Finding the right accounting software can make running a small business much easier. These programs help you manage income, spending, profits, and taxes. Some tools focus only on invoicing or taxes, but full accounting software usually gives you more features in one place and saves you time.
There are both paid and free options. Free versions can be helpful for startups trying to stay on budget. Some are completely free, while others are limited versions of paid software. Free tools are also good for businesses that want to keep their data on their own computers instead of using online (cloud-based) services.
The best accounting software should also work well with e-commerce platforms and other business tools. Below is a look at some of the best accounting software for small businesses in 2025.
FreshBooks
FreshBooks is a cloud-based accounting tool made especially for small business owners. It offers invoicing, expense tracking, time tracking, business reports, and the ability to accept credit card payments. The software is easy to use, even for people with no accounting background. You can send invoices in any currency, set up automatic payments, and even turn an estimate into an invoice quickly.
While FreshBooks doesn’t have a free version, there is a 30-day free trial that doesn’t require a credit card, along with a 90% discount for the first three months. The basic plan has useful features like unlimited expenses and estimates, but limits you to billing only five clients. Adding more users costs an extra $10 per month per user, which might not suit larger teams. FreshBooks works with services like PayPal, MailChimp, WordPress, Gusto, and Zendesk. You can use it on your computer or through the iOS and Android apps.
QuickBooks
QuickBooks is one of the most recognized accounting tools and is made by Intuit, the same company behind TurboTax and Mint. It comes in many versions such as QuickBooks Online, Self-Employed, Online Advanced, Live Bookkeeping, Desktop for Mac, Desktop Pro, Premier, and Enterprise. You can even get a custom package with help from the QuickBooks team. There’s no free version, but the lowest-cost plan still includes features like mileage tracking, receipt scanning, a free setup guide, and the ability to connect a sales channel. QuickBooks also provides online customer support through its portal.
Xero
Xero is another accounting software that may catch your eye with its low-cost Early plan. However, this plan limits you to sending five invoices, entering five bills, and reconciling only 20 bank transactions per month. These limits may not work for most users. Also, adding payroll through Gusto costs an additional $40 per month. On the plus side, Xero offers smart expense tracking, a mobile app for Android and iOS, flexible reporting, budgeting tools, and unlimited users.
You can also capture receipts with Hubdoc. Support is available 24/7, but it’s mostly through a knowledge base and support portal, not direct contact. If the limits in the Early plan are too strict, the Growing plan allows unlimited invoices and bills but costs more. Xero also lets you import data from QuickBooks, which makes switching easier.
Sage Accounting
Sage Accounting has simple pricing and offers a 30-day free trial without requiring a credit card. It works on any web browser and also has Android and iOS apps. Features include the ability to send quotes and invoices, manage VAT, connect to bank feeds, forecast cash flow, track multiple currencies, and monitor projects. Everything is easy to use, and help is available through articles, video guides, forums, and a learning platform called Sage University. The only direct support option is chat—there is no phone or email support. A simpler version called Accounting Start is also available, which leaves out quotes, estimates, vendor bills, and cash flow forecasts. This version may work well for startups.
Zoho Books
Zoho Books is part of a larger business software company based in India. It has a clean and simple cloud-based design, good for freelancers and small businesses. There is a free plan for businesses that earn less than $50,000 per year. This free plan includes two users (you and your accountant), up to 1,000 invoices per year, five automated workflows, a mileage tracker, payment reminders, and multilingual invoicing. The next level up is the Standard plan, which costs $15 per month (billed annually) and allows up to 5,000 invoices, three users, and tracking for taxes and timesheets.
The Professional plan includes five users, recurring bills, vendor credits, and automatic exchange rates. You can add extra features like more users for $2.50 per month and mail credits for $2 each. Zoho also gives you a free 14-day trial.
Kashoo
Kashoo is different from others because it keeps things simple with just one main pricing plan. It does not have a free version or a free trial, but you can get started for just $2 for the first year. There is also a smaller paid plan called Truly Small Accounting. Kashoo supports multiple currencies, accepts all major credit cards, and connects with over 5,000 financial institutions for automatic bank reconciliation. It offers unlimited invoices and has a clean, easy-to-understand dashboard.
Support is available through email, phone, live chat, social media, and even regular mail. A large library of help articles is also available. Previously, the mobile app was only for iOS, but they have now added an Android app as well.
Wave
Wave is a free accounting tool used by more than two million people. It includes accounting, invoicing, and receipt scanning at no cost. However, if you want personal technical support, you have to pay for it. Payroll is not included in the free version and costs $40 per month, plus $6 for each employee or contractor. Ads are sometimes shown, which is common in free online tools. Wave is well-designed and works best for freelancers, sole traders, and small businesses.
There’s also an option to pay for an advisor if you want expert help. While the software is free, transaction fees still apply. For businesses with a high number of sales, another program might be more affordable in the long run.
KashFlow
KashFlow, now part of the IRIS Software Group, offers a simple and easy-to-use cloud-based accounting service. It also includes tools for payroll and human resources. The Starter plan is good for sole traders and small businesses. It allows unlimited quotes, 10 invoices, and 25 bank transactions. It supports one user and includes a mobile app and a customizable dashboard. The Business plan is better for growing companies. It offers unlimited invoices and bank transactions, supports multiple users, and can handle VAT returns. There is also a Business and Payroll plan, which includes everything from the other plans plus payroll features. KashFlow offers better pricing if you pay for a year in advance rather than monthly.
