One of the most important parts of successfully running a small business is financial management. From invoicing and expense tracking to payroll and taxes, the correct accounting software will make it easier to keep tabs on your finances and track the money coming and going from your company.
Because there are so many solutions to choose from, it can be difficult for a small business owner to decide which is right for them — or even how much it may cost. This article lists down 10 best accounting software for small businesses based on ease of use, scalability, automation features, and higher value for money in the form of pricing and integration.
There are plenty of other accounting software options out there for freelancers and small and growing business owners that can revolutionize the financial end of your workflow and help you make good decisions for your business. Continue reading to see what the top accounting software will be for your business in 2025.
QuickBooks Online
QuickBooks Online is a popular accounting application designed for small through large businesses. Its features include invoicing, expense tracking, payroll and bank reconciliation. Its web-based format means that it is there when you need it, wherever you are, with local support/accounts integration.
Pros:
Intuitive dashboard and user-friendly navigation
Scale up with your business
Works with lots of third-party apps
Cons:
Costly for smaller teams
Little customization is available for invoices at the lower plans.
Xero
Xero’s easy-to-use interface and strong features made it an FCR top pick for small businesses. It features bank feeds, live cash flow tracking, and project tracking and connects with more than 800 business apps.
Pros:
Great for multiple users
Automatic bank reconciliation
Caters effectively to different business requirements
Cons:
The minor learning curve for new prospects
Not as many reporting options as some competition
FreshBooks
FreshBooks is best for service-oriented small businesses and individual service providers such as acupuncturists and freelance writers. It focuses on client billing and invoicing, time tracking and project management, with some basic accounting features.
Pros:
Great invoicing and time-tracking functionality
Very easy to use, and the UI is intuitive and automation-capable
Good customer support
Cons:
Not much for inventory management
More costly with an increased client roster
Zoho Books
Zoho Books is a member of the Zoho family of software and provides an extremely flexible accounting solution. It will have built-in features like GST compliance (For Indian users), time tracking and multi-currency transactions.
Pros:
Fair pricing for small businesses
Functional and related to other Zoho apps
Good automation features
Cons:
Limited payroll functionality
Not as widely used by accountants who are not a part of the Zoho ecosystem
Wave Accounting
Wave Free ACCOUNTING SOFTWARE Wave is a free accounting software solution that includes several features such as invoicing, accounting, and receipt scanning. It works well for freelancers and micro-businesses on a tight budget.
Pros:
Absolutely free of charge for accounts and invoicing
Simple and easy to use
Cons:
Paid utilities for payroll as well as payment processing
Not very scalable, and few integrations
Sage Business Cloud Accounting
Sage provides cloud accounting software to suit every type of business, small or large. It covers inventory, invoicing, and reporting.
Pros:
Strong reporting capabilities
For both service and product-focused businesses
Supports multiple currencies and VAT implications
Cons:
Dated Interface Compared to some of the newer platforms, the interface feels a bit dated.
Add-ons can increase costs.
Kashoo
Kashoo is a user-friendly accounting software for very small businesses and solopreneurs. It provides fundamental features , including income and spending tracking, invoicing, and bank synchronization.
Pros:
Great for beginners
Affordable flat-rate pricing
Features automatic expense classification
Cons:
Enables very simple alternation, but not advanced for growing businesses
Limited integration options
ZipBooks
Another freemium accounting software is ZipBooks, which emphasizes simplicity and automation. It encompasses invoicing, billing and basic financial reports.
Pros:
Free basic plan available
Clean and intuitive design
Ideal for solo entrepreneurs
Cons:
Limited customer support
Not suited for sophisticated account requirements
OneUp
OneUp is an intelligent accounting application that integrates CRM, inventory and accounting into one solution. It’s best for businesses looking for automation and complete syncing with bank accounts.
Pros:
Automated accounting entries
Integrated warehouse and CRM features
Fast onboarding and setup
Cons:
It might be too advanced for beginners
Third-party integrations are few and far between.
FreeAgent
FreeAgent, created for freelancers and small business owners. Its guided workflows make the financial nuances of your business less complicated through project-based accounting, time tracking and automatic tax calculation.
Pros:
Perfect for small businesses and freelancers in the UK
HMRC-compliant tax tools
All-in-one dashboard
Cons:
Not as great for U.S. readers
Not very scalable for large teams
Advantages of Small Business Accounting Software
It’s not as sexy as creative software, but accounting software can do wonders for the productivity of your business. Myob offers tools that can automate routine chores, such as creating invoices and reconciling bank statements, to free up some of your time. The ability to access critical financial information on the go: real-time data helps decision-making, and cloud-enabled solutions give executives the freedom to manage bookkeeping from anywhere. These automations minimize human error, help track cash flow and make tax filing easier. What’s more, by being integrated with other business systems, such as CRM and e-commerce platforms, a host of tools are combined to make a seamless business management solution.
Conclusion
For small businesses, selecting good accounting software is so important, not just for future growth but for the sustainability of the business. Whether you’re trying to cut costs with a free program (such as Wave) or are willing to pay for a full-fledged system (such as QuickBooks Online), there are plenty of options to choose that suit your specific circumstances and budget. Your ideal accounting software should not only make managing your business finances easier, but it should also give you the tools to make smarter business decisions. Test the software for features, scalability and support offered (Tower, Labguru) and decide what to do based on your goals.