QuickBooks Online is the best accounting software for most small businesses in 2026, and Zoho Books is the best pick for a small team on a budget. QuickBooks covers the most ground as a company grows, while Zoho Books handles the core work from $15 a month.
The rest of the list fits narrower needs. Xero suits owners who want to add staff and advisors without per-user fees. FreshBooks fits freelancers and service firms that bill clients for time. Wave gives very small businesses free bookkeeping and invoicing, and Sage 50 suits product businesses that prefer desktop software.
Watch the promotional prices. Most vendors advertise deep discounts for the first few months, so compare the regular monthly rate, and confirm that the plan you pick includes the features you need, such as bill entry, extra users, or project tracking.
Our top pick
QuickBooks Online
The most complete small business accounting tool, with room to grow.
Quick picks
Best overall
Best for growing teams
Best on a budget
Best for freelancers
Best free option
How we ranked these tools
We scored each tool on five criteria: fit for small businesses, depth of core accounting features, pricing and value, ease of use, and support. We based the scores on vendor documentation, published pricing, and public user reviews. We did not accept payment for placement. Prices reflect regular published rates as of October 2026, not introductory discounts, so confirm the current price with the vendor.
The 6 best accounting software tools for small business
1. QuickBooks Online
Best for most small businesses
Our rating4.7 / 5
Starting price$38 / month
Free planNo (30-day trial)
QuickBooks Online is the default choice for US small business accounting, and many bookkeepers and accountants already work in it. Simple Start costs $38 a month for one user, Essentials $85 for three users, Plus $140 for five users with project tracking and job costing, and Advanced $340 for up to 25 users. Every plan comes with a 30-day free trial. The catch is cost: features many businesses need, such as project profitability, sit on the higher tiers.
Pros
- Plans scale from one user to 25
- Large pool of bookkeepers who know the software
- Job costing and project tracking on Plus and Advanced
Cons
- Regular prices are high next to rivals
- Useful features are locked to upper tiers
- Payroll costs extra
Key features
- Bank feeds and reconciliation
- Invoicing and online payments
- Project profitability
- Custom reports
2. Xero
Best for growing teams that add users
Our rating4.6 / 5
Starting price$27 / month
Free planNo
Xero is cloud accounting software that charges by plan, with no per-user license fees, so you can add staff and your accountant without raising the bill. Early costs $27 a month but caps you at 20 invoices and 5 bills. Growing ($59) adds auto-reconciliation and budgets, and Established ($97) adds multiple currencies and project tracking. Payroll runs through Gusto as an add-on. Most businesses outgrow the Early plan quickly, so budget for Growing.
Pros
- No per-user license fees
- Clean bank reconciliation workflow
- Multiple currencies on Established
Cons
- Early plan limits invoices and bills
- Payroll is a paid Gusto add-on
- Project tracking only on the top plan
Key features
- Bank reconciliation
- Smart document capture
- Cash flow forecasting
- 1099 management
3. Zoho Books
Best for small teams on a budget
Our rating4.5 / 5
Starting price$15 / month
Free planYes (under $50K revenue)
Zoho Books gives small teams full double-entry accounting at a low price. The free plan covers one user plus an accountant for businesses with up to $50,000 in annual revenue. Paid plans start at $15 a month billed annually ($20 monthly) for three users, and Professional costs $40 a month for five users. It works best alongside other Zoho apps. Fewer US bookkeepers use it than QuickBooks, so confirm your accountant is comfortable with it.
Pros
- Free plan for very small businesses
- Low price for three users
- Ties into the wider Zoho app suite
Cons
- Fewer US accountants know it
- Free plan has email support only
Key features
- Invoicing and estimates
- Bank reconciliation
- Receipt autoscan
- Client portal
4. FreshBooks
Best for freelancers and service businesses
Our rating4.4 / 5
Starting price$23 / month
Free planNo (30-day trial)
FreshBooks started as invoicing software and still handles client billing better than most. It tracks time, sends invoices, and runs the books for service businesses that bill by the hour or by project. Lite costs $23 a month for 5 billable clients, Plus $43 for 50 clients, and Premium $70 for unlimited clients. Each extra team member costs $11 a month. The client caps on lower plans are the main limit, so count your active clients first.
Pros
- Polished invoicing and time tracking
- Easy for non-accountants to learn
- 30-day trial with no credit card
Cons
- Billable client caps on Lite and Plus
- Extra team members cost $11 a month each
- Lighter inventory features
Key features
- Time tracking
- Recurring invoices
- Expense tracking
- Project profitability
5. Wave
Best free option for very small businesses
Our rating4.3 / 5
Starting price$19 / month
Free planYes
Wave offers free accounting and invoicing on its Starter plan, which makes it the cheapest way for a sole proprietor to keep real books. The Pro plan costs $19 a month or $190 a year and adds automatic bank imports, transaction categorization, unlimited receipt capture, extra users, and live chat support. Payroll is a separate paid service. Wave fits simple businesses; companies that need inventory, purchase orders, or deep reporting will outgrow it.
Pros
- Free accounting and invoicing
- Low-cost Pro plan
- Simple enough for non-accountants
Cons
- Automatic bank imports require Pro
- No inventory management
- Limited reporting depth
Key features
- Invoicing
- Receipt capture
- Bank transaction imports
- Late payment reminders
6. Sage 50
Best for product businesses that prefer desktop software
Our rating4.1 / 5
Starting price$128.67 / month
Free planNo
Sage 50 is desktop accounting software with cloud access, built for businesses that track inventory and want the depth of a traditional accounting program. Pro Accounting costs $128.67 a month for one user, Premium $182.50 for up to five users, and Quantum $271.17 for up to 40 users. Cloud plans need a one-year commitment, and there is no free trial. It costs more than the cloud-first tools here and feels older, so it suits buyers who value depth over convenience.
Pros
- Deep inventory and accounting features
- Scales to 40 users on Quantum
- 30-day refund window
Cons
- Highest entry price on this list
- One-year commitment on cloud plans
- No free trial
Key features
- Inventory management
- Purchase orders
- Audit trail
- Multi-user access
Compare the top small business accounting software
| Tool | Best for | Starting price | Free plan | Rating |
|---|---|---|---|---|
| QuickBooks Online | Most small businesses | $38 / month | No (30-day trial) | 4.7 |
| Xero | Growing teams that add users | $27 / month | No | 4.6 |
| Zoho Books | Small teams on a budget | $15 / month | Yes (under $50K revenue) | 4.5 |
| FreshBooks | Freelancers and service businesses | $23 / month | No (30-day trial) | 4.4 |
| Wave | option for very small businesses | $19 / month | Yes | 4.3 |
| Sage 50 | Product businesses that prefer desktop software | $128.67 / month | No | 4.1 |
How to choose accounting software
Ask your accountant first
Your bookkeeper or CPA will spend hours in the software every year. If they already work in QuickBooks Online or Xero, picking the same tool saves setup time and billable hours. Ask before you start a trial.
Count users, invoices, and clients
Entry plans cap something. Xero Early limits you to 20 invoices and 5 bills, FreshBooks Lite allows 5 billable clients, and QuickBooks Simple Start covers one user. Count what you handle in a busy month, then pick the plan that clears it.
Price the add-ons you will need
Payroll, extra users, and payment processing often cost extra. Add them to the base price before you compare tools, because a cheap plan with three add-ons can cost more than a mid-tier plan that includes them.
Plan for the next two years
Moving accounting systems mid-year is painful. If you expect to hire, carry inventory, or run projects soon, choose a tool whose higher plans cover that work, even if you start on the entry tier.
Frequently asked questions
What is the best accounting software for a small business?
QuickBooks Online is the best fit for most small businesses because its plans scale from one user to 25 and many accountants already use it. Zoho Books is the best value for small teams, and Wave is the best free option for sole proprietors.
How much does small business accounting software cost?
Expect to pay $15 to $140 a month for most small businesses. Zoho Books starts at $15 a month billed annually, Xero at $27, and QuickBooks Online at $38. Wave and Zoho Books both offer free plans for very small businesses, with limits on features or revenue.
Is there free accounting software that works?
Yes. Wave’s Starter plan includes accounting and invoicing at no cost, and Zoho Books has a free plan for businesses with up to $50,000 in annual revenue. Free plans suit simple businesses; you will pay once you need automation, more users, or stronger reporting.
Do you need accounting software if you have a bookkeeper?
Usually, yes. Your bookkeeper needs a system to record transactions and produce reports, and most prefer cloud software both of you can open. Owning the account yourself also keeps your financial records with your business, not with the bookkeeper, if you ever switch.
Which accounting software is best for freelancers?
FreshBooks is the strongest pick for freelancers who bill clients for time, because invoicing and time tracking are built in. A freelancer with few clients and simple books can start on Wave’s free plan and move to a paid tool later.
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