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17 Best Free Accounting Software for Small Business in 2021


Discover the best free accounting software to manage bills & expenses, invoicing & easy reconciliation for your small business all in one app.

Best Free Accounting Software for Small Business

Gone are the days when accounting meant wrangling elaborate spreadsheets and dealing with numeric functions that left us with headaches. These days, automated accounting is an easier and faster alternative; plus, it reduces headaches. 

Accounting software is application software that processes accounting transactions. They come with several functional modules and may be web-based—which means that they can be accessed anywhere with any internet-enabled device—or desktop-based.

Given all these, it can be quite confusing to pick the right accounting software for your business given the variety of complexity and cost.

Truthfully, you don't have to pay to get good accounting software. And there isn't any need to feel confused by the vast array of free accounting software available as this article is going to walk you through the 17 Best Free Accounting Software of 2021.

Best Free Accounting Software for Small Business

1. Wave Accounting

Best Overall Free Accounting Software.

Wave Accounting is the Best Overall Free Accounting Software

Wave Accounting is a free cloud-based accounting software that is ideal for small businesses. It allows you to access your data anywhere, work on all of your different businesses from a single login and add unlimited collaborators.

The target market for Wave is small business owners with less than 10 employees, solo entrepreneurs, and freelancers.

Wave Accounting allows you to manage bookkeeping, accounting, and invoicing functions all in one place. It is ideal for small business owners looking for free bookkeeping software. It is user-friendly for those with no prior accounting experience yet completely functional.

With Wave Accounting, you get access to a double-entry accounting solution that provides unlimited bank and credit card connections, unlimited invoicing, unlimited income and expense tracking as well many other features that are sometimes not included in paid accounting software plans.

Wave Accounting can be fully functional without you having to buy expensive add-ons for accounting and invoicing, unlike some other free accounting software options.

You have the option of applying for Wave Payment to help you accept online payments from your customers and get automatic transaction reconciliation for those payments.

Moreover, you can add to and manage your customers' profiles and also send payment reminders, receipts, and follow-up emails. Wave also allows you to track payments and communicate with customers from any device.

There are Wave users in up to 200 countries around the world and Wave's ecosystem is 4 million users strong.

Pricing 

Wave Accounting is a free accounting software with no monthly charges, set up fees, or hidden charges.

Pros

  • Completely free
  • Easy to use
  • Can be accessed from any device
  • Unlimited users and collaborators

Cons

  • No live chat support 
  • No additional plans for increased functionality 
  • Not suitable for medium to large scale businesses

2. ZipBooks

Best Free Accounting Software for Invoice and Time Tracking.

ZipBooks is the Best Free Accounting Software for Invoice and Time Tracking

ZipBooks is a free accounting software that gives you access to simple and powerful tools and also equips you with the intelligence to take your business to the next level.

ZipBooks allows you to create and send invoices and estimates in a matter of seconds. You can also accept and process credit card transactions with ease. 

You can automate everything with recurring auto bills and seamlessly integrate your billing into your books.

It is a cloud-based payment and accounting software that is designed for accountants and small businesses. Users can create customized invoices with messages, themes, and logos.

This free bookkeeping software also supports accounts receivable and bank reconciliation. The system automatically imports transactions and generates reports of company expenses in real-time with the help of bank integration.

The platform helps you increase your potential for new and sustained revenue, guides you towards optimal performance in all business areas and cuts down on late payment with features like the ZipBooks Score, Invoice Quality Score, and smart recommendations.

The Starter plan on ZipBooks is completely free. Payroll integration, reputation management, and bookkeeping are add-ons that are included in this plan.

Pricing 

ZipBooks Pricing Plan

ZipBooks has a free starter plan but offers two monthly payment plans namely, the Smarter Plan for $15 monthly and the Sophisticated Plan for $35 monthly. Custom pricing can also be requested on ZipBooks for Accountants who may prefer this option.

Pros

  • Easy to use
  • Free version available
  • Good customer service
  • More affordable pricing options than most of its competitor
  • Good time and project tracking feature

Cons

  • It is US-centric
  • Restricted to mobile devices such as iPhone and iPad 

3. Akaunting

Best Free Accounting Software for Tax Management and Transactions.

Akaunting is the Best Free Accounting Software for Tax Management and Transactions

This free and open-source accounting software with a unique spelling of accounting for a name has a list of impressive features to offer small business owners. It’s the perfect software that lets small business owners save the money they would otherwise use to hire an accountant.

The first interesting feature of this software is its support for diverse languages. If English isn’t your first language, you can switch to any of the several other available languages.

Aside from its multi-lingual abilities, you can do quite a lot on this software platform. For one, Akaunting helps you track and handle your expenses. You can make journal entries. You can also manage and plan for your taxes. 

This tax management feature is particularly useful as you can create a list of the different kinds of taxes that you have to pay. For efficiency, you can connect each tax bill to the transaction or product it comes with. This way, you can account for every penny you spend on taxes.

Akaunting also handles invoicing for you. It will automatically generate and send invoices to clients on your behalf after every project while making the collection of online payments from customers smooth and easy.

And finally, you can easily access your financial records from any device. 

Pricing

Akaunting is entirely free to use.

Pros

  • Completely free 
  • Easy to use
  • Available in several languages
  • A smart way for small businesses to handle their finances 

Cons

  • There’s a bit of a learning curve to it

4. Odoo

Best Free All-in-one ERP Software.

Odoo is the Best Free All in one ERP Software

Odoo serves as both a customer relationship management (CRM) and an enterprise resource planning (ERP) platform. In other words, it allows you to easily manage your customers, sales, and resources from a single platform

Odoo offers tons of productivity features that’ll help you automate certain tasks and run your business smoothly. For instance, you can use the communication apps on the platform to maintain a stable relationship with your customers. 

You can also use the marketing features that Odoo offers to spread the word about your business and increase your reach. 

There’s a sales module on Odoo to boost and manage sales in an efficient way. Some of the sales apps you’ll have access to on Odoo include the invoicing app, point-of-sale app, etc. 

The financial management module on Odoo offers features that cover budgeting, financial planning & reporting, auditing, and procurement.

Odoo simply does it all. 

Pricing

Odoo Pricing Plan

Odoo’s pricing is quite straightforward; after the 15-day free trial, you only pay for the apps you use. Each user costs $6 monthly. 

Pros

  • The modules are well integrated 
  • Highly customizable
  • Highly responsive customer support team
  • Only pay for what you use

Cons

  • Can get expensive very quickly. 

5. GnuCash

Best Free Accounting Software for Bookkeeping.

GnuCash is the Best Free Accounting Software for Bookkeeping.

GnuCash stands out among free accounting software for several reasons. As with any other accounting software, it helps you keep track of your expenses, cash flow, your stock market investments, and all your bank accounts. But it also offers a lot more. 

For starters, it features double-entry accounting. With the Checkbook register feature, the platform seamlessly records every transaction you make from moving cash from one account to the other to purchasing stock, credit card transactions, etc.

If a transaction you made is inconclusive, you can record it on this register. Then, you can update it later to reflect that it’s been reconciled. 

The reporting features are the best part. You can get a weekly or monthly summary of all the financial transactions you engaged in. The report and graph would reflect your profit and loss, balance sheet, your investment portfolio, etc. 

Pricing 

GnuCash is completely free to use. But the creators accept donations via the donation page on the website.

Pros

  • It offers an effective way to track your finances
  • You can automate recurring payments
  • The double-entry feature ensures you make no mistake when inputting your financial statements.
  • You’ll have access to your financial reports so you can track your business cash flow, portfolio, etc. 

Cons

  • Setting up this software might be a bit confusing.

6. CloudBooks

Best Invoicing Software for Freelancers.

CloudBooks is the Best Invoicing Software for Freelancers

CloudBooks’ core strengths are billing and invoicing. The platform offers invoice templates and can automatically create and send invoices to your clients on your behalf. 

That said, billing and invoicing is not all that this software has to offer. There are also features for expense tracking, project management, collaboration, and automated recurring payments.

Pricing 

CloudBooks Pricing Plan

There are three packages. There’s the Freelancer package that goes for $2/month. The Team package goes for $10/month while the Agency package goes for $20 monthly. You can also use the free version or start a free trial of what the app is about before you invest. 

Pros

  • Generates invoices quickly
  • You can get a financial report whenever you need one
  • You can access it from any device, from any location around the world

Cons

  • It can be difficult to select names and items when processing invoices.
  • The free account is quite limited

7. Zoho Books

Best Free Invoicing Software for Small Business Owners.

Zoho Books is the Best Free Invoicing Software for Small Business Owners

Perhaps the best part of Zoho Books is that it offers a variety of premium features for free. For small businesses, going through the hurdle of creating an invoice template to get paid for rendering your services can be excruciating. But thanks to software like Zoho Books, you can create an invoice in an instant.

Aside from creating professional invoices, you can set up and send automatic payment reminders to clients. There are also features for tax management, debt management, and collaboration. 

And finally, Zoho Books offers 40+ other apps to help you manage your business smoothly. 

Pricing 

Zoho Books Pricing Plan

Zoho Books has four plans. The Free Plan, the Standard Plan that goes for $10/ month, the Professional Plan that goes for $20/ month, and the Premium Plan at $30/month, all with annual billing.

Pros

  • An easy way to bill your customers at once
  • Regardless of where you are, Zoho Books adapts to your tax laws, local currency, and language
  • Sends automatic payment reminders to customers 
  • An easy way to track your expenses

Cons

  • Customization features are limited

8. And.co

Best All-in-one Business Management Software for Freelancers.

And.co is the Best All in one Business Management Software for Freelancers

And.co is owned by Fiverr. So, it shouldn’t come as a surprise that it does more than track expenses for Freelancers. Although primarily an accounting software, it also helps freelancers manage their entire business through the features it provides. 

For starters, And.co presents an easy way for Freelancers to quickly whip up an invoice. But unlike other software with tons of invoice templates, And.co gives you just one detailed invoice template. But that one is all you’ll likely ever need. 

Aside from invoicing and expense tracking, this software also offers project management and time-tracking features. The best part is that every project you create gets a dedicated home page. You can modify the project as you go by including other information. 

The user experience with this software is seamless. The platform is user-friendly and easily navigable. With a toolbar that shows you all the sections you can access, you can easily interact with each section. 

And.co also provides you with mini-reports and statements that further help you track your invoices, payments, etc. You’ll get a tax report and an overview of your earnings through your income statement.

Pricing 

And.co Pricing Plan

And.co has a completely free, albeit limited, plan. You can only manage one client with the free plan. The pro version grants you access to all the features that the platform has to offer for $18 monthly. 

Pros

  • Targeted specifically towards freelancers
  • Scheduling invoice is easy
  • It helps you highlight the details of your contracts and proposals

Cons

  • The invoice template is limited.

9. Sunrise

Best Free Accounting and Bookkeeping Software for Solopreneurs.

Sunrise is the Best Free Accounting and Bookkeeping Software for Solopreneurs

If you’re serious about expanding your business, tracking your expenses and income is key to the survival and expansion of your business. Sunrise exists to keep you accountable and help you with budgeting.

The first thing you’ll notice about Sunrise is how attractive and user-friendly it is. The colors, fonts, and layout pull you in and push you to explore the easily navigable site. 

Aside from the user experience, you’ll also notice that invoices from this platform are pretty detailed. They cover all the information you need to include. 

This platform encourages sole proprietors to keep records. For instance, if you have to carry out a transaction outside the platform, you can easily import the receipts of other transactions. 

Sunrise offers seven fields for contact records. These custom fields include currency, email attachment, delivery mode, payment terms, and other major fields. You’ll also see all the transactions and activities you’ve done for specific customers in the recent past.

You can also connect your bank accounts to Sunrise. That way, you’ll easily track your transactions and expenses more accurately. You’ll also know if your customers have paid their due invoices. 

There is proactive reconciliation that helps you figure out problematic or unresolved transactions. It’s different from the standard reconciliation method that allows you to reconcile your transactions on a daily or weekly basis. 

With proactive reconciliation, you’ll reconcile every transaction individually. Although this might be a lot of work, freelancers and entrepreneurs might come to enjoy this feature. 

Pricing 

Sunrise Pricing Plan

There’s a free plan with limited features. If you wish to access all the features Sunrise offers, you could start with a 14-day free trial of the Sunrise Plus plan to get a feel of what it’s about. You could continue with paying $14.99 monthly. 

You could take bookkeeping a step further on the software by hiring a personal bookkeeper. There are three packages for this. The Early package goes for $149/ month, the Growing package goes for $299/month and the Corporate package goes for $499/month. Feel free to choose which plan works for you. 

Pros

  • It has a user-friendly and easily navigable interface
  • You can upload your receipts with ease
  • Customer support is outstanding. 

Cons

  • You can’t resize the column in the invoices.

10. TurboCASH

Best Budget Accounting Software for Small Businesses.

TurboCASH is the Best Budget Accounting Software for Small Businesses

TurboCASH is a free accounting software for small businesses that helps you manage your finances on a budget. While older versions of this software are free, the more recent versions—such as the TurboCASH 5—come at a budget-friendly price. 

TurboCASH is a great starting point for small businesses looking to get started with accounting software. It offers basic but necessary features that’ll keep you on top of your financial game.

The platform is also a useful budgeting tool and a great way to manage your sales tax. Plus, it supports multiple languages and different currencies around the world. 

Pricing 

TurboCASH Pricing Plan

Although TurboCASH 4 is free with quite a few great features, the Version5 comes with a lot more features but is available at a budget-friendly price. 

There are two pricing packages. The Single User plan on Version5 goes for $60/year. But if you want more users, you’ll need to subscribe to the Multi User Plan that goes for $200/ year. 

Pros

  • It makes budgeting easy.
  • Grants you the liberty to create multiple databases for your company.
  • It is user-friendly.

Cons

  • The free version offers limited features.

11. QuickFile

Best Free Cloud-Based Accounting Software for Medium-Sized Businesses.

QuickFile is the Best Free Cloud Based Accounting Software for Medium Sized Businesses

QuickFile was designed to meet and help resolve the financial record-keeping struggles in your business, and it offers a range of interesting features to achieve that.

First off, QuickFile helps with automated bank reconciliation. This feature means that every transaction that happens is compared to your bank records to prevent mistakes and keep an up-to-date record.

You’ll also have access to VAT calculations. With both standard and flat rate calculations, QuickFile helps you keep an updated record of your value-added tax. You'll be updated on the exact amount of your income that goes into taxes.

Finally, QuickFile also manages your payments and purchases from platforms and clients like Worldpay, PayPal, etc. You’ll always get your receipts and invoices.

Pricing 

QuickFile Pricing Plan

There are a variety of plans that are grouped. Majorly, there’s the free version that’s further classified into XS (extra small), S (small), and M (medium) plans. You don’t have to pay a dime to access the above-highlighted plans. However, you would need to pay a sum of €49 + VAT/per year for the L (large), and XL (extra large) plan.

Pros

  • Each package comes with a handful of impressive features.
  • It is great for tracking your expenses and taking care of VAT.
  • It is great for Medium to Large Businesses. 

Cons

The 2 or 3 step transaction process is not impressive.

12. NCH Express Accounts

Best Free Professional Accounting Software.

NCH Express Accounts is the Best Free Professional Accounting Software

NCH Express Accounts is a professional accounting software that accommodates businesses of any size. It offers amazing features to simplify your financial management tasks.

At the most basic level, this software helps with billing and creating invoices for your clients. It also identifies your liabilities and assets on a balance sheet. 

The platform offers financial reports that prove vital during tax season and help you make insightful financial decisions. The best part is that the process to generate your financial report is easy.

NCH Express Accounts also helps you stay on top of purchases and transactions that you or your employees make. 

With the Inventoria feature on this software, you can add, monitor, and get reports on your inventory. You’ll also find the platform easy to use. And the customer support service is always on standby to help you troubleshoot problems that might arise while you use the platform. 

Pricing 

NCH Express Accounts Pricing Plan

NCH Express designed the free version specifically for small businesses with 5 or fewer employees and it is the Express Accounts Basic level. However, small businesses can subscribe to the Express Accounts Plus plan with a one-time fee of $159. 

If your business is medium-sized or a big company, you can subscribe to the Express Accounts Basic for $139. And finally, for even more features, you can subscribe to the Express Accounts Plus plan for $8.83/ month with quarterly billing. 

Pros

  • Small businesses with 5 or fewer employees can access some basic features for free on the platform
  • It has an intuitive and easy-to-navigate dashboard.
  • It is very easy to use

Cons

  • It is difficult to automatically import banking transactions
  • You can’t access this software on your phone as there is no mobile app version
  • It lacks time tracking features.

Free Accounting Software: What You Might Be Missing

It is important to note that not all that glitters is gold when it comes to free accounting software options. You might be missing out on some crucial features that will aid your business growth.

In some cases, these free accounting software don't necessarily save your business money when weighing the potential cost incurred with these software solutions. Let's take a look at some of the features that free software leave out and see if you would be better served by a paid version:

1. Tax and Payroll Functions

With the paid version of accounting software, there is usually tax support functionality for businesses. They usually provide full payroll services that allow you to integrate your payroll seamlessly into your business books and this, in turn, aids tax payment.

Though you can get payroll software as a standalone offering, you can save costs by choosing an accounting solution that comes with the payroll features you need built-in.

2. Sophisticated Reporting

Many free accounting software options offer small businesses entry-level reports while paid accounting software options typically offer sophisticated reporting options. These features include data visualization, more customizable numbers, or all of the above. Such reporting through accounting software that has a payment plan usually gives you more valuable insights.

3. Order and Inventory Tracking

Most free accounting software options do not have order and inventory tracking as a feature. This is a very crucial feature if you are searching for accounting software for a small retail business.

4. Invoicing and User Count

Most free accounting software will usually limit the activities you can perform when utilizing it. Your users are most of the time-limited to five users per account with free accounting solutions. 

An even more discouraging limitation of free accounting software is that a lot of them limit the number of invoices you can send in a month. If your organization exceeds these limitations then you must upgrade to a paid version. 

A free accounting software that is unable to meet the needs of your organization is simply not worth your consideration.

5. Forecasting

Forecasting is a very important feature in accounting software that most free accounting options are not able to provide. If you want to be able to make financial projections and budgets for your organization, then you should consider upgrading from free accounting software.

After going through this guide on what you might be missing out on using free accounting software, you might be confused about the next step to take. 

On one end, you will want the best for your business and might believe that accessing better accounting software will be worth it. On the other end, it is really difficult to beat a free offer, especially taking your business' finances into perspective. 

Many of the most efficient accounting software offer free trials to new customers. With free trials, you'll be able to use more expensive options for a short period for free and can evaluate how useful these added features are to you. 

You might find out that the features of these more expensive accounting solutions will save enough time and money to justify their monthly fees.

Free Accounting Software Alternatives: Free Trials

1. FreshBooks

Best Accounting Software for Small Business Invoicing.

FreshBooks is the Best Accounting Software for Small Business Invoicing

FreshBooks is a modern accounting software used by several entrepreneurs all over the world and is said to be one of the best accounting software with its unique features like payment history, a download tool, daily dashboard, a mobile application, and many other impressive features.

Over 24 million people in more than 164 countries globally have made use of and completed business transactions on FreshBooks. You can save up to 192 hours in a year with this accounting software.

It is an accounting platform operated by 2ndSite Inc and is primarily for small to medium-sized businesses. This web-based software can be accessed through a desktop or mobile device.

With FreshBooks, billing is taken off your hands and put on autopilot with online payment options. You can set up automated invoicing and late payment reminders to get paid faster. 

It also boosts team productivity with collaborative project tools and precise time tracking so every minute, conversation, and file are properly tracked and logged.

FreshBooks serves industries like legal service and business consulting, trades and home service, marketing, and information technology.

To track expenses, you only have to attach receipts to invoices or take snapshots of the receipts. The system will automatically record them and can even help you create recurring expenses. 

FreshBooks gives an overview of the financial status of a business through tax summaries, profit and loss statements and expense reports. It also provides a summary of all deposits and categorized credit card transaction fees on its dashboard. 

And finally, FreshBooks offers numerous integrations with platforms like Mailchimp, PayPal, Zenpayroll, and Basecamp.

Pricing 

FreshBooks Pricing Plan

There is a free trial available. The monthly payment options start with the Little plan for $7.50/monthly with 5 clients, and go up to the Premium plan for $25/monthly with unlimited clients. There is also Custom Pricing available.

Pros

  • Easy to use 
  • Free trial
  • Can be integrated into other platforms 
  • Good customer support
  • Functional mobile app

Cons

  • It is expensive
  • Unlimited users only available for Premium and Custom Pricing plans
  • Features in lower-tier payment options are limited

2. Xero

Best Accounting Software for Bank Reconciliation.

Xero is the Best Accounting Software for Bank Reconciliation

Xero is a cloud-based accounting software formulated to facilitate business tasks like bill payment, creating invoices, controlling expense claims, bank reconciliation, inventory management, bookkeeping, and many other functions.

It is a modern, small business accounting software that is cloud-based but can also be accessed from any computer or mobile device. The platform makes the accounting process easier and smarter with its numerous features. Users are presented with a clear and concise overview of their financial situation from the dashboard. 

It also provides a greater understanding of your cash flows by highlighting bank balances, upcoming bills, expense claims, and outstanding invoices in a visually appealing way. 

Daily credit card and bank transactions are matched to their corresponding accounting transactions.

Xero integrates with over 1,000 third-party services like PayPal, Stripe, HubSpot, Capsule, and many more to allow streamlining of workflows and synchronizing data such as sales invoices, cash flows reports, clients data, payroll data and so much more.

It eliminates the time and effort required for manual data entry as data flows directly into the Xero ledger. Every Xero plan comes with no limitations on users without the need to pay for extra licenses.

Xero online accounting software provides the foundation on which small businesses and their advisors can build a complete business solution.

Pricing 

Xero Pricing Plan

Xero offers three pricing options, Early is the cheapest and it goes for $5.50 per month and the Established plan is the most expensive and goes for $31 per month. 

Pros

  • Functional mobile app
  • Excellent bank reconciliation feature
  • User friendly

Cons

  • Xero lags sometimes
  • It is difficult to pivot to another software
  • To use the payroll feature you have to pay additional fees to a payroll processor like Gusto

3. Sage Accounting

Best Accounting Software for Inventory Management.

Sage Accounting is the Best Accounting Software for Inventory Management

Sage Accounting is a cloud-based accounting software that is tailored towards small-scale businesses. There are two affordable plans to pick from that offer essential bookkeeping and accounting features, inventory tracking, and comprehensive reporting.

It is a software platform that has accounting, analytics, payroll, HR, and many other features that have proven to be beneficial for small to medium scale businesses. Sage has grown to include more functionalities, making moves such as its acquisition of CakeHR for human resource features.

Sage users can create and send professional quotes and invoices, track expenses and income whilst knowing where the business stands financially. 

All Sage Business Cloud Accounting pricing options include limitless access to support, constant product updates, and automatic backups.

Smart Invoicing is a feature that allows you to create, send and track invoices automatically to ensure improvement of your bookkeeping process and cash flow. 

You can also add a “pay now” button and receive one-click payments using PayPal and Stripe. 

This invoicing software also provides light project management but can not be described as the ideal accounting software for in-depth project management.

This is an easy choice for small businesses that need an accounting solution with inventory management plans, unlike other accounting software that offer this feature only on higher-tier payment plans.

Pricing 

Sage Accounting Pricing Plan

The monthly payment plans are $10 per month and $25 per month for the Sage Accounting Start and Sage Accounting plans respectively. Sage Accounting offers a 30-day free trial for these two payment plans.

Pros

  • Free trial
  • It has mobile access
  • Good reporting features

Cons

  • Poor customer service
  • No payroll or time tracking included
  • Limited data storage
  • It's difficult to learn 
  • It has a basic design

4. Kashoo

Best Accounting Software for Bookkeeping.

Kashoo is the Best Accounting Software for Bookkeeping

Kashoo is a web-based accounting solution that helps small businesses automate bookkeeping tasks. 

With the use of machine learning, the platform can categorize and reconcile expenses for bank and credit transactions and also provide one-click real-time reports.

Kashoo provides OCR and receipt-matching functionalities in addition to automatic reconciling. You can drop images of the receipt in the inbox and the system will match it automatically to the transaction with Kashoo.

The software also includes an invoicing feature that helps the organization match payments and deposits to the customers' records.

Kashoo can include multiple users and role-based permissions making it a collaborative platform for accounting professionals and business owners alike.

Kashoo is one of the best accounting software solutions for small business owners, freelancers, independent entrepreneurs and it gives room for you to do your own thing in your own way.

With the Kashoo app that is supported on all mobile devices, you have access to tax management, real-time bank feed, bank reconciliation, and project budgeting at your fingertips.

Pricing

Kashoo Pricing Plan

Kashoo offers a 14-day free trial. The monthly pricing starts as low as $20 per month and goes as high as $30 per month.

Pros

  • Free trial
  • The mobile app is supported on all devices
  • It is a simple accounting tool

Cons

  • Multi-currency issues on the app
  • It does not track inventory

5. QuickBooks

Best Accounting Software for Tax Management.

QuickBooks is the Best Accounting Software for Tax Management

QuickBooks is an accounting and business management solution made for small to medium-sized product-based businesses. It runs on-premises accounting applications as well as cloud-based versions that can facilitate business payment, manage and pay bills, and payroll functions.

It is the most popular small business accounting software that you can use to manage income, expenses and track the financial health of your business.

Besides the features mentioned above, another important feature of QuickBooks is the Statement of Cash Flows that will show you all of the activities that affect the investing, operating, and financing cash inflows and outflows of your business.

You can also track your employee hours and manage payroll on QuickBook. Mistakes made when dealing with paychecks may result in some serious penalties and unhappy employees. 

QuickBooks’ payroll functions can run payroll as often as you may need and this feature is an effective way to avoid payroll problems. 

QuickBooks tracks the hours put in by your employees and allows them to flow into your payroll and attached customer invoices if they are billable hours.

Inventory tracking is another feature of QuickBooks that can track the cost and quantity of your inventory. As you make sales, QuickBooks will allocate a portion of your inventory to the cost of goods sold (COGS) automatically. 

This allocation is necessary for calculating taxable income and can be very cumbersome to do by hand. QuickBooks can also automatically remind you to make an order for inventory when they are low.

One important thing that QuickBooks can do for you as a small business owner is to simplify tax time. Income and expense compilation is likely the biggest headache attached to preparing a tax return. 

If you made use of QuickBooks during a year, all you need to do when it's time to pay tax is to print your financial statements. 

QuickBooks Online also allows you to invite your tax person to access your accounts directly so they can review your account and print the needed information to prepare your return.

With QuickBooks, there are so many beneficial features that can be accessed on the different versions of the software.

Pricing 

QuickBooks Pricing Plan

There are four versions of QuickBooks, including QuickBooks Online and QuickBooks for Mac, all with separate pricing plans. There is a free trial for QuickBooks Online.

Pros

  • Easy to use and learn
  • Easy access from any device (depending on the version)
  • Advanced features
  • Over 650 integrations
  • Offers help from professionals

Cons

  • Poor customer support
  • Can occasionally be unintuitive

Frequently Asked Questions About Free Accounting Software

What is the best free accounting software for small businesses?

It is hard to say that a single accounting software is the best. When you want to pick the best accounting software for your organization, suggestions can only be made on the high-ranking accounting software based on the features they offer.

That said, you will be very well served by any of the software on this list. Of the options reviewed, Wave Accounting is the most likely to meet your needs. But ZipBooks and Akaunting are also promising. And freelancers would find And.co to be a particularly compelling offering.

What is the easiest accounting software to use?

A good amount of accounting software is easy to use even without prior accounting experience. After you've decided on the features you need in an accounting software you can go through reviews to see the best option for you. Zipbooks, Xero, Freshbooks, QuickBooks and Wave are some accounting solutions you might want to consider.

Is QuickBooks Online free?

There is a 30-day free trial period for new users starting from the day of enrollment; however, after this period has elapsed you will have to upgrade to one of the payment plans available to continue using this accounting solution.

Is there a free alternative to QuickBooks?

There are several free alternatives to QuickBooks; however, Wave is considered to be the best among them all because it offers so many features without additional fees. Akaunting and ZipBooks are also strong contenders.

Is there a free bookkeeping program?

Many free accounting software have very good bookkeeping features. You might want to consider Wave, Akaunting, and ZipBooks as their bookkeeping features have proven to be good for small businesses.

Which Free Accounting Software Should I Choose?

The free accounting software you pick is largely dependent on the needs of your organization. We’ve explored and outlined several great options for you and it is now left to you to decide the one that will suit your needs perfectly. Still, here are our recommendations: 

  • The best free accounting software on the market is Wave Accounting.
  • ZipBooks is a great option for those that also need invoice and time tracking functionality built-in.
  • Akaunting has some of the best tax management features of the free accounting and bookkeeping software.
  • Odoo comes with a best-in-class CRM and ERP for businesses of all sizes.
  • For freelancers, And.co is an all-in-one business management software that includes all the accounting features you’ll ever need. 

And NCH Express Accounts offers the best professional experience on any free accounting software.

Written by
Martin Luenendonk
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