Wave: The Most Affordable Accounting Software

• Free-for-life accounting software
• Unlimited users
• Income and expense tracking

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Data as of post date. Offers and availability may vary by location and are subject to change.

For absolutely $0, Wave offers a clean, user-friendly dashboard full of features that rivals many paid accounting platforms. Offerings include multi-currency support, expense tracking, unlimited invoicing, unlimited bank account connections, and double-entry accounting—an advanced method of bookkeeping that's notably lacking in FreshBooks' basic plan.

Wave also enables you to manage multiple businesses under the same account. It is ideal for entrepreneurs, for instance Amazon or eBay sellers, who might be required to generate finances for other ventures such as controlling contractors, all free of charge.

Wave does offer a payroll add-on, but its accounting system may not be the best choice for big companies or businesses with many people working for them. Since Wave offers only one pricing plan, businesses can't switch to more advanced plans as they grow. Finally, Wave doesn't track inventory, so it is better suited for service-based freelancers and solo entrepreneurs who do not require both accounting and inventory management.

Zoho Books: Most Comprehensive Accounting Software

• Starts at $0.00/mo.
• Paid plans start at $15.00/mo. billed annually
• Additional users for $2.50/user/mo.

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Data as of post date. Offers and availability may vary by location and are subject to change.

Zoho Books automates many of the repetitive and time-consuming bookkeeping tasks, allowing you to spend less time on data entry and more time concentrating on growing your business. Its intuitive interface and extensive integration capabilities with other Zoho apps make it an excellent choice for business owners who need a scalable and easy-to-use solution.

Xero: Best Overall Accounting Software

• Starts at $3.25/mo
• Regular price starts at $13.00/mo
• 75% off for the first 3 months (new customers only)
• Unlimited users with each plan

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Xero stands out as it offers powerful features and has an affordable starting price. It starts at $13 per month with some very fundamental tools like custom invoicing, bank reconciliation, receipt capture to make record-keeping more streamlined, and inventory tracking.

What really makes Xero stand out as an accounting solution for small businesses is that it is really built around collaboration. Most other accounting software—QuickBooks and FreshBooks, for example—charge extra to add on users. In Xero, unlimited users are included in all plans so you don't have to pay extra to add members of your team who could run bank reconciliations or track expenses.

QuickBooks Online: Most User-Friendly Accounting Software

• Starts at $3.25/mo. (Regular price starts at $13/mo.)
• Extensive accounting features and reporting
• Up to 25 users (depending on the plan)

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Data as of post date. Offers and availability may vary by location and are subject to change.

QuickBooks is one of the most widely used and trusted financial, tax, and accounting solutions in existence today. Although QuickBooks Desktop still remains a great option—especially with the well-rounded yet affordable QuickBooks Pro Plus—QuickBooks Online is Intuit's equivalent cloud solution, offering much greater flexibility and accessibility.

One feature that stands out in QuickBooks is the mobile accounting app, which most would consider the best in the industry. The app nearly provides the same functionality as the desktop version, a rare feature for any software. If you're always on the move, perhaps QuickBooks' mobile app, which includes mobile mileage tracking, could be the ideal solution for managing finances on the go.

However, QuickBooks Online comes with a cost: the entry-level small-business plan starts at $30 per month and is limited to one user plus an accountant. For larger teams, QuickBooks' most expensive plan, supporting up to 25 users, starts at $200 per month.

FreshBooks: Best Invoicing Software

• Starts at $8.50/mo. (Price increases to $17.00/mo. after the promotional period)
• 30-day free trial or 50% off for the first 3 months
• Expense and time tracking with each plan

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Data as of post date. Offers and availability may vary by location and are subject to change.

FreshBooks’s combination of stellar features, customizable invoices, and well-reviewed mobile apps make it pretty much perfect—especially for freelancers. Unlike Xero, FreshBooks lets you send an unlimited number of invoices and estimates with every plan. Each plan also includes time tracking for easier, more accurate client billing.

FreshBooks’s built-in small-business expense tracking helps you maintain a balanced budget. And, like QuickBooks Online, FreshBooks includes built-in mileage tracking—a must for freelancers who plan to claim mileage expenses on their year-end tax forms.

Sage Business Cloud Accounting: Best User-Experience Runner-up

• Starts at $10.00/mo.
• Unlimited users ($25.00/mo. plan only)
• Automatic bank reconciliation

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Data as of post date. Offers and availability may vary by location and are subject to change.

For example, with Sage Business Cloud Accounting's entry-level plan, you can generate invoices, track outstanding payments, and have your bank accounts automatically reconciled. More advanced features, such as unlimited users, quotes and estimates, cash flow forecasting, and the management of purchase invoices cost an additional $25 per month.

It does have its downsides, though—one notable example being that receipt scanning costs extra money, a feature for which competitors Wave, FreshBooks, Xero, and QuickBooks include standard and free. Furthermore, the more expensive plan with Sage provides far more built-in features than Xero's entry-level plan; however, note that Sage won't arbitrarily limit the number of invoices you can send each month, unlike other platforms that do so.

The company offers specific accounting solutions beyond the standard plan for businesses operating in particular industries. For instance, Sage 100 Contractor is a very popular choice among professionals in the construction industry. Similarly, Sage Intacct is considered one of the best solutions for accounting offered to nonprofits.

OneUp: Best for Sales Teams

• Starts at $9.00/mo.
• Plan-limited users
• Unlimited invoicing

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All of OneUp's plans include customer relationship management (CRM) features, which makes it perfectly suited to sales teams that frequently follow up with customers. Plus, it's affordable: pricing for one user starts at $9 per month. If you’re a Mac user, though, you’re out of luck: OneUp works only for Windows users. And while every OneUp plan includes all of OneUp’s features, its plans limit your user numbers. Only the priciest plan, which starts at $169 a month, includes unlimited users.

Kashoo: Easiest Setup

• Starts at $0.00/mo.
• Free plan available
• Income, expense, and sales tax tracking
• Additional user options available

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The main strength of Kashoo is ease of use and the level of automation. Therefore, it is a good choice for solo business owners or small businesses. Setup is very fast, literally getting started in just 60 seconds. Then the app does its magic by automatically categorizing your expenses and begins to learn the spending habits of your business. This automation is where Kashoo really saves you the hassle of manual data entry.

The full-featured plan starts at $20 per month; however, Kashoo also offers a free invoicing-focused plan. You can send invoices, track your expenses, accept online payments, and even send estimates using this free option. However, it is unclear whether the free plan includes tracking of income and expenses – this is where Kashoo's website seems to conflict with itself, but it looks like they're very close to adding this capability.

One of its stand-out points is the synchronization with SurePayroll, one of the recommended payroll providers, known for great integration with Kashoo's accounting tools, which makes the management of payrolls easy for small businesses.

In short, Kashoo has a budget-friendly option with its free invoicing plan while those needing more advanced accounting features get a more all-inclusive solution in the $20/month plan with expense tracking and income management.

ZipBooks: Most Affordable Runner-Up

• Starts at $0.00/mo.
• Pro
• Low starting price
• One user plus accountant access
• Unlimited invoices, billable clients, and vendors

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If you need free accounting software with essential features, ZipBooks is an excellent alternative to Wave, though it doesn't come with as many advanced capabilities. The best part is that, unlike some competitors such as Xero and FreshBooks, ZipBooks does not charge you with a limit on the number of invoices you can send or clients you can bill in a month. You receive unlimited customizable invoices and the flexibility to receive payments free of charge.

If you want more features, ZipBooks' paid plan is at $15/month. This actually includes expanded bookkeeping and automation tools that might be useful for businesses that need more than basic invoicing.

Still, ZipBooks has some drawbacks when it comes to mobile access. Its iOS app has disappeared from the App Store, and the Android app has hardly ever been commended. So if you need an app working perfectly for going on-the-go accounting, then you'll have other choices.