# 10 Best Accounting Software for Small Businesses 2026 | Capterra > Find and compare the 2026 best Accounting software for small businesses, using our interactive tool to quickly narrow your choices based on businesses like yours. Source: https://www.capterra.com/accounting-software/s/small-businesses --- # Best Accounting Software for Small Businesses in 2025 Last updated on June 17, 2025 Written by [Amita Jain](https://www.capterra.com/resources/author/ajain/) Writer Edited by [Parul Sharma](https://www.capterra.com/resources/author/parul-sharma/) Editor Small businesses often struggle to track their spending and earnings while trying to run everything else. [Accounting software](https://www.capterra.com/accounting-software/) helps small businesses organize all transactions digitally, automate routine bookkeeping tasks, and generate quick financial reports for a real-time view of business performance. To help you find the right accounting software for your small business, we analyzed over 18,000 verified user reviews from the past two years, including over 12,293 from small businesses, to identify the top-ranked systems and their most important features and benefits. ## 10 best accounting software for small businesses According to 12,293 verified Capterra reviews [ Xero ](#eab58142-6040-46ce-9341-a6d200b7915e) Highly rated for Functionality 4.4 (3269) [ Zoho Books ](#5b807ebe-2e3d-45a6-b91c-a6d200b7a22f) Highly rated for Income & Balance Sheet 4.4 (671) [ BQE CORE Suite ](#33bb7635-3b57-4299-80a6-a92800b5493b) Highly rated for Value for Money 4.5 (783) [ FreshBooks ](#609270fa-b593-415a-9f57-a6d200b42fbe) Highly rated for Ease of Use 4.5 (4506) [ Sage Accounting ](#36313b37-09bb-4f7c-9e51-a6d200b64092) Highly rated for General Ledger 4.1 (571) [ QuickBooks Enterprise ](#885b2837-e739-4034-bcbf-a6d200b49f49) Highly rated for Customer Support 4.5 (20610) [ Wave ](#c241dc65-cf20-4895-a843-a6d200b29051) Highly rated for Financial Reporting 4.4 (1719) [ QuickBooks Online ](#bcdd9473-58dd-4c24-a82a-a6d200b601d6) Highly rated for Bank Reconciliation 4.3 (8385) [ Ramp ](#d2b794da-b714-4ae7-bec8-5e69cbdef82d) Highest Rated 4.9 (216) [ Odoo ](#49a68156-7e55-465d-bce6-a816004f00fd) Highly rated for Billing and Invoicing 4.2 (1291) [Explore our full Accounting solutions](https://www.capterra.com/accounting-software/) ### How we picked the software on this list All the tools listed below are featured in the [2024 Capterra Shortlist for Accounting Software](https://www.capterra.com/accounting-software/shortlist/). They have at least 20 reviews in the past two years from small and midsize businesses as of November 2024, with ratings of 4 and above. Our analysis of thousands of user reviews highlights key insights about user experiences with these platforms, offering valuable feedback on functionality, ease of use, customer support, and value for money. * * * [### Ramp](https://www.capterra.com/p/207081/Ramp/) [4.9 (216)](https://www.capterra.com/p/207081/Ramp/reviews/) Highest Rated Highest Rated [View Profile](https://www.capterra.com/p/207081/Ramp/) Starting Price: $15.00 Per User, Per Month Free Trial Free Version Top rated feature: Expense Tracking Based on 29 reviews User rating: JV 90% of reviewers rated it 5 stars Ramp is a financial automation tool for small-and-midsize-businesses who want to take charge of their expenses. According to our analysis of products with high market demand and reviews, Ramp is the highest-rated accounting tool. Users can access a corporate card to simplify their expenses and maximize savings, as well as features like the ability to block out-of-policy spending, automate expense categorization with smart rules, and collect receipts automatically. Ramp provides detailed reporting to help users track every dollar and identify opportunities to save money, and it streamlines everything from bill payments to expense reimbursements to help users close their books quickly and accurately. Features Features reviewers most value **Receipt management** According to reviewers, Ramp's receipt management capabilities are a valuable feature, with a 4.5 out of 5 rating. Automatic card freezes and reminders improve accountability and timely submissions. Users also find the AI-powered receipt matching and auto-generation for transactions under $75 from vendors like Amazon highly efficient. They say the ability to upload receipts via text, email, or through the app simplifies the process. They highlight that receipts are easily stored, organized, and accessible for audits, making monthly reconciliation straightforward. **Mobile receipt upload** Users report that Ramp's mobile receipt upload is highly convenient and easy to use; they give this feature a rating of 4.3 out of 5. They say that the ability to snap a photo and upload receipts via the mobile app, text, or email streamlines the process. Reviewers feel this feature significantly reduces admin work and improves compliance with expense reporting. They also mention that immediate text reminders to upload receipts help prevent loss and ensure accurate tracking. **Expense tracking** Reviewers rate this feature 4.2 out of 5, and specifically highlight the value of this feature for monitoring and categorizing expenses. They report that the platform provides a clear overview of spending, with robust and user-friendly reporting features. Users appreciate the ability to submit and track expenses easily, noting that it helps maintain budgets and prevent overspending. They find the integration with accounting systems like QuickBooks Online beneficial for managing employee reimbursements and credit card spend. Pros & Cons James L. Computer Software, 11-50 employees Used the software for: Less than 6 months "They have more logical functions as far as integrations and reporting than their competitors, the speed to vendor payment is swift, and they charge in a logical fashion, not some of the inflated rates of other players in the market." LH Lucien H. Information Technology and Services, 201-500 employees Used the software for: 1-2 years "Ramp is a must have tool for a fast growing startup like ours. Since we implemented Ramp, we have drastically improved our controls around expenditure across the company, increased awareness about costs and spending and also delighted employees with a far superior tool that provides transparency and quick payouts for them." SK Sarah K. Computer Software, 201-500 employees Used the software for: 1-2 years "Previously, we were issuing physical credit cards from our bank, which made it challenging to get those back or enforce approvals on purchases." SW Stacey W. Machinery, 51-200 employees Used the software for: Less than 6 months "The user account details and permissions were the one confusing part we ran into with setup." Pricing Ramp keeps pricing simple and flexible, with the Free plan offering unlimited cards, basic approval workflows, and essential integrations. Businesses that need advanced capabilities can unlock more features with the Plus plan at $12 per user per month. [Learn more about Ramp pricing plans](https://www.capterra.com/p/207081/Ramp/pricing/) Integrations **Popular Integrations** - **Slack** is a messaging tool that integrates with Ramp to help team members share accounting details instantly. - **Quickbooks Online** is a cloud-based accounting tool that connects with Ramp to automate accounting and help users track their expenses better, saving them time and reducing manual errors. - **Xero** is an accounting software that integrates with Ramp to simplify finances by automatically linking transactions for accurate and current accounting records. [Learn more about Ramp](https://www.capterra.com/p/207081/Ramp/) * * * [### BQE CORE Suite](https://www.capterra.com/p/141096/BQE-Software/) [4.5 (783)](https://www.capterra.com/p/141096/BQE-Software/reviews/) Highly rated for Value for Money Highly rated for Value for Money [View Profile](https://www.capterra.com/p/141096/BQE-Software/) Starting Price: Not provided by vendor Free Trial Free Version Top rated feature: Billing & Invoicing Based on 12 reviews User rating: TM 70% of reviewers rated it 5 stars BQE CORE Suite is specifically for project-based businesses like architecture, engineering, and consulting firms. Developed by industry experts, it provides time tracking, billing, and task management features to simplify complex workflows so that users get to focus on delivering results and meeting client needs easily. Based on our analysis of popular accounting tools, BQE CORE Suite was rated the best value for money by users, with a rating of 4.5/5. Features Features reviewers most value **Online time tracking** Reviewers appreciate BQE CORE Suite's online time tracking capabilities, giving this feature a 4.7 out of 5 rating. They find it user-friendly and efficient, with tools like timers and recent entries that simplify time logging. Users report it helps with payroll, invoicing, and project management by allowing real-time tracking and editing, and it is essential for tracking billable hours and job costs. They also highlight its convenience for remote users and its ease of use compared to other systems. **Expense tracking** Users report that BQE CORE Suite's expense tracking is quick and easy to use; they rate this feature 4.6 out of 5. They appreciate the ability to upload receipts and track expenses in real-time, which simplifies reimbursement and invoicing processes. Reviewers find it convenient for categorizing expenses and assigning them to specific projects. They highlight the ease of submitting expense reports and the functionality of the BQE Core App for managing expenses. They also note the feature's reliability in keeping track of project costs. **Billing and invoicing** Reviewers give this feature a rating of 4.3 out of 5. They indicate that BQE CORE Suite's billing and invoicing capabilities are essential for accurate and efficient invoicing. They appreciate the seamless integration with time and expense tracking, which ensures correct billing. Users find batch invoicing helpful for managing multiple invoices quickly. They report that the system navigation is intuitive, though some mention issues with invoice formatting and occasional bugs. They also highlight the new online payment feature as a valuable addition. Pros & Cons Montasir M. Civil Engineering, 51-200 employees Used the software for: Less than 6 months "It is an intuitive and powerful tool that simplifies project management, time tracking, and expense management for small to midsize businesses." SH Sydney H. Design, 11-50 employees Used the software for: 1-2 years "We have become much more efficient in our operations and allowing more of our employee's time to be not only used for more important things than tedious admin work, but also easier to view and project their day to day tasks." Bryon Y. Architecture & Planning, 11-50 employees Used the software for: 2+ years "Very slow, cumbersome at times to run reports and navigate. " TW Taylor W. Civil Engineering, 11-50 employees Used the software for: Less than 6 months "Sometimes the program will run a bit slower than others that I use on my computer, but that could very well be related to the amount of information under one's profile rather than being a quality issue." Pricing BQE CORE Suite offers flexible, scalable pricing so businesses only pay for the features they require. For as little as $19 per user, per month, the Core Essentials plan includes features like time tracking, invoicing, and reporting. Higher tiered plans provide these features and more, like the Core Professional plan which starts at $39 per user, per month. [Learn more about BQE CORE Suite pricing plans](https://www.capterra.com/p/141096/BQE-Software/pricing/) Integrations **Popular Integrations** - **Google Drive** is a cloud-based storage platform that connects with BQE CORE Suite for secure, centralized document storage and easy information sharing. - **Dropbox Business** is a cloud storage tool that integrates with BQE CORE Suite to streamline file management and sharing and boost team collaboration. - **Microsoft 365** is a subscription service that works with BQE CORE Suite to help business owners track their expenses directly in apps like Microsoft Teams and Outlook. [Learn more about BQE CORE Suite](https://www.capterra.com/p/141096/BQE-Software/) * * * [### FreshBooks](https://www.capterra.com/p/142390/FreshBooks/) [4.5 (4506)](https://www.capterra.com/p/142390/FreshBooks/reviews/) Highly rated for Ease of Use Highly rated for Ease of Use [View Profile](https://www.capterra.com/p/142390/FreshBooks/) Starting Price: $21.00 Flat Rate, Per Month Free Trial Free Version Top rated feature: Billing & Invoicing Based on 138 reviews User rating: BH 59% of reviewers rated it 5 stars According to our analysis of the most popular accounting products and their reviews, FreshBooks was rated the easiest tool to use by verified reviewers, with a score of 4.5/5. Tailored for small business owners and self-employed users, FreshBooks turns financial management into a user-friendly experience. It’s built to reduce paperwork by simplifying tasks like invoicing, expense tracking, and time management, allowing businesses to focus on growth. With its cloud-based setup, users can manage their books anywhere, even on mobile devices. Also, FreshBooks automates payment follow-ups, helping users get paid faster. Features Features reviewers most value **Reporting/analytics** With a rating of 4.8 out of 5, reviewers appreciate FreshBooks' reporting/analytics capabilities. They say that it provides clear insights into profit and loss, tax, and invoice details. Users indicate that it helps identify growth areas and develop targeted strategies. They find it useful for summarizing user data in one organized platform, making data-driven decisions, and sharing business reports with accountants. They say it keeps everything on track and in check. **Invoice management** Reviewers highlight FreshBooks' invoice management capabilities, giving the feature a rating of 4.8 out of 5. They specifically call out the ability to create professional-looking invoices with custom branding and logos. Users also appreciate the automation of recurring invoices and reminders for late payments. They find it easy to track invoice status, view overdue, paid, and viewed invoices, and customize taxes according to regulations. They say it simplifies managing invoices, tracking transactions, and integrating with other services, making it user-friendly even for non-tech-savvy individuals. **Billing portal** Reviewers value FreshBooks' billing portal capabilities; they rate them 4.7 out of 5. They report that it provides access to all payment links, cash payments, and mobile payments, making it easy to track payment status and update financial records. Users appreciate the dashboard's snapshot of aging invoice status and the ability to invoice customers with various payment methods. They find it helpful for keeping bills together, easy for clients to navigate, and useful for fast transactions. They say it is an affordable option that goes a long way to simplify billing. Pros & Cons LS Leslie S. Marketing and Advertising, 1-10 employees Used the software for: 1-2 years "I love the hourly time tracking tool for creatives or anyone doing hourly service based work, I also appreciate the robust reporting tools." JM Jaime M. Wholesale, 501-1,000 employees Used the software for: 2+ years "FreshBooks has been a key product in our business helping us to manage our finances from sending our invoices for collecting payments to budgeting and controlling how we spend our financial resources." HL Hikmet L. Hospital & Health Care, 51-200 employees Used the software for: 2+ years "Occasionally the version has been changed to add or remove some important features without notice, and occasionally the mobile app fails to upload receipts when out of the office." Jeffrey B. Oil & Energy, 5,001-10,000 employees Used the software for: 1-2 years "It was a 50 and 50 where we saved time and money, we could follow up on an effective timeline where in general we could have details of how much we spent in time and also in money in each process, on the other hand we delayed, we It was too disturbing not to be clear about everything since the situation required that we had to go through many accounting options that we did not use." Pricing FreshBooks offers plans for SMBs at any stage. Users can explore the platform risk-free with a 30-day free trial. The Lite plan, priced at $19/month, includes invoicing for up to five clients—perfect for startups. [Learn more about FreshBooks pricing plans](https://www.capterra.com/p/142390/FreshBooks/pricing/) Integrations **Popular Integrations** - **PayPal** is an online, multi-currency payment processor that integrates with FreshBooks to simplify online payments. This allows businesses to get paid faster while providing a secure checkout experience. - **Trello** is a project management tool that integrates with FreshBooks to give teams insight into task-related financials. - **Salesforce Sales Cloud** is a customer relationship management (CRM) tool that partners with FreshBooks to help business owners link customer data, track expenses, and automate invoicing. [Learn more about FreshBooks](https://www.capterra.com/p/142390/FreshBooks/) * * * [### QuickBooks Enterprise](https://www.capterra.com/p/174984/QuickBooks-Enterprise/) [4.5 (20610)](https://www.capterra.com/p/174984/QuickBooks-Enterprise/reviews/) Highly rated for Customer Support Highly rated for Customer Support [View Profile](https://www.capterra.com/p/174984/QuickBooks-Enterprise/) Starting Price: $2210.00 Flat Rate, Per Year Free Trial Free Version Top rated feature: Financial Reporting Based on 528 reviews User rating: SG 61% of reviewers rated it 5 stars QuickBooks Enterprise offers advanced accounting and inventory management for industries like retail and manufacturing. Based on our assessment of popular products and user reviews from the past two years, QuickBooks Enterprise was rated 4.5/5 for its customer support. Users have access to any of the multiple customer support channels, including live chat, knowledge base, FAQs, forums, email, and phone support. The tool also offers real-time dashboards, job costing, and customizable reports to give users total control over their finances. Features Features reviewers most value **Cash management** Reviewers appreciate QuickBooks Enterprise's cash management capabilities, giving the feature a rating of 4.6 out of 5. They find it helpful for tracking cash flow, monitoring bank balances, and managing bills and payments. Users report that it provides real-time visibility into financial status and simplifies routine tasks. They also mention that it is user-friendly and saves time, making it easier to handle financial transactions and keep important information organized. **Invoice processing** Reviewers give this feature a rating of 4.5 out of 5. They find QuickBooks Enterprise's invoice processing very user-friendly and efficient. They highlight that it simplifies entering, tracking, and managing invoices, with features like predictive refill and easy integration with bank accounts. Reviewers appreciate the ability to email invoices directly from the system and the historical data storage for tracking payments. They also mention that it supports both traditional and digital invoicing methods, making it versatile and saving time when processing numerous transactions daily. **Invoice creation** Reviewers highlight the ease and flexibility of invoice creation in QuickBooks Enterprise; they rate this feature 4.5 out of 5. They appreciate the customizable templates and automated invoicing options, which enhance accuracy and save time. Users find this feature helpful for managing finances, tracking overdue invoices, and ensuring timely payments. They also mention that it integrates well with payment processors. Pros & Cons RT Rosario T. Banking, 51-200 employees Used the software for: 2+ years "The great way of tracking invoices to the expenses and costs, as well a the great customer support, are some of the best qualities of this platform." SW Sharon W. Design, Self-employed Used the software for: 2+ years "Overall, QuickBooks Enterprise is a powerful system that offers most of what I need, especially in inventory management, customizable reports, and secure user permissions, all within a platform that’s very easy to navigate." SW Sharon W. Design, Self-employed Used the software for: 2+ years "However, the cost can be high for small businesses, and its limitations with multi-currency can be challenging for companies with international operations." LL Laura L. Utilities, 11-50 employees Used the software for: 2+ years "It can also feel overwhelming for new users due to its complexity, and the interface looks somewhat outdated compared to newer cloud-based platforms." Pricing QuickBooks Enterprise offers tiered pricing that starts at $35/month for basic accounting capabilities. An upgrade will cost the user $65/month to get additional accounting features. However, users can test the fit of this software with a free trial for 30 days. [Learn more about QuickBooks Enterprise pricing plans](https://www.capterra.com/p/174984/QuickBooks-Enterprise/pricing/) Integrations **Popular Integrations** - **Microsoft Excel** is a spreadsheet software that connects with QuickBooks Enterprise to help business owners import and export data, streamlining accounting tasks. - **Microsoft Teams** is a team collaboration tool that integrates with QuickBooks Enterprise. It allows users to access and update financial data within teams.  - **Gmail** is a Google email service that integrates with QuickBooks to simplify client communication by syncing emails and financial records. [Learn more about QuickBooks Enterprise](https://www.capterra.com/p/174984/QuickBooks-Enterprise/) * * * [4.4 (3269)](https://www.capterra.com/p/120109/Xero/reviews/) Highly rated for Functionality Highly rated for Functionality Starting Price: $25.00 Flat Rate, Per Month Free Trial Free Version Top rated feature: Bank Reconciliation Based on 311 reviews User rating: 60% of reviewers rated it 5 stars Based on our analysis of popular products, and with a user-rating of 4.4/5, Xero stands out among the most popular accounting tools for its functionality. This accounting software simplifies operations for small business owners and accountants. It automatically syncs with their bank accounts to reconcile transactions and generate real-time financial reports to help users stay on top of their cash flow. Additionally, users can send professional invoices, track payments, and manage expenses all in one place. It’s mobile-friendly, too, so users can handle their finances from anywhere. Plus, it offers features like multi-currency support for businesses that operate across borders. Features Features reviewers most value **Profit/loss statement** Reviewers give this feature a 4.5 out of 5 rating. They appreciate how easy it is to customize profit/loss reports and how quickly these reports can be generated. They find it helpful for monthly reconciliations, financial audits, and tracking business performance. Users report that the statements are clear, easy to navigate, and can be exported in various formats like PDF and Excel. However, some users miss the functionality of the older version and find the new version less intuitive for month-by-month comparisons. **Online invoicing**  Reviewers rate this feature 4.5 out of 5. They report that Xero's Online Invoicing is highly efficient, allowing them to create, customize, and send professional invoices from anywhere. They appreciate the integration with payment platforms like Stripe and the ability to convert invoices to PDF. Reviewers highlight the ease of tracking invoice status and payments, reducing errors and disputes. They also value the customization options for branding and payment terms. However, some users find the invoicing templates less flexible for specific client needs. Pros & Cons Craig H. Dairy, 51-200 employees Used the software for: 1-2 years "I also appreciated the accessibility, being able to access financial information from anywhere, and the automated reminders, which helped keep tasks like invoicing and payments on track." AF Amanda F. Real Estate, 1-10 employees Used the software for: 2+ years "I mainly use Xero since it has an iOS mobile application that allows me to streamline online accounting processes from anywhere." DE Daryl E. Information Technology and Services, 1-10 employees Used the software for: 2+ years "Just one example; you add a discount to a line item on a quote, lets say $10, and then realise that you put that discount on the wrong line item, so you delete the discount on that line, and put $10 on the next line item down." DE Daryl E. Information Technology and Services, 1-10 employees Used the software for: 2+ years "This is the kind of moronic bugs that happen all the time in Xero, and its due to one thing only; an insistence on only working on things that look good to attract new users (once you have someone subscribed, they will likely be tied in for at least 12 months by the time they realise the horrors that occur), or improve shareholder value." Pricing Xero offers simple, transparent, and flexible plans to suit businesses of all sizes. Users can try this accounting tool with a 30-day free trial. Upgrading costs by $20 per month, providing an affordable entry point for basic accounting features, including invoicing, expense tracking, and up to 20 bank transactions per month. [Learn more about Xero pricing plans](https://www.capterra.com/p/120109/Xero/pricing/) Integrations **Popular Integrations** - **Shopify** is an eCommerce platform for online stores, and when connected with Xero, it syncs sales data for easy accounting and inventory management. - **FreshBooks** is an accounting software counterpart that connects with Xero to let users link customer data and invoices.  - **Expensify** is an expense management tool that links receipts and expense reports with Xero for easy bookkeeping. [Learn more about Xero](https://www.capterra.com/p/120109/Xero/) * * * [4.4 (671)](https://www.capterra.com/p/163115/Zoho-Books/reviews/) Highly rated for Income & Balance Sheet Highly rated for Income & Balance Sheet Starting Price: $20.00 Other, Per Month Free Trial Free Version Top rated feature: Billing & Invoicing Based on 49 reviews User rating: CS 56% of reviewers rated it 5 stars Based on our analysis of user reviews for products with the highest demand, Zoho Books was rated 4.4/5 by users for its ability to manage payments and expenses while automating tasks such as payment reminders and recurring invoices. This product doesn’t just generate income statements and balance sheets—it also gives a 360-degree view of exactly what’s happening from a financial health standpoint, down to the minutest details. In Zoho Books, data ranges and reports are customizable, while transactions are easy to import, categorize, and consolidate. Features Features reviewers most value **Online invoicing** Reviewers appreciate Zoho Books' online invoicing capabilities for their efficiency and ease of use, giving the feature a rating of 4.8 out of 5. They highlight the ability to create and send invoices in real-time, which helps close jobs quickly. Users value the customizable templates and the ability to track invoice status and receive payments online. They find the integration with Zoho Inventory helpful and appreciate the multiple payment options for clients.  **Invoice creation** Reviewers give this feature a 4.8 out of 5 rating. They report that Zoho Books' invoice creation is straightforward and user-friendly. They appreciate the ability to add products, services, shipping, and taxes easily. Reviewers find the process of converting estimates to invoices intuitive and efficient. They value the integration with payment gateways for online payments and the automation of data importing.  **Billing and invoicing** Reviewers indicate that Zoho Books' billing & invoicing capabilities are simple yet effective, rating the feature 4.4 out of 5. They appreciate the automation features, such as recurring invoices and payment reminders. Users find it easy to manage billing information and generate invoices on both web and mobile platforms. They appreciate the integration with websites and the ability to back up invoices for accounting purposes. However, some users mention issues with handling volume entries and batch imports. Pros & Cons Rohit L. Facilities Services, 1-10 employees Used the software for: 6-12 months "Havent experienced any bug, there was one concern which was fixed immediately. and i'd recommend it for both small business as well as large organisation." Rohit L. Facilities Services, 1-10 employees Used the software for: 6-12 months "Data management is so good, i am uploading all the invoices too in the application." LT Luke T. Education Management, Self-employed Used the software for: I used a free trial "Another small problem is that it doesn't import your bank transactions until the day after the transaction has taken place, despite refreshing the feed." DS David S. Health, Wellness and Fitness, 11-50 employees Used the software for: 1-2 years "The mobile app isn’t as functional as the desktop version, and while the reporting options are good, they could be better customized." Pricing Zoho Books offers a free forever plan, which remains free as long as an SMB’s annual revenue stays within the region-specific threshold. As part of the higher-tiered plans, the Standard plan best fits growing businesses and starts at $15 per month for one user, with every additional user costing an additional $5 per month. The key features include multi-currency support, credit notes, and purchase order management capabilities. [Learn more about Zoho Books pricing plans](https://www.capterra.com/p/163115/Zoho-Books/pricing/) Integrations **Popular Integrations** - **PayPal** is an online, multi-currency payment processor that blends with Zoho Books to enable users to accept payments globally, track payments on the fly, and process refunds faster. - **Slack** is a workplace productivity tool that integrates with Zoho Books to facilitate automated reporting and summaries, real-time alerts, and team collaboration. - **DropBox Business** is a file-sharing solution that works with Zoho Books to remove the complexities of asset-related document creation, aggregation, and storage. [Learn more about Zoho Books](https://www.capterra.com/p/163115/Zoho-Books/) * * * [### Wave](https://www.capterra.com/p/178021/Wave-Apps/) [4.4 (1719)](https://www.capterra.com/p/178021/Wave-Apps/reviews/) Highly rated for Financial Reporting Highly rated for Financial Reporting [View Profile](https://www.capterra.com/p/178021/Wave-Apps/) Starting Price: $19.00 Flat Rate, Per Month Free Trial Free Version Top rated feature: Billing & Invoicing Based on 102 reviews User rating: PM 61% of reviewers rated it 5 stars Based on our analysis of products with the highest demand, Wave has been rated the best for financial reporting with a score of 4.4/5. It is an invoicing and expense tracking software, and also a receipt scanning and bank account integration platform meant specifically for startups and small businesses. Growing businesses will appreciate benefits like real-time financial reporting for keeping an eye on their income and expenses. Users say dashboards are customizable, filtering is fine-grained, and the reports themselves are holistic and deep. Features Features reviewers most value **Invoice creation** Reviewers appreciate Wave's invoice creation capabilities, giving them a 4.6 out of 5 feature rating. They report it is easy to create, duplicate, and send invoices, even on the go. Users find it convenient to add new clients, items, and notes, and appreciate the automatic calculations for prices and taxes. Users also value the recurring invoicing and automated reminders, which save time and streamline their billing processes. **Online invoicing** Users find Wave's online invoicing valuable for its convenience and efficiency; they rate the feature 4.5 out of 5. They appreciate being able to send invoices directly via email, track invoice status, and receive notifications when invoices are viewed or overdue. Reviewers highlight the ease of setting up templates, adding customers, and sending reminders. They also value the online payment options, which facilitate prompt payments. The ability to access and manage invoices from any device with internet access is frequently mentioned as a significant benefit. **Invoice processing** Reviewers indicate that Wave's invoice processing is efficient and user-friendly, rating the feature 4.4 out of 5. They appreciate the ability to handle recurring invoices, apply discounts, and process partial payments. Users report that the automated reminders and notifications help ensure timely payments. They find the system's capability to specify payment methods and dates useful for bookkeeping. However, some users mention issues with handling overpayments and the lengthy processing time for ACH payments. Overall, though, users find the invoice processing smooth and effective. Pros & Cons Ron W. Real Estate, 1-10 employees Used the software for: 1-2 years "Love the free version but it’s super basic and limited but upgrading to paid version is very expensive when using it for more than 1 business and offers inadequate features to do the job vis-a-vis other competitors in the market. If … WAVE would add AI, connectivity to banks and credit cards, and features to operate multiple businesses in the paid subscription I’d use it." Amber M. Design, Self-employed Used the software for: 1-2 years "The option to create recurring invoices has been amazing, as well as the reports I can pull at the end of each year." KW Kristyne W. Hospitality, Self-employed Used the software for: 1-2 years "I tried to set up a way to send invoices and receive payments through Wave, but even after I was approved, they removed my access due to a blanket assumption around travel agencies. " ml melissa l. Construction, 1-10 employees Used the software for: I used a free trial "A major pain point for users is the lack of robust, live customer support for free users, who are generally limited to an online help center and chatbot." Pricing Wave’s Starter plan is free, and it comes complete with unlimited bookkeeping records and on-the-go invoicing. An upgrade to the Pro plan unlocks a bevy of higher-end features, including auto-import and auto-merge capabilities, at $16. Overall, the payment model is priced on a per credit card transaction, per month basis. [Learn more about Wave pricing plans](https://www.capterra.com/p/178021/Wave-Apps/pricing/) Integrations **Popular Integrations** - **PayPal** is an online, multi-currency payment processor that connects with Wave, paving the way for the automatic import of PayPal transactions into Wave’s accounting system. - **Gmail** is a Google email service that integrates with Wave to make invoicing, document management, and communication seamless for users. - **Zapier** is a workflow automation software that integrates with Wave to provide SMBs an entryway to over 5,000 apps for enabling real-time transaction updates and automated data syncing. [Learn more about Wave](https://www.capterra.com/p/178021/Wave-Apps/) * * * [### Sage Accounting](https://www.capterra.com/p/168740/Sage-One-UK/) [4.1 (571)](https://www.capterra.com/p/168740/Sage-One-UK/reviews/) Highly rated for General Ledger Highly rated for General Ledger [View Profile](https://www.capterra.com/p/168740/Sage-One-UK/) Starting Price: $20.00 Flat Rate, Per Month Free Trial Free Version Top rated feature: Financial Reporting Based on 103 reviews User rating: DS 47% of reviewers rated it 5 stars Sage Accounting pulls together the most important accounting data, breaks it down into digestible chunks, and allows users to access it all from anywhere, anytime. Its standout features include—but are not limited to—invoicing, expense tracking, and financial reporting. From a general ledger standpoint, Sage Accounting simplifies journal entries, enables real-time financial oversight, and facilitates automatic posting of transactions—all useful perks for SMBs wanting to keep financial decision-making and compliance under control. Based on our analysis of popular products and over 380 reviews collected in the past two years, Sage Accounting has been rated the best for general ledger by users, with a score of 4.16/5. Features Features reviewers most value **Income and balance sheet** Reviewers appreciate Sage Accounting's income & balance sheet, giving it a 4.4 out of 5 feature rating. They find the income statement clear for calculating monthly income and the balance sheet effective for tracking fixed assets and depreciation. Users say the reports are straightforward, easy to understand, and beneficial for both daily updates and bank reporting. They also mention it’s valuable for small businesses to monitor cash flow and ensure financial health. Reviewers indicate the layout is intuitive and the statements are easy to read and categorize as well. **Financial reporting** Reviewers highlight Sage Accounting's financial reporting capabilities; they rate the feature 4.2 out of 5. They report it helps in reviewing profit and loss, balance sheets, and cash flow statements. Users appreciate the ability to generate various reports for different periods, and they find the graphical interface helpful. They say it simplifies presenting information to investors and preparing year-end financial statements. However, some reviewers mention the lack of budget reporting as a drawback.  **General ledger** Reviewers find Sage Accounting's general ledger capabilities essential for accounting, rating them 4.2 out of 5. They report it allows for detailed tracking of day-to-day accounts, expenses, and liabilities. Users appreciate the ease of navigation and the ability to obtain necessary information quickly. However, some reviewers note issues with reversing journals and month-end close. Pros & Cons SC Scott C. Non-Profit Organization Management, 1-10 employees Used the software for: Less than 6 months "It has a robust set of tools that make my daily bookkeeping, expense tracking, invoicing and reporting easy and accurate." AL Alain L. Computer Networking, Self-employed Used the software for: 2+ years "Its intuitive interface, secure cloud-based platform, and clear visibility into cash flow make it a practical choice for everyday accounting tasks. While customer support and mobile performance could be improved, and customization options are somewhat limited compared to premium competitors, Sage delivers solid value for money." MF Mark F. Telecommunications, Self-employed Used the software for: 2+ years "The Online software has some minor glitches, when creating an invoice the software kicks me out of invoice after each line I enter!!" VM Valerie M. Accounting, Self-employed Used the software for: 2+ years "I can't generate a single report with all the projects included. If I have 15 projects, I have to generate 15 separate reports." Pricing Sage Accounting has three pricing packages, but no free version is available. Their Pro plan starts at $625 per year, and their Premium plan at $1,043 per year—both are excellent picks for small businesses. The former includes inventory management and bill tracking capabilities, while the latter also has advanced reporting tools. The only limitation is the number of users, with Pro being limited to one and Premium limited to five. [Learn more about Sage Accounting pricing plans](https://www.capterra.com/p/168740/Sage-One-UK/pricing/) Integrations **Popular Integrations** - **Stripe** is an online payments processor that integrates with Sage Accounting to automate payment recording and simplify reconciliation. - **AutoEntry** is a data entry automation software that connects with Sage Accounting to automate data entry processes. - **PayPal** is an online, multi-currency payment processor that integrates with Sage Accounting. This allows users to effortlessly process and accept payments on invoices. [Learn more about Sage Accounting](https://www.capterra.com/p/168740/Sage-One-UK/) * * * [### QuickBooks Online](https://www.capterra.com/p/190778/QuickBooks-Online/) [4.3 (8385)](https://www.capterra.com/p/190778/QuickBooks-Online/reviews/) Highly rated for Bank Reconciliation Highly rated for Bank Reconciliation [View Profile](https://www.capterra.com/p/190778/QuickBooks-Online/) Starting Price: $38.00 Flat Rate, Per Month Free Trial Free Version Top rated feature: Financial Reporting Based on 677 reviews User rating: 57% of reviewers rated it 5 stars Based on our analysis of high-demand products and verified reviews from the past two years, QuickBooks Online (QBO)  has been rated the best for bank reconciliation, with a 4.35/5 rating, thanks to its ability to match accounting records with bank statements accurately. It utilizes AI-powered smart matching, which reduces reconciliation errors and invoicing inaccuracies. The reconciliation dashboard itself is easy to use and detail-focused, showing a clear overview of bank account, bank balance, QuickBooks balance, as well as any discrepancies. It’s not just bank accounts that QBO can reconcile; credit cards and PayPal accounts, too—all from the same platform. Features Features reviewers most value **Profit/loss statement** Reviewers appreciate QuickBooks Online's profit/loss statement for its accuracy and ease of use; they rate the feature 4.5 out of 5. They highlight the ability to select specific timeframes for these reports as a useful feature. Users report that it provides a clear snapshot of financial performance, aiding in strategy formulation and expense management. They find it essential for monthly reviews, tax preparations, and presenting data to stakeholders. Users also value the quick loading times and the straightforward, easy-to-read format that integrates well with Excel. **Invoice history** Reviewers give this feature a rating of 4.4 out of 5. They find QuickBooks Online's invoice history valuable for tracking past transactions and ensuring compliance. They appreciate the ability to search and retrieve old invoices quickly, which helps with customer communication. Reviewers indicate that it supports efficient cash flow predictions and auditing. They also highlight the professional layout and ease of access, which helps in managing large orders and overdue payments.  **Reporting/analytics** Reviewers highlight QuickBooks Online's reporting/analytics, giving the feature a rating of 4.4 out of 5. They appreciate the real-time monitoring and the ability to generate various reports easily. Users say that it helps in financial analysis, budgeting, and making swift business decisions. They find the reports accurate and useful for tracking business performance. Reviewers also value the flexibility and ease of use, noting that it supports detailed analysis and is critical for accountants and bookkeepers. Pros & Cons Shahid Jamil K. Logistics and Supply Chain, 5,001-10,000 employees Used the software for: 2+ years "QuickBooks Online provides a modern, cloud-based accounting experience designed for small to medium-sized businesses that value convenience, automation, and collaboration." TB Thomas B. Environmental Services, 51-200 employees Used the software for: 1-2 years "Invoicing and payments are seamless, and financial reporting tools provide all the insights we need without extra software. Because it’s cloud-based, we always have secure access to our financials, and we’ve had no major issues with performance or data integrity." AR Andrew R. Logistics and Supply Chain, 1-10 employees Used the software for: 6-12 months "QuickBooks Online lacks advanced features found in the desktop version, such as advanced inventory, job costing, and industry-specific tools." Arianna W. Performing Arts, 1-10 employees Used the software for: 1-2 years "There is no way to reliably set up what is relevant and how to record different suppliers, no chance to have categories remembered, even when defining defaults." Pricing While there’s no free forever plan, QBO’s Simple Start plan is a solid option, with features such as GST tracking and insight reporting available for only $9 per month per user. An upgrade to the Essentials package at only $14 per month opens up various features such as multi-currency and process invoicing. The only limitation is the number of users, capped at 3, plus the accountant. [Learn more about QuickBooks Online pricing plans](https://www.capterra.com/p/190778/QuickBooks-Online/pricing/) Integrations **Popular Integrations** - **Constant Contact** is a digital marketing platform that integrates with QBO to automatically import customers and consolidate data. - **Housecall Pro** is a home services business management software that integrates with QBO to synchronize payment data, invoices, and service charges. - **Microsoft Power BI** is a business intelligence and analytics platform that integrates with QBO to help SMBs surface custom reports, streamline data flow, and better visualize discrepancies. [Learn more about QuickBooks Online](https://www.capterra.com/p/190778/QuickBooks-Online/) * * * [### Odoo](https://www.capterra.com/p/135618/Odoo/) [4.2 (1291)](https://www.capterra.com/p/135618/Odoo/reviews/) Highly rated for Billing and Invoicing Highly rated for Billing and Invoicing [View Profile](https://www.capterra.com/p/135618/Odoo/) Starting Price: $31.10 Per User, Per Month Free Trial Free Version Top rated feature: Billing & Invoicing Based on 93 reviews User rating: NS 53% of reviewers rated it 5 stars From our assessment of popular accounting products and user reviews, Odoo has been rated the best for billing and invoicing, with users rating it 4.24/5. As one of the highest-rated CRM and ERP tools, Odoo automates and orchestrates marketing campaigns, forecasting, statistics, and accounting full cycle. At its heart, Odoo is a modular, open-source platform, allowing SMBs to only start with the features they absolutely need and take up more as their users and requirements increase. Odoo could be a fit for SMBs wanting to steer clear of the errors and inefficiencies associated with manually inputting financial data into or pulling from disparate systems. It’s not just recurring billing that’s automated; tax calculations are, too. Features Features reviewers most value **Billing and invoicing** Reviewers appreciate Odoo's billing & invoicing capabilities for their ease of use and efficiency; they rate the feature 3.6 out of 5. They highlight the support for multiple currencies, partial payments, and automated reminders, which improve cash flow and reduce administrative tasks. Users report that automated invoicing reduces manual work and ensures timely billing. They find the customizable and professional invoice templates valuable. Reviewers also mention the insightful dashboards for managing bills and invoices, although some note the need for better adaptation to specific accounting systems. **Inventory management** Reviewers give this feature a rating of 3.4 out of 5. They indicate that Odoo's inventory management is effective for tracking inventory, managing stock levels, and forecasting quantities. They find it useful for keeping track of product movements, expiration dates, and stock replenishment needs. Users report that it handles complex inventory setups, including multiple warehouses and locations. They appreciate the integration with databases and the straightforward inventory control. However, some reviewers mention challenges with managing large quantities and the complexity of certain tasks, like transfers between warehouses. Pros & Cons Yatra P. Retail, 10,001+ employees Used the software for: Less than 6 months "Many features like customization, tasks tracking, multiple integration and automation are available which saves a lot of time." RP Ryan P. Design, 1-10 employees Used the software for: Less than 6 months "Instead of piecing together multiple tools, Odoo integrates key business functions in one system which can simplify workflows and reduce tool sprawl." hd hana d. Retail, 11-50 employees Used the software for: 6-12 months "My Odoo database — which I paid for and which should have been created under my company’s ownership — was created and controlled entirely under ADG’s ( odoo authorised partner) internal account. Because of this, ADG was able to delete my database and remove my access without any authorization." hd hana d. Retail, 11-50 employees Used the software for: 6-12 months "No one should be in this situation waking up to see that the fully paid subscription account with database and pos completly deleted without prior notice and althoug im the admin of the odoo shop account. But what i didnt know that the odoo partner i signed with have scamed me and created my odoo shop under there company accouny which is a clear data ownership Violation." Pricing Odoo’s version of a free forever plan, the One App Free Plan, allows SMBs unrestricted access to a single app/module for an unlimited number of users. For teams that don’t require heavy customization, the standard plan, starting at $19, may be a better fit—and it includes a cloud-hosted database on Odoo Online. Overall, Odoo charges on a per user per month model. [Learn more about Odoo pricing plans](https://www.capterra.com/p/135618/Odoo/pricing/) Integrations **Popular Integrations** - **Google Docs** is an online document editor that integrates with Odoo to enhance cross-platform document sharing and syncing. - **PayPal** is an online, multi-currency payment processor that integrates with Odoo so SMBs can seamlessly track payments and update order status within Odoo. - **Gmail** is an email service that integrates with Odoo to enable SMBs to effortlessly manage their communications and workflows between the two platforms. [Learn more about Odoo](https://www.capterra.com/p/135618/Odoo/) * * * ## Top accounting software for small businesses at a glance Vendor Highly rated Starting Price [Xero](https://www.capterra.com/p/120109/Xero/)[4.4 (3269)](https://www.capterra.com/p/120109/Xero/reviews/) Functionality $25.00 Per Month [Zoho Books](https://www.capterra.com/p/163115/Zoho-Books/)[4.4 (671)](https://www.capterra.com/p/163115/Zoho-Books/reviews/) Income & Balance Sheet $20.00 Per Month [BQE CORE Suite](https://www.capterra.com/p/141096/BQE-Software/)[4.5 (783)](https://www.capterra.com/p/141096/BQE-Software/reviews/) Value for Money Not provided by vendor [Learn More](https://www.capterra.com/p/141096/BQE-Software/) [FreshBooks](https://www.capterra.com/p/142390/FreshBooks/)[4.5 (4506)](https://www.capterra.com/p/142390/FreshBooks/reviews/) Ease of Use $21.00 Per Month [Learn More](https://www.capterra.com/p/142390/FreshBooks/) [Sage Accounting](https://www.capterra.com/p/168740/Sage-One-UK/)[4.1 (571)](https://www.capterra.com/p/168740/Sage-One-UK/reviews/) General Ledger $20.00 Per Month [Learn More](https://www.capterra.com/p/168740/Sage-One-UK/) [QuickBooks Enterprise](https://www.capterra.com/p/174984/QuickBooks-Enterprise/)[4.5 (20610)](https://www.capterra.com/p/174984/QuickBooks-Enterprise/reviews/) Customer Support $2210.00 Per Year [Learn More](https://www.capterra.com/p/174984/QuickBooks-Enterprise/) [Wave](https://www.capterra.com/p/178021/Wave-Apps/)[4.4 (1719)](https://www.capterra.com/p/178021/Wave-Apps/reviews/) Financial Reporting $19.00 Per Month [Learn More](https://www.capterra.com/p/178021/Wave-Apps/) [QuickBooks Online](https://www.capterra.com/p/190778/QuickBooks-Online/)[4.3 (8385)](https://www.capterra.com/p/190778/QuickBooks-Online/reviews/) Bank Reconciliation $38.00 Per Month [Learn More](https://www.capterra.com/p/190778/QuickBooks-Online/) [Ramp](https://www.capterra.com/p/207081/Ramp/)[4.9 (216)](https://www.capterra.com/p/207081/Ramp/reviews/) Highest Rated $15.00 Per Month [Learn More](https://www.capterra.com/p/207081/Ramp/) [Odoo](https://www.capterra.com/p/135618/Odoo/) [4.2 (1291)](https://www.capterra.com/p/135618/Odoo/reviews/) Billing and Invoicing $31.10 Per Month [Learn More](https://www.capterra.com/p/135618/Odoo/) Explore our 723 Accounting solutions[Browse Directory](https://www.capterra.com/accounting-software/) ## Our methodology Our independent and objective research is based on market demand signals along with analysis of our proprietary data, including product information and verified user ratings and reviews as of November 2024. To be considered for this list, products had to: - Appear in the [Capterra Shortlist for Accounting Software](https://www.capterra.com/accounting-software/shortlist/) - Meet our market definition for Accounting - Have at least 20 reviews from small and midsized businesses (SMBs) within two years of the evaluation period - In certain cases, depending on the market, we may expand the criteria for selection of products based on our market insights to ensure we’re providing the best options for buyers.  We took the highest rated products in each of the listed parameters unless that product already appeared on our list, in which case we featured the next highest rated.  In our descriptions of each featured product, we included the following details:  **Most valued features:** Our research team analyzed verified Accounting software reviews on Capterra to identify each product’s highest rated features (among features with at least 5 reviews). We then summarized user sentiment using real reviews for each feature.  **Review excerpts:** Review excerpts are passages extracted from longer reviews written by verified reviewers. We obtain these excerpts by applying an algorithm that considers factors including, but not limited to, length, sentiment, topic coverage, and thematic relevance. Excerpts represent user opinion and do not represent the views of, nor constitute, an endorsement by Capterra or its affiliates. Excerpts are not edited for clarity or grammar. **Popular integrations:** We identified integrations from our internal database and selected products considered as “most popular” based on how often they were cited by users as integrating with products in the category. ## What is accounting software? Accounting software helps small business owners monitor their income and expenses, prepare for tax season, and understand their financial health—all from one place.  Accounting software automates key financial tasks such as connecting to bank accounts and tracking daily transactions. The tool also helps create and send professional invoices to customers while monitoring outstanding payments and bills, and it can generate on-demand reports for business insights or tax purposes. Many modern accounting solutions come with advanced features to send automatic payment reminders to customers, digitize receipts through photo capture, and give accountants secure access during tax time. ## Importance of accounting software for small businesses For many small businesses, accounting software is a more cost-effective alternative to hiring full-time bookkeepers or a big accounting firm to manage accounts and prepare for tax season.  Quality accounting software provides professional financial tools to every business owner, regardless of their accounting expertise. In [our interview on accounting software](https://www.capterra.com/resources/what-is-accounting-software/), Joan Kanner, a small business owner said, “I maintain all records and invoices using accounting software, which I simply share with my accountant quarterly." Here are some key ways accounting software benefits small businesses: - **Reduces operational costs:** Small businesses can save costs by handling routine bookkeeping tasks internally through software while maintaining proper financial records. This hybrid approach allows owners to manage daily transactions themselves while consulting accountants only for strategic advice and tax preparation. - **Provides real-time financial visibility:** With automated bank feeds and sales recording, business owners gain immediate insight into their cash flow, outstanding payments, and overall financial health. This visibility enables quick responses to financial challenges. - **Makes tax time less stressful:** By automatically categorizing expenses and maintaining proper digital records throughout the year, accounting software simplifies tax preparation. All required financial data is readily available and properly formatted when it's time to file returns and claim deductions. - **Improves decision-making:** Access to up-to-date financial reports, including profit and loss statements and expense analyses, facilitates data-driven decisions. These insights help small businesses identify cost-saving opportunities and profitable business areas quickly. - **Imparts professional appearance:** Automated invoicing, payment processing, and expense tracking help small businesses maintain a professional image. It eliminates manual errors in calculations and ensures timely billing and payment collection. Accounting software provides a central platform for owners, staff, and accountants to securely access financial data, process transactions, and generate insights without shuffling through paperwork and endless email chains. This means business owners can focus more on growing their business and less on managing spreadsheets and reconciling accounts. ## Key features to look for in accounting software for small businesses All accounting software includes core features that help track financial transactions, generate performance reports, and monitor your credit and debit.  We asked users to rate, on a scale of “low importance” to “critical”, how important different features are for accounting software. Here are the features rated as "highly important" or "critical" by most reviewers over the past two years[\[1\]](#footnotes): ### Financial reporting and statements Creates basic financial documents like profit and loss statements, balance sheets, and cash flow reports that show how much money you're making and where it's going. These reports reflect if a business is profitable by showing your overall cash flow and help during tax time. 89% of users find this feature highly important. ### Expense tracking  It automatically imports bank transactions and helps categorize expenses. It also keeps a detailed log of everyday expenses, such as purchases and bills, to view the flow of funds. 83% of users find this feature highly important. ### Billing and invoicing Creates and sends professional-looking invoices to customers, tracks accounts receivable, and sends automatic payment reminders. It also highlights bills you need to pay and when they're due (also known as accounts payable). 82% of users find this feature highly important. ### Bank reconciliation Automatically matches your bank transactions with your accounting records to ensure everything lines up correctly. It helps catch any missing expenses, double entries, or bank errors to ensure your books are always accurate. 82% of users find this feature highly important. ## How to choose accounting software for your small team Many small businesses end up switching their accounting software because its capabilities don’t meet all their functional needs—our data shows that 59% of software buyers our advisors spoke to in the past year are looking to replace their current system.[\[2\]](#footnotes) To make sure you choose the best accounting software for you, consider these five key factors:  ### 1\. Match features to your business needs List your key accounting tasks. Do you need to send recurring invoices? Do you need to manage multiple currencies? How many team members need access to the software? What reports do you regularly need for business decisions?  Compare your list with each accounting software's features, focusing on aspects you'll use daily. Don't get swayed by fancy features you might never use. Also, check security features like data encryption and access controls—our survey shows that [security is one of the top two concerns](https://www.capterra.com/resources/accounting-trends/) for accounting software users. ### 2\. Your growth plans Look beyond your current needs. Think about where your business will be in the next one or two years. How many customers do you expect to have next year? Will you need to add users as you hire more staff? Some questions you could ask vendors are:  - How easy is it to add users or locations? - What's involved in upgrading to a higher tier? - Are there limits on transactions or customers? ### 3\. Evaluate ease of use As a small business owner juggling multiple responsibilities, you need accounting software that's straightforward to use. Don't just trust vendor promises about how easy their software is. Our software advisor, Niko Bernardone[\[3\]](#footnotes), recommends taking advantage of free trials and demos.  Nearly 45% of accounting tools on Capterra offer [free trial options](https://www.capterra.com/accounting-software/?pricing_options=FREE_TRIAL&users=FROM_1_TO_200). Use this time to check if it's easy to create invoices, record expenses, and run basic reports. Let end users test whether the interface is intuitive and workflows make sense. ### 4\. Check integration capabilities Our survey shows that [integration is the top pain point](https://www.capterra.com/resources/accounting-trends/) for accounting software users. Your accounting software needs to work smoothly with your other internal systems. List out all the tools you need your accounting software to connect with. Users commonly integrate accounting software with [bank feeds](https://www.capterra.com/banking-systems-software/), [payment processing applications](https://www.capterra.com/payment-processing-software/), [eCommerce platforms](https://www.capterra.com/ecommerce-software/), [POS systems](https://www.capterra.com/point-of-sale-software/), and [payroll software](https://www.capterra.com/payroll-software/).  Good integrations will save time and reduce errors by automatically pulling in and recording transaction data. Ask vendors how these integrations work—are they direct connections or do they need third-party tools? Also, check if there are extra costs for integrations. ### 5\. Know your budget Monthly subscription costs are just the starting point. Make a complete list of potential costs: beyond the base subscription costs. Watch out for extra costs to add more users, get customer support or training, migrate the data, and access advanced features. While basic or [free plans](https://www.capterra.com/accounting-software/?pricing_options=FREE_VERSION) might work initially, map out costs for when you need more features or users. Some providers charge much more for advanced features like inventory tracking or multiple company management. ## Tips for implementing accounting software Moving to a new accounting software needs careful planning and buy-in from the team. This will ensure you start benefiting from the accounting software immediately and your business efficiency grows with it. Use these tips to plan a successful implementation. ### Set up chart of accounts correctly Take time to set up your chart of accounts. This involves organizing how you'll track money in your business and creating categories for different types of income (like product sales or services) and expenses (like rent or supplies).  While the accounting software offers default categories, it is important to spare some time to review them carefully. You should remove the ones you won’t use, add categories specific to your business, and assign specific names for them. Collaborate with an accountant to make sure your categories are logical, help you track business performance, and simplify tax filing.   ### Migrate recent data first Rather than trying to migrate years of old transactions at once, start with three to six months of recent data. Focus on current open invoices and unpaid bills. Match account balances with bank statements. Double-check that all unpaid invoices are transferred correctly. ### Training and processes  Arrange multiple trainings and meetings to ensure your team can easily use the accounting software. Show them how to record common transactions and create simple guides for basic tasks, including saving receipts, when to input data, or when to send invoices. Assign specific responsibilities for task handling, including reconciling accounts or making payments. Finally, set up a routine for when to enter transactions (like daily or weekly).  ## The future of accounting software for small businesses ### AI-powered automation for everyday tasks Artificial intelligence (AI) is making accounting software smarter at handling basic tasks like capturing receipts and categorizing expenses. It can spot duplicate entries and flag unusual transactions automatically. Our research shows that [80% of small businesses save significant time with AI features](https://www.capterra.com/resources/finance-artificial-intelligence/).  To free up your time for more important work, you should ask vendors what tasks their accounting software can automate. ### Increased focus on security  As most financial work is done online, software providers are strengthening their digital security with features, such as secure logins, encrypted data storage, and automatic backups. Look for accounting software that [makes security simple and robust](https://www.capterra.com/resources/accounting-trends/), eliminating the need to hire an IT expert to keep your data safe. Ask vendors about their security measures, update frequency, and recovery plans in case something goes wrong. ### Accounting software as a business advisor Accounting software does a lot more than just tracking transactions—it helps you make better business decisions. New tools can predict cash flow problems, identify your most profitable products, and help plan for growth. Look for strong reporting and forecasting features that spot problems early and help you find growth opportunities. ## How much does accounting software for a small business cost? [Pricing for small business accounting software](https://www.capterra.com/resources/accounting-software-pricing-report/) typically starts between $7 and $30 for basic features like bookkeeping, invoicing, and financial reporting. As you add users or need more features, say to process a higher volume of invoices, costs can go up to $299 or more per month for premium or advanced plans.[\[4\]](#footnotes) Here's a comparison of current pricing available for popular accounting tools. “Basic” includes core features of the product, such as general ledger and financial reporting. “Premium” and “Advanced” generally have basic features plus premium features, such as workflow management and payment processing for large teams or enterprises. **Vendor** **Pricing model** **Free version** **Free trial** **Basic** **Premium** **Advanced** **QuickBooks Enterprise** Subscription/year No Yes $128\* $158\* $311\* **QuickBooks Online** Subscription/month No Yes $10-$19 $30 $71 **Xero** Subscription/month No Yes $29 $46 $69 \*_Per month, billed annually._ ## What is the difference between accounting for small and large businesses? Small businesses usually have one person handling finances—often the owners track expenses, send invoices and manage money themselves. They need to get these basic tasks done quickly and correctly. Large businesses typically have dedicated accounting teams handling different financial tasks like accounts payable, receivable, and payroll. They have complex accounting needs as they need to track multiple departments and locations, which necessitates them to follow stricter reporting rules. Thus, most small businesses need software that's easy to use without accounting expertise and works well for daily tasks, including recording payments or categorizing expenses. Features like simple invoicing, basic expense tracking, and clear financial reports are often enough for them.  Large businesses need advanced systems that handle high transaction volumes, complex accounting rules, and detailed reporting needs. They typically invest in enterprise-level accounting software with advanced features and customization options. ## Common accounting pitfalls small businesses need to avoid Small businesses often struggle with managing finances, especially when just starting out. While these mistakes are common, they can prove costly. Below are some key accounting pitfalls that business owners should be ready to tackle from the start: ### Mixing personal and business finances Many small business owners use personal accounts for business expenses, creating tax complications and making it difficult to track business performance. This leads to missing potential tax deductions, messy bookkeeping, and potential legal issues if audited. Modern accounting software helps prevent this by offering dedicated business accounts, automatic categorization, and receipt scanning. These features make it easy to keep everything separate and maintain clean records for tax time. ### Poor expense tracking and documentation Small businesses often lose money through inadequate expense tracking—missing tax deductions, losing billable expenses, and struggling to understand where money is going. Without proper documentation, preparing for tax season becomes stressful and time-consuming. You can solve this with automated expense tracking features that capture receipts through the phone, categorize expenses, flag tax-deductible items, and generate reports whenever needed. This automation ensures nothing falls through the cracks.  ### Delayed financial recording and reconciliation Many small businesses put off entering transactions in accounting records and reconciling accounts until tax season, leading to errors, missing information, and poor financial visibility. This delay can hide cash flow problems and make it impossible to make informed business decisions. Bank feed integration automatically imports transactions and keeps accounting books current without hours of manual data entry. Moreover, automated reconciliation flags discrepancies, reducing the need for human oversight. ## Frequently asked questions (FAQs) What is the simplest accounting software? According to our analysis of products with high market demand and reviews among small businesses, [FreshBooks](https://www.capterra.com/p/142390/FreshBooks/) is rated best for ease of use by verified reviewers on Capterra.  When looking for simple accounting software, focus on user-friendly interfaces that match your daily needs like easy invoicing, basic expense tracking, and clear reporting. The easiest solutions will typically focus on your core business needs without overwhelming you with fancy features. What is the most commonly used accounting software? Among 3,086 accounting software buyers who contacted our advisors in the past year, more than 45% currently use QuickBooks. However, popularity alone shouldn't guide your software choice—many of these users are looking to switch either due to affordability issues (25%) or functional limitations (24%).[\[2\]](#footnotes) Focus on finding software that aligns with your business needs rather than just choosing the most common option. Is there free bookkeeping software for small businesses? Yes! Nearly 65% of bookkeeping tools listed on Capterra have free versions, almost half of which are [forever-free options](https://www.capterra.com/bookkeeper-software/?pricing_options=FREE_VERSION) with no time limits. While free versions typically limit you to one to two users and basic transaction volumes (usually up to 100 monthly transactions), they can work well for solopreneurs and small businesses who are just starting out. What is the best free accounting app? According to our analysis of free accounting applications with high market demand and reviews, [Wave](https://www.capterra.com/p/178021/Wave-Apps/) is rated best for value for money by verified reviewers on Capterra. It offers essential features for free through both web and mobile applications. While free accounting apps are great to get started, they will limit the number of users, monthly transactions, and advanced reporting options. How much does accounting software cost? Accounting software can start as low as $7 per month for entry-level plans and can go up to $299 per month for premium or advanced plans.[\[4\]](#footnotes) Pricing usually increases based on number of users, transaction volume, and advanced features like inventory tracking. Many providers also offer forever free and free trial options, so you can test the system before buying or upgrading.  When budgeting, factor in the total cost of owning accounting software, including extra costs for setup fees, training, or additional users. #### Sources 1. **Capterra reviews data:** Capterra reviews are collected from verified users for individual software products. For this report, we analyzed reviews from the past two years as of the production date. [Read the complete methodology here](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 2. **Capterra advisor call notes methodology:** Findings are based on data from telephonic conversations that Capterra’s advisor team had with small-and-midsize-businesses seeking accounting tools. For this report, we analyzed phone interactions from the past year. [Read the complete methodology here](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 3. [Niko Bernardone](https://www.linkedin.com/in/niko-bernardone/), LinkedIn 4. **Capterra software pricing data:** Only products with publicly available pricing information and qualified software products within the category are included in the pricing analysis. [Read the complete methodology here](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). [Amita Jain](https://www.capterra.com/resources/author/ajain/) Amita Jain is a senior writer for Capterra, covering finance technology with a focus on expense management and accounting solutions for small-to-midsize businesses. After completing her master’s in policy studies from King’s College London, she began her career as a journalist in New Delhi, India, where she garnered first-hand knowledge of the startup space and the education sector. She spent nearly half a decade covering high-level events hosted by the United Nations and the Government of... [Parul Sharma](https://www.capterra.com/resources/author/parul-sharma/) Parul Sharma is a content editor at Capterra with expertise in curating content for various niches, including SaaS, digital marketing, and search engine optimization. With over half a decade of experience in content writing and editing, Parul has the expertise to simplify complex terms into engaging, valuable content for targeted audiences. She completed her graduation and post-graduation in English literature from Delhi University and was awarded the Dr. Asha Sahni Memorial Award for being the... 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