When you find the right accounting software, managing invoices stops being a headache. After social media and payment platforms, accounting software was the most widely adopted technology by small businesses, according to a U.S. Chamber of Commerce report from 2025.
The best platforms easily track income and expenses, run reports and forecasts and integrate seamlessly with other business software.
CNBC Select has chosen the best accounting software for small businesses in a variety of categories, including affordability, customization and ease-of-use.
For information on how we made our choices, check out our methodology.
Best accounting software for small businesses
Best for finding mistakes: Intuit QuickBooks
Who's this for? QuickBooks sets the gold standard for small-business accounting software, and that extends to its error-detection capabilities. AI-powered Report Insights and Anomaly Detection features analyze more than a year's worth of data to identify financial inaccuracies and unusual trends in real-time. Questionable items are flagged and users can get a six-month snapshot of the data to gain insight into what went wrong.
Standout benefits: QuickBooks syncs to more than 750 apps and platforms, including PayPal, Square, Etsy, Shopify, Amazon and SOS Inventory.
Cost: Starting at $35 per month
QuickBooks
Cost
Costs may vary depending on the plan selected but take advantage of a limited time offer - 50% off for 3 months
Standout features
Tracks your business expenses as they happen, as well as your income. Users can use app to do invoicing, accept payments, manage their cash flow, maximize tax deductions, track travel miles, run reports, send estimates, manage bills and 1099 contractors, plus pay employees
Categorizes your expenses
Yes
Links to accounts
Yes, bank and credit cards, plus third-party apps like PayPal and Square
Availability
Accessible from any web browser and also offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Verisign scanning, password-protected login, firewall protected servers and the same encryption technology (128 bit SSL) used by the world's top banks. QuickBooks also offers multiple permission levels that you can set for additional users' access
Terms apply.
Pros
- Offers a 30-day free trial
- Syncs to your bank accounts, credit cards and third-party apps like PayPal and Square
- Offers real-time dashboards so you can stay updated on all financial transactions related to your business
- The most basic "Simple Start" plan tracks income, sales and expenses, organizes receipts, creates invoices, helps you prepare your taxes, categorizes your business and personal trips, offers a QuickBooks Cash account, runs reports like P&Ls and balance sheets and includes 1 user
- "Essentials" plan, in addition to the above, helps you pay your bills, clock employee time and billable hours and includes up to 3 users
- "Plus" plan, in addition to the above, lets you oversees projects, track inventory and includes up to 5 users
- "Advanced" plan, in addition to the above, provides business analytics and insights, speeds up transactions, gives users access to VIP service QuickBooks Priority Circle that includes a dedicated account team and free online QuickBooks training includes up to 25 users. QuickBooks offers a fourth "Self-Employed" plan for freelancers
- Security features include Verisign scanning, encryption technology (128 bit SSL) used by the world's top banks and customized access for other users
Cons
- Some user reviews complain of glitches in app and a not so user-friendly interface
Best for customization: FreshBooks
Who's this for? FreshBooks lets you customize any of its four plans with add-ons, including access for additional team members (starting at $11 per month), payroll capabilities ($40 per month) and in-person payment processing ($20 per month). Stick with the default dashboard and templates or use the free invoice generator to add reminders, late fees, pay-now options and other features — all with your company logo and choice of style and colors.
Standout benefits: FreshBooks is highly rated for customer service, with offices in Europe, the U.S. and Mexico and sales staff around the globe. All plans allow you to add billable expenses and hours.
FreshBooks
Cost
Cost varies depending on the plan. Click "Learn More" for details
Standout features
Extremely easy to get started; Lite plan offers a lot of features; it's easy to upload receipts (including mileage) and create invoices. App offers time tracing. Very mobile friendly interface.
Categorizes your expenses
Yes
Links to accounts
Yes, credit cards and bank accounts
Availability
Available for Web, iOS and Google Play
Security features
FreshBooks utilizes 256-bit SSL encryption, secure firewalls, multi-factor authentication and regular vulnerability scanning and AI-driven fraud detection.
Pros
- Easy-to-use interface
- All plans include time tracking and unlimited invoices and expenses
- Clients can view and pay invoices via portal on mobile app
Cons
- Cost for additional team members and FreshBooks integrations can make it expensive
- Lower tiers lack double-entry accounting reports and have limits on billable clients
Best for affordability: Xero
Who's this for? Xero's Early plan retails for $25 a month, with frequent promotions for 50% off for the first three months. Though it's the company's most basic offering, you can still send up to 20 quotes and invoices a month, use receipt capturing, manage W-9 and 1099 payments, and auto-calculate sales tax.
Standout benefits: The Established tier has features to help your business predict future cash flow. Though the most expensive plan, it's still under $100 per month.
Xero
Cost
Starts at $25 a month
Benefits administration
Through a partnership with Gusto
HR tools
Includes 30 days of free access to Gusto's cloud-based HR and payroll platform
Pros
- 30-day free trial and frequent discounts
- No limit on the number of users
- All plans include automated sales tax calculation
- Top tier supports 160+ currencies
Cons
- No annual subscription option
- No customer support by phone
- Basic plan limited to 20 invoices and quotes per month
Best free plan: Zoho Books
Who's this for? Zoho Books' "forever free" plan is available for businesses with annual revenue under $50,000 and includes a customer portal, multiple payment channels, and access to 50+ financial reports.
Standout benefits: Free plan users get up to 1,000 invoices a year.
Zoho Books
Cost
$0/month for Free plan; $15/month for Standard plan; $40/month for Professional plan; $60/month for Premium plan; $120/month for Elite plan; $240/month for Ultimate plan. (Price based on annual subscription, discounts may apply)
Standout features
Journal templates, custom reports, cash-flow forecasting, tools to manage budgets, rack inventory and record multi-currency transactions.
Links to accounts
Yes, bank accounts and credit cards
Availability
Accessible from any web browser and downloadable for iOS and Android
Pros
- Cost-effective plans with 14-day free trial
- "Forever free" plan for businesses earning under $50,000 annually
- Native integration with the Zoho ecosystem
- Real-time dashboard for accurate look at P&R, cash flow, income, expenses and more
Cons
- Can be a steep learning curve for beginners
- Fewer integrations with third-party platforms
- Chat and phone support only available with paid subscriptions
Best for solopreneurs: Wave
Who's this for? Wave's cloud-based software is ideal for operations that don't require payroll or time-tracking capabilities. The interface is straightforward enough for non-professionals and the Starter tier includes access to core services like invoicing, expense tracking and financial reporting that's free (and often unlimited).
Standout benefits: The paid Wave Pro plan increases the number of users and lowers the per-transaction processing fee for online payments. It also lets you auto-import and merge bank transactions, snap and upload receipts and automate late payment reminders.
Wave
Cost
Starter plan is free, Pro plan starts at $190 per year. Wave Advisors bookkeeping service starts at $199 per month.
Benefits administration
No
HR tools
No
Pros
- 30-day free trial
- Free Starter tier has robust offerings
- Unlimited free direct deposits
Cons
- Can't administer employee benefits
- Bookkeeping and payroll services not available nationwide
- Time tracking not included
Compare small business checking accounts
How to shop for accounting software
While there's no one accounting software platform that checks every box, you can narrow your search by focusing on several key factors.
Cost: In addition to subscription costs, factor in onboarding and processing fees, as well as charges for additional users or invoices. Look for companies that offer a free trial period or money-back guarantee and see how much other tiers cost in case you decide to upgrade.
Core features: Most accounting software comes with income- and expense-tracking, payment processing and support for double-entry bookkeeping. The best programs add receipt scanning, inventory management, automatic sales tax calculations and other features that save time, prevent errors and put you on the path to growth.
Integration and scalability: Your accounting software needs to grow with your business. Can you easily upgrade to add more transactions and users? Are you able to integrate with internal and third-party invoicing and CRM systems?
User experience: Many small businesses don't have a dedicated bookkeeper. Will you be able to navigate the interface and share information with your tax pro or accountant? Is there a mobile app? What kind of customer support channels, hours and response time does it provide? Are there judgments or settlements in its record or and do customer reviews point to any major concerns?
FAQs
What is accounting software?
Accounting software records and reports on income, expenses, invoicing and other financial transactions. Whether cloud-based on desktop, it improves efficiency, accuracy and insight by automating manual tasks and providing real-time data.
How much does accounting software cost?
The cost of accounting software varies widely depending on your company's size, your budget and the features you need.
There are decent free plans for freelancers and solopreneurs, but they come with user limits and few features. For between $15 to $50 per month, you can get a basic cloud-based plan with invoicing and expense tracking. There are also pricier plans with features targeting larger businesses.
What's the best free accounting software?
Most platforms' no-cost options are at least serviceable, but Zoho Books's free plan has useful features competitors reserve for paid tiers, including automatic bank reconciliation and a dedicated customer portal.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every article is based on rigorous reporting by our team of expert writers and editors, with extensive knowledge of small-business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best accounting software for small businesses, CNBC Select analyzed several accounting service providers. We made considerations across four major categories: basic features, additional/premium features, cost/investment and customer reviews and ratings when available. We also made considerations across 22 subcategories:
Basic features:
- Double-entry support (must connect to a credit card and bank account)
- Income and expense tracking
- Organizing and filing 1099 contractor payments
- Connection to at least 1 sales channel
- Send and receive payments from invoices
Additional/premium features:
- Mobile app availability
- Multi-currency support
- Mileage tracking
- Receipt scanning
- Bill payment features
- Connection to more than one sales channel
- More robust payment features (i.e., payroll for 1099 and W-2 workers)
- Reporting
- Inventory management
- Automatic sales tax calculations
- Account sharing with accountants
- Customer support
Cost/investment:
- Availability of a completely free plan
- Starting monthly cost
- Free trial available and the duration of the free trial
Customer reviews and ratings:
- Consider feedback from Capterra and TrustPilot
- Consider feedback on ease of use, customer service, and perceived consumer value
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