The best accounting and bookkeeping software for a small business
- Zoho Books ranks first, with a free plan and low paid prices.
- QuickBooks Online is second, with a Free plan and store connectors.
- Wave is third and starts free for one business.
- A second company costs a full subscription on QuickBooks Online and Xero.
- Puzzle ranks last and lists no Shopify or Amazon connection.
| Tool | Picked for | Type | Free plan | Starting price | Rating | Score |
|---|---|---|---|---|---|---|
| 1 Zoho Books | Owners who want a free plan for a micro business and paid plans that add inventory and multi currency. | Software | Yes | Freezoho.com/us/books/pricing | 4.4 | 71 |
| 2 QuickBooks Online | Small businesses that want full bookkeeping with four priced plans and connected store, POS and payment apps. | Software | Yes | Freequickbooks.intuit.com/pricing | 4.3 | 66 |
| 3 Wave | Owners who want free invoicing and bookkeeping for one business, with a paid plan for bank import. | Software | Yes | Freewaveapps.com/pricing | 4.4 | 61 |
| 4 Xero | Owners who want bank reconciliation on every plan, with store and POS apps from partners. | Software | No | $27 a monthxero.com/us/pricing-plans | 4.1 | 52 |
| 5 FreshBooks | Service businesses that invoice clients and track time, with billing features on every plan. | Software | No | $23 a monthfreshbooks.com/pricing | 4.5 | 52 |
| 6 Puzzle | US dollar startups that want bank connected books and reconciliation on a flat monthly plan. | Software | No | $30 a monthpuzzle.io/pricing | 3.2 (1 review) | 43 |
Zoho Books is the pick among the six accounting and bookkeeping packages ranked here, and it earns that on price and breadth. It has a free plan, a $20 Standard plan with bank feeds, and native Shopify and Amazon connections.
A rank is a starting point, because the right ledger depends on what the business does. A shop that sells through several channels should look at how QuickBooks Online’s criteria scores treat store connections. A bank-first owner can read Xero’s criteria scores, and someone who invoices clients all day should read the FreshBooks score breakdown.
How I ranked these
Each tool earns points on eight things. Price for one business counts most, then the cost of a second business, then bank feeds and reconciliation. Invoicing, receipt capture, reports, price transparency and customer sentiment come after, weighted equally.
The full Wave scorecard and the full Zoho Books scorecard show those levels with their evidence. Invoicing carries real weight, which is why invoicing-first FreshBooks against QuickBooks is the cleanest example of how a feature strength moves a total.
Picking by situation
Cafés and restaurants have their own shortlist of food-cost and POS-linked tools, because a general ledger does not cost recipes. People who already run on QuickBooks have QuickBooks answers on price and setup, and other comparisons put two tools side by side.
Costs outside the headline price
The monthly price is only part of it. QuickBooks Online and Xero charge a separate subscription for each additional company. Xero lists inventory as an optional add-on. Zoho Books starts sales tax tracking on Standard, so the free plan does not cover it. Wave puts bank import behind Pro.
Stores that sell on Shopify add one more cost. Apps that sync Shopify to QuickBooks or Xero carry the payouts into either ledger and have their own monthly prices. The rest of the lists are collected in all the rankings.
The other side
A high rank reflects published price and listed features. It does not predict which tool feels right. QuickBooks Online ranks second, yet it is the only tool here with native Shopify, Amazon and Square connectors. Puzzle ranks last partly because almost no reviews exist yet. A business whose main need is invoicing may be happier lower on the list.
The pick
Zoho Books ranks first for a small business: free to start, low to grow and strong on bank, invoicing and reports. The entries below give each tool’s price, its best use and its catch.
Zoho Books has a free plan for micro businesses and five paid plans from $20 to $275 a month. The free plan lists invoicing, receipt scans and bank reconciliation. Standard adds bank feeds and sales tax tracking, and Professional adds inventory and multicurrency. Shopify and Amazon connections are native, and paid plans come with a 14-day trial. It rates 4.4 from 681 Capterra reviews. The score comes from a low entry price and strong bank, invoicing and reporting levels.
- Key details
- Zoho Books
- Type
- Software
- Starting price
- Free zoho.com/us/books/pricing
- Free plan
- Yes
- Rating
- 4.4 on Capterra
Pros
- Free plan with invoicing and bank reconciliation
- Native Shopify and Amazon connections
- Inventory and multicurrency from the Professional plan
Cons
- The free plan stops at a yearly revenue limit
- Each extra business pays its own plan price
Verdict
The best all-round pick here: low cost with strong bank, invoicing and report scores.
A second business earns little credit, because each organization carries its own plan price. The free plan also ends once yearly revenue passes its limit.
Scorecard
Full scorecard
Plans and prices
QuickBooks Online has a Free plan and four paid US plans from $38 to $340 a month, with a 30-day trial. It lists native Shopify, Amazon and Square connectors, which earns it the top level for store connections. Plus adds reconciliation and inventory. It rates 4.3 from 8,544 Capterra reviews. Receipt and report levels are among the strongest on the list, and bank matching and invoicing earn middling credit.
- Key details
- QuickBooks Online
- Type
- Software
- Starting price
- Free quickbooks.intuit.com/pricing
- Free plan
- Yes
- Rating
- 4.3 on Capterra
Pros
- Native Shopify, Amazon and Square connectors
- Strong receipt capture and reporting levels
- Inventory on the Plus and Advanced plans
Cons
- A second company needs a full subscription
- Bank matching earns only middling credit
Verdict
The right ledger for a store with several sales channels, at a higher price on its paid plans.
QuickBooks says each company you create requires its own separate paid subscription, so a second business pays the full price again.
Scorecard
Full scorecard
Plans and prices
Wave’s Starter plan is free and lists unlimited estimates, invoices, bills and bookkeeping records. Pro costs $19 a month and adds automatic bank import and receipt capture. Wave lists a native Amazon connection and a Shopify connection through Make.com on Pro. It rates 4.4 from 1,731 Capterra reviews. Reports and bank matching earn middling credit, and the free plan keeps it in the top three.
- Key details
- Wave
- Type
- Software
- Starting price
- Free waveapps.com/pricing
- Free plan
- Yes
- Rating
- 4.4 on Capterra
Pros
- Free Starter plan with unlimited invoices
- Pro price stays low for one business
- Native Amazon connection
Cons
- No bank import on the free plan
- Reports earn only middling credit
Verdict
A strong free start, held back by bank import sitting behind the paid plan.
Bank import needs the paid plan, and each extra business subscribes to Pro again at $19 a month.
Scorecard
Full scorecard
Plans and prices
Xero sells three US plans at $27, $59 and $97 a month, with a 30-day trial. Every plan lists bank reconciliation, invoicing, receipt capture and sales tax. Established adds multiple currencies. Shopify, Amazon, Square and Toast connect through partner apps. It rates 4.1 from 11,425 Trustpilot reviews. A low entry price earns a high price-for-one-business level, while the cost of a second business and store connections hold it to fourth.
- Key details
- Xero
- Type
- Software
- Starting price
- $27 a month xero.com/us/pricing-plans
- Free plan
- No
- Rating
- 4.1 on Trustpilot
Pros
- Reconciliation listed on every plan
- Low entry price for one business
- Multiple currencies on Established
Cons
- Store and POS connections run through partner apps
- Inventory costs extra
Verdict
A bank-first ledger with a low entry price, and partners needed for stores.
Inventory is an optional add-on, and a second business needs an additional subscription.
Scorecard
Full scorecard
Plans and prices
FreshBooks leads the list on invoicing. Lite costs $23 a month, Plus $43 and Premium $70, and Select is quoted. A 30-day trial comes first. It rates 4.5 from 4,529 Capterra reviews. Bank reconciliation and receipt capture start on Plus. Reports earn little credit, and the cost of a second business earns none.
- Key details
- FreshBooks
- Type
- Software
- Starting price
- $23 a month freshbooks.com/pricing
- Free plan
- No
- Rating
- 4.5 on Capterra
Pros
- Top invoicing level on the list
- Receipt capture and reconciliation on Plus
- Rated 4.5 from 4,529 Capterra reviews
Cons
- Reports earn only basic credit
- No credit for the cost of a second business
Verdict
Right for people who bill clients all day, and a weaker fit for stores.
Inventory earns no credit, and Shopify arrives through a partner app.
Scorecard
Full scorecard
Plans and prices
Puzzle sells four flat monthly plans at $30, $72, $120 and $360. Every plan lists unlimited bank connections, and Complete and Scale add AI-powered reconciliations. A 14-day trial comes first. Every plan price is published, and its only rating is 3.2 from 1 Trustpilot review.
- Key details
- Puzzle
- Type
- Software
- Starting price
- $30 a month puzzle.io/pricing
- Free plan
- No
- Rating
- 3.2 on Trustpilot (1 review)
Pros
- Four flat plans with prices published up front
- Unlimited bank connections on every plan
- AI-powered reconciliations on Complete
Cons
- No store or marketplace connections listed
- Almost no customer reviews
Verdict
A clean flat-rate ledger for startups, with too little evidence behind it to rank higher.
No Shopify or Amazon connection is listed, and a rating from 1 review says little.
Scorecard
Full scorecard
Plans and prices
Common questions
What is the best accounting software for a small business?
Zoho Books ranks first here, with a free plan and low paid prices. Wave is the pick for a free start with one business, and QuickBooks Online suits stores with Shopify, Amazon and Square sales.
Is there free accounting software that works for a business?
Yes. Zoho Books and Wave both have free plans, and Zoho’s free plan lists bank reconciliation while Wave puts bank import on its paid Pro plan.
What does a second company cost?
QuickBooks Online and Xero each need a separate subscription for each company. Zoho Books prices each organization on its own, and Wave charges $19 a month for each Pro business.
Do I still need an accountant when software keeps the books?
Software records the numbers. Tax advice and filing belong to a tax professional, and a bookkeeper can keep the records in between.