Best accounting software for small business

Most small businesses need five things from accounting software: bank transactions that come in on their own, invoices, bills, a clean bank reconciliation and reports your CPA can work from. All five tools below cover that. What separates them is how the price climbs as you add users, which plan unlocks inventory, and how each one handles payroll.

Short answer

For most US small businesses that work with a bookkeeper or CPA, QuickBooks Online is the safe pick, from $38 a month for one user. Zoho Books is the cheapest paid plan with three users ($15 a month billed annually). FreshBooks fits service businesses that bill clients for time. Xero fits teams where several people need access, since it has no per-user fees. Wave is the answer if you want to pay nothing.

Written by Rajat GuptaFact-checked by Chandrasmita

Prices and plan limits checked on each vendor's own website on September 25, 2026. Vendors change pricing often, so confirm on their site before you buy.

Sources we used

We rely on vendor documentation, pricing pages and other primary sources. We do not use G2 or Capterra ratings as ranking inputs.

Primary sources

Official vendor documentation, pricing pages, help centers, and release notes
Public analyst reports, market commentary, and relevant public filings
Practitioner discussions in communities such as Reddit

What we exclude

G2 and Capterra ratings as ranking inputs
Vendor-submitted claims that cannot be corroborated publicly
Anonymous summary statements presented as proof without a primary source behind them

Review standard

Material corrections can be submitted through the contact page. We update pages when a claim can be verified against a stronger source.

Read the full review methodology and sponsored disclosure.

Evidence used on this page

Accounting Software buyer's guide: The full category overview, evaluation criteria and tool list.
Best Accounting Software: Our ranked shortlist for the category.

Top pick for each situation

1. Most US small businesses that work with a CPA or bookkeeper
QuickBooks Online
2. Lowest cost with more than one user
Zoho Books
3. Teams where several people need access, and multi-currency
Xero
4. Service businesses that bill clients for time or projects
FreshBooks
5. Sole proprietors who want to pay nothing
Wave

Small business accounting software compared

US list prices per month from each vendor's pricing page. We left out introductory discounts because they expire and you'll pay list price after that.

Tool	Price	Free plan or trial	Best for	Key limitation
QuickBooks Online	Simple Start $38/mo (1 user), Essentials $85 (3 users), Plus $140 (5 users), Advanced $340 (25 users)	Free plan: 1 user, 2 invoices a month, 1 bank connection, P&L report, no accountant access. 30-day trial on paid plans.	Businesses whose accountant already works in QuickBooks; product businesses that need inventory (Plus)	Gets expensive per user; inventory, class and location tracking start at Plus ($140/mo)
Zoho Books	Standard $15/mo billed annually or $20 monthly (3 users); Professional $40 annually or $50 monthly (5 users)	Free plan while annual revenue stays under $50K: 1 user + 1 accountant, up to 1,000 invoices a year, no bank feeds	Owners who want bank feeds, sales tax tracking and 3 users for under $20 a month	Inventory, purchase orders and multi-currency start at Professional ($40/mo annual)
Xero	Early $25/mo, Growing $55, Established $90. No per-user license fees	No free plan. New customers get introductory discounts.	Businesses with three or more people in the books; foreign-currency billing (Established)	Early is capped at 20 invoices and 5 bills; payroll is a Gusto add-on at $36/mo + $6 per person
FreshBooks	Lite $23/mo (5 billable clients), Plus $43 (50), Premium $70 (unlimited); extra team members $11/mo each	30-day free trial, no credit card required. No free plan.	Consultants, agencies and trades that invoice clients and track time	Priced by number of clients billed; Lite has no accounting reports or accountant access
Wave	Starter $0; Pro $19/mo or $190/yr	Starter is free with no time limit: unlimited invoices, estimates, bills and bookkeeping records	Freelancers and one-person businesses with simple books	Starter has no automatic bank import, receipt scanning or extra users

The shortlist, ranked

Top pick for: Most US small businesses that work with a CPA or bookkeeper

1. QuickBooks Online

QuickBooks Online is the system many US bookkeepers and CPAs already work in, and that matters more than any feature list. When your accountant can log straight in, year-end adjustments take an afternoon instead of a week of emailed spreadsheets. Every paid plan includes access for two accountants, three on Advanced.

The cost is the catch. Simple Start is $38 a month for one user and Essentials is $85 for three. Plus, the first tier with inventory tracking, class and location tracking, budgets and project profitability, is $140 a month for five users. New customers get 50% off for three months, so budget on the list price.

QuickBooks also has a Free plan now: one user, two invoices a month (unlimited if you qualify for and turn on QuickBooks Payments), one bank connection, a profit and loss report and no accountant access. It's a way to try the product, not a way to run a business with employees.

Read our QuickBooks Online profile

Top pick for: Lowest cost with more than one user

2. Zoho Books

Zoho Books gives you the most for the money. Standard costs $15 a month on annual billing ($20 month to month) and includes three users, bank feeds, sales and use tax tracking, 1099 e-filing, transaction period locking and custom reports. Three users on QuickBooks means Essentials at $85.

Professional ($40 a month annually, $50 monthly) adds inventory, sales and purchase orders, multi-currency and project profitability for five users. That's the cheapest route to built-in inventory on this list.

The free plan works for a side business or a new company with under $50,000 in revenue for the financial year. It has no bank feeds, so you'll import statements yourself. More in our [free accounting software](/categories/accounting-software/free) guide.

Read our Zoho Books profile

Top pick for: Teams where several people need access, and multi-currency

3. Xero

Xero doesn't charge per user, which changes the math once three or four people need access. Growing is $55 a month and drops the Early plan's invoice and bill caps. The QuickBooks tiers with three and five users are $85 and $140.

Watch the Early plan. At $25 a month it's capped at 20 invoices and 5 bills, and invoices created by connected apps count toward the limit. Most operating businesses will need Growing. Multi-currency is only on Established at $90.

Xero has no payroll engine of its own in the US. Its option is Xero Payroll, powered by Gusto, at $36 a month plus $6 per employee or contractor. Our [free payroll software](/categories/payroll-software/free) guide shows how that compares.

Read our Xero profile

Top pick for: Service businesses that bill clients for time or projects

4. FreshBooks

FreshBooks is built around the invoice. Time tracking, estimates, proposals and retainers sit next to billing, and clients can pay by card, ACH, Apple Pay or Google Pay. For a consultant or small agency that covers most of the week's finance work.

Pricing depends on how many clients you bill: 5 on Lite ($23 a month), 50 on Plus ($43) and unlimited on Premium ($70). Each plan includes one user and extra team members are $11 a month each. Lite doesn't include financial and accounting reports or accountant access, so if you file a business return, start on Plus. Project profitability is on Premium.

If you mainly need invoices, our [invoicing software for freelancers](/categories/invoicing-software/for-freelancers) page covers lighter tools.

Read our FreshBooks profile

Top pick for: Sole proprietors who want to pay nothing

5. Wave

Wave's Starter plan costs nothing and has no end date. You get unlimited estimates, invoices, bills and bookkeeping records. Wave earns its money on card payments (2.9% + $0.60 per card transaction, 3.4% + $0.60 for Amex on Starter) and on paid add-ons.

The free plan leaves the bank work to you. Automatic bank imports, auto-categorizing, receipt capture and extra users are all on Pro at $19 a month. For a sole proprietor with a few dozen transactions a month, uploading statements is manageable. Past that, pay for Pro or move to one of the tools above.

Read our Wave profile

How to choose in 15 minutes

Answer four questions before you book a demo. How many people need to log in? Do you hold inventory? Will you run payroll for W-2 employees this year? Which system does your accountant prefer? Those answers knock out most of this list.

User count drives price more than anything else. One user: Zoho Books Standard ($15 a month billed annually), Wave Pro ($19) or QuickBooks Simple Start ($38). Three users: Zoho Books Standard or QuickBooks Essentials ($85). Several users: Xero Growing ($55, no per-user fees).

Inventory narrows it fast. Zoho Books includes inventory from Professional ($40 a month annually) and QuickBooks from Plus ($140); Xero sells it as an optional add-on. If you sell on Shopify or Amazon, read our [ecommerce accounting page](/categories/accounting-software/for-ecommerce) first.

Ask your CPA which system they want. If they already keep a dozen clients in QuickBooks or Xero, using the same one usually saves more in year-end fees than the price gap between plans.

Price the plan you'll be on in a year

Every vendor here discounts the first months. QuickBooks takes 50% off for three months, Xero runs steep six-month discounts for new customers, and FreshBooks and Wave discount their paid plans at signup. Budget on the list price, and on the tier you'll need after your next hire or once you add inventory.

Then add what sits around the ledger: card processing fees, payroll and a bookkeeper if you won't do the entry yourself. Payroll add-ons run $36 to $40 a month plus $6 per person at Xero (through Gusto), FreshBooks and Wave. Our [accounting software ROI calculator](/calculators/accounting-software-roi) helps you put a number on the time saved.

What any option has to do before you trust it

Real [double-entry bookkeeping](/glossary/double-entry-bookkeeping), so the balance sheet ties out. A [chart of accounts](/glossary/chart-of-accounts) you can edit. Monthly bank reconciliation with a saved report. Both cash and [accrual](/glossary/accrual-accounting) reports, since lenders and buyers usually want accrual numbers. And an audit trail that shows who changed what.

Test those during the trial with a month of your own transactions, not the demo company. Our [month-end close checklist](/blog/month-end-close-checklist) works as the test script.

When you've outgrown small business software

The signs: more than one legal entity to consolidate, revenue recognition schedules, purchase approvals, or an auditor asking for controls the system can't show. That's when mid-market tools like [Sage Intacct](/software/sage-intacct) and [NetSuite](/software/netsuite) come into the conversation. Our [best accounting software](/categories/accounting-software/best) ranking covers that tier.

Frequently asked questions

What is the best accounting software for a small business?

QuickBooks Online is the best fit for most US small businesses, because many bookkeepers and CPAs already work in it and every paid plan includes accountant access. Pick Zoho Books if cost matters most, FreshBooks if you bill clients for time, Xero if several people need access, and Wave if you want to pay nothing.

How much does accounting software cost for a small business?

Expect $15 to $40 a month at list price for one to three users, and $85 to $140 a month for QuickBooks with three to five users or inventory. As of September 2026, Zoho Books Standard is $15 a month billed annually, Wave Pro $19, FreshBooks Lite $23, Xero Early $25 and QuickBooks Simple Start $38.

Is there free accounting software for small business?

Yes. Wave Starter is free with no time limit, Zoho Books has a free plan for businesses with under $50,000 in annual revenue, and QuickBooks has a Free plan limited to two invoices a month and one bank connection. Expect to enter or upload bank transactions yourself on Wave's and Zoho's free plans.

Should I use QuickBooks or Xero?

Use QuickBooks if your accountant works in it or you want inventory in the core product; use Xero if several people need access, since Xero has no per-user license fees. At list price, three users cost $85 a month on QuickBooks Essentials, while Xero Growing is $55 a month however many users you add.

Do I still need an accountant if I use accounting software?

Yes, for most businesses with employees or more than one owner. Software records and categorizes transactions, but someone still has to review the books, post year-end entries like depreciation and accruals, and prepare the tax return. Many owners do the day-to-day entry and pay a CPA for a quarterly review and the return.

How hard is it to switch accounting software later?

It's manageable if you switch at a year-end or quarter-end. Move the chart of accounts, customer and vendor lists, open invoices and bills, and opening balances from a closed trial balance, then keep read access to the old system for at least a year for tax questions.