Note (September 2026): Earlier versions said NetSuite was developed by Oracle and misstated Xero’s entry-plan limits. NetSuite was founded in 1998 and bought by Oracle in 2016, and Xero’s cheapest US plan allows 20 invoices and 5 bills a month; plan prices below are updated.
The best accounting software for a small business depends on its size and needs. As of September 2026, FreshBooks suits freelancers and service firms, Xero and QuickBooks Online suit growing small businesses, Zoho Books and Wave offer free starter plans, Sage Accounting suits simple bookkeeping, and Oracle NetSuite suits larger companies needing a full cloud ERP.
Key Takeaways
- No single accounting package is best for every business; match the tool to your size, industry, country and number of users.
- As of September 2026, US list prices range from free (Wave Starter, Zoho Books Free) to $340 a month for QuickBooks Online Advanced, while NetSuite is quoted per customer.
- Entry plans often carry limits, such as Xero Early’s 20 invoices and 5 bills a month or FreshBooks Lite’s 5 billable clients.
- Check bank feeds, tax support for your country, payroll options and accountant access before you commit.
- Most vendors offer a free trial or an introductory discount, so test your real workflows before paying full price.
Are you thinking about introducing accounting software for your business? It is high time you do so! Survey estimates, including a widely shared Statista figure of about 64 percent, have long suggested that most small businesses use accounting software; exact adoption figures vary by survey, year and country. Large enterprises have also moved heavily to cloud accounting and cloud ERP systems, although published percentages differ between research firms.
Why?
Well, there are various benefits of automating your accounting processes. Not only does it help you save money that you otherwise would have spent on labor costs, but it also boosts the efficiency of your accounting team by giving them more free time to work on matters directly related to revenue.
Best Accounting Software for Small Business
So, the question of whether or not you should have accounting software is largely settled. Instead, what you need to be asking yourself is which of the many accounting software you must choose from.
Here are four of the best-known accounting software options, followed by other widely used alternatives worth comparing.
FreshBooks
FreshBooks is one of the most popular accounting tools for freelancers and service-based small businesses. This is because it is immensely easy to use, even for those with little or zero accounting experience. This means small business owners can take care of their accounting tasks without having to hire an expert for it all.
This cloud-based accounting platform can be accessed through Android, iPhone as well as iPad. Its robust features include.
- Reminders about pending payments.
- Customizable invoices, which can include discounts and due dates.
- Multi-language and currency support for billing.
- Automatic calculation of taxes for GST.
- Acceptance of credit card payments.
- Bank integration for automatic payment of recurring bills.
One of the best features of this app is that it can readily integrate with various third-party apps. This includes Gusto, Google Workspace (formerly G Suite), Shopify, Stripe and others; the FreshBooks App Store lists the current integrations.
When you add this to the fact that the software can be used for budgeting projects as well as sending proposals and estimates to clients, you will realize that the software takes care of a variety of small business needs.
As of September 2026, FreshBooks lists US prices of $23 a month for Lite, $43 for Plus and $70 for Premium before promotional discounts, with custom pricing for its Select plan and a 30-day free trial. Furthermore, depending on the scale of your business, you can select a package that best suits your needs. You can choose at minimum a package with five billable clients (Lite), a mid-tier with 50 (Plus), and at most unlimited billable clients (Premium and Select). Extra team members cost $11 a month each.
NetSuite
Founded in 1998 by Evan Goldberg and owned by Oracle since November 2016, NetSuite is an excellent choice for businesses that wish to use accounting software to get a holistic picture of their business and automate basic tasks.
With the help of this software, you can easily manage different aspects of your business and visualize it all via the available dashboard. This dashboard is quite easy to understand, making it an ideal tool for those in managerial positions.
With NetSuite, users can receive and make payments, manage taxes, and process payments according to the local laws of the country they are selling or operating in. The software also supports various currencies, thereby making it usable for all, irrespective of their area of operation.
The software also comes in handy when managing cash flow. It provides real-time insight into your cash situation, controls bank accounts, and ensures that your company complies with rules and regulations.
If you are a self-employed individual without any complex needs and only wish to break even, then NetSuite might not be the software for you. It is specifically for businesses that wish for a solution that offers holistic financial support.
Xero
If you fall into the first category mentioned in the previous section, you might want to try Xero. This is an accounting software that works well for businesses with simple accounting needs, and its higher plans also cover growing firms. Its clean interface makes it ideal for beginners.
Additionally, since the software easily integrates with third-party payroll services, businesses can completely automate the payroll process. Not to mention that Xero’s integration with GoCardless and Stripe allows the app to collect payment from customers online.
Here are some of the benefits of using this software.
- A cloud-based solution that allows for easy accessibility of data.
- Payroll integration can be done with solutions like Gusto.
- Inclusion of an inventory management system.
The software offers three subscription options, each of which requires monthly payments. Xero has historically offered a 30-day free trial; in September 2026 its US site instead advertised 90 percent off the first six months for sign-ups by 30 September 2026, so check the current offer. As of September 2026, the cheapest US plan, Early, costs $25 a month at list price and allows 20 invoices and 5 bills per month. This is enough for microbusinesses.
The other two options, Growing at $55 a month and Established at $90 a month, offer unlimited invoices and bills. The most expensive plan comes with additional perks like expense management, multi-currency and project costing, etc.
Sage
You might already know of this software by the name of Sage One. It was later rebranded as Sage Business Cloud Accounting and is now marketed as Sage Accounting. The software has now progressed to becoming a cloud-based solution. Since it is customizable, you can decide its usage depending on your company size, industry, and needs.
The software allows businesses to have multiple users on the platform. Hence, both a business owner and an accountant can access the books; check the current plan details for how many users are included at no extra cost.
Here are some of the features it offers.
- Creating and sending invoices.
- Accepting and receiving client payments.
- Managing cash flow and payroll.
- Accessibility across devices for checking financials on the go.
There are plans for both small businesses and large firms alike. You can begin by opting for its entry-level plan that helps manage basic cash flow and then move onto a more powerful solution that offers invoice management, cash flow optimization tools, etc., for unlimited users.
Ending Remarks
Don’t get us wrong. There are plenty of other accounting softwares out there. However, the four we have mentioned remain strong all-round choices for accessibility, navigation, pricing, and variety of features.
Within the four, it is quite hard to pick the best one. This is because different businesses have varying needs. And only you and your team can ascertain which accounting software best aligns with your needs and capabilities.
However, any of these four options can serve a business well if it matches its size, country and workflow. Hence, you can bid your account-related concerns goodbye and focus on growing your company!
Accounting Software Pricing Compared
Accounting software prices change often, and most vendors run introductory discounts. The table below lists US monthly list prices published on each vendor’s own pricing page as of September 2026, before promotions and taxes.
| Software | Plans and US monthly list price | Notable limits | Best suited to |
|---|---|---|---|
| FreshBooks | Lite $23, Plus $43, Premium $70, Select custom | Lite 5 billable clients, Plus 50; extra users $11 each | Freelancers and service businesses that bill clients |
| Xero | Early $25, Growing $55, Established $90 | Early allows 20 invoices and 5 bills a month | Small businesses that want many app integrations and multi-currency on the top plan |
| QuickBooks Online | Simple Start $38, Essentials $85, Plus $140, Advanced $340 | 1, 3, 5 and 25 users respectively | US small businesses whose accountant already uses QuickBooks |
| Zoho Books | Free, then Standard $20 to Ultimate $275 (lower if billed annually) | Free plan for revenue up to $50,000 a year | Budget-conscious firms, especially those already using Zoho apps |
| Wave | Starter free, Pro $19 | Card payments charged per transaction; payroll is an add-on | Sole proprietors and very small businesses |
| Sage Accounting | Varies by country | Check Sage’s local site for current plans | Small businesses with straightforward bookkeeping |
| Oracle NetSuite | Quoted per customer | Priced by modules and users | Mid-sized and larger companies needing a full ERP |
Payroll usually costs extra. For example, Xero Payroll, powered by Gusto, was listed at $36 a month plus $6 per employee or contractor in September 2026, and Wave payroll started at $25 a month. Our guide to choosing the best payroll software for your business covers what to check.
Which Other Accounting Software Is Worth Considering?
Beyond the four tools above, three other products are widely used by small businesses and appear on most comparison lists.
QuickBooks Online
QuickBooks Online, made by Intuit, is one of the most widely used small-business accounting platforms in the United States. As of September 2026, Intuit lists Simple Start at $38 a month for one user, Essentials at $85 for three users, Plus at $140 for five users and Advanced at $340 for 25 users, with a 30-day free trial on paid plans. Many US accountants and bookkeepers already work in QuickBooks, which makes collaboration easier.
Zoho Books
Zoho Books is a cloud accounting app from Zoho Corporation. According to Zoho’s US pricing page, its free plan covers one user plus an accountant for businesses with annual revenue up to $50,000, with up to 1,000 invoices a year. Paid plans run from Standard at $15 a month (billed annually) to Ultimate at $240 a month (billed annually), and they connect with Zoho’s CRM, inventory and payroll apps.
Wave
Wave is aimed at freelancers and micro-businesses. Its Starter plan is free and includes unlimited estimates, invoices, bills and bookkeeping records, while the Pro plan costs $19 a month as of September 2026. Wave charges fees on online card payments, and payroll is a paid add-on.
How to Choose Accounting Software for Your Business
Accounting software is easiest to choose once you list the jobs it must do. Work through these steps before signing up.
- Define your needs. List what you do every month: invoicing, bill payments, payroll, inventory, projects or multi-currency sales.
- Check local tax support. Confirm the tool handles sales tax, VAT or GST rules in your country, and any e-invoicing or digital filing requirements that apply to you.
- Confirm bank feeds. Automatic bank feeds save hours of manual entry and make bank reconciliation faster and more accurate.
- Count your users. Some plans limit or charge per user, while others include accountant access.
- Pick an accounting method. Decide whether you will use cash basis or accrual basis accounting and check that the software supports it.
- Test before you pay. Use a free trial or free plan to create real invoices and reconcile a real bank statement.
- Plan for growth. Check the next plan up so you know what it will cost when you outgrow the entry tier.
What Features Should Small Business Accounting Software Have?
Small business accounting software should cover the core bookkeeping cycle without manual spreadsheets. Look for these features:
- Invoicing with online payment links and automatic reminders.
- Bank feeds and reconciliation.
- Expense and receipt capture, ideally from a mobile app.
- Sales tax, VAT or GST calculation for your jurisdiction.
- Standard reports such as profit and loss, balance sheet and cash flow.
- Accountant or bookkeeper access.
- Integrations with payroll, payments, e-commerce and CRM tools.
- Security features such as two-factor authentication and user permissions.
If you only need to send a few bills a month, a simple free invoice generator may be enough until your volume grows.
Common Mistakes When Choosing Accounting Software
- Choosing on introductory price alone. Discounts usually end after a few months, so compare regular list prices.
- Ignoring plan limits. Invoice, bill or client caps on entry plans can force an upgrade sooner than expected.
- Skipping your accountant. Ask which software your accountant supports before you migrate.
- Buying an ERP too early. A full ERP such as NetSuite adds cost and setup time a small firm may not need.
- Neglecting data migration. Plan how opening balances and past transactions will move across.
Whatever tool you choose, consistent record-keeping matters more than the brand. Our article on the business benefits of better bookkeeping explains why. This page compares products for general information only; for tax or compliance questions, consult a qualified accountant in your jurisdiction.
Frequently Asked Questions
What is the best accounting software for a small business?
The best accounting software for a small business depends on its needs. FreshBooks suits service businesses that invoice clients, Xero and QuickBooks Online suit growing firms, and Wave or Zoho Books suit very small businesses that want a free starting point.
Is there free accounting software for small businesses?
Yes. As of September 2026, Wave’s Starter plan is free, and Zoho Books offers a free plan for businesses with annual revenue up to $50,000. Free plans typically limit users, features or support.
How much does accounting software cost per month?
Small business accounting software typically costs between $0 and about $100 a month for entry and mid-tier plans as of September 2026. Advanced plans such as QuickBooks Online Advanced cost $340 a month, and ERP systems like NetSuite are quoted individually.
Is NetSuite good for small businesses?
NetSuite is a full cloud ERP owned by Oracle and is generally better suited to growing mid-sized companies with complex operations. Very small businesses and sole traders usually find tools like Xero, QuickBooks Online or FreshBooks simpler and cheaper.
What is the difference between Xero and QuickBooks Online?
Xero and QuickBooks Online are both cloud accounting platforms with bank feeds, invoicing and reporting. The main practical differences are pricing tiers, user allowances (QuickBooks Online includes one user on Simple Start and up to 25 on Advanced) and which one your accountant prefers.
Is Sage One still available?
Sage One was rebranded as Sage Business Cloud Accounting and is now marketed as Sage Accounting. Plans and prices vary by country, so check Sage’s local website.
