Running a small business comes with many responsibilities, and managing finances is one of the most important—and often the most stressful. From tracking income and expenses to sending invoices and filing taxes, staying on top of your accounts can take up a lot of time. That’s where accounting tool comes in. These tools make life easier by automating many tasks, helping you stay organized, save time, and even reduce the risk of costly errors.
In 2025, the need for smart financial tools is stronger than ever. According to a Statista report, the global accounting software market is expected to reach $29.8 billion by 2030, growing steadily at a CAGR of 8.5%. Another survey by QuickBooks and Intuit found that 67% of small business owners who use accounting platform say it helps them feel more confident about their financial decisions. Plus, with more businesses moving online, cloud-based accounting tools are now being used by over 78% of small businesses worldwide.
In this article, we’ll walk you through the top 10 best accounting software for small businesses in 2025. Whether you’re a freelancer, a retail store owner, or running a small agency, these tools are designed to make your accounting simpler, faster, and more accurate
Why Small Businesses Should Use Accounting Software
- Saves Time and Reduces Manual Work: Automated invoicing, expense tracking, and bank reconciliation help business owners focus more on growth and less on paperwork.
- Improves Financial Accuracy: Accounting software minimizes human errors in calculations, tax reporting, and data entry.
- Helps with Tax Compliance: Most platforms offer features like automated tax reports, GST/VAT filing, and deadline reminders, reducing the risk of penalties.
- Tracks Real-Time Cash Flow: Business owners can monitor income, expenses, and profit in real time through user-friendly dashboards and reports.
- Scales with Your Business: From freelancers to growing teams, accounting tools offer scalable plans that evolve with your business size and needs.
Key Factors to Consider Before Choosing Accounting Software
- Ease of Use: Choose software with a simple interface that you or your team can learn quickly without formal accounting knowledge.
- Features Offered: Look for essential features like invoicing, bank sync, payroll, expense management, and tax reports.
- Cost and Pricing Plans: Compare free and paid options based on your budget and required features; some tools charge per user or per add-on.
- Integration with Other Tools: Make sure the software integrates well with CRMs, payment gateways, and e-commerce platforms you already use.
- Customer Support and Security: Opt for platforms with strong customer service and data protection protocols like encryption and regular backups.
List of Top 10 Best Accounting Software for Small Business
1. QuickBooks Online
Intuit QuickBooks Online is one of the most popular and reliable accounting systems for small-scale businesses. It is well known for its simple user interface and powerful functionality that serve different industry segments, including freelancers and retail stores. It provides all accounting features such as tracking of income and expenses, creation of invoices, calculation of sales taxes, and provision of financial reporting. QuickBooks is cloud-compatible as well, which means it is a bit more convenient to work with the finances as a business owner can do it on any device, wherever that person is.
The ecosystem of integrations is one of the brightest details about QuickBooks Online. It integrates flawlessly with hundreds of 3rd party apps, including PayPal, Shopify, and Squarespace, among others. There is no doubt that it will be highly adaptable among small business entrepreneurs who use different platforms. More than that, QuickBooks has great customer support, comprehensive tutorials, and a scalable plan structure, which means that businesses can graduate their plans as they mature.
Top Features:
- Automatic bank reconciliation
- Custom invoicing with payment reminders
- Advanced financial reports and dashboards
- Payroll integration and tax calculation
- Mobile app for iOS and Android
Website: https://quickbooks.intuit.com/
Pricing:
| Simple | Essential | Plus | Advanced |
| $3.80/mo | $7.50/mo | $11.50/mo | $27.50/mo |
2. Xero
Xero is a potent cloud accounting program, and it is especially successful with small businesses, startups, and QuickBooks Online accountants because of its contemporary user interface and robust collaboration functionality. It allows the business to operate on real-time finances by synchronizing bank accounts, connecting to the cash flow, generating invoices, and handling bills. Another feature is that the Xero transaction is multi-currency compliant, which makes it suitable for international businesses.
The special thing about Xero is that it enables an unlimited number of users in all its pricing plans, which is an excellent advantage to teams. Besides, Xero has over 1,000 third-party applications, such as CRM systems, inventory applications, time-tracking platforms, and more. It is an accounting software that can grow with your business, and it gives you deeper analytics and real-time details, which allows you to make well-informed financial decisions.
Top Features:
- Unlimited users at all pricing tiers
- Automatic bank feeds and reconciliation
- Real-time cash flow dashboard
- Built-in inventory tracking
- 1000+ third-party integrations
Website: https://www.xero.com/
Pricing:
| Starter | Standard | Premium |
| $23/mo | $46/mo | $69/mo |
3, Zoho Books
Zoho Books is an accounting software for small businesses that forms part of the Zoho suite, offering comprehensive and affordable financial management tools. It enables you to handle invoices, payments, project billing, and tax compliance efficiently. With a modern, user-friendly interface, it’s ideal for beginners navigating accounting platform. Zoho Books is especially popular among service-based businesses due to its robust time tracking and billing features.
Zoho Books also has impressive auto features such as recurring invoices, payment reminders, and auto bank feeds. It fits best with other applications in Zoho, such as Zoho CRM, Zoho Projects, and Zoho Inventory, which is an immense benefit provided that you are already in the Zoho platform. Another advantage is its mobile application that enables you to take full control of your accounting out of the office.
Top Features:
- Automated workflows for accounting tasks
- Client portal for customer communication
- Time tracking and project billing
- Tax compliance and GST-ready reports
- Seamless integration with the Zoho ecosystem
Website: https://www.zoho.com/in/books/
Pricing:
| Free | Standard | Professional | Premium |
| $0 | $15/mo | $40/mo | $60/mo |
4. FreshBooks
FreshBooks is another electronic invoicing software that is popular with freelancers and small-scale service firms because the interface is easy to navigate and the layout is attractive. The program is user-friendly but comes with strong capabilities such as invoicing, tracking expenses and time, and collaboration, project tracking. The capability of FreshBooks to optimize the communications with the clients by using the chat that is built-in chat, along with sending a proposal and making an online payment, is one of the strengths of this platform.
Since then, FreshBooks has transformed itself into a sophisticated accounting system instead of the invoicing tool that it was. It can now handle double-entry accounting, add-ons in payrolls and detailed financial reporting. It also provides one of the finest customer care groups in the market which is useful to new people who are using accounting software.
Top Features:
- Customizable invoices and payment reminders
- Time tracking and team collaboration tools
- Project-based billing and reporting
- Double-entry accounting system
- Excellent customer support
Website: https://www.freshbooks.com/
Pricing:
| Lite | Plus | Premium | Select |
| $8.40/mo | $15.20/mo | $26/mo | Available on request |
5. Wave
For small business owners who are just starting or are on a limited budget, Wave is a free accounting program that provides the necessary functions. It is among the most economical options available because, even though it is free, it incorporates receipt scanning, expense monitoring, and invoicing. The software is completely cloud-based, and non-accountants will love its easy-to-use interface.
If business eventually requires more sophisticated functionality, Wave also provides costly add-ons like payroll and payment processing. For independent contractors, consultants, and sole proprietors who want simple yet sophisticated financial management solutions, it is particularly perfect. For many, Wave is an excellent place to start because it doesn’t charge monthly fees for key services.
Top Features:
- Free invoicing and accounting tools
- Receipt scanning through a mobile app
- Real-time financial dashboard
- Seamless bank connection
- Optional paid payroll and payments
Website: https://www.waveapps.com/
Pricing:
| Free | Pro |
| $0 | $170/yr |
6. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a highly reliable and scalable solution for small businesses that want flexible and cloud-based accounting. Designed to handle everything from invoicing to real-time reporting, Sage is perfect for small teams and growing businesses. The platform offers automatic bank feeds, cash flow forecasting, and real-time reporting to give you a clear picture of your financial health. The dashboard is clean and intuitive, making it easy to get started even without a background in finance.
What makes Sage stand out is its robust mobile experience and automation features. With its mobile app, users can create and send invoices, record expenses, and check cash flow while on the move. Sage also supports VAT submissions in compliance with government regulations (like Making Tax Digital in the UK). The software is continually updated with new features and security enhancements, making it a trustworthy long-term choice.
Top Features:
- Smart bank feeds and reconciliation
- Real-time reporting and cash flow management
- VAT and tax submission support
- Invoice and expense automation
- Mobile app access for on-the-go accounting
Website: https://www.sage.com/en-us/accounting-software/
Pricing: Available on request
7. TallyPrime
TallyPrime is the best-selling accounting software package in India, particularly among small and medium enterprises (SMEs). Tally is also a very strong GST product that comes with features in inventory management, payroll, invoicing, and taxation. The offline and simple nature of Tally makes it an easy favourite among business owners who do not see the need to be connected to the internet almost all the time. The software is strong and it contains real-time updates and customizable reports in a myriad of industries.
One of the most notable advantages of TallyPrime is that it is able to handle compliance and statutory filings. Tally comes with the in-built support to Indian tax norms, GST, TDS, and others, which keeps businesses out of trouble and free to comply. Furthermore, the software has multi-location features, a multilingual user interface, as well as remote features, which make it appropriate even for growing businesses and geographically spread teams.
Top Features:
- GST-compliant billing and filing
- Complete inventory and payroll management
- Multi-location business support
- Customizable financial reports
- Remote access with Tally.NET
Website: https://tallysolutions.com/
Pricing:
| 1 Month | 3 Months | 12 Months | Lifetime |
| $8.76 | $24.97 | $94.61 | $262.79 |
8. Kashoo
Kashoo is one of the easiest and high-power accounting applications dedicated to the needs of freelancers, solopreneurs, and small business owners who wish to have a no-nonsense bookkeeping solution. Kashoo offers an intuitive, watermarked and simple interface, with automatic transaction classification, invoicing and live bank reconciliation. It aims at reducing the complexity of accounting to ensure that books are managed by anyone even those without accounting backgrounds.
The attractive feature of Kashoo is automation and simplicity. It automatically imports and places an order on the transactions with the help of machine learning, and thus, you spend less time on data entry. The platform also provides useful reports and tax-ready reports, and the end-of-year practices will be much easier. Some of its integrations are not as large as those of bigger platforms, but its limited spectrum of features quite suffices the needs of many of the businesses offering services and start-ups.
Top Features:
- Smart categorization of expenses and transactions
- Customizable invoicing tools
- Real-time bank feeds and reconciliation
- Built-in tax reports and year-end prep
- Ideal for freelancers and consultants
Website: https://www.kashoo.com/
Pricing: $324/yr
9. ZipBooks
ZipBooks is a new-age accounting application developed to suit the needs of small business owners. It provides a range of free and paid offers with a set of necessary options such as bookkeeping, invoicing, and smart reporting. The simplistic and clean user interface is one of the most excellent features of ZipBooks since it is meant to be used by individuals with no or little accounting knowledge. Machine learning is another feature at ZipBooks, which also suggests smart suggestions, and this can be of help to improve your business ultimately.
Besides the general capabilities such as invoicing and financial reporting, ZipBooks incorporates a built-in time tracking system, team management, and client communication functionality. Its tools to improve its growth are particularly useful to entrepreneurs who desire to know their financial progress at a glance and by using business health scores and performance ratings. ZipBooks is a decent choice to consider in case someone wants an up-to-date data-driven accounting experience.
Top Features:
- Beautiful and customizable invoicing
- Smart categorization and automation
- Performance dashboards and business health scores
- Time tracking and team collaboration tools
- Affordable pricing, including a free version
Website: https://zipbooks.com/
Pricing:
| Free | Smarter | Sophisticated | Accountant |
| $0 | $15/mo | $35/mo | Available on request |
10. OneUp
OneUp is an all-in-one business management and accounting platform designed for small businesses looking for an integrated solution. It combines CRM, inventory, invoicing, and accounting tools in one interface, eliminating the need for multiple apps. The software automates most accounting tasks, including transaction reconciliation and report generation. This makes it a great option for entrepreneurs who want to save time and reduce manual entry.
Another advantage of OneUp is its inventory and sales integration. As you log sales and purchases, your inventory is automatically updated, ensuring accuracy in stock levels and accounting. It’s particularly useful for small product-based businesses that need tight coordination between sales, stock, and accounts. The mobile functionality and CRM integration further add to its all-in-one appeal, streamlining both internal and customer-facing operations.
Top Features:
- CRM, invoicing, and accounting in one platform
- Automated bank sync and reconciliation
- Integrated inventory and purchase tracking
- Real-time financial reports and dashboards
- Cloud access from desktop or mobile
Website: https://www.oneup.com/
Pricing: Available on request
Conclusion
In conclusion, with the right accounting software for small businesses, you can keep track of your income, expenses, taxes, and reports—all in one place. Instead of worrying about spreadsheets, these technologies help small businesses stay organized, make better financial decisions, and concentrate more on expansion.
Selecting the appropriate software can have a significant impact, regardless of whether you are managing a startup or an expanding company. Simply search for something easy to use, has the functionality you require, and fits within your budget. With so many amazing options available in 2025, you’re sure to find the ideal solution for your company’s needs.
FAQs
Do I really need accounting system for my small business?
Yes, accounting platform can save you a lot of time, reduce errors, and help you stay on top of your finances. It’s especially useful for keeping track of invoices, expenses, taxes, and reports in one place.
Can I use accounting software if I don’t have an accounting background?
Absolutely! Most tools are designed to be beginner-friendly with easy dashboards, guides, and customer support. You don’t need to be a professional accountant to use them effectively.
Is free accounting tool reliable for small businesses?
Free versions can be reliable for basic needs like invoicing and expense tracking. However, if you need advanced features like payroll, inventory, or tax filing, you might want to consider a paid plan.
