Best Accounting Software for Small Businesses in 2026
Features like payroll, inventory tracking and invoicing can save you time and help organize your finances.
| Product | Best for… | Cost per month | Inventory tracking | Payroll |
|---|---|---|---|---|
 | All-in-one accounting software | $38 to $275 Simple Start: $38Essentials: $75Plus: $115Advanced: $275 | ||
 | Freelancers and solopreneurs | $21 to $65+ Lite: $21Plus: $38Premium: $65Select: Custom | ||
 | Large teams | $25 to $90 Early: $25Growing: $55Established: $90 | ||
 | Frequent mobile users | Free to $275 Free: $0Standard: $20Professional: $50Premium: $70Elite: $150Ultimate: $275 | ||
 | desktop users | $69.42 to $198.42 Pro Accounting: $69.42Premium accounting: $114.33Quantum Accounting: $198.42 | ||
 | New business owners | Free to $19 Starter: $0Pro: $19 | ||
 | Service-based businesses | Free to $35+ Starter: $0Smarter: $15Sophisticated:$35Accountant: Custom | ||
 | Inventory-based businesses | $20 to $50 Pro: $20Network $30Hosted:$50 |
Accounting software for small business platforms at a glance
QuickBooks Online: Best all-in-one accounting software
Pros
- All plans include access to Intuit Assist AI-powered automations
- Free mobile apps for iOS and Android
- Offers 800+ integrations
Cons
- Higher monthly cost than many of its competitors
- Places limits on the number of account users for each plan
- Using the software may be more complex because of all of its features
QuickBooks Online remains the best all-in-one accounting software platform for small businesses because it offers a ton of features that help them scale. Every plan includes access to Intuit Assist, Intuit’s new AI-powered automation tool that helps you streamline tasks like categorizing transactions and following up on unpaid invoices. Its mobile app lets you manage your books anywhere, and it integrates with 800 other tools and platforms to help you manage payments, inventory, payroll, project management, customer relationship management (CRM) and more.
That said, QuickBooks Online isn’t without its drawbacks. Its pricing is higher than many competitors, and it’s been steadily increasing prices every year for the past five years. While QuickBooks claims its pricing reflects its investment in innovation, some users may find the wide range of features more complex than they actually need.
Learn more about QuickBooks Online.
Quickbooks Online offers four plans:
Simple Start: $38 per month
Essentials: $75 per month
Plus: $115 per month
Advanced: $275 per month
QuickBooks Online offers the following features:
- Invoicing
- Tracking expenses
- Managing bills
- Tax deductions
- Financial reporting
- Mileage tracking
- Payment collection
- Project management
- E-commerce management
- AI automation
QuickBooks Online integrates with more than 800 other business software platforms, including:
- BILL
- Expensify
- QuickBooks Time
- Bluevine
- Rewind Backups for QuickBooks Online
- Bookkeep Accounting Automation
- Tax1099
FreshBooks: Best for freelancers and solopreneurs
Pros
- Has a free mobile app for iOS and Android
- Time tracking included with all plans
- Offers more than 100 integrations
Cons
- Some plans limit the number of clients you can have
- Must upgrade to higher-tier plans to access key features, like receipt scanning and collaborating with your accountant
- Premade financial reports may not suit businesses that want to add custom information
FreshBooks is our pick for freelancers and solopreneurs because it offers a clean, easy-to-use accounting platform that supports the way independent professionals work. Its mobile app for iOS and Android includes built-in time tracking and mobile mileage tracking, so it’s simple to record billable hours and business travel on the go. FreshBooks also announced a new feature in 2025: Financial Lock. This control feature lets you “lock” your prior period numbers to prevent accidental edits to closed accounting periods.
That said, there are a few limitations to be aware of. Lower-priced plans restrict the number of clients you can invoice, so you may need to upgrade as your business grows. Lower-tier plans also don’t offer receipt scanning features or the ability to give your accountant their own username and password for accessing your account—functionality that many small business owners truly need from day one.
Learn more about FreshBooks.
FreshBooks offers four plans:
Lite: $21 per month
Plus: $38 per month
Premium: $65 per month
Select: Custom pricing
The Lite, Plus and Premium plans offer discounts if you pay annually.
FreshBooks offers the following features:
- Invoicing
- Payment collection
- Time tracking
- Expense and receipt tracking
- Mileage tracking
- Bookkeeping capabilities
- Financial reporting
- Project management
- Proposal and estimate generation
- Client portals
FreshBooks integrates with more than 100 other business software platforms, including:
- Acuity Scheduling
- DocuSend
- Gusto
- Zoom
- Fundbox
- Trello
- Microsoft Outlook
Xero: Best for large teams
Pros
- Allows for unlimited users on all plans
- AI-powered analytics for improving cash flow and profitability
- Offers video tutorials and online courses to help you learn how to use its systems
Cons
- Some account features are limited on lower-tier plans
- No customer service phone number
- Multichannel inventory tracking is an extra fee
Xero is our pick for the best accounting software platform for large teams because, unlike many competitors that restrict the number of users per plan, Xero allows unlimited users across all tiers. This feature makes the software particularly affordable for businesses with multiple departments or growing accounting and finance teams. Everyone, from bookkeepers to managers, can access the system at no additional cost.
Xero also recently incorporated advanced analytics features. These tools help monitor cash flow trends, identify profitability drivers, and anticipate potential cash shortages before they happen. This allows small business owners to make more informed financial decisions and act proactively rather than reactively.
However, there are some limitations to consider. Some features, including many of the advanced analytics options, are restricted to higher-tier plans. Xero also doesn’t make a customer service phone line available on its website, so support may be limited to online channels.
Learn more about Xero.
Xero offers three plans:
Early: $25
Growing: $55
Established: $90
Xero offers the following features:
- Accepting payments
- Invoicing
- Bank reconciliation
- Expense management
- Bill management
- Purchase order and quote generation
- Sales tax
- Project management
- Financial reporting and analytics
- Fixed asset management
Xero connects with a variety of other business software platforms, including:
- Stripe
- Zapier
- Hubspot
- PayPal
- AutoEntry
- Reach Reporting
- Hubdoc
Zoho Books: Best for frequent mobile users
Pros
- Strong mobile app features
- Offers free plan option
- Email, phone and chat support available
Cons
- Limits you to a maximum of 15 users
- Many features require subscribing to other Zoho apps
- Payroll capabilities may cost extra
Zoho Books is a good choice for frequent mobile users. Its mobile app allows users to manage invoices, track expenses and monitor cash flow directly from a phone or tablet, so it’s especially valuable for business owners who are always on the move.
Another advantage is Zoho Books’ free plan option, which provides essential accounting tools at no cost. It’s ideal for new or very small businesses that want to test the waters before committing to a paid plan.
However, even at the highest-tier plan, Zoho Books caps usage at 15 users. This makes it restrictive for larger teams. Also, many features, including inventory management, payroll and customer relationship management, require subscribing to other Zoho applications.
Learn more about Zoho Books.
Zoho Books offers a range of plans:
Free: $0 per month
Standard: $20 per month
Professional: $50 per month
Premium: $70 per month
Elite: $150 per month
Ultimate: $275 per month
All of the paid plans also offer discounts if you pay annually.
Zoho Books offers the following features:
- Purchase order and quote generation
- Invoicing
- Sales orders
- Bill tracking
- Bank reconciliation
- Project management
- Inventory management
- Expense management
- Payment collection
- Financial Reporting
Zoho Books integrates with several other business software platforms, including:
- SurePayroll
- Google Workspace
- Zapier
- Stripe
- Zoho Sign
- Slack
- Tax 1099
Sage 50 Accounting: Best for desktop users
Pros
- True desktop software program
- Job costing features available
- Offers industry-specific reports
Cons
- More expensive than some other options
- Windows-only application
- Limited integrations
Sage 50 Desktop is our choice for small business owners who prefer a traditional desktop accounting solution. Unlike many competitors that are exclusively cloud-based, Sage 50 offers a full-featured desktop program that runs locally on your computer. This can be advantageous if you prefer not to rely on internet connectivity for day-to-day operations. While Sage 50 does offer a cloud-based platform, it’s nearly double the cost.
There are, however, some limitations to consider. Sage 50 Desktop is only available on Windows, leaving Mac users out. Additionally, desktop software offers fewer integrations than cloud-based platforms, so you may not be able to connect as easily to third-party applications or tools.
Learn more about Sage 50 Accounting.
Sage 50 Accounting offers three plans. The prices for one user are:
Pro Accounting: $69.42 per month
Premium Accounting: $114.33 per month
Quantum Accounting: $198.42 per month
Costs will be higher if you add more users.
Sage 50 Accounting offers the following features:
- Invoicing
- Expense management
- Bil tracking
- Bank reconciliation
- Financial reporting
- Purchase order generation
- Inventory management
- Job management and job costing
- Financial reporting
Sage 50 Accounting integrates 26 with other business software platforms, including:
- Stripe
- Avalara
- AutoEntry
- VeriClock
- Sage AP Automation
Wave: Best for new business owners
Pros
- Free Starter plan option
- Affordable paid option
- Payroll, receipt collection, bookkeeping and accounting coaching services available for an additional fee
Cons
- Limited features
- No direct integrations
- Must subscribe to Pro plan to access email and chat support
Wave is our choice for new business owners because it offers a straightforward entry point into accounting with minimal upfront costs. The free Starter plan provides essential features like invoicing, expense tracking and basic financial reports. For those ready to expand, Wave’s paid plan is affordable compared to many competitors, adding functionality without straining the budget.
There are, however, some trade-offs. Wave’s feature set is limited compared to larger competitors, so you may need to migrate to another platform as your business grows and gets more complex. It also lacks direct integrations with other apps. Instead, you have to rely on Zapier to connect Wave with external tools.
Learn more about Wave.
Wave offers two tiers:
Starter: $0 per month
Pro: $19 per month
Wave offers the following features:
- Invoicing
- Estimates
- Payment collection
- Bank reconciliation
- Accounting dashboard
- Automations
It’s possible to integrate Wave with other apps; however, you’ll have to use Zapier to do it, which is a paid, third-party application. Wave doesn’t integrate directly with any other business solutions.Offers time tracking
ZipBooks: Best for service-based businesses
Pros
- Offers time tracking
- Plans are relatively affordable
- Unlimited invoicing included with all plans
Cons
- Lacks inventory management capability
- Some plans limit the number of team members
- Doesn’t offer mileage tracking
ZipBooks is our choice for service-based businesses because it provides the tools most relevant to companies that bill for time and projects rather than products. Its built-in time-tracking feature allows you to record hours worked and link them to client invoices, which is helpful for consultants, freelancers and professional service firms. Regardless of which tier plan you choose, ZipBooks offers unlimited invoicing, so you can bill clients as often as needed without worrying about usage caps.
The biggest downside is that ZipBooks doesn’t include inventory management features, which means it may not be a good fit for businesses that sell physical products. Certain plans also limit the number of team members, which could restrict collaboration as your business grows. It also doesn’t offer mileage tracking, so you’ll need to keep paper logs or use a third-party app if your company relies heavily on travel.
Learn more about ZipBooks.
ZipBooks offers four plans:
Starter: $0 per month
Smarter: $15 per month
Sophisticated: $35 per month
Accountant: Custom pricing
ZipBooks offers the following features:
- Bank reconciliation
- Invoicing
- Bill management
- Expense tracking and tagging
- Project tracking
- Time tracking
- Payment collection
- Financial reporting
ZipBooks integrates with other business software platforms, including:
- Gusto
- PayPal
- Stripe
- Square
- Slack
- Pepperi
- WePay
AccountEdge: Best for inventory-based businesses
Pros
- Offers multiple inventory-specific features
- All plans include free email support
- Includes time tracking
Cons
- Limited integrations
- Cloud-based platform access requires upgrading to the highest-tier plan
- Some features require an additional fee
AccountEdge is a good choice for inventory-based businesses because it offers a range of inventory-specific features, including stock alerts when inventory dips below a certain level, managing inventory quantities in different locations, and setting product prices based on average or last cost. This makes it ideal for retailers, wholesalers and product-based companies that need granular control over their goods.
However, there are some drawbacks to consider. Certain basic features, like connecting to bank feeds or accessing phone support, require an additional monthly fee. So while AccountEdge’s plans are relatively affordable, make sure you understand what’s included before you commit. Finding out you’ll need to pay more for the features you need to run your business might be frustrating if you expect them to be included in the base plan.
Learn more about AccountEdge.
AccountEdge offers three plans:
Pro: $20 per month
Network: $30 per month
Hosted: $50 per month
You can also pay for add-on services, like payroll or telephone support.
AccountEdge offers the following features:
- Inventory management
- Invoicing
- Expense tracking
- Bank reconciliation
- Time tracking
- Financial reporting
AccountEdge integrates with six other business software platforms directly:
- Payroll Forms Service
- Dropbox
- UPS
- Power BI
- Zapier
-
Square
You can also link additional apps through Zapier.
What does accounting software do?
Accounting software helps small businesses manage their finances efficiently by automating routine tasks and organizing critical data. It can track income and expenses, generate invoices, reconcile bank transactions and produce financial reports that give you insights into profitability and cash flow trends.
Many platforms also include tools for payroll, tax preparation, customer relationship management and collaborating with professional accountants and bookkeepers.
For small business owners, these features offer more visibility into the company’s financial health, better information for decision-making and the ability to scale operations without relying solely on manual bookkeeping.
Small business accounting software vs. bookkeeping software
Accounting software is often a more robust version of bookkeeping software. Business owners often use bookkeeping software to record income and expense transactions and generate financial reports. Most accounting software can do all that and more.
In addition to income and expense tracking, you can also use most small business accounting software for other tasks, such as invoicing, payment collection, bill tracking and purchase order and quote generation. In some instances, it may also include more advanced features, like inventory management or job costing.
While both types of software offer financial reporting, accounting platforms may offer more complex reporting with more opportunities for customization.
How to compare small business accounting software programs
No two accounting software programs are exactly alike. Here are some metrics to help you decide which option could be the best fit for you.
-
Pricing
Most accounting software offers multiple pricing tiers that are billed monthly. Make sure to choose an option that fits comfortably in your budget. -
Included features
Every accounting software offers a unique set of included features. For example, some include inventory management capabilities while others don’t. The software you choose should suit your business’s needs. -
Number of users
Some accounting software limits the number of users per plan. If you have a team, ensure you have sufficient permissions for all your team members. -
Available support
Support can vary by platform. Whether you prefer email, phone or chat support, ensure it’s included in your plan. -
Possible integrations
Many accounting software solutions will integrate with other business software platforms. While integrations may not make or break your decision, check to see what options are available.
Pros and cons of small business accounting software
PROS
- Automation simplifies income and expense tracking
- Financial reporting can help guide decisions for small businesses
- Reporting can also make filing business taxes simpler
CONS
- Most accounting software plans come with a monthly fee
- Some plans limit the number of users you may have at a given time
- Plans may upcharge for certain features and integrations
Alternatives to small business accounting software
If you decide that using small business accounting software isn’t right for you, there are two main alternatives for keeping your finances in check.
-
Going the DIY route
Since most accounting software programs come with a monthly fee, you’ll likely save money by taking a do-it-yourself approach. However, you’ll also have to be willing to invest more time and effort into manually recording your business’s various financial transactions. -
Hiring an accountant
If you don’t want to worry about having to manage a small business accounting software platform on your own, you can always hire an accountant to do it for you. That said, keeping an accountant on retainer is likely going to be more expensive than subscribing to a software program.
Frequently asked questions
Most platforms allow you to choose between cash and accrual methods. Many small businesses start out using the cash method of accounting because it’s simpler. If you later need to change to accrual, your accounting software may be able to evolve with you.
Businesses aren’t legally required to use accounting software. However, the IRS requires business owners to choose a recordkeeping system that “clearly shows your income and expenses.”
You can use paper ledgers or spreadsheets, but accounting software simplifies recordkeeping, reduces errors and saves time compared to manual bookkeeping.
Most accounting software platforms don’t include tax-filing features. You generally need to buy tax-preparation software or work with a tax preparer. However, your accounting software can track deductible expenses, generate reports, store digital receipts and organize your data to make tax filing easier.
Our methodology: How we chose the best accounting software for small business
We reviewed more than 17 small business accounting software platforms to determine the eight best overall. We evaluated platforms based on the following criteria:
- Pricing: We considered the range of pricing tiers available, as well as where the company’s overall pricing range fell in line with the competition.
- Services offered: We considered which services were included in the base package, which were package upgrades and which were considered add-ons.
- Support: We considered how frequently consumers will be able to meet with their bookkeepers and the methods by which they are able to contact their accountants in between meetings.
- Integrations: We took into account any possible integrations with other business or financial software solutions.