Is QuickBooks for small business worth it?
We think QuickBooks Online from Intuit is the best accounting software for small businesses because it is affordable and has a lot of features that make it easy to manage accounts and send invoices.
Can I use Excel for bookkeeping?
Excel can be used for many things, including keeping books. Businesses all over the world use the programme that is based on spreadsheets. Excel training is also easy to find online, so you and your employees can get up to speed if you need to.
Which is better QuickBooks or Excel?
Since Excel’s formulas are much more powerful than QuickBooks’, you can also use Excel to do complicated calculations. It’s hard or impossible to do with QuickBooks because it can’t do advanced tasks like statistical analysis and pivot tables.