Top 10 Best Online Accounting Software for Small Business

For businesses of all sizes, relying solely on spreadsheets for accounting is a thing of the past. While some new small businesses might start there, scaling with scattered, conflicting, or outdated financial documents quickly becomes a significant problem. The modern solution? Online accounting software.

This software can revolutionize how your business operates, from generating essential reports for tax purposes to ensuring projects stay within budget. It centralizes all your financial information, streamlining processes and saving valuable time.

We’ve reviewed a range of the best online accounting software programs to help you compare features, prices, and ultimately select the perfect tool to manage your business’s finances.

Our Top 10 Best Online Accounting Software for Small Business:

Here’s a breakdown of our top picks and their key strengths:

• QuickBooks – Best online accounting software overall
• FreshBooks – Best for user-friendly invoicing and accounting
• Sage Intacct – Best for scaling businesses
• Gusto – Best accounting software with HR features
• Striven – Best for comprehensive financial management tools
• Patriot Software – Best for small businesses on a budget
• 1-800Accountant – Best for small to medium-sized businesses with a need for dedicated professional support
• Zoho Books – Best for business owners and accountants of SMBs seeking a feature-rich, integrated ecosystem
• Xero – Best for small and medium-sized businesses looking for robust cloud-based accounting
• Xendoo – Best for online bookkeeping with dedicated CPA guidance

The Best Accounting Software – An In-Depth Look

1. QuickBooks: Comprehensive Invoicing & Accounting for Growth-Focused Businesses

QuickBooks continues to be a leading, comprehensive accounting system designed for businesses ranging from small startups to advanced organizations. Its features include OCR-backed expense receipt tracking and efficient invoice issuing. Users can also add payroll functionality as an add-on. While not all features are available on the mobile apps, these apps, along with hardware, can be used for payment processing.

• Best For: Best online accounting software overall
• Price range: From $12.50 / month
• Free trial or free version: Free 30-day trial

Pros:

• Apps for iOS and Android
• Project profitability tracking
• Easy hour billing with integrations

Cons:

• No free tier
• Not all features available on mobile

2. FreshBooks: Best for User-Friendly Invoicing and Accounting

If you’re a business owner seeking a quick and easy way to bill clients, FreshBooks is an excellent, user-friendly option. Creating invoices and managing expenses is straightforward, often as simple as clicking and typing into fillable document fields. The system is also scalable, capable of supporting more than 500 clients.

• Best For: Best for user-friendly invoicing and accounting
• Price range: From $21 per month
• Free trial or free version: Free 30-day trial

Pros:

• Scalable to bill more than 500 clients
• Clickable document editing
• Payroll via integration

Cons:

• No built-in payroll functionality (relies on integrations)
• Mobile mileage tracking only on higher tiers

3. Sage Intacct: AI-powered Cloud Accounting Ideal for Scaling Businesses

Sage Intacct is a highly customizable cloud accounting software solution perfect for growing businesses. It offers detailed reporting, extensive integrations, and robust training resources, enabling businesses to scale their accounting without necessarily needing to hire expert staff. The platform covers core accounting functionalities like Accounts Payable and Receivable and General Ledger. Furthermore, you can set up detailed reporting and dashboards for deep insights into your business’s financials.

• Best For: Scaling businesses
• Price range: On request
• Free trial or free version: No

Pros:

• Highly customizable platform
• Extensive training resources
• Detailed reporting and dashboards
• AI-driven automation (e.g., employee expenses, AP transactions – in 2025 Release 2)
• Enhanced import services

Cons:

• Pricing only on request
• Learning curve on implementation

4. Gusto: Best Accounting Software with HR Capabilities

Gusto is a leading payroll service that also serves as an excellent choice for small businesses, freelancers, and contractors. It provides automatic tax filing, a wide array of HR benefits (including health, dental, vision, college funds, 401k), and the ability to run unlimited payrolls. Gusto offers a cost-effective way for businesses to streamline their monthly accounts. It integrates seamlessly with numerous applications, including accounting programs like QuickBooks Online, Xero, and FreshBooks, as well as time-tracking and expense management tools.

• Best For: Best accounting software with HR
• Price range: From $6 / month
• Free trial or free version: Free 30-day trial

Pros:

• All-in-one platform for payroll, benefits, and HR
• Access to financial benefits (401k, HSA, FSA, 529)
• Access to tools designed to help with hiring and managing teams

Cons:

• No PEO option
• Only manual processing for mandated deductions

5. Striven: Best for Comprehensive Financial Management Tools

Striven offers a comprehensive business platform that integrates accounting, CRM, inventory management, and HR capabilities to boost business efficiency and improve experiences for staff, vendors, and customers. It also includes productivity, marketing, and communication tools such as project scheduling, team chat, and email scheduling. With the additional purchase of one of Striven’s secure portals, customers, vendors, and applicants can self-serve. This all-in-one solution helps businesses save time and money while managing operations more effectively.

• Best For: Best for financial management tools
• Price range: $119-$500+ per month
• Free trial or free version: Free 30-day trial

Pros:

• Multiple useful third-party integrations
• Comprehensive suite of features
• Affordable for SMBs

Cons:

• No free-forever plan
• Interface can be confusing due to large number of features

6. Patriot Software: Best for Small Businesses on a Budget

Patriot Software provides two online products: Patriot Accounting and Patriot Payroll. Patriot’s accounting software comes in two versions, both with a flat monthly fee for an unlimited number of users. It offers all essentials for tracking income and expenses without overwhelming users with enterprise-level features found in pricier alternatives. Patriot Accounting Basic provides core functionalities, while for an additional $10 per month, you can automate many accounting processes. It’s a solid choice for any small business with budget considerations.

• Best For: Small businesses on a budget
• Price range: $15-$25/month
• Free trial or free version: 30-day free trial

Pros:

• Flat monthly fee for unlimited users
• Attractive and intuitive user interface that’s easy to set up and use
• Track assets, liabilities, equity, income & expenses in one place

Cons:

• No dedicated mobile app (though website is mobile-friendly)
• Limited third-party integrations

7. 1-800Accountant: Best for Small to Medium-Sized Businesses Needing Dedicated Professional Support

For businesses looking to outsource their accounting and bookkeeping, 1-800Accountant is a strong contender. This company offers various pricing tiers tailored to different user needs, from basic business accounting and tax requirements to full-service bookkeeping. Each signup includes a dedicated accountant who can assist with audit preparation, tax filing, and overall financial guidance.

• Best For: Best for small to medium-sized businesses
• Price range: From $209/month (Billed annually)
• Free trial or free version: No

Pros:

• Audit preparation service
• Dedicated accountants
• A variety of service tiers to match different needs
• Mobile accessibility with iOS and Android apps

Cons:

• No user-run integrations (relies on their team for most integrations)
• Limited payment flexibility (primarily annual packages)

8. Zoho Books: Best for Business Owners and Accountants of SMBs

Zoho Books is a feature-rich online accounting platform that allows business owners to manage cash flows, track expenses, pay bills, invoice clients, and accept payments. It offers four pricing tiers (Free, Standard, Professional, Premium), with more expensive plans providing a broader set of features. For enhanced functionality, Zoho Books integrates with numerous platforms, including inventory management, CRM software, and payroll services. Zoho also provides extensive educational materials to help users familiarize themselves with the platform and accounting best practices. The free version is particularly strong for basic accounting needs, especially in regions like India with GST compliance.

• Best For: Best for business owners and accountants of SMBs
• Price range: Free-$60/month
• Free trial or free version: Free version and free trial

Pros:

• Intuitive interface and sleek dashboard design
• Expansive array of core features; add-on enhancements available
• Features grow with your business
• Strong integrations within the Zoho ecosystem and with third-parties
• Supports features like multi-currency, kit items, and assembly modules (as of May 2025 update)

Cons:

• Lacks native payroll and advanced inventory management features in lower tiers
• No customized plan specifically for larger organizations

9. Xero: Best for Small and Medium-Sized Businesses

Xero provides a robust cloud-based accounting platform specifically designed for small businesses, startups, and freelancers. It includes tools for inventory management, automated invoicing, and bank reconciliation, helping businesses maintain financial health. Xero integrates seamlessly with over 1,000 third-party apps to enhance usability. While some features may require advanced knowledge, Xero’s mobile-friendly interface allows for on-the-go financial management.

• Best For: Small and medium-sized businesses
• Price range: $12-$65 a month
• Free trial or free version: 30-day free trial

Pros:

• Comprehensive integrations with over 1,000 apps
• User-friendly mobile app for on-the-go management
• Includes payroll management (additional cost in some regions)
• Real-time financial insights and automation

Cons:

• Can be overwhelming for beginners due to the breadth of features
• Payroll features are an additional cost in some regions

10. Xendoo: Best for Online Bookkeeping with CPA Guidance

Xendoo offers a quick and seamless setup for its accounting and bookkeeping service, complete with a 30-day free trial. Upon onboarding, you’ll be connected with a dedicated team of bookkeepers to manage your accounts and a CPA to advise on your business’s financial health. You’ll have access to invoices, balance sheets, statements, and monthly business reports. Xendoo provides comprehensive customer support and informative resources. While some plans have limited features and advanced inventory management is not its strong suit, Xendoo offers competitively-priced options, including custom plans, to meet most SMB accounting needs.

• Best For: Best for online bookkeeping
• Price range: From $195-$945 per month
• Free trial or free version: 30-day free trial

Pros:

• CPA and bookkeeping team available
• Monthly financial reports and statements
• Comprehensive customer support
• Specializes in e-commerce, small business, professional services, and franchise accounting.

Cons:

• “Hustle Plan” features are basic
• Bank card info needed to access the free trial

What You Need to Know About Accounting Software

What is Accounting Software? Accounting software automates accounting and bookkeeping tasks such as invoicing, managing accounts payable and receivable, and tracking income and expenses. Small business accounting software centralizes all financial information, making data sharing easier and reducing manual entries and errors.

Accounting software typically comes in two forms:

• Desktop accounting software: An application installed directly on your company’s computers.
• Online accounting software (SaaS): Functions similarly but operates on the cloud, accessible from any internet-connected device.

What Features Should You Look for in Your Accounting Software? At a minimum, accounting software should handle core accounting processes like invoicing, accounts payable, accounts receivable, income, and expenses. Beyond that, consider these advanced features:

• Tax integration: Provides balance sheets, profit and loss reports, and customized reports needed for tax filing. Top software even allows mobile receipt capture for secure storage.
• Payroll management: Often offered via integrations with third-party payroll and HR software. It can automate payroll calculation, tax filing, direct deposits, and employee benefits management.
• Business insights: Gathers data to offer business insights and intelligence through user-friendly reports and dashboards.
• Custom invoices and receipts: Allows you to brand financial documents, promoting your business.
• Multi-user access: Offers plans for multiple users, including access for your accountant.
• Support for mobile: Most major providers offer free iOS and Android apps for on-the-go data capture and access.
• Unlimited cloud storage: A key benefit of online software, providing virtually unlimited capacity for your data.
• Free support: Premium subscriptions often include dedicated account teams.
• Scalability: Essential for rapidly expanding businesses, offering services that grow with your needs.
• User-friendly: Should be intuitive enough for anyone on your team to learn quickly.

How Much Does Accounting Software Cost? The cost of online accounting software varies significantly based on features and the number of users. Pricing models differ: some providers charge a fixed monthly fee with most features included, while others use tiered pricing that increases with more integrated features.

Based on our research, accounting software can range from $12 to $300 per month. Cheaper subscriptions typically automate basic functions like income/expense tracking, invoicing, cash flow management, and sales tax tracking. Integrating payroll usually costs extra, either as part of more expensive plans or an additional $4 – $10 per employee per month. Advanced features like income tax return preparation almost always incur additional costs.

What is the Best Free Accounting Software? Yes, free accounting software exists beyond just Excel or Google Sheets. Prominent names include Wave, ZipBooks, and SlickPie. These are web-based programs offering basic functions such as managing accounts receivable, tracking expenses, and generating profit & loss and balance sheet statements.

Free accounting software serves as a good stepping stone for sole proprietors and very small businesses looking to upgrade from spreadsheets. They essentially automate tasks that would otherwise require manual formula programming in Excel or Google Sheets.

However, free software typically lacks the advanced features offered by paid solutions. If you need payroll management, inventory tracking, or tax preparation, you will likely need to invest in a paid accounting software subscription.

Conclusion

If your business can afford to automate administrative tasks, it’s highly recommended. While manual accounting might seem cheaper initially, it quickly consumes time that could be spent on business growth and exposes you to costly errors. The best accounting software grows with you, allowing you to start by automating core tasks and gradually adding more complex functions like payroll and tax reporting. Once you adopt small business accounting software, you’ll likely wonder how you ever managed without it.