Best Accounting Software for Small Business (2026)

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Updated October 30, 2026. Prices below were checked against each company’s own pricing page between October 26 and 30, 2026.

Accounting software keeps your books in one place: it tracks income and expenses, matches transactions from your bank, sends invoices and produces the reports your accountant needs at tax time. The right choice depends mostly on how many people need access and whether your accountant already uses a particular tool.

We compared five options on real prices, user limits and who each one is not right for.

Our quick picks

• Best overall: QuickBooks Online. The accounting software most accountants already know.
• Best for teams (no per-user fees): Xero. Full accounting with unlimited users on every plan.
• Best value: Zoho Books. A free plan, and paid plans from $15 a month.
• Best free option: Wave. Free invoicing and bookkeeping, with bank imports on Pro.
• Best for service businesses: FreshBooks. Polished invoicing with bookkeeping built in.

Small business accounting software comparison

Software	Best for	Free plan	Starting price*	Users included
QuickBooks Online	Most small businesses	Yes (QuickBooks Free)	$38/mo (Simple Start)	1 (Plus: 5)
Xero	Growing teams	No	$27/mo (Early)	Unlimited
Zoho Books	Best value	Yes, 1 user + accountant	$15/mo billed annually	3 on Standard
Wave	Free bookkeeping	Yes	Free; Pro $19/mo	See Wave
FreshBooks	Service businesses	No	$23/mo (Lite)	1, extra users $11/mo

*Regular monthly prices except where noted. Most of these companies run introductory discounts.

Comparing QuickBooks with something else? Read FreshBooks vs QuickBooks or our QuickBooks alternatives.

QuickBooks Online: Best overall

QuickBooks Online is the most widely used accounting software for small businesses, and it’s the tool many accountants and bookkeepers already work in. It covers invoicing, bank feeds, expenses, reports and, through QuickBooks Payroll, paying your team.

Pricing

Regular monthly prices are Simple Start at $38 (1 user), Essentials at $85 (3 users), Plus at $140 (5 users) and Advanced at $340 (25 users). Every plan includes access for your accountants. When we checked, QuickBooks was offering 50% off for the first 3 months to new customers. It also now offers QuickBooks Free, a basic $0 plan without the mobile app or third-party integrations.

Why we like it

• Familiar to most accountants and bookkeepers
• Complete accounting, invoicing and reporting
• Connects to QuickBooks Payroll as you hire

Who it’s not for

Teams that need many users on a budget: Simple Start includes just 1 user, and the price rises quickly with each tier.

Xero: Best for teams (no per-user fees)

Xero is full accounting software like QuickBooks, but every plan includes unlimited users, so your team, your bookkeeper and your accountant can all log in without raising the price.

Pricing

Regular monthly prices are Early at $27, Growing at $59 and Established at $97. Early limits you to 20 invoices and 5 bills a month, so most active businesses will want Growing. When we checked, Xero was offering 90% off the first 6 months for new customers.

Why we like it

• Unlimited users on every plan
• Strong bank reconciliation
• Large app marketplace

Who it’s not for

Businesses that send many invoices on the cheapest plan: Early’s 20-invoice limit makes the realistic price $59 a month.

Zoho Books: Best value

Zoho Books offers capable accounting at a low price, with a free plan for solo owners and micro businesses. It’s an especially easy fit if you already use Zoho CRM or other Zoho apps.

Pricing

The free plan covers 1 user plus your accountant. Billed annually, Standard is $15 a month ($20 monthly) for 3 users and adds sales tax tracking and progress invoicing. Professional is $40 a month ($50 monthly) for 5 users and adds purchase orders and inventory. Premium is $60 a month ($70 monthly). Paid plans have a free trial.

Why we like it

• A free plan for solo owners
• Low paid prices with multiple users included
• Works with other Zoho apps

Who it’s not for

Businesses whose accountant only works in QuickBooks. Check with your accountant before switching.

Wave: Best free option

Wave offers free invoicing and basic bookkeeping, which makes it the lowest-cost way for a very small business to keep clean books.

Pricing

Starter is free. Online card payments cost 2.9% + 60¢ per transaction (3.4% + 60¢ for Amex). Pro is $190 a year billed annually (or $19 a month) and adds automatic bank imports, transaction categorizing, unlimited receipt capture and late-payment reminders.

Why we like it

• Free invoicing and bookkeeping
• Low-cost Pro plan for bank imports
• Simple for non-accountants

Who it’s not for

Growing businesses that need inventory, purchase orders or many users. Automatic bank imports also require Pro.

FreshBooks: Best for service businesses

FreshBooks is built around billing clients for your time and services, with bookkeeping, expenses and tax-time reports included.

Pricing

Regular monthly prices are Lite at $23 (invoice up to 5 clients), Plus at $43 (50 clients) and Premium at $70 (unlimited clients). Team members cost $11 per user per month. FreshBooks often runs large introductory discounts.

Why we like it

• Polished invoices, estimates and proposals
• Many ways for clients to pay
• Expense tracking on every plan

Who it’s not for

Product businesses that need inventory, or anyone invoicing many clients on a budget.

How to choose the right accounting software

• Ask your accountant first. Using the software your accountant already knows saves time and fees at tax time.
• Count your users. If several people need access, Xero’s unlimited users or Zoho Books’ multi-user plans can cost much less than per-user pricing.
• Plan for payroll. If you’ll hire soon, check how each tool connects to payroll. Our payroll cost calculator can help you compare.
• Budget for the regular price. Introductory discounts end, so compare the price you’ll pay after month three or six.

How we chose

We compared each provider’s current pricing pages, plan limits and trial terms between October 26 and 30, 2026, and judged them by what a business with 1–20 people needs. This guide is based on research, not hands-on testing. Prices change often, so confirm the current price on the provider’s site before you buy. We aren’t accountants; check tax questions with your accountant.

Considering QuickBooks? See every plan, the intro discount and payroll costs in QuickBooks Online pricing, or compare it head to head in Xero vs QuickBooks.

Frequently asked questions

What is the best accounting software for a small business?

QuickBooks Online is the most widely used and the one most accountants know. Xero is a strong alternative with unlimited users, and Zoho Books is the best value.

Is there free accounting software?

Yes. Wave, Zoho Books and QuickBooks all have free plans. Wave includes free invoicing and bookkeeping; QuickBooks Free is a basic plan without the mobile app or third-party integrations; Zoho Books’ free plan covers 1 user plus your accountant.

What is the difference between accounting and invoicing software?

Invoicing software focuses on billing clients and getting paid. Accounting software also reconciles your bank, tracks every expense and produces financial reports. See our invoicing software guide if you only need to bill clients.