Top 8 Small Business Accounting Software Picks (2024)

While there is no shortage of small business accounting software available today, choosing the right tool to manage your ecommerce accounting needs can be challenging. With so much overlap in functionality and differences in pricing, it’s all too easy for business owners to end up choosing the wrong accounting tool.

Even after a modest length of time, switching to another accounting program can seem more of a hassle than it’s worth––a great example of the sunk cost fallacy––which makes choosing the right tool in the first place particularly important.

Ahead, discover the best accounting software for small businesses in 2023.

Top online accounting software picks for 2023

Best overall small business accounting software: QuickBooks Online
Best accounting software with customer support: FreshBooks
Best free accounting software: Wave
Best accounting software for beginners: Zoho Books

Top 8 Small-Business Accounting Software Tools

FreshBooks
Wave
Zoho Books
QuickBooks Online
Sage 50cloud
Kashoo
OneUp
Xero

1. FreshBooks

One of the most popular and well-known small business accounting tools available today is FreshBooks.

FreshBooks’ accounting software includes smart technologies and back-office automation designed to reduce manual data entry and make bookkeeping easy. For instance, FreshBooks can be configured to automatically reconcile credit and debit amounts and can automatically import financial data from a range of sources.

Users can easily access important financial statements like:

Balance sheet
Income statements
Cash flow statements

Users can also adjust access permissions on an individual basis. For example, employees can be granted limited access to financial reports, while accountants can be provided with additional administrator privileges.

Pros:

Highly rated customer support
Time-tracking and mileage tracking features included in all plans
Wide range of cloud accounting features

Cons:

Limited number of users and clients
Lowest-tier plans don’t offer bank reconciliation or accountant access
No quarterly tax estimates

Available for: Web application (cloud-based software)

Mobile app: Android, iOS

Price: Plans begin at $4.50 per month for lite plan

Free trial length: 30 days

Shopify app or integration: Yes

2. Wave

Many of the small-business accounting software tools on this list are inexpensive. But for newly launched independent businesses with little cash to spare, any additional expense can break the bank. Wave, an accounting tool designed for small businesses, understands that problem, which is why it’s 100% free.

Available for Windows and OS X, and with Android and iOS apps for invoicing and receipts, Wave is ideal for independent businesses still finding their feet. Wave Accounting can do almost everything premium accounting software tools can do, including expense management, banking reconciliation, payroll, and invoicing.

Pros:

Completely free
Double-entry accounting reports
Unlimited users with control over user permissions
Unlimited invoice creation with customizable templates
Mobile invoicing accounting app

Cons:

No phone support; live chat only available for paid add-ons (Wave Payments and Payroll)
No updates planned for current features
No advanced accounting options

Available for: Web application (cloud)

Mobile app: Android, iOS

Price: Free

Free trial length: n/a

Shopify app or integration: No

3. Zoho Books

Zoho Books is an online accounting software with accounts payable, accounts receivable, and inventory management capabilities. The invoicing software is blazing fast and its bookkeeping software offers a lot of features for a good price. Zoho Books is a great alternative to more expensive options like QuickBooks Online and can still meet all your business needs.

Pros:

Most accounting tasks possible through the mobile app
Fairly powerful free version of software
More affordable than similar accounting software
Multicurrency capabilities in top tier plan

Cons:

Must pay for advanced features like project tracking and workflow automation
No ability to track fixed assets like real estate, land, or equipment
Limited number of users with each tier

Available for: Web application (cloud)

Mobile app: Android and iOS

Price: Free for businesses generating less than $50,000 per year in revenue; paid plans start at $15/month

Free trial length: 14 days

Shopify app or integration: Yes

4. QuickBooks Online

Intuit’s QuickBooks Online is a popular accounting platform that can help business owners handle their accounting quickly and easily.

QuickBooks Online has everything small business owners need to take control of their bookkeeping. It features a clean, simple interface and intuitive reporting, meaning even newcomers can get up to speed quickly. All QuickBooks Online plans include mileage, income, and expense tracking, sales and tax reporting, and tools to manage 1099 contractors.

Pros:

Inventory management included with QuickBooks Online Plus and Advanced
Double-entry accounting reports
Third-party app integration
Plenty of QuickBooks Online tutorials, experts, resources, online

Cons:

Monthly plans are pricier than other accounting software options
Each plan allows only a limited number of account users
Advanced features come with a learning curve

Available for: OS X, Windows, web application (cloud)

Mobile app: Android, iOS

Price: Plans begin at $15 per month

Free trial length: 30 days

Shopify app or integration: Yes

5. Sage 50cloud

Sage 50cloud Accounting offers comprehensive, cloud-based accounting software for small businesses with extensive customization options and advanced features.

Sage 50cloud’s Pro Accounting plan––the least expensive option, available for less than $30 per month––is aimed at smaller independent businesses. It can handle a range of accounting tasks, including expense management, invoicing, and inventory tracking. Sage 50cloud Accounting also integrates seamlessly with Microsoft Office.

Pros:

Lots of customization options to fit your needs
Tools to manage and track inventory
Microsoft 365 integration

Cons:

No mobile app
Clunky user interface
Time tracking not included with any plan option

Available for: Web application (cloud), Microsoft 365 integration

Mobile app: No

Price: Plans begin at $346/year

Free trial length: None, but you can get a live demo of the software

Shopify app or integration: No

6. Kashoo

Kashoo’s small business accounting software aims to help business owners automate much of the administrative work behind bookkeeping.

Thanks to machine-learning algorithms, Kashoo understands your business better the more you use it. Everything from receipt categorization to sales tax tracking is analyzed by Kashoo, which lets the tool make individualized recommendations on steps to save money, minimize waste, and streamline overall efficiency.

Pros:

User friendly
Unlimited number of users
Great customer support
Automation of a lot of administrative processes

Cons:

No Android mobile app
Relatively few integration options
Lacks features like time-tracking and inventory management

Available for: Web application (cloud)

Mobile app: iOS

Price: $1 for the first year, then $20 per month

Free trial length: 14 days

Shopify app or integration: No

7. OneUp

Like Kashoo, OneUp aims to make bookkeeping a much more streamlined process by automating routine tasks.

Over time, OneUp “learns” how your accounting works by analyzing inputs, such as bank account transactions. OneUp then prompts the user to validate suggested reconciliations with a single swipe on a mobile device. These validations further train OneUp’s algorithms to offer more accurate suggestions in the future. OneUp can also match individual bank transactions with overdue invoices, saving business owners even more time.

Pros:

Excellent inventory management module
Simple setup process
Built-in CRM function
Pulls in banking info for automatic bookkeeping

Cons:

No payroll capabilities
Expensive for businesses with a lot of team members (unlimited user plan $169/month)
No time-tracking features

Available for: Web application (cloud)

Mobile app: Android

Price: Plans begin at $9/month

Free trial length: 30 days

Shopify app or integration: No

8. Xero

For business owners who find themselves constantly on the go, Xero might just be the accounting tool they’ve been waiting for.

Xero is an intelligent accounting software tool aimed at small businesses, with an emphasis on ease of use and mobile utility. Xero can be synced across multiple devices and offers users updates in real time, giving business owners the latest information wherever they might be.

The product features a clean, intuitive user interface and can handle a range of accounting tasks, including payroll (via an integration with Gusto), expense tracking, billing and invoicing, and sales tax calculation, among other features. Pricing starts at $12 per month.

Pros:

Unlimited users for all plans
Hubdoc included in all plan tiers (automatic capture of receipts and bills)
Can manage fixed assets
Effective project tracking

Cons:

Payment processing may lag for PayPal transactions
No automatic reminders for unpaid invoices
No phone support

Available for: Web application (cloud)

Mobile app: Android, iOS

Price: Plans begin at $12/month

Free trial length: 30 days

Shopify app or integration: Yes; third-party integrations available

Accurate accounting means better business. No two businesses are exactly alike, and an accounting solution that works well for one business may not work at all for another. While there’s a great deal of overlap between the small-business accounting software above, only you can decide which tool is right for your business.

Some business owners may see sophisticated reporting functionality as an essential feature, whereas some may prioritize automated reconciliation. Before investing in a new accounting system, it may be worth taking advantage of a few free trials before committing to a decision.

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