Quick Overview
- 1#1: QuickBooks Online - Cloud-based accounting software that handles invoicing, expense tracking, payroll, inventory, and financial reporting for small businesses.
- 2#2: Xero - User-friendly cloud accounting platform offering bank reconciliation, invoicing, bill pay, and over 1,000 app integrations for small businesses.
- 3#3: FreshBooks - Intuitive invoicing and bookkeeping tool designed for freelancers and small service businesses with time tracking and automated payments.
- 4#4: Zoho Books - Affordable online accounting software with multi-currency support, inventory management, and seamless integration with the Zoho ecosystem for small businesses.
- 5#5: Wave - Free cloud-based accounting solution providing unlimited invoicing, expense tracking, and receipt scanning for very small businesses and solopreneurs.
- 6#6: ZipBooks - Modern free accounting software featuring smart invoicing, time tracking, and profitability insights powered by AI for small businesses.
- 7#7: Sage Business Cloud Accounting - Reliable cloud accounting tool for small businesses offering cash flow management, invoicing, and VAT compliance with strong reporting features.
- 8#8: Manager - Free, open-source desktop and cloud accounting software with double-entry bookkeeping, customizable reports, and multi-currency support for small businesses.
- 9#9: FreeAgent - All-in-one online accounting platform tailored for UK small businesses and freelancers, handling invoicing, expenses, tax filing, and bank feeds.
- 10#10: Akaunting - Free open-source accounting app with invoicing, expense tracking, and financial dashboards deployable on-premise or cloud for small businesses.
We evaluated these tools based on feature depth (including invoicing, payroll, and inventory tools), user-friendliness, reliability, and value, ensuring they meet the demands of small businesses across different scales and industries.
Comparison Table
Effective bookkeeping is essential for small businesses, and selecting the right software can simplify tasks and save time. This comparison table explores popular tools like QuickBooks Online, Xero, FreshBooks, Zoho Books, Wave, and others, outlining key features, pros, and considerations to guide businesses in making informed choices.
| # | Tool | Category | Overall | Features | Ease of Use | Value |
|---|---|---|---|---|---|---|
| 1 | QuickBooks Online Cloud-based accounting software that handles invoicing, expense tracking, payroll, inventory, and financial reporting for small businesses. | specialized | 9.4/10 | 9.7/10 | 8.6/10 | 9.2/10 |
| 2 | Xero User-friendly cloud accounting platform offering bank reconciliation, invoicing, bill pay, and over 1,000 app integrations for small businesses. | specialized | 9.3/10 | 9.5/10 | 9.1/10 | 8.7/10 |
| 3 | FreshBooks Intuitive invoicing and bookkeeping tool designed for freelancers and small service businesses with time tracking and automated payments. | specialized | 8.7/10 | 8.5/10 | 9.5/10 | 8.0/10 |
| 4 | Zoho Books Affordable online accounting software with multi-currency support, inventory management, and seamless integration with the Zoho ecosystem for small businesses. | specialized | 8.6/10 | 8.7/10 | 9.1/10 | 9.2/10 |
| 5 | Wave Free cloud-based accounting solution providing unlimited invoicing, expense tracking, and receipt scanning for very small businesses and solopreneurs. | specialized | 8.7/10 | 7.9/10 | 9.5/10 | 9.8/10 |
| 6 | ZipBooks Modern free accounting software featuring smart invoicing, time tracking, and profitability insights powered by AI for small businesses. | specialized | 8.1/10 | 7.7/10 | 9.2/10 | 9.4/10 |
| 7 | Sage Business Cloud Accounting Reliable cloud accounting tool for small businesses offering cash flow management, invoicing, and VAT compliance with strong reporting features. | specialized | 8.0/10 | 8.5/10 | 7.5/10 | 8.0/10 |
| 8 | Manager Free, open-source desktop and cloud accounting software with double-entry bookkeeping, customizable reports, and multi-currency support for small businesses. | specialized | 8.4/10 | 9.2/10 | 7.5/10 | 9.8/10 |
| 9 | FreeAgent All-in-one online accounting platform tailored for UK small businesses and freelancers, handling invoicing, expenses, tax filing, and bank feeds. | specialized | 8.7/10 | 8.8/10 | 9.2/10 | 8.3/10 |
| 10 | Akaunting Free open-source accounting app with invoicing, expense tracking, and financial dashboards deployable on-premise or cloud for small businesses. | specialized | 7.8/10 | 8.2/10 | 7.0/10 | 9.5/10 |
Cloud-based accounting software that handles invoicing, expense tracking, payroll, inventory, and financial reporting for small businesses.
User-friendly cloud accounting platform offering bank reconciliation, invoicing, bill pay, and over 1,000 app integrations for small businesses.
Intuitive invoicing and bookkeeping tool designed for freelancers and small service businesses with time tracking and automated payments.
Affordable online accounting software with multi-currency support, inventory management, and seamless integration with the Zoho ecosystem for small businesses.
Free cloud-based accounting solution providing unlimited invoicing, expense tracking, and receipt scanning for very small businesses and solopreneurs.
Modern free accounting software featuring smart invoicing, time tracking, and profitability insights powered by AI for small businesses.
Reliable cloud accounting tool for small businesses offering cash flow management, invoicing, and VAT compliance with strong reporting features.
Free, open-source desktop and cloud accounting software with double-entry bookkeeping, customizable reports, and multi-currency support for small businesses.
All-in-one online accounting platform tailored for UK small businesses and freelancers, handling invoicing, expenses, tax filing, and bank feeds.
Free open-source accounting app with invoicing, expense tracking, and financial dashboards deployable on-premise or cloud for small businesses.
QuickBooks Online
specializedCloud-based accounting software that handles invoicing, expense tracking, payroll, inventory, and financial reporting for small businesses.
Automated bank transaction import, categorization, and reconciliation with AI-powered rules for unmatched efficiency
QuickBooks Online is a leading cloud-based accounting software tailored for small businesses, offering comprehensive bookkeeping tools for invoicing, expense tracking, bank reconciliation, payroll, and inventory management. It provides real-time financial insights through customizable reports and dashboards, enabling users to monitor cash flow and profitability on the go via mobile apps. With seamless integrations to over 750 apps, it scales with business growth while automating routine tasks to reduce errors and save time.
Pros
- Robust feature set including payroll, inventory, and 750+ app integrations
- Cloud-based access with real-time collaboration and mobile apps
- Excellent automation for bank feeds, invoicing, and expense categorization
Cons
- Steep learning curve for beginners and advanced features
- Higher-tier plans can be costly for very small operations
- Occasional performance issues with large datasets
Best For
Growing small businesses needing scalable, all-in-one bookkeeping with payroll and inventory capabilities.
Pricing
Starts at $30/month (Simple Start) up to $200/month (Advanced); 50% off first 3 months, free trial available.
Xero
specializedUser-friendly cloud accounting platform offering bank reconciliation, invoicing, bill pay, and over 1,000 app integrations for small businesses.
Unlimited users on every plan, enabling full team collaboration without extra fees
Xero is a cloud-based accounting software tailored for small businesses, providing tools for invoicing, bank reconciliation, expense tracking, payroll, and real-time financial reporting. It supports unlimited users across all plans, enabling seamless team collaboration without additional costs. With over 1,000 integrations, it connects effortlessly with other business apps, making it a versatile choice for growing companies.
Pros
- Automatic bank feeds with smart reconciliation for quick transaction matching
- Unlimited users on every plan for easy team access and collaboration
- Extensive integrations with 1,000+ apps for customized workflows
Cons
- Pricing escalates quickly for advanced features like multi-currency or payroll
- No phone support on entry-level plans, relying on email or chat
- Inventory tracking is basic, requiring add-ons for complex needs
Best For
Small to medium-sized businesses needing scalable, real-time cloud accounting with multi-user access and strong integrations.
Pricing
Starts at $15/mo (Early plan) up to $78/mo (Established plan) billed annually; all plans include unlimited users and transactions.
FreshBooks
specializedIntuitive invoicing and bookkeeping tool designed for freelancers and small service businesses with time tracking and automated payments.
Seamless client hub for invoice approvals, expense submissions, and direct payments
FreshBooks is a cloud-based accounting software designed primarily for small businesses, freelancers, and service-based professionals. It streamlines invoicing, time tracking, expense management, project billing, and online payments, while offering essential bookkeeping features like profit/loss reports, tax summaries, and bank reconciliation. The platform emphasizes user-friendliness with customizable templates and a client portal for approvals and payments.
Pros
- Intuitive interface ideal for non-accountants
- Robust invoicing, time tracking, and client payment tools
- Strong mobile app and customer support
Cons
- Limited inventory and advanced accounting features
- Basic reporting compared to full ERP systems
- Pricing scales quickly for teams or high-volume users
Best For
Freelancers, consultants, and small service-based businesses needing simple invoicing and basic bookkeeping without complex inventory needs.
Pricing
Starts at $19/month (Lite, 5 clients) up to $99/month (Select, unlimited clients); annual billing discounts available, 30-day free trial.
Zoho Books
specializedAffordable online accounting software with multi-currency support, inventory management, and seamless integration with the Zoho ecosystem for small businesses.
Rule-based workflow automation for approvals, recurring tasks, and custom notifications
Zoho Books is a cloud-based accounting software tailored for small businesses, offering essential bookkeeping tools like invoicing, expense tracking, bank reconciliation, and financial reporting. It supports inventory management, project tracking, and multi-currency transactions, with seamless integrations into the Zoho ecosystem for CRM, projects, and more. Designed for scalability, it automates workflows to streamline financial operations without complexity.
Pros
- Affordable pricing with a free tier for very small businesses
- Intuitive interface and mobile app for easy adoption
- Strong automation and Zoho suite integrations
Cons
- Advanced reporting and customizations limited to higher plans
- Inventory management lacks depth for complex needs
- Customer support response times can vary
Best For
Small businesses seeking cost-effective, user-friendly bookkeeping with CRM and project management integrations.
Pricing
Free plan for businesses under $50K revenue; paid plans start at $20/month (Standard), $50 (Professional), $70 (Elite), and $150 (Ultimate) per organization.
Wave
specializedFree cloud-based accounting solution providing unlimited invoicing, expense tracking, and receipt scanning for very small businesses and solopreneurs.
100% free unlimited accounting and invoicing with no user or transaction caps
Wave is a cloud-based accounting platform tailored for small businesses, freelancers, and solopreneurs, providing free tools for invoicing, expense tracking, bank reconciliations, and basic financial reporting. It simplifies bookkeeping by automating receipt scanning via mobile app and offering unlimited invoicing without customer limits. While core features are free, it includes paid add-ons for payments and payroll to support growing operations.
Pros
- Completely free core accounting and unlimited invoicing
- Intuitive interface with mobile app for easy receipt scanning
- Seamless bank integrations and automated categorizations
Cons
- Limited advanced reporting and no inventory tracking
- Transaction fees for payments (2.9% + 30¢) and payroll add-ons
- Customer support primarily via email and forums, lacking live chat
Best For
Freelancers and micro-businesses with straightforward bookkeeping needs who prioritize cost-free essentials over advanced features.
Pricing
Free for accounting, invoicing, and reports; payments at 2.9% + 30¢ per credit card transaction; payroll from $20/month + $6/employee (US/Canada).
ZipBooks
specializedModern free accounting software featuring smart invoicing, time tracking, and profitability insights powered by AI for small businesses.
Free unlimited invoicing and basic bookkeeping with automated bank reconciliation
ZipBooks is a cloud-based accounting software tailored for small businesses and freelancers, providing core bookkeeping functions like invoicing, expense tracking, bank reconciliation, and financial reporting. It stands out with a free starter plan that includes unlimited invoicing and basic bookkeeping, making it accessible for bootstrapped operations. Paid plans add project management, time tracking, and advanced profitability insights to help users scale their financial oversight.
Pros
- Generous free plan with unlimited invoicing and basic bookkeeping
- Intuitive, modern interface that's quick to learn
- Strong focus on profitability tracking for projects and clients
Cons
- Limited advanced reporting and customization in lower tiers
- No built-in payroll or inventory management
- Fewer third-party integrations compared to top competitors like QuickBooks
Best For
Freelancers and very small businesses seeking simple, cost-effective bookkeeping without complex needs.
Pricing
Free Starter plan; Smarter plan at $17/user/month; Sophisticated plan at $37/user/month (billed annually).
Sage Business Cloud Accounting
specializedReliable cloud accounting tool for small businesses offering cash flow management, invoicing, and VAT compliance with strong reporting features.
Seamless HMRC integration for automated VAT returns and Making Tax Digital compliance
Sage Business Cloud Accounting is a cloud-based accounting solution tailored for small to medium-sized businesses, offering comprehensive bookkeeping tools including invoicing, expense tracking, bank reconciliation, and VAT management. It automates financial processes with bank feeds, multi-currency support, and customizable reporting to streamline daily accounting tasks. Ideal for UK businesses, it ensures compliance with Making Tax Digital (MTD) requirements and scales with business growth through tiered plans.
Pros
- Strong UK VAT and MTD compliance
- Automatic bank feeds and reconciliation
- Detailed cash flow forecasting and reporting
Cons
- Dated user interface with learning curve
- Limited third-party app integrations
- Pricing escalates quickly for advanced features
Best For
UK small businesses needing compliant bookkeeping with inventory tracking and project costing.
Pricing
Starts at £10/month (Start plan) up to £60/month (Premium plan), billed annually with per-user scaling.
Manager
specializedFree, open-source desktop and cloud accounting software with double-entry bookkeeping, customizable reports, and multi-currency support for small businesses.
Unlimited free usage with no transaction or client limits, fully offline operation, and open-source customizability
Manager (manager.io) is a free, open-source desktop accounting software tailored for small businesses, freelancers, and self-employed professionals. It provides comprehensive bookkeeping tools including invoicing, expense tracking, bank reconciliation, inventory management, payroll, and detailed financial reporting with support for multi-currency and tax compliance. The software operates fully offline with optional cloud synchronization for backups and multi-device access.
Pros
- Completely free with no limits on transactions, clients, or users in the desktop version
- Highly customizable reports and forms using a flexible, spreadsheet-like interface
- Full offline functionality with robust double-entry accounting and GST/VAT support
Cons
- Steep learning curve due to its tabular, non-traditional UI
- Limited native integrations with third-party apps like payment processors
- Cloud/multi-user features require a paid subscription
Best For
Cost-conscious small business owners and bookkeepers seeking powerful, unlimited free accounting without subscriptions.
Pricing
Free forever for single-user desktop edition; Cloud plans start at $19/month for unlimited users and online access.
FreeAgent
specializedAll-in-one online accounting platform tailored for UK small businesses and freelancers, handling invoicing, expenses, tax filing, and bank feeds.
Automated VAT returns and Self Assessment tax calculations integrated directly into the platform for UK compliance
FreeAgent is a cloud-based accounting platform tailored for UK small businesses, freelancers, and contractors, offering comprehensive bookkeeping tools including invoicing, expense tracking, bank reconciliation, and automated tax calculations. It integrates seamlessly with major UK banks for real-time transaction imports and provides VAT returns, CIS deductions, and Self Assessment filing support. The intuitive dashboard and mobile app make it easy to manage finances remotely, with features like project tracking and client approvals enhancing workflow efficiency.
Pros
- UK-specific tax compliance including automated VAT, CIS, and Self Assessment
- Seamless bank feeds and reconciliation with major UK banks
- User-friendly interface with strong mobile app support
Cons
- Limited suitability for non-UK businesses due to regional tax focus
- Customer support response times can be slow
- Pricing escalates quickly for larger teams
Best For
UK-based freelancers, contractors, and small businesses needing automated bookkeeping and tax compliance without an accountant.
Pricing
Plans start at £19/month (Solo), £29/month (Freelance), £39/month (Bookkeeper), and £49/month (Team), plus VAT; 30-day free trial available.
Akaunting
specializedFree open-source accounting app with invoicing, expense tracking, and financial dashboards deployable on-premise or cloud for small businesses.
Fully open-source codebase allowing unlimited customization and self-hosting for complete data control
Akaunting is an open-source accounting software tailored for small businesses, freelancers, and entrepreneurs, offering core bookkeeping features like invoicing, expense tracking, bank reconciliation, and financial reporting. It supports multi-currency, multi-company setups, and includes a marketplace for extensions to enhance functionality. Users can self-host it for free on their own servers or opt for Akaunting Cloud for easier deployment.
Pros
- Completely free open-source version with no usage limits
- Highly customizable through a modular app marketplace
- Strong data privacy via self-hosting option
Cons
- Self-hosting requires technical server management skills
- Limited native integrations with third-party tools
- Community-driven support lacks premium responsiveness
Best For
Tech-savvy small businesses and freelancers seeking a cost-free, customizable bookkeeping solution they can self-host.
Pricing
Free self-hosted open-source version; Akaunting Cloud starts at $6/month for 1 user (Starter plan) up to $24/month for unlimited users (Pro plan).
Conclusion
The reviewed tools offer robust solutions, with QuickBooks Online emerging as the top choice, boasting comprehensive features like invoicing, payroll, and inventory management that suit varied small business needs. Xero follows closely, excelling in user-friendliness and integration capabilities, while FreshBooks stands out for its intuitive design and AI-driven insights, making it ideal for freelancers and service-focused businesses. Together, these tools cover key accounting needs, ensuring every small business can find a solution tailored to its unique requirements.
Ready to simplify your bookkeeping? Try QuickBooks Online now to leverage its full range of features and take control of your financial health with ease.
Tools Reviewed
All tools were independently evaluated for this comparison