Whether you’re running a small business, a growing startup, or a large enterprise, choosing the right bookkeeping software is essential for keeping your finances organized. The right software can help with tasks like invoicing, expense tracking, payroll, tax compliance, and financial reporting. After reviewing and testing several options, I’ve rounded up the best bookkeeping software that can suit various business needs—whether you need something simple or a full-featured platform.
Here’s a comprehensive look at the top bookkeeping software options for businesses of all sizes.
Top 5 Bookkeeping Software for Businesses
| Software | Best For | Key Features | Pricing |
|---|---|---|---|
| FreshBooks | Best for invoicing & ease of use | Custom invoicing, expense tracking, time tracking, mobile-friendly | Starts at $17/month |
| QuickBooks Online | Best all-rounder for small to medium businesses | Payroll, invoicing, inventory management, tax reporting | Starts at $30/month |
| Xero | Best for scalability | Cloud-based, inventory management, payroll, multi-currency support | Starts at $13/month |
| Zoho Books | Best budget option | Affordable, invoicing, bank feeds, expense tracking | Starts at $12/month |
| Wave | Best free option | Free invoicing, expense tracking, receipt scanning, payment processing | Free |
FreshBooks: Best for Invoicing and Ease of Use
FreshBooks is an excellent choice for businesses that need easy, professional invoicing and simple bookkeeping features. It’s especially great for service-based businesses, freelancers, or small businesses that prioritize invoicing and time tracking.
- Why It’s a Top Pick: FreshBooks is incredibly intuitive, offering an easy way to track expenses, create professional invoices, and manage client payments. Its cloud-based platform allows you to access your books from any device, making it convenient for business owners on the go.
- Custom Invoicing: FreshBooks allows you to create customized, professional invoices with your branding. You can automate recurring invoices and set up payment reminders to ensure you get paid on time.
- Expense & Time Tracking: With FreshBooks, you can track business expenses and billable hours seamlessly. For service businesses, this is a great feature to keep track of project-based costs and easily convert time tracked into invoices.
- Mobile-Friendly: FreshBooks has an excellent mobile app that allows you to send invoices, capture receipts, and monitor expenses right from your phone.
- Tax & Reporting: FreshBooks also provides basic financial reporting and tax tracking, making it easy to stay on top of your financial obligations.
- Pricing: Starts at $17/month for the Lite plan, with higher tiers offering more advanced features like additional users, project management, and in-depth reporting.
QuickBooks Online: Best All-Rounder for Small to Medium Businesses
QuickBooks Online is a powerful, full-featured accounting platform designed to meet the needs of small to medium-sized businesses. It’s versatile enough to handle everything from payroll to tax reporting, making it a top choice for businesses that need a comprehensive solution.
- Why It’s Ideal for Business Owners: QuickBooks Online offers all the tools you need to manage your business finances in one place. From invoicing and inventory management to payroll and tax compliance, QuickBooks makes it easy to stay organized.
- Invoicing & Payment Processing: Create professional, itemized invoices and send them to customers. You can accept payments online and track them directly in QuickBooks, ensuring you always know who owes you money.
- Inventory Management: For businesses that handle physical products, QuickBooks provides inventory tracking tools, allowing you to manage stock levels, set reorder points, and track cost of goods sold (COGS).
- Payroll & Employee Management: If you have employees, QuickBooks makes it easy to manage payroll, benefits, and taxes all within the same platform.
- Tax Compliance: QuickBooks automatically tracks sales tax and generates reports, helping you stay compliant with local tax laws. When tax season arrives, your financials are ready to be sent to your accountant or the tax authorities.
- Pricing: Starts at $30/month for the Simple Start plan. Higher tiers offer more advanced features like multi-user access, inventory management, and detailed financial reports.
Xero: Best for Scalability
Xero is a cloud-based accounting solution that’s perfect for businesses looking to grow. With a range of features like multi-currency support, inventory management, and payroll, Xero is ideal for small to mid-sized businesses that expect to scale up.
- Why I Chose It: Xero’s scalability and flexibility make it an excellent choice for growing businesses. It offers comprehensive accounting tools, and its cloud-based nature means you can access your financials from anywhere.
- Multi-Currency Support: If your business deals with international clients or suppliers, Xero’s multi-currency support allows you to track transactions in multiple currencies, with real-time exchange rates.
- Inventory Management: Xero includes powerful inventory management tools that help you keep track of stock levels, reorder points, and the cost of goods sold (COGS), making it ideal for businesses with physical products.
- Payroll Integration: Xero integrates payroll management, allowing you to pay employees, calculate taxes, and manage benefits all in one place.
- Real-Time Reporting: Xero’s financial reporting tools give you a real-time view of your cash flow, profits, and expenses, allowing you to make informed business decisions.
- Pricing: Starts at $13/month for the Starter plan. More advanced plans unlock features like multi-currency support, bulk reconciling, and more users.
Zoho Books: Best Budget Option
Zoho Books offers affordable bookkeeping and accounting tools that are perfect for small businesses or freelancers who need a solid, cost-effective solution. It’s particularly useful for businesses already using other Zoho products, as the entire ecosystem integrates seamlessly.
- Why I Recommend It: Zoho Books is one of the most affordable yet feature-rich options available. Despite its low price, it offers invoicing, expense tracking, and tax management tools that rival more expensive platforms.
- Invoicing & Estimates: Zoho Books allows you to send customized invoices and estimates to clients. You can also automate recurring invoices and payment reminders.
- Bank Integration: Zoho Books integrates with your bank accounts to automatically download and categorize transactions, saving you time on manual entry.
- Tax Compliance: Zoho Books helps you stay on top of tax obligations by automatically calculating taxes on sales, generating tax reports, and allowing you to file returns.
- Mobile-Friendly: The Zoho Books mobile app makes it easy to track expenses, send invoices, and check your financials on the go.
- Pricing: Starts at $12/month, making it the best budget option for businesses that need reliable accounting features without a high price tag.
Wave: Best Free Option
Wave is a completely free bookkeeping solution that offers excellent features for small business owners and freelancers. If you’re looking for a no-cost accounting platform that handles the basics like invoicing, expense tracking, and receipt management, Wave is the best option available.
- Why It’s a Great Free Solution: Wave provides a wide range of features for free, including invoicing, expense tracking, and receipt scanning. It’s ideal for small businesses that need essential bookkeeping tools without the expense of a monthly subscription.
- Invoicing & Payments: Wave lets you create and send professional invoices to clients and track payments. You can also set up payment reminders to ensure you get paid on time. Wave charges standard processing fees for credit card payments but does not charge for the invoicing service itself.
- Expense Tracking: Wave automatically pulls in bank and credit card transactions, categorizes them, and helps you track expenses effortlessly. You can even upload receipts directly to the system.
- Tax Reporting: Wave offers basic reporting features, allowing you to track your income and expenses for tax season. You can also export reports for your accountant.
- Mobile App: Wave’s mobile app lets you send invoices, capture receipts, and manage expenses from anywhere, making it convenient for business owners who are often on the move.
- Pricing: Free for core features like invoicing, expense tracking, and receipt scanning. Wave also offers paid services for payment processing and payroll, if needed.
Key Considerations When Choosing Bookkeeping Software for Your Business
1. Invoicing
- Look for software with customizable invoicing features that allow you to track payments, send reminders, and accept online payments. FreshBooks and QuickBooks Online excel here.
2. Expense Tracking
- Your bookkeeping software should be able to automatically download and categorize transactions from your bank. Zoho Books, QuickBooks, and Xero offer excellent bank feed integrations.
3. Scalability
- If you expect your business to grow, choose software that can scale with you. Xero and QuickBooks Online offer scalability with features like payroll, inventory management, and multi-currency support.
4. Payroll
- For businesses with employees, payroll integration is key. QuickBooks and Xero offer robust payroll features that handle everything from wages to taxes.
5. Cost
- If budget is a concern, Wave is the best free option, while Zoho Books offers excellent features at a low cost. For more advanced needs, QuickBooks Online and Xero provide excellent value for their features.
Final Thoughts
For most businesses, FreshBooks is a top choice for its ease of use, invoicing capabilities, and excellent customer support. QuickBooks Online is the best all-rounder, offering powerful features for small to medium-sized businesses, while Xero is ideal for businesses looking for a scalable solution. If you’re on a tight budget, Zoho Books and Wave offer excellent bookkeeping tools at an affordable price or for free.
Choosing the right bookkeeping software will save you time, help you stay organized, and ensure that your business runs smoothly—leaving you to focus on growth and success!