A closer look at our top accounting software picks
QuickBooks Online
Best overall accounting software
QuickBooks
QuickBooks Online
NerdWallet Rating
5.0
Starting At
$35
Additional pricing tiers (per month): $65, $99, $235.
Price
$35 per month for the Simple Start plan.
$65 per month for the Essentials plan.
$99 per month for the Plus plan.
$235 per month for the Advanced plan.
» MORE: Explore all QuickBooks plans and pricing
Why we picked it
QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set and scalability. In addition to core accounting capabilities, it has robust reporting and transaction tracking tools, invoicing capabilities, inventory management features and mobile app functionality.
In particular, entrepreneurs trying to measure performance in different segments of their business will like QuickBooks’ granular transaction tracking tools that let you group transactions by department or location, among other categories. Reporting capabilities increase with each plan, but even the least expensive Simple Start plan includes more than 50 reports.
Pros and cons
Pros
Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
More than 750 app integrations, including live, in-house bookkeeping.
Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.
Daily phone support and 24/7 chat support in all plans.
Cons
Lacks industry-specific features.
Limited account users with each plan.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
» MORE: Best alternatives to QuickBooks
🤓Nerdy Tip
Many of the household accounting software names, such as QuickBooks, Xero and Zoho Books, can be classified as integrated accounting software solutions. This means that in addition to maintaining a general ledger and assisting with day-to-day bookkeeping, the software includes functions for tracking accounts receivable and accounts payable, reconciling bank transactions (often with some level of automation for convenience and time-saving), managing inventory and purchase orders and handling the billing process.
Xero
Best simple accounting software
Xero
Xero
NerdWallet Rating
5.0
Starting At
$15
Additional pricing tiers (per month): $42, $78.
Price
$15 per month for the Early plan.
$42 per month for the Growing plan.
$78 per month for the Established plan.
Why we picked it
Xero is another reliable product when it comes to standard accounting capabilities. It also has excellent reporting features and a capable mobile app as well as a customizable dashboard that lets each user rearrange or hide panels according to their preferences.
Xero allows an unlimited number of users on a single account at each plan level, a valuable feature in situations where several users need some level of access to the system. And you can assign them different permission levels: For example, one user might only be able to create invoice drafts and submit time entries, while another can view reports but not edit transactions. Competitors’ plans limit how many users you can add, or they charge an additional monthly fee for each user, which can add up quickly. Xero offers a large number of integrations, too.
Pros and cons
Pros
Unlimited users in all pricing plans.
Integrates with more than 1,000 third-party apps.
Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
Simple layout and easy to use.
Cons
No phone number for customer support listed.
Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
» MORE: Best alternatives to Xero
Zoho Books
Best startup accounting software
Zoho Books
Zoho Books
NerdWallet Rating
4.5
Starting At
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Price
$0 per month for the Free plan.
$20 per month for the Standard plan.
$50 per month for the Professional plan.
$70 per month for the Premium plan.
$150 per month for the Elite plan.
$275 per month for the Ultimate plan.
Why we picked it
Unlike some competitors, none of Zoho Books’ plans put a limit on billable clients, and even its free plan lets you send up to 1,000 invoices per year. On top of that, the free option offers a customer portal, automatic payment reminders, mileage tracking and the ability to schedule reports. Higher-tier plans let users automate workflows and track project profitability, and give access to advanced inventory and analytics tools.
The software’s mobile-first features — such as the ability to send invoices by iMessage or add widgets to your phone’s home screen to easily access timers and overdue invoices — really help set it apart, though. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices.
Pros and cons
Pros
Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
Email support in free plan; phone and chat support in paid plans.
Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
Add accounting widgets to your phone’s home screen; track time using your Apple Watch.
Cons
Fewer third-party integrations and reports than some competitors.
No plan includes more than 15 users (can add additional users for a fee).
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
» MORE: Best Zoho Books alternatives
🤓Nerdy Tip
To find startup accounting software that will best serve your business at any stage, consider scalability as well as strong customer support. You will also want to choose software that uses the accrual basis accounting method for recording transactions. It’s a more detailed (and therefore more involved) method of accounting, but for many businesses — especially those tracking a large amount of inventory and those in need of a business loan — it’s the preferred method.
FreshBooks
Best for freelancers
FreshBooks
FreshBooks
NerdWallet Rating
4.5
Starting At
$19
Additional pricing tiers (per month): $33, $60, custom.
Price
$19 per month for the Lite plan.
$33 per month for the Plus plan.
$60 per month for the Premium plan.
Custom pricing for the Select plan.
Why we picked it
With standout invoicing features and client management resources, FreshBooks is a great accounting solution for freelancers, particularly if you have 50 or fewer total clients and can therefore opt for the Lite or Plus plan. Your clients can even choose to create their own accounts. This lets them save and comment on invoices, save their payment information, invite others to access the account and collaborate on projects they’ve been invited to view.
Unlike some competitors that require you to pay extra for a time-tracking module, all FreshBooks plans come with unlimited time tracking. You can start a timer from within the mobile app to log hours spent on a particular project or sync data from tools like Asana and Trello.
Pros and cons
Pros
Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Track time and add billable hours to invoices in all plans.
Weekday phone support in all plans.
Cons
Lacks features that quickly growing companies need, like audit trails for accountants to review.
Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✖ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
» MORE: Best alternatives to FreshBooks
Sage 50 Accounting
Best desktop accounting software
Sage
Sage 50 Accounting
NerdWallet Rating
3.5
Starting At
$59
Additional pricing tiers (per month): $101.92, $172.
Price
$58.92 per month, for 1 user, for the Pro Accounting plan.
$101.92 per month, for 1 user, for the Premium Accounting plan.
$172 per month, for 1 user, for the Quantum Accounting plan.
Prices increase with each additional user.
Why we picked it
Sage 50 Accounting, unlike some of its competitors, offers inventory management and job costing features at all plan levels. Also included with every plan is Sage’s own cybersecurity offering, which will keep tabs on your business credit score and monitor for data breaches. Business owners working in construction or manufacturing may be especially drawn to Sage 50’s advanced inventory, job costing, reporting and budgeting capabilities.
Sage 50 Accounting advertises “cloud-connected capabilities,” which refers to a few features of the software that reach beyond typical desktop software functionality: bank feeds, which flow all your business transactions into the software to assist with the reconciliation process; data backups in the cloud for safeguarding your important financial information; and remote data access so you, your team and your accountant can securely access your data from devices other than the machine the software is locally installed on (though perhaps not simultaneously or seamlessly).
Pros and cons
Pros
Advanced inventory tracking and job costing features.
Industry-specific features for construction, retail and professional services businesses.
Phone and chat support, plus a dedicated account representative in all plans.
Cons
Lowest-tier plan doesn’t include audit trails.
Pricier than many other solutions on this list.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✅ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✖ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
🤓Nerdy Tip
Also sometimes called on-premise software, desktop accounting software must be locally installed on a specific computer and can only be accessed from that one device or location. For some small-business owners, this type of program feels more secure than online accounting software from a data protection perspective, though regular manual backups are necessary to protect against total loss of data in the event of a technology failure.
Wave Accounting
Best free accounting software
Wave
Wave Accounting
NerdWallet Rating
3.5
Starting At
$0
Additional pricing tiers (per month): $16
Price
$0 for the Starter plan.
$16 per month for the Pro plan.
Why we picked it
Wave is a simple solution for very small businesses that need a place to consolidate bookkeeping records and invoices, but don’t have to log more than a handful of transactions each day. The free version of the accounting software lets you track income and expenses, send unlimited invoices and automatically send reminders for late online payments. It also gives you access to more than a dozen pre-built financial reports, including a profit and loss statement and balance sheet.
If you don’t want to manually enter transactions into Wave, you can opt for the Pro plan to link an unlimited number of bank and credit card accounts for automated reconciliation. The paid plan offers more competitive online payment processing rates, too (starting at 2.9% per transaction vs. the free plan’s 2.9% + $0.60 per transaction).
Pros and cons
Pros
Free plan available.
Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
Lacks features that quickly growing companies need, like audit trails.
Must subscribe to Wave’s Pro plan or other paid services (payroll, payments, advisor, etc.) to receive customer support from a human
No third-party integrations, mileage tracking feature or ability to accept in-person card payments.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✅ |
Accountant access with all plans | ✖ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✖ |
Industry-specific reports | ✖ |
Invoicing features | ✅ |
Inventory management features | ✖ |
Project tracking features | ✖ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
Live customer support | ✖ |
» MORE: Best free accounting software
QuickBooks Enterprise
Best for enterprise accounting software with advanced reporting capabilities
QuickBooks
QuickBooks Enterprise
NerdWallet Rating
4.0
Starting At
$1,481
Additional pricing tiers (per year): $1,922; $2,363; $4,668. Adding users or cloud access costs extra.
Price
$1,481 per year for the Silver plan.
$1,922 per year for the Gold plan.
$2,363 per year for the Platinum plan.
$4,668 per year for the Diamond plan.
Why we picked it
With QuickBooks Enterprise, business owners can set up volume discounts and customize pricing rules according to sales rep, item category or customer in the Platinum plan and up. The same plans help speed up the inventory count process by allowing businesses to use mobile devices as barcode scanners. And unlike some competitors that only track single inventory items, QuickBooks Enterprise lets you track inventory parts plus assemblies. You can also track the cost of goods sold and adjust inventory for loss or shrinkage.
It is possible to purchase cloud access so your team can better collaborate and access the software and its data from anywhere, but costs add up quickly with an additional monthly charge per user.
Pros and cons
Pros
Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules.
More than 200 reports, including industry-specific options for various industries.
24/7 phone and chat support.
Cons
Limited direct, third-party software integrations.
Annual subscriptions are expensive; each additional user license and cloud access costs extra.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✅ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✅ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✅ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✅ |
Live customer support | ✅ |
Striven
Best for industry-specific features
Striven
Striven
NerdWallet Rating
3.5
Starting At
$35
Per user. Additional pricing tiers per user (per month): $70.
Price
$35 per month per user for the Standard plan.
$70 per month per user for the Enterprise plan.
Why we picked it
With Striven’s integrated accounting software, you have access not only to your general ledger and standard reports like profit and loss but also to tools for accounts receivable and accounts payable plus billing, order management and more. Striven’s accounting software will also help ensure your business is operating in a tax-compliant manner by automating tax calculations and giving you access to various tax reports.
Striven has designed accounting solutions tailored to a dozen industries. Its retail solution, for example, includes CRM, inventory management and marketing features to integrate with its accounting platform. But its nonprofit solution includes tools for managing records and scheduling events and even includes a donation portal. And because it’s a cloud-based system, you’ll be able to access your real-time accounting and other business data on the go from anywhere.
Pros and cons
Pros
Offers industry-specific features for consulting businesses, nonprofits, manufacturing companies, professional services and more.
Tools to ensure tax compliance.
Other features include inventory tracking, reporting, invoicing, project management tools and the ability to categorize transactions using classes.
Customer support available by phone and live chat.
Cons
Monthly costs could add up quickly if you require multiple users.
No mobile app.
Limited third-party integrations available; no POS or payroll integrations.
Features checklist
Double-entry accounting | ✅ |
Automatic bank imports | ✅ |
Automatic transaction reconciliation | ✖ |
Unlimited users with at least one plan | ✖ |
Accountant access with all plans | ✅ |
Standard accounting reports (e.g., P&L, balance sheet, AP and AR) | ✅ |
Customizable reports | ✅ |
Industry-specific reports | ✅ |
Invoicing features | ✅ |
Inventory management features | ✅ |
Project tracking features | ✅ |
Mobile app | ✖ |
Business software integrations (e.g., payroll, HR, CRM, time tracking) | ✖ |
Live customer support | ✅ |
» MORE: Best business software
How we determined the best accounting software
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
How to choose accounting software
Ideally, your accounting software will make your day-to-day routine easier through automation. Here are some key factors to consider when researching and choosing the best accounting software for your small business.
Accessibility: Cloud-based software enables access through any device with an internet connection. This generally allows for easier collaboration with accountants and seamless integration with other business software. Desktop-based software, however, can only be accessed from a single computer.
Scalability: Take a look at products’ plan offerings, including how many employees and users the software can support, to make sure you can upgrade to a more robust version of the software as your business grows. If you anticipate rapid or high growth, consider accounting software for medium-sized businesses.
Your budget: Determine how much your business can afford to spend monthly on accounting software in conjunction with other recurring costs, like utilities, rent and additional software subscriptions for a POS system or payroll, for example. If you’re a solopreneur and want to keep costs down, check out our list of best accounting software for freelancers and the self-employed.
Ease of use: Accounting software that isn’t intuitive and user-friendly can take up an unnecessary amount of your time or discourage you from using it as often as you should to keep your finances in order. Test out free trials of accounting software, request a demo and watch tutorial videos to get a feel for navigating the software.
Integrations: Think about the other types of software you already use or plan to use, and check to see if direct integrations are available between those products and the accounting software you’re considering. If not, you may need to pay for an indirect integration or manually transfer data from one product to another.
Customer support: Think about what time of the day you’re most likely to reach out for assistance and how you’d like to communicate with customer service representatives. Free accounting software options typically offer less robust customer support solutions than paid products do.
Sharing with your accountant: If you’re working with an outside accountant, take note of how easy (or not) a product makes it for you to share your financial details and reports with your accountant. Many popular accounting software products allow you to easily share access, but some require upgrades to costlier plans for this access and some products only enable you to export data to be sent to your accountant.
How much does accounting software cost?
Accounting software for small businesses can cost anywhere from $0 for the basics to $200 or more per month for the most advanced plans. The picks listed above include both free and paid products, and most options have multiple plans at different price points. Here are a handful of factors that could impact how much you’re paying for accounting software:
Sign-up discountsAs a new customer, you can sometimes choose between a monthly discount or a free trial. If you go with the monthly discount, understand exactly how much more you’ll be paying when the introductory period is up.
Payment frequencyThe prices listed above apply to month-to-month subscriptions, but you may be able to save by committing to an annual one instead. Just be sure to read the fine print — you might not get reimbursed if you pay upfront and cancel before the year is up.
Number of usersIn some cases, you’ll need to pay a monthly fee per additional user. Factor in how many users an accounting software product includes, how much it costs to add additional users and how many people in your business need to have access to the software.
IntegrationsMake a list of the integrations you’ll require and check to see if they’re built into your accounting software already. If not, you might need to pay a monthly subscription fee to connect one program to another.
Compare more accounting software products
Shop for accounting software by industry
If you’d like to shop by industry, check out NerdWallet’s picks for:
Best church accounting software.
Best construction accounting software.
Best consultant accounting software.
Best e-commerce accounting software.
Best farm accounting software.
Best hotel accounting software.
Best law firm accounting software.
Best manufacturing accounting software.
Best medical accounting software.
Best nonprofit accounting software.
Best property management accounting software.
Best accounting software for Amazon sellers.
Best real estate accounting software.
Best accounting software for restaurants.
Best accounting software for retailers.
Best accounting software for SaaS businesses.
Best trucking accounting software.
Compare NerdWallet’s top accounting software picks by features
To help determine which accounting software is best for your business, start by comparing each product’s maximum user limit, invoicing capabilities, time-tracking tools, inventory tracking features and phone support availability.
Maximum users | Invoicing | Time tracking | Inventory tracking | |
---|---|---|---|---|
5.0 NerdWallet rating | Up to 25 in Advanced plan. | Unlimited. | Can manually enter time in Essentials plan and higher; automatic time tracking costs extra. | Yes, but only in Plus plan and higher. |
5.0 NerdWallet rating | Unlimited. | 20/month in Early plan; unlimited in higher-tier plans. | Yes, but only in Established plan. | Yes. |
4.5 NerdWallet rating | Up to 15 in Ultimate plan. Additional users cost extra. | 1,000/year in free plan; up to 100,000/year in paid plans. | Yes, in paid plans. | Yes, Zoho Inventory offers free, integrated plans. |
4.5 NerdWallet rating | Up to two in Select plan. Additional users cost extra. | Unlimited, but Lite and Plus plans cap number of billable clients. | Yes. | Yes. |
3.5 NerdWallet rating | Free plan is limited to one user. Must subscribe to paid plan to add additional users. | Unlimited. | No. | No. |
3.5 NerdWallet rating | Up to 40 in Quantum Accounting plan. | Unlimited. | No. | Yes. |
4.0 NerdWallet rating | Up to 40, but each user license costs extra. | Unlimited. | Yes, but only in Diamond plan and fees apply. | Yes. |
3.5 NerdWallet rating | Unlimited, but each user license costs extra. | Unlimited. | Yes. | Yes. |
Frequently asked questions
What is accounting software?
Accounting software is like a database for all of your business’s financial transactions. It helps you follow basic accounting principles so that you can keep your books up to date and in order, which is especially important come tax season. Most software uses double-entry accounting, meaning it factors in assets, liabilities and equity, in addition to revenue and expenses.
Most accounting software goes beyond these tasks with additional built-in modules for invoicing and billing as well as inventory management, among other functions. The more your accounting software becomes a one-stop shop for these financial chores, the fewer integrations you need to consider.
» Learn more about accounting: What is accounting?
Does your small business need accounting software?
In most cases, yes. While you can try using spreadsheets to keep track of your business’s finances, they can become messy and time-consuming. Accounting software is less susceptible to human error and makes it easy to quickly run crucial financial reports, like a profit and loss statement or balance sheet.
On top of that, double-entry accounting software enters debits and credits for you so you don’t have to worry about manually balancing your books. Ultimately, investing in accounting software will save you time and help make sure your books are accurate.
What is the most used accounting software?
QuickBooks Online is one of the most ubiquitous accounting software products on the market. Xero, FreshBooks and Zoho Books are also used widely.
What is the simplest accounting software?
NerdWallet likes Xero for its simplicity and ease of use. Its clean layout, global search function and customizable dashboard are a plus, especially for accounting novices.
Chances are, there will be some sort of learning curve no matter what software you select. Testing out free demos and free trials can help you get a feel for these products’ usability before committing to them.
What is the cheapest accounting software?
Wave Accounting offers a free software plan that covers basic accounting and invoicing. It doesn’t offer time or mileage tracking or a billable expense feature, but it does allow for unlimited users and recurring invoicing. Zoho Books also offers a free monthly subscription plan along with several paid plan options, starting at a competitively low cost of $20 per month.
Can your business use free accounting software?
Free accounting software can be a great solution for micro businesses that don’t have a large volume of transactions and only need income and expense tracking, basic reporting and invoicing. But even if the basics are sufficient for your business, remember that free products have their downsides.
For example, Wave’s free accounting plan lacks audit trails, third-party integrations and live customer support. It also doesn’t offer additional plans if your business grows in the future, which means you could eventually have to transfer your data to another provider.