Small Business Accounting: Our Top Picks for 2025

When you run a small business, you end up wearing a lot of hats. One day you're managing the team, the next you’re chasing invoices or sorting through receipts. And like it or not, accounting usually ends up on your plate—even if numbers aren’t your thing.

Even if you work with a bookkeeper or accountant, staying on top of your finances is still your responsibility. That’s where small business accounting software can make a big difference. It helps you keep everything organized, cut down on paperwork, and avoid costly mistakes—without drowning in spreadsheets.

Whether you’re looking for a free tool to get started or ready to invest in a more advanced solution, we’ve put together this guide to help you compare your options and find the best small business accounting software for your needs.

TL;DR: Best Small Business Accounting Software in 2025

If you’re a busy business owner looking for the best small business accounting software right now, here are our top picks so you can make a quick, informed decision.

• QuickBooks Online – Best all-around accounting software for small businesses; robust features, great integrations, starts at $30/month.
• Xero – Best for growing teams and inventory-heavy businesses. Includes project tracking and payroll add-ons.
• FreshBooks – Ideal for service-based businesses and freelancers who want simple invoicing and time tracking.
• Wave – Best free accounting software for solopreneurs and very small teams.
• Zoho Books – Best for automation and customization; great value starting at $15/month.
• Plus: Sage, Kashoo, TrulySmall, ZipBooks, OneUp

Key features to look for:

• Invoicing and billing
• Expense tracking
• Payroll integration
• Tax prep and filing
• Inventory management (for product-based businesses)
• Cloud/mobile access
• Easy integrations (POS, CRM, Homebase, etc.)

Consider these factors when choosing:

• Your business type (retail, service, freelance, startup)
• Your growth plans and reporting needs
• Budget: Free vs. paid software
• Compatibility with existing tools (like Homebase for scheduling and payroll)

Pro tips for choosing the best fit:

• Match your tool to your business type and size.
• Prioritize user-friendliness and integrations with tools you already use.
• Think long term—the right software should scale with your growth.
• Don’t overlook support and security features.

Free vs. paid software — which is right for you?

• Freelancers/solopreneurs: Free tools with basic features like Wave work well.
• Service-based businesses: Need scheduling, recurring invoices, and payroll.
• Retail or eCommerce: Look for POS and inventory integrations.
• Startups and scaling teams: Choose paid tools with advanced reporting and multi-user access.

What is Small Business Accounting Software?

Small business accounting software is a digital tool that helps you track your income, expenses, invoices, payroll, and taxes—without needing a degree in finance. It takes the guesswork out of your books and keeps everything organized in one place, so you can focus on running your business instead of crunching numbers.

Unlike enterprise-level accounting systems (which tend to be built for big corporations with dedicated finance teams), accounting software for small businesses is designed to be simple, affordable, and easy to use. You won’t need a full-time accountant to make sense of it.

Whether you're a freelancer juggling client invoices, a local coffee shop tracking inventory and payroll, or a home services business quoting jobs and collecting payments, online accounting software for small business gives you the visibility and control you need to make smart money moves—without the headache.

If you're asking, “Do I need accounting software for my small business?”—the answer is probably yes. And the good news? There’s a tool out there for every budget, including some solid free accounting software for small businesses (if you’re just getting started).

Benefits of Accounting Software for Small Businesses

Running a business means wearing a hundred hats. The right small business accounting software can take a few of those off your head. Here’s how it helps:

Save time on bookkeeping

Manual spreadsheets? No thanks. Accounting software automates repetitive tasks like tracking income and expenses, reconciling bank accounts, and generating reports—so you can get back to what actually grows your business.

Reduce costly errors

Typos and math mistakes might seem small, but they can lead to big problems—like overpaying taxes or underbilling customers. Accounting software helps prevent these slip-ups by doing the heavy lifting (and math) for you.

Improve cash flow visibility

You can’t make smart money moves if you don’t know what’s coming in and going out. Good accounting software for small business gives you a clear, real-time view of your cash flow, helping you avoid surprises and stay in control.

Make tax season easier

When your books are organized, tax time doesn’t have to be a panic-inducing nightmare. Many tools help track deductions, generate year-end reports, and even integrate with your tax filing software to keep things smooth and simple.

Empower smarter business decisions

When your financial data is clean and current, you can make better calls—like when to hire, raise prices, or cut costs. The best accounting software for small business helps you spot trends, flag issues, and plan ahead with confidence.

Signs You’ve Outgrown Spreadsheets and Need Small Business Accounting Software

Spreadsheets might’ve worked when you were just starting out. But if your business is growing, they’re probably holding you back. Here are the clearest signs it’s time to level up to accounting software for small business:

You spend too much time on manual calculations

If you’re crunching numbers late at night or second-guessing your formulas, it’s time to automate. Your hours are better spent running your business—not buried in cells and sums.

You’ve missed invoice deadlines (or forgot to get paid)

Chasing down overdue payments? Forgetting to send invoices altogether? That’s lost revenue. Accounting software sends invoices automatically, tracks payments, and reminds clients—so nothing falls through the cracks.

You can’t track your profit margins accurately

If you’re not sure how much you’re making after expenses, you’re flying blind. Software helps you understand the real numbers—revenue, costs, margins—so you can price smarter and grow faster.

Your business is growing and you need more automation

More clients. More payments. More complexity. That’s a good problem—but one that spreadsheets weren’t built to solve. Accounting software scales with you, automating the busywork so you don’t have to hire a second you.

Quick gut check: Is it time for accounting software?

• Do you update your spreadsheet more than once a week?
• Have you missed a payment or invoice in the last 6 months?
• Do you avoid looking at your finances because it’s overwhelming?
• Are you spending more time on books than on your actual business?

If you answered “yes” to even one of these, it’s time to switch.

The good news? There’s plenty of online accounting software that can help you get sorted, fast. Let’s dive into how to find the right one.

How to Choose the Best Small Business Accounting Software

There’s no one-size-fits-all when it comes to small business accounting software. The best tool for you depends on the kind of business you run—and how hands-on you want to be with your finances.

Start by aligning with your business type

• Retailers and restaurants: You’ll want built-in inventory tracking, POS integrations, and real-time reporting.
• Service providers and freelancers: Look for easy invoicing, expense tracking, and mileage logging.
• Startups: Prioritize scalability, team access, and features like payroll, funding forecasts, and cash flow visibility.

Key features to look for

Whether you’re solo or managing a growing team, the best accounting software for small business should include:

• Invoicing & billing: Customizable templates, automated reminders, and online payment options.
• Expense tracking: Upload receipts, categorize spending, and monitor budgets in real time.
• Payroll integration: Sync hours worked and pay employees without switching platforms.
• Tax prep and filing: Stay compliant with sales tax tracking, 1099 generation, and exportable reports.
• Inventory management (if applicable): Track stock levels and reorder points right from your dashboard.
• Mobile and cloud access: Manage your books anytime, anywhere.
• User-friendliness: Because you shouldn’t need an accounting degree to balance your books.
• Integrations: Think POS systems, CRMs, or scheduling tools—your accounting software should play nice with the rest of your tech stack.

Budget matters: free vs. paid tools

Not ready to invest? No problem. There is free accounting software for small businesses that cover the basics. But if you need advanced features, dedicated support, or more automation, a paid plan is usually worth it—and still way cheaper than hiring a full-time accountant.

Support and scalability

Choose a tool that grows with you. Look for responsive customer support (bonus points for live chat), robust help docs, and upgrade paths so your software doesn’t become a bottleneck down the road.

10 Best Small Business Accounting Software Options in 2025

1. QuickBooks Online

Best for: Small to mid-sized businesses seeking a comprehensive, scalable solution.

Key features: Invoicing, expense tracking, payroll integration, tax preparation, and extensive third-party integrations.

Pros:

• Robust feature set with advanced reporting capabilities.
• User-friendly interface suitable for non-accountants.
• Scalable plans to accommodate business growth.

Cons:

• Higher cost compared to some competitors.
• Customer support can be inconsistent.

Starting price: Usually $28/month for the EasyStart plan; now $7/month.

2. Xero

Best for: Growing businesses needing multi-user access and strong integration capabilities.

Key features: Invoicing, bank reconciliation, expense tracking, payroll, and over 1,000 app integrations.

Pros:

• Intuitive, cloud-based platform with unlimited users.
• Strong integration ecosystem.
• Real-time financial reporting.

Cons:

• Some advanced features require third-party apps.
• Costs can increase with added functionalities.

Starting price: $25/month for the Starter plan; now $2.50/month. 

3. FreshBooks

Best for: Freelancers and service-based businesses focusing on invoicing and time tracking.

Key features: Customizable invoicing, time tracking, expense management, and project tracking.

‍Pros:

• User-friendly interface tailored for non-accountants.
• Excellent customer support.
• Mobile app with full functionality.

‍Cons:

• Limited reporting features compared to competitors.
• Higher-tier plans can be costly.

Starting price: Usually $21/month for the Lite plan; now $10.50/month. 

4. Zoho Books

Best for: Small businesses seeking automation and integration within the Zoho ecosystem.

‍Key features: Automated workflows, invoicing, expense tracking, and integration with other Zoho apps.

‍Pros:

• Affordable pricing with a feature-rich free plan.
• Strong automation capabilities.
• Seamless integration with Zoho suite.

‍Cons:

• Limited third-party integrations outside Zoho.
• Free plan has user and invoice limits.

‍Starting price: Free plan available; paid plans start at $15/month. 

5. Wave

Best for: Freelancers and very small businesses looking for a free, straightforward solution.

Key features: Invoicing, expense tracking, receipt scanning, and basic reporting.

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‍Pros:

• Completely free core accounting features.
• User-friendly interface.
• No hidden fees for basic services.

‍Cons:

• Limited customer support options.
• Advanced features like payroll come at an additional cost.

‍Starting price: Free for core features; add-ons like payroll start at $20/month. 

6. Sage Business Cloud Accounting

Best for: Businesses needing robust accounting features with scalability.

‍Key features: Invoicing, cash flow forecasting, inventory management, and multi-currency support.

‍Pros:

• Comprehensive feature set suitable for various industries.
• Strong reporting and analytics tools.
• Cloud-based with mobile access.

‍Cons:

• Steeper learning curve for new users.
• Customer support can be limited.

‍Starting price: $20/month for the Accounting Start plan. 

7. Kashoo

Best for: Small businesses seeking a simple, no-frills accounting solution.

Key features: Invoicing, expense tracking, bank reconciliation, and real-time reporting.

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‍Pros:

• Straightforward, user-friendly interface.
• Affordable flat-rate pricing.
• Reliable customer support.

‍Cons:

• Lacks some advanced features like inventory management.
• Limited third-party integrations.

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Starting price: $30/month. 

8. TrulySmall Accounting

Best for: Micro-businesses and freelancers needing basic accounting tools.

Key features: Automated expense tracking, invoicing, and real-time financial reporting.

‍Pros:

• Simplified interface ideal for non-accountants.
• Affordable pricing.
• Quick setup and easy to use.

‍Cons:

• Limited features compared to more comprehensive platforms.
• May not scale well with growing businesses.

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Starting price: Single pricing tier at $18/month; add-on options available. 

9. ZipBooks

Best for: Small businesses and freelancers looking for a free, user-friendly accounting solution.

Key features: Invoicing, expense tracking, basic reporting, and time tracking.

‍Pros:

• Free starter plan with essential features.
• Clean, intuitive interface.
• Optional paid plans with additional features.

‍Cons:

• Limited integrations.
• Advanced features require upgrading to paid plans.

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Starting price: Free for basic plan; paid plans start at $15/month.

10. OneUp

Best for: Inventory-based businesses needing integrated accounting and CRM features.

Key features: Automated bookkeeping, inventory management, CRM, and invoicing.

‍Pros:

• Comprehensive solution combining accounting and CRM.
• Real-time inventory tracking.
• Automated data entry reduces manual work.

‍Cons:

• May be complex for businesses needing only basic accounting features.
• Limited third-party integrations.

‍Starting price: Starts at $18/month for the Starter plan.

Free vs. Paid Accounting Software: Which One is Right For You?

Freelancers & solopreneurs

If you're just starting out or running a one-person show, free accounting software for small business might be all you need. Look for tools that cover the basics like invoicing, expense tracking, and simple reporting. 

Wave and ZipBooks are solid choices here—easy to use, zero cost, and built for solo operators.

Retail & eCommerce businesses

For businesses that deal with physical products, you’ll want software that plays nicely with inventory and POS systems. 

Free tools often lack this level of integration, so paid options like QuickBooks Online or Xero are worth considering. They let you track stock, sync with your cash register, and run reports to see what’s selling.

Service-based businesses

Recurring billing, project tracking, and even scheduling integrations matter when you're in the service world. 

Whether you run a cleaning company or a consultancy, paid tools like FreshBooks or Zoho Books offer time-tracking, client portals, and automation features that free software typically doesn’t.

Startups & growing businesses

Planning to scale? Go with paid. As your business grows, so does your need for real-time reporting, payroll integration, and multi-user access. 

Tools like Xero, QuickBooks Online, and Sage Business Cloud Accounting are built to grow with you. 

Free tools can be great for testing the waters—but paid software gives you the power and flexibility to handle what’s next.

‍Pro tip: Start with a free plan to get a feel for what you need. As your business becomes more complex, it’ll be easier to justify the investment in the best accounting software for small business—especially when it saves time and costly errors down the line.

Find the Right Fit for Your Small Business’ Financial Future

Choosing the right small business accounting software isn’t just about balancing the books—it’s about building a foundation for smarter decisions, smoother operations, and sustainable growth. With the right tools, you can save time, reduce errors, and get a clear picture of your business’s financial health. 

And if managing your team is part of the equation, Homebase can help you streamline scheduling, time tracking, and payroll—so you can focus more on growth and less on admin.

Frequently Asked Questions about Small Business Accounting Software

Which accounting software is best for small business?

The best accounting software for small business depends on your specific needs. QuickBooks Online is a top choice for many small business owners thanks to its full suite of features and integrations. 

FreshBooks is great for service-based businesses, while Wave is one of the best free accounting software options for small businesses just starting out. The right fit comes down to how you invoice, track expenses, manage payroll, and grow.

Do I need accounting software for a small business?

If you’re asking the question, the answer is probably yes. Whether you're a freelancer, startup, or local shop, accounting software for small business helps you stay on top of invoicing, taxes, and cash flow without spending hours in spreadsheets. It’s one of the smartest investments you can make in your business’s financial health.

Is Quicken or QuickBooks better for small business?

QuickBooks is generally better for small businesses, while Quicken is geared more toward personal finance. QuickBooks offers robust features like invoicing, payroll integration, and tax prep that small businesses need to stay compliant and organized. 

If you’re looking for dedicated small business accounting software, QuickBooks is a stronger pick.

What is the best program to run a small business?

There’s no one-size-fits-all, but tools like QuickBooks, Xero, and Zoho Books are widely considered among the best accounting software for small business. If you need help managing inventory or want integrations with POS and CRM tools, look for online accounting software for small business that scales with you.

What features should accounting software have?

At a minimum, the best accounting software for small business should include:

• Invoicing and billing
• Expense tracking
• Payroll integration
• Tax prep and reporting
• Mobile and cloud access
• User-friendly dashboards
• Integrations with tools you already use

Bonus points for features like recurring billing, inventory management, or job costing—especially if you're in retail, services, or manufacturing.