The best free accounting software for a small business
- Zoho Books ranks first, and its free plan includes bank reconciliation.
- Wave is second, with free invoicing and bookkeeping for one business.
- Akaunting is free only if you host it yourself.
- Zoho's free plan ends past a yearly revenue limit.
- Wave puts bank import on its paid Pro plan.
| 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 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 |
| 3 Akaunting | Owners who can host software themselves and want free accounting they run on their own server. | Software | Yes | $12 a monthakaunting.com/pricing | 1.5 | 44 |
Three accounting tools in this set have a free option, and Zoho Books comes first because its free plan includes bank reconciliation. Wave’s criteria scores and Zoho Books’ criteria scores show how the two main free plans compare on every criterion. When free is not a requirement, the main accounting ranking covers the paid packages too.
Each of these free plans has a catch, and the catches differ. One has a revenue limit, one keeps bank import behind a fee, and one asks you to run a server.
How I ranked these
The free tools are scored on the same eight criteria as the paid ones, and price for one business is the heaviest. A free plan earns the top level on that criterion, which lifts all three. The gap comes from the rest: bank matching, invoicing, reports, published prices and reviews. People leaving a paid tool can start with replacing QuickBooks. The fees behind the free tier are spelled out in Wave plans and fees and Zoho Books at no cost.
Scores and the other lists
Every tool’s levels and evidence are in its scorecard, and how tools get points explains the weights. The full set of rankings holds the other categories, and questions on other software answers price questions about the tools that sit outside this list.
QuickBooks Online Free
QuickBooks Online is not on this list, but it has a Free plan. The plan covers 1 user with no accountant access. It allows 2 invoices a month and 1 bank connection. The reports are the top 3 reports: profit and loss, balance sheet, and account quick report. Free also means no mobile app access and no third-party integrations.
Paid plans start at $38 a month for Simple Start, and what the paid QuickBooks plans cost lists each step.
Costs outside the headline price
Free covers one business. Wave bills each extra business at $19 a month on Pro, and Zoho Books prices each organization on its own. Paid rivals set the bar for what you give up: Xero pricing tiers start at $27 a month. A store that sells online will also care about connections, and tools that fit an online shop rank them.
The other side
A free plan trades money for time. Typing in bank lines by hand, or hosting your own server, costs hours that a paid plan would save. For a business with few transactions that trade is fine. For a busy shop, a low-priced paid plan such as Zoho Books Standard may be the cheaper choice overall.
Zoho Books has a free plan for micro businesses. It lists invoices, quotes, expenses, receipt scans and bank reconciliation, with limits on invoices, expenses, scans and scheduled reports. The plan stays free while yearly revenue stays under the limit, and Standard at $20 a month adds bank feeds and sales tax tracking once the business outgrows it. It rates 4.4 from 681 Capterra reviews.
- Key details
- Zoho Books
- Type
- Software
- Starting price
- Free zoho.com/us/books/pricing
- Free plan
- Yes
- Rating
- 4.4 on Capterra
Pros
- Bank reconciliation on the free plan
- Receipt scans on the free plan
- Clear next step to a low-priced paid plan
Cons
- A revenue limit ends the free plan
- No bank feeds until Standard
Verdict
Bank reconciliation and receipt scans put it first, as long as revenue stays under the limit.
The free plan ends once yearly revenue passes its limit, and bank feeds start at Standard.
Scorecard
Full scorecard
Plans and prices
Wave’s Starter plan is free and lists unlimited estimates, invoices, bills and bookkeeping records. It has no yearly revenue cap listed. Pro costs $19 a month and adds automatic bank import and receipt capture. Wave lists a native Amazon connection. It rates 4.4 from 1,731 Capterra reviews.
- Key details
- Wave
- Type
- Software
- Starting price
- Free waveapps.com/pricing
- Free plan
- Yes
- Rating
- 4.4 on Capterra
Pros
- Unlimited invoices on the free plan
- No revenue limit listed
- Native Amazon connection
Cons
- Bank import is a paid feature
- Reports earn only middling credit
Verdict
A free ledger built around invoicing, with bank matching saved for the paid plan.
The free plan has no bank import, so bank lines come in by hand or file. Each extra business subscribes to Pro again at $19 a month.
Scorecard
Full scorecard
Plans and prices
Akaunting is free in its self-hosted on-premise form. The hosted Cloud plans start at $12 a month for Standard, and Premium at $36 a month covers 10 companies and adds bank feeds. Standard lists multiple currencies and sales tax calculation, and a Shopify app is listed. Its rating is low: 1.5 from 57 Trustpilot reviews.
- Key details
- Akaunting
- Type
- Software
- Starting price
- $12 a month akaunting.com/pricing
- Free plan
- Yes
- Rating
- 1.5 on Trustpilot
Pros
- Free self-hosted edition
- Premium covers several companies
- Multiple currencies and sales tax on Standard
Cons
- You host and maintain it yourself
- Low rating from customer reviews
Verdict
Free only for people who run their own server, and the hosted plans cost money.
Running it yourself means your own server and your own updates, and bank feeds sit on the paid Cloud plans.
Scorecard
Full scorecard
Plans and prices
Common questions
What is the best free accounting software?
Zoho Books ranks first, because its free plan includes bank reconciliation and receipt scans. Wave is the pick if you want free invoicing with no revenue limit listed.
Is free accounting software really free?
Mostly. Zoho Books is free until revenue passes its limit, Wave is free on Starter with bank import on Pro, and Akaunting is free only when you host it.
What happens when a free plan ends?
You move to the first paid plan. Zoho Books Standard costs $20 a month and Wave Pro costs $19.
Can a free plan handle a second business?
Wave charges $19 a month for each Pro business, and Zoho Books sets up each business as its own organization with its own plan.