7 Best Accounting Software for Startups in 2025

Choosing the right accounting software is crucial for any business. With limited resources and staff, entrepreneurs need startup accounting systems that are affordable, easy to use, and provide the necessary features to manage their finances. 

In this review, we will look at the best accounting software for startups and small businesses. Whether you’re just starting out or have been operating for a couple of years, read on to find the best accounting solution for your company’s unique needs and budget.

In this best accounting software for small business guide, we’ll examine our 7 of our favorite options to help you decide which one’s right for you:

1. QuickBooks Online – Best Accounting Software Overall
2. FreshBooks – Best for Service-Based Startups
3. Zoho Books – Ideal for Small- to Medium-Sized Businesses
4. Xero – Ideal for Brick-and-Mortar Businesses
5. Wave Accounting – Best Free Accounting Software
6. Sage – Ideal for Solopreneurs
7. Less Accounting – Best for Freelancers and Sole Proprietors

Note that most of the small business accounting tools in this guide offer a free trial of up to 30 days. If you have two favorites but aren’t sure which to choose, consider signing-up for both and deciding which you prefer. Feel free to dive into our reviews for more information or visit their websites directly.

Continue reading our full review of the best accounting solutions below. You’ll find additional information about each software, including cost, accessibility, and more. By the end of our comparison, you’ll be able to choose which one is right for your venture.

1. QuickBooks Online – $35-$235/month

We picked QuickBooks as our top choice because of its longevity in the marketplace and its accountant-friendly features. The main reason you might consider buying QuickBooks Online is that most accountants are familiar with how it works. So using it makes sense if you’re hiring an accountant to do your books. 

QuickBooks has been around a long time, and the software has only gotten better over the years. The online version is easy enough to navigate intuitively, but it would behoove you to take advantage of the online support or, at the very least, watch some YouTube videos where users demo the software for you using screencasting software.

Pros

• Perfect for those familiar with QuickBooks Desktop
• Popular accounting software for small businesses (over 4 million customers)
• Integrates with hundreds of third-party apps
• Cloud-based so you can use it anywhere
• Accountant-friendly software

Cons

• The online version is not as robust as the QuickBooks Desktop version
• Customer support is lacking with long wait times
• Necessary add-ons and integrations (e.g., payroll, etc.) are expensive, making the software seem overpriced when compared to other small business accounting software

Pricing 

Each pricing tier is available for 50% off for three months if you purchase a plan without a 30-day trial.

• Simple Start: $35 per month for one user
• Essentials: $65 per month for up to three users
• Plus: $99 per month for up to five users
• Advanced: $235 per month for up to 25 users ($15 per extra member)

Key Features

• Granular transaction tracking (e.g., by department, location, etc.)
• 40+ reports even in the basic plan
• Advanced inventory management
• 750+ app integrations
• In-house bookkeeping services available
• Cash flow forecasting and management
• Mileage tracking for tax deductions

Who It’s Right For

QuickBooks Online is great for small business owners who need premium business accounting software. If you’ve already used QuickBooks in the past, say the desktop version of QuickBooks, you may want to upgrade to the online version. The online version gives you access from anywhere, plus you get access to the faster loading Android and iOS mobile apps.

2. FreshBooks – $21-65/month

FreshBooks is a leading small business accounting software firm that offers an assortment of invoicing and bookkeeping tools. FreshBooks’ accounting software accounts for every business transaction, whether online or offline. FreshBooks offers four premium plans with monthly fees starting at just $15 per month.

With FreshBooks, you will have the tools needed to manage and control your time, finances, and transactions better. With its well-organized platform and visual dashboards, you can keep track of all of your money in real-time, all the time.

FreshBooks makes managing your cash flow easier than most other small business accounting software solutions we reviewed, mainly because they offer a dedicated support team that customizes FreshBooks to suit your business. You also get a free 30-day trial to try the software, which means no financial risk for you.

Pros

• Full service and support right out of the gate
• Deep business analytics and insights (measure and track your success)
• Real-time inventory tracking (unlimited inventory tracking and invoicing)
• Cloud-based (manage your financials entirely online)
• Highly praised Android and iOS apps (great for checking financials on the go)

Cons

• FreshBooks requires talking with a support specialist first before purchasing because they want to help you even before you become a customer (no wonder they’re the best overall accounting software).

Pricing 

Each pricing tier is available for 70% off for four months when you sign up for FreshBooks online.

• Lite: $21 per month for one user 
• Plus: $38 per month for one user
• Premium: $65 per month for one user
• Select: Custom pricing for up to two users 

Key Features 

• Intuitive time tracking integrated with invoicing
• Project management tools with file sharing
• Customizable invoices with automated reminders
• Multicurrency and multilingual support
• Client retainers for recurring service relationships
• Double-entry accounting system
• Expense tracking with receipt scanning

Who It’s Right For

When it comes to expenses, most small businesses are overwhelmed by the amount of information they need to keep track of. It’s easy to end up duplicating your receipts, and manually entering your payments and other data causes even more confusion and frustration. FreshBooks business accounting software eliminates these problems instantly.

FreshBooks has a clean, user-friendly interface that allows users to easily enter their information and track multiple expense streams. Whether you’re paying for employees, supplies, materials, equipment, or space, Freshbooks has you covered with professional and convenient tracking features. You can even use its advanced expense tracking functionality to set up recurring payments (e.g., retainer payments) and easily track your time, sales, and expenses throughout the year.

Basically, everything that an accountant would need to make sure you’re getting the most deductions against your income, so you end up paying the least amount in taxes — that’s all tracked within the FreshBooks platform.

3. Zoho Books – $0–$240/Month

Zoho Books is a cloud-based accounting software within the Zoho product line that is built for small to medium-sized businesses. With six different plans to choose from, businesses of all sizes can likely find a package that is right for them. 

Zoho Books equips businesses with features such as multilingual invoice processing, sales tax monitoring, billing and timesheet administration, customer and vendor portal access, inventory integration, forecasting, and customizable reporting. 

Higher-priced tiers unlock more advanced analytics, real-time data, additional user accounts, increased usage limits, and expanded integration options. Overall, Zoho Books aims to deliver an affordable, full-featured accounting solution tailored for growing small and mid-market companies.

Pros

• Free plan available 
• Works within the Zoho product suite 
• Wide range of use cases for different businesses 
• Several plan options to choose from 
• Email, voice, and chat customer support for all paid plans

Cons

• Not ideal for large companies 
• Only 15 maximum users with the highest-cost plan 

Pricing

Zoho Books offers six plan options, including a free plan. The plans increase in features and number of users able to utilize the platform. 

Note that the pricing listed below is per month when billed annually. Prices will increase if you opt for monthly billing. 

• Free: For up to one user
• Standard: $15 per month for up to three users
• Professional: $40 per month for up to five users
• Premium: $60 per month for up to 10 users 
• Elite: $120 per month for up to 10 users 
• Ultimate: $240 per month for up to 15 users 

Key Features 

• Multilingual invoicing and online payments
• Inventory tracking with real-time updates
• Mobile-first design with home screen widgets
• Automated workflows and approval processes
• Bank reconciliation and expense tracking
• Client portal for streamlined communication

Who It’s Right For

We recommend Zoho Books for small- to medium-sized businesses based on their features, user limits, and pricing. Especially online and ecommerce businesses looking to merge their Shopify stores with their accounting software. 

4. Xero – $20-$80/month

Xero is best if you need a complete startup accounting software solution to manage your books but prefer a more minimalistic and simplistic accounting software for small business. Xero handles income and expenses, inventory management, A/R and A/P, bank and credit card tracking, and other accounting tasks that small business owners need, but with fewer reports and other less necessary features.

We like Xero as our fourth choice for the best accounting software for small business because of its simplicity and ease of use. Xero’s cloud-based accounting software does what you would expect, like record transitions, calculate tax, and track both inventory and financial data. Plus, you can easily integrate with Gusto Payroll for an additional fee.

Pros

• Easy to use bookkeeping software
• Run basic reports and analytics to measure the health of your small business
• Record products and services in the business ledger
• Good software for self-employed persons
• Easy to use mobile app

Cons

• Fewer reports than FreshBooks and Intuit QuickBooks
• Inventory management is quite basic
• Xero charges for ACH transactions

Pricing 

Xero offers 90% off your plan price for the first three months after signing up. 

• Early: $20 per month 
• Growing: $47 per month
• Established: $80 per month

Key Features 

• Unlimited users on all plans
• Advanced inventory tracking
• Comprehensive financial reporting
• Automatic bank feeds and reconciliation
• Multicurrency support
• Fixed asset management
• Purchase orders and quotes

Who It’s Right For

Xero is best suited for less complex businesses, more like your mom and pop shops, one-off restaurants, even Etsy stores, think self-employed individuals. It is great for small business owners needing fewer accounting features.

5. Wave Accounting – $0-$16/month

Wave Accounting now offers two plans: the Starter Plan at $0/month and the Pro Plan at $14.17 per month if billed annually. You don’t have to buy Wave Accounting because it’s a free accounting and invoicing software platform. However, you’ll likely want to buy the à la carte extras like Wave’s payroll processing (from $20 per month) and Wave’s credit card payments (2.9%-3.4% plus $0.60 credit card processing with 1% ACH fees).

If you operate a small service company, Wave Accounting will probably work for your business needs. We like Wave Accounting because it’s free while letting you track your income and expenses and because it lets you do other very basic finance functions. Obviously, this free, 100% cloud-based product has its limitations. Still, for those who don’t need a large variety of advanced features, there’s no sense in paying for functions you won’t use.

Pros

• Free software for small businesses
• Send unlimited free invoices
• Great for a small service business for income and expense tracking

Cons

• Unlikely to scale with your business
• Very basic features
• Extras are more costly than other options

Pricing 

• Starter Plan: $0 per month
• Pro Plan: $14.17 per month when billed annually
• Payroll: From $20 per month with a plan or $40 per month + $6 per employee without a plan
• Payment Processing: 2.9%-3.4% + $0.60 per credit card transaction; 1% ACH fees

 Key Features

• Unlimited income and expense tracking
• Unlimited invoicing
• Bank and credit card connections
• Double-entry accounting system
• Financial reporting
• Receipt scanning
• Personal and business accounting separation

Who It’s Right For

Wave Accounting is best suited for small service businesses, more like home cleaning businesses, window washing, etc. It is great for small business owners needing very few features.

6. Sage – Custom Pricing

Sage is a world-leading business applications and enterprise resource planning (ERP) software development company. The applications are designed to meet all your business accounting needs. Some of Sage’s comprehensive features consist of balanced scorecards, manufacturing modules, front-line control, project accounting, and lots more.

Sage also offers small business solutions, which consist of accounting, invoicing, and payment processing through various integration partners and offers a variety of other endless possibilities for helping you manage and track your business’s financials with complete accuracy.

Sage made our small business accounting list mainly because it offers several great accounting solutions for small businesses. The pricing for these solutions starts low and runs higher depending on the solution you choose.

Pros

• Completely cloud-based to easily manage income and expenses
• Real-time banking integration
• Accountant friendly reports

Cons

• Not so great for nonprofits, doesn’t handle grant management
• Doesn’t currently have a payroll integration (not even an integration partner)
• Does not have a true budgeting module
• Doesn’t do well for job costing or project management

Pricing 

Sage Intacct’s pricing is customized to each business’s size and specific needs. To obtain pricing information, you must contact the Sage sales team directly. 

Key Features 

• Strong audit trails for compliance
• Secure transaction recording with reversals
• Expense controls with job cost codes
• Desktop and cloud connectivity options
• Multicompany management
• Detailed financial reporting
• Industry-specific solutions 

For More Comprehensive Software: Sage 50 

Sage 50 is a comprehensive desktop accounting software with cloud connectivity that’s designed for small businesses with in-house bookkeepers. It features cash flow management, bank reconciliation, job costing, payroll, and detailed reporting capabilities. 

Sage 50 comes in three main pricing tiers:

• Sage 50 Pro Accounting: $625 per year for one user
• Sage 50 Premium Accounting: $1,043 per year for one user with the cost rising as you add users up to five ($2,391) 
• Sage 50 Quantum Accounting: $1,780 per year for one user with the cost rising as you add up to 40 users (custom pricing)

While Sage 50 offers powerful features, some users find it has a steep learning curve and is relatively expensive compared to competitors. This can potentially make it less suitable for very small businesses or those without accounting expertise.

Who It’s Right For

Sage is suitable for any size and any type of business. For small businesses, though, Sage offers two cloud-based programs, namely, the basic Sage Accounting software and the more robust cloud-based desktop hybrid accounting Sage 50cloud software.

The advanced accounting tools in Sage provide financial and accounting information and insights to management and executives. Besides businesses, Sage’s software solutions are used widely by financial service firms and global manufacturing companies.

7. Less Accounting – $199-$399/month

If you don’t need fancy apps or complex software to manage your business, Less Accounting could be what you’re looking for. With Less Accounting, you log in to your account through their website and record your business transactions.

We like Less Accounting because it is so simple to use. There are no apps to download or software to learn. You simply plug your financials into the Less Accounting website and generate the reports you need.

Less Accounting also offers a four-tier bookkeeping service option as well. They’ll keep the books for you. You pay based on your monthly expenses, and come tax time, you’re ready to pass them off to your accountant.

Pros

• Simple accounting solution for the solopreneur or freelancer
• Great for business owners with basic accounting needs

Cons

• Can’t handle complex accounting situations
• Expensive compared to other options

Pricing 

• Simple: $199 per month for two users 
• Growth: $299 per month for four users 
• Business Pro: $399 per month for five to 10 users 

Key Features 

• Simple invoicing and expense tracking
• Business proposal templates
• Contact management
• Workflow automation
• Bank connections through Plaid
• Custom reporting by client, date, and tags
• Mobile accessibility via iPad and iPhone

Who It’s Right For 

Small businesses, freelancers, and entrepreneurs seeking straightforward accounting solutions without the complexity and steep learning curve of more comprehensive systems. Less Accounting is particularly well-suited for those who want just the core functionality needed to manage their finances efficiently.

Honorable Mentions

With so many startup accounting software options available, it is difficult to stop at only seven recommendations. These are a few other accounting solutions that didn’t quite make our list of favorites to consider for your business: 

NetSuite

NetSuite offers a cloud-based accounting solution used by big names like Groupon and Philz Coffee. On the platform, you can take advantage of billing management, financial planning, and revenue recognition management features. 

Kashoo

For accounting, invoicing, and expenses, Kashoo offers simple software designed to save entrepreneurs time. With a list of features, including automatic bank transaction imports and multiple account connection capabilities, Kashoo offers a variety of helpful business accounting tools. However, this is geared towards small businesses and may not be the best choice for fast-scaling companies. 

Striven

Striven is a cloud-based accounting solution built for growing businesses. The platform boasts high-level reporting and visibility for entrepreneurs seeking a comprehensive view of their business’s finances. 

Business Accounting Software Pros and Cons

Business Accounting Software Pros

• With accounting software, the chance of human error is less likely. All accounting software tools are extremely accurate (provided you enter the right information).
• By using business accounting software, you’ll be able to save countless hours over the lifetime of your business. Your financial reports are totally automated.
• If your business needs to invoice customers, you can customize and send them out with your accounting software. This’ll help you get paid faster!
• No more calculating on your own because most accounting software automatically calculates your financials for you.
• With the built-in expense tracking, accounting software is extremely useful for keeping an eye on where your money’s going.

Business Accounting Software Cons

• Since many of the accounting software tools are web-based, an internet connection is required. Even the ones that aren’t cloud-based need web access from time to time for syncing purposes.
• Accounting software most likely won’t be the ‘end-all’ for keeping finances in check. It’s likely that you’ll still need an accountant depending on the nature of your business.

How to Choose the Right Accounting Software

Every startup is different. Choosing the right accounting software for your startup comes down to knowing your business’s unique needs, how much you can spend, and how it will factor into your current workflow. Here’s a breakdown of what to consider when selecting the right software for your startup.

Pricing 

With a range of pricing options available for accounting solutions, it is important to find a service that won’t break the bank while providing you with the functionality you need to manage and grow your business. 

Features

The features and functionality of any software are a major factor in whether it will serve the right purpose for your business. Be sure to select software that checks most, if not all, of your boxes to ensure you have a solution that works for your startup. 

Growth 

Startups are all about scale, and their accounting software should be, too. Before choosing a service, ensure that there are plans available to grow alongside your business as you reach your goals. 

Compatibility 

There are a few accounting software options that live within a suite of products created by one company. If you are looking to streamline your processes, it is important to consider accounting software that will integrate seamlessly with your current tech stack.

Which Is the Best Accounting Software?

There are a lot of different accounting software options in the marketplace. The best accounting software is the one that serves your business needs best. Based on our hundreds of hours of research reviewing all of these companies, this list we’ve put together for you above should give you a good idea of which small business accounting software will be best for your particular business. If you want to get a more complete picture of the tools that interest you, read our full reviews or sign up for free trials to the ones that interest you.

In general, we prefer QuickBooks due to their easy to use software and great customer support. They’re one of the best accounting software tools available for entrepreneurs in most fields. It’s flexible, powerful and affordable.

Frequently Asked Questions

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