Managing finances is one of the most important — and often most challenging — aspects of running a small business. The right accounting software can simplify bookkeeping, improve accuracy, automate tedious tasks, and help you make better financial decisions. In 2025, the market is full of excellent options designed specifically for small businesses, freelancers, and startups. This guide reviews the 10 best accounting software tools that can help you stay ahead financially.
Why Do Small Businesses Need Accounting Software?
Before we dive into the list, let’s briefly explore why accounting software is essential for small businesses:
- Saves time: Automates invoicing, payments, and reporting.
- Improves accuracy: Reduces human errors in bookkeeping.
- Simplifies tax filing: Keeps financial data organized for smooth tax preparation.
- Better financial insights: Real-time reports help with budgeting and forecasting.
- Compliance: Helps stay compliant with financial regulations.
Key Features to Look for in Accounting Software
When selecting accounting software, small businesses should focus on:
- Invoicing and payment processing
- Expense tracking
- Payroll integration
- Tax preparation
- Multi-user access
- Mobile accessibility
- Integration with other tools (CRM, e-commerce, banking)
Now, let’s review the best accounting software tools available in 2025.
10 Best Accounting Software for Small Business 2025
Explore the top 10 accounting software options to simplify finances, automate tasks, and help your small business grow in 2025.
| Software | Best For | Key Features | Starting Price | Free Trial |
|---|
| QuickBooks Online | All-round small business use | Invoicing, payroll, reporting, inventory | $30/month | 30 days |
| Xero | Multi-user, global businesses | Unlimited users, bank feeds, project tracking | $15/month | 30 days |
| FreshBooks | Freelancers, service businesses | Time tracking, invoicing, client portal | $19/month | 30 days |
| Zoho Books | Automation, affordability | Automated workflows, tax filing, CRM integration | $20/month | 14 days |
| Wave Accounting | Free option for micro businesses | Invoicing, expense tracking, reporting | Free | — |
| Sage Business Cloud | Simple cash flow & inventory | Cash flow, bank reconciliation, mobile app | $10/month | 30 days |
| NetSuite (Oracle) | Scaling startups, full ERP | Financial forecasting, ERP, dashboards | Custom pricing | — |
| Kashoo | Simple, no-frills accounting | Easy invoicing, tax reporting, bank feeds | $216/year | — |
| OneUp | Inventory-heavy businesses | Bookkeeping automation, inventory, CRM | $9/month | — |
| FreeAgent | Freelancers, UK businesses | Project management, tax prep, time tracking | $14/month | 30 days |
1. QuickBooks Online — The Most Popular All-in-One Solution
QuickBooks Online has become almost a household name when it comes to small business accounting — and for good reason. It’s loaded with features that cover pretty much everything a business might need.
You can create professional invoices, automatically track expenses, sync your bank accounts, and even handle payroll if you add that feature. What’s great is that everything is cloud-based, so you can access your books anytime, from anywhere.
Why it’s great:
- Covers invoicing, expenses, payroll, tax, and reporting.
- Works for both service and product-based businesses.
- Supports integrations with hundreds of popular business apps like Shopify, PayPal, and Stripe.
Consider if:
You want an all-in-one solution that can grow with your business.
2. Xero — Perfect for Teams and Collaboration
Xero is a strong competitor to QuickBooks, especially if you work with a team. The standout feature? Unlimited users. You can invite your accountant, business partner, and even employees without paying extra.
Xero is very user-friendly, and it handles invoicing, expense management, project tracking, and even payroll in some countries.
Why it’s great:
- Unlimited users without extra fees.
- Excellent for businesses with multiple collaborators.
- Smooth bank reconciliation and financial reporting.
Consider if:
You need multi-user access or work internationally.
3. FreshBooks — Built for Freelancers and Service Providers
FreshBooks — Built for Freelancers and Service Providers
If you’re a freelancer, coach, consultant, or anyone who bills by the hour or project, FreshBooks is designed just for you. It simplifies the invoicing process, lets you track time easily, and even handles client proposals.
FreshBooks helps you stay organized without getting overwhelmed by unnecessary features that bigger businesses may need.
Why it’s great:
- Easy time tracking and project-based billing.
- Simple and clean interface.
- Automated payment reminders save you from chasing late payments.
Consider if:
You’re a solo entrepreneur or service-based business owner who wants simple, intuitive accounting.
4. Zoho Books — The Budget-Friendly Automation Master
Zoho Books might not be as well-known as QuickBooks, but it’s a hidden gem — especially if you want powerful features at an affordable price.
You can automate invoices, create recurring billing, handle multi-currency transactions, and even connect it with Zoho’s other business tools like CRM and inventory management.
Why it’s great:
- Highly customizable workflows.
- Strong automation for payments, reminders, and reporting.
- Seamlessly integrates with other Zoho products.
Consider if:
You want robust features and automation without breaking your budget.
5. Wave — The Best Free Accounting Software
Sometimes your budget is tight — especially if you’re just starting out. That’s where Wave comes in. It offers completely free core features: invoicing, expense tracking, bank connections, and reporting — all at no cost.
You’ll only pay if you want to use payroll or accept online payments through Wave.
Why it’s great:
- 100% free for invoicing, expenses, and basic accounting.
- Simple to set up, even for beginners.
- No hidden fees unless you add paid features.
Consider if:
You’re a freelancer, solopreneur, or small business with simple needs and a small budget.
6. Sage Business Cloud — Simple and Reliable for Beginners
Sage offers a straightforward approach to accounting that’s ideal if you don’t need a ton of bells and whistles. It helps you stay on top of cash flow, track expenses, reconcile bank accounts, and handle simple invoicing.
It may not be as flashy as some competitors, but it gets the job done for many small businesses.
Why it’s great:
- Simple, no-nonsense interface.
- Easy to track cash flow and monitor your business finances.
- Supports basic inventory management.
Consider if:
You want simple, reliable accounting with no learning curve.
7. NetSuite (by Oracle) — Powerful Solution for Growing Businesses
NetSuite isn’t for everyone — but if you’re growing fast or have complex needs, it can be a game-changer. It’s more than just accounting — it’s a full ERP system that includes inventory, CRM, HR, and financial forecasting.
Large startups, franchises, and companies with multiple locations often turn to NetSuite when they need more control over their entire operation.
Why it’s great:
- Full ERP solution: finance, inventory, HR, CRM, and more.
- Handles complex tax compliance and multi-location businesses.
- Detailed financial forecasting and reporting.
Consider if:
Your business is expanding quickly or you need advanced enterprise-level solutions.
8. Kashoo — Simple, Fast, and Easy Bookkeeping
Kashoo is a great option for small business owners who aren’t accountants and don’t want to become one. The interface is very simple, allowing you to send invoices, track expenses, and handle your taxes with minimal effort.
Kashoo also uses machine learning to help automate categorization, making bookkeeping even easier.
Why it’s great:
- Extremely simple and user-friendly.
- Helps automate transaction categorization.
- Great for business owners who want minimal bookkeeping work.
Consider if:
You want simple software that works out of the box without complicated setups.
9. OneUp — Ideal for Inventory-Based Small Businesses
If you sell products and need help managing inventory alongside accounting, OneUp could be perfect. It automatically suggests entries based on your bank feed, saving you time on data entry.
OneUp combines accounting, inventory, CRM, and invoicing — ideal for product-based businesses like retail or wholesale operations.
Why it’s great:
- Automatic bookkeeping suggestions.
- Strong inventory management features.
- Combines CRM, sales, and accounting.
Consider if:
You’re selling products and want everything connected in one simple system.
10. FreeAgent — Designed for Freelancers and UK Businesses
FreeAgent was built specifically with freelancers, contractors, and UK businesses in mind. It’s simple to use, helps with self-assessment tax filing, and even supports HMRC integration for UK tax.
Its focus on projects, time tracking, and easy tax prep makes it very popular for solo professionals.
Why it’s great:
- Great for UK-based businesses and freelancers.
- Self-assessment tax filing built-in.
- Simple time tracking and project management.
Consider if:
You’re based in the UK or work project-by-project and need simple, compliant software.
How to Choose the Right Accounting Software for Your Business
Choosing the right accounting software depends on:
| Business Type | Recommended Tools |
|---|---|
| Freelancer/Solopreneur | FreshBooks, Wave, FreeAgent |
| Growing Small Business | QuickBooks Online, Xero, Zoho Books |
| Product-based Business | OneUp, Sage Business Cloud |
| Service Business | FreshBooks, Zoho Books |
| Fast-growing Startup | NetSuite, Xero |
Always consider your current needs, potential growth, budget, and required integrations before making a final decision.
Conclusion
In 2025, small businesses have more choices than ever when it comes to accounting software. Whether you’re a freelancer, e-commerce seller, or growing startup, there’s a solution that fits your unique needs. Take advantage of free trials to test the software before you commit — and invest in a tool that will save you time, reduce errors, and help your business grow.
