If you are looking for accounting software for small business, there are many options out there. When you start this journey, it is hard to know where to look. Here is a list of some of the best accounting software for small businesses, available for free.
In our current economic environment, it is more important than ever to manage your small business online. We all know that having a secure and reliable accounting software is an essential requirement for running and managing a small business and we all know that it can be very costly.
Wave
A top free accounting software to consider from the start of your search is Wave accounting software. Through this option, you’ll be able to connect unlimited bank and credit card accounts to your books. You’ll also be able to add unlimited income tracking, expense tracking, and guest collaborators for free. Plus, you’ll be able to invoice and scan receipts for free as well.
Be sure to note, though: If you want your invoiced customers to be able to pay online directly through the invoice, you’ll need to pay for that. Wave charges 2.9% + $0.30 for each credit card payment and 1% (with a minimum of $1) for each ACH payment. You’ll also need to pay for payroll through Wave. Depending on where you do business, you’ll pay a monthly base fee of either $35 or $20, plus $4 per employee and contractor on your payroll.
Akaunting
You should also consider a free accounting software called Akaunting. This option offers many of the most necessary features that a small business accounting software should. Within this technology, you’ll be able to invoice, sync accounts, track expenses, set up recurring bills, manage customers, and manage vendors. However, to access more advanced features like online payments, for example, you’ll have to download third-party apps that will cost you a yearly fee on top of whatever fees you have to pay for this third-party account.
Long story short, creating an Akaunting account won’t cost you anything, but as you navigate this software, you’ll realize that all the capabilities that you might expect to be ready-to-use will rely on your purchasing these third-party apps.
GnuCash
If you’re looking for a free desktop accounting software for your small business, then GnuCash is a solid contender. To access this free accounting software option, all you have to do is go to the GnuCash site and download it for free—simple as that. Though GnuCash doubles as a personal and small business accounting software, it offers small business-specific features customer and vendor tracking, job costing, and invoicing.
Zoho Invoice
If you’re looking for the best free accounting software to automate your invoicing workflows, then Zoho Invoice will be a top option. With the free version of Zoho Invoice, you’ll be able to invoice customers and manage payments through a single account. You’ll also be able to customize and brand invoice templates, track expenses, and interact with customers through a client portal. Not to mention, you can run integrated time tracking for yourself and employees for project billing.
ZipBooks
Pros:
- Ability to send unlimited invoices, manage unlimited vendors and accept digital payments.
- Task, time and project tracking.
- Can work with third-party online payment platforms.
Cons:
- Payments and payroll integrations cost extra.
- Overall lack of integrations with other platforms.
- Lack of advanced features.
Why we like it:
ZipBooks provides a great set of features at a price that works for small-scale businesses or companies in their early stages that don’t necessarily need much in order to manage their finances. ZipBooks’ Starter plan is free, with two higher-level tiers that include more sophisticated features for a flat monthly fee, as well as a custom-priced Accountant plan. The ZipBooks Starter plan includes unlimited and customizable invoices, estimates and price quotes. You’ll also get a virtual dashboard to keep track of your business’s outstanding and paid invoices, as well as your overall finances. Plus, if you like ZipBooks Starter, you can always upgrade to a more feature-laden plan as your business grows.
There are a few downsides to ZipBooks, however. You’re limited to one bank account connection, unlike other free accounting software platforms that are more generous. If you want to use ZipBooks’ integration with Square and PayPal, you’ll have to pay credit card processing fees, just as you would with Wave.
Zoho Books
Pros:
- Free version is feature-packed.
- Easy to upgrade to paid versions as your business grows.
- Easy to use.
Cons:
- Free plan available only for businesses with annual revenue of less than $50,000.
- Limits on the number of users, contacts and workflows for free plan.
- Free plan provides email support only. (Paid plans include email, voice and chat support.)
Why we like it:
Zoho Books provides an easy way to manage your business’s books from anywhere. This software allows you to handle a variety of accounting tasks, including creating and sending customized invoices and estimates, plus reminder emails for overdue invoices and simple conversion from estimate to invoice. As long as your business’s annual revenue is less than $50,000, you can use the free version for as long as it makes sense for your business. And if you use Zoho’s other business apps, you can integrate them all seamlessly. Outside of those, though, you are somewhat limited in terms of third-party integrations.
CloudBooks: unlimited users, restricted invoicing for free
While CloudBooks’ basic features are free, it doesn’t offer as much as the competition.
CloudBooks pros
CloudBooks is an online accounting software program that allows you to manage your online invoices, expenses, and projects. You can also view financial reports from any mobile device with their free app. Their platform allows for unlimited staff users, which means you can share access to your books as needed.
CloudBooks cons
CloudBooks is generally geared towards freelancers with few clients. Unless you are willing to shell out $10-$20 a month, you are limited to only five unbranded invoices per month. There is also no phone support or Paypal integration for the free version.
Brightbook: web-based with powerful tools and features
Brightbook certainly lives up to its name with its colorful website. Advertising as the “world’s most loved free accounting system,” Brightbook’s cloud-based software lets you access it anywhere with an internet connection.
Brightbook pros
Brightbook is a great alternative to the paid accounting programs with unlimited user access, expense tracking and recording, bank statement processing, and auto-generated profit and loss reporting. Tax reporting is also available to track what you paid in taxes and how much you will get back. Another plus is that Brightbook has no optional, expensive additions to consider. What you see is what you get without any hidden fees.
Brightbook also links to Paypal, allowing your clients to pay you online. You can invoice a client in any currency, and the program will automatically convert it back to your home country’s currency.
Since it is cloud-based, Brightbook lets you monitor and track your financials in real-time from anywhere. While there is no dedicated mobile app to access the program, you can use any mobile browser to view and update your data.
Brightbook’s invoice templates allow you to email invoices straight to clients without leaving the site. You can also view bills and expenses in a list or a more eye-pleasing gallery view. If you have other companies, Brightbook allows you to access them under one login.
Brightbook cons
Unlike some of their other free competitors, Brightbook can’t perform double-entry accounting. There are also no third-party integrations available. While the program can be accessed from a mobile device browser, it requires more steps without a dedicated mobile app. Support is available only through web-based email.
SlickPie
4.0
Starting at $0.00/mo.
Juggling multiple businesses? SlickPie’s free plan gives you unlimited bank reconciliations, expense tracking, estimates, and invoices for up to 10 companies.Get Started
Data effective 11/24/20. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.
Do you run multiple small businesses, such as Etsy shops, nonprofits, or eateries? If you want to separate each business’s finances, SlickPie is a good choice; it gives you these free features for up to 10 different companies:
- Sales tax, expense, and income tracking
- Automatic late payment reminders and recurring invoices
- Bank transaction reconciliation
- Online payment processing (with PayPal, Stripe, or credit cards only)
- Quotes, estimates, and invoice creation
SlickPie’s dashboard isn’t as slick as Wave’s, but it’s pretty legible and user-friendly, especially as far as free software is concerned. And while SlickPie doesn’t offer up-front inventory tracking, it does include a basic item tracklist where you can record sales tax, one of the most important things for sellers to track.
Unlike most other providers on our list (apart from Wave), SlickPie includes email-based customer service—and multiple contact options make it easier and more convenient for users to get help. However, SlickPie’s invoicing feature doesn’t offer much customization, so if custom professional invoices are high on your list of needs, ZipBooks or Wave might work better for you.
Conclusion
As accounting software market becomes more and more competitive, you need to find the best accounting software for your small business. Even though there are several options available, not all of them are optimal for small businesses. So how do you choose the best accounting software for your company? The goal of this infographic is to help you do just that by presenting important information on leading accounting programs for small businesses.