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Senior Writer: Akarsh Jain
Date: May 1, 2024Managing financial operations in a small business comes with its own challenges. But having the right accounting software can be a game-changer for your financial management. According to a study, businesses with cloud-hosted accounting software can reduce operating costs significantly by up to 50%. However, small businesses may sometimes find it difficult to invest in one.
Thankfully, there are many free accounting software programs available today to resolve this problem. In this article, we have shortlisted 10 best free accounting software to help small business owners make the right choice.
10 Best Accounting Software for Small Businesses
Small business accounting software automates complex and time-consuming tasks, saving time and resources. Let’s review our list of the top 10 accounting software for small businesses.
| Brand Name | Rating | Key Features |
|---|---|---|
| ZipBooks | Accounts receivable Accountant access Invoicing and billing Bank connect | |
| GnuCash | Double entry accounting Scheduled transactions Statement reconciliation Customer tracking | |
| BrightBook | Invoicing Bill payments Financial reporting Profit and loss statement | |
| Sunrise | Customized invoices Bank account syncing Accounts receivable Accounts payable | |
| CloudBooks | Billing and invoicing Customizable invoices Expense tracking Inventory tracking |
After extensive research and analysis, we have curated a list of free accouting software for small businesses. These software are carefully selected based on usability and satisfaction scores, including features, ease of use, customer support, ratings, and reviews from SoftwareSuggest, G2, and Capterra. Our aim is to assist businesses in identifying the most suitable software to streamline their operations.
1. ZipBooks
ZipBooks is a popular choice of accounting platform for small business owners. Thanks to its intuitive and beautifully designed interface, the software makes accounting simple for small business ventures. The simplicity of this software can be deceptive, as it provides all the basic accounting functions that a small business would need.
ZipBooks is a full-fledged accounting tool with features like mobile accounting, smart tagging, bank reconciliation, and more. Its comprehensive reporting abilities can generate reports like accounts receivable, income statements, balance sheets, etc., with a single click. The ability to offer insightful feedback also aids companies in enhancing their daily operations. For eg, ZipBooks can remind you to pay your taxes and save your business from unwanted penalties.
Features
- Accounts receivable
- Accountant access
- Invoicing and billing
- Bank connect
- Bank reconciliation
- Auto-categorization
- Project accounting
Pros
- The tool has a forever-free plan and affordable pricing.
- Its interface is simple and effortless to use.
- The free plan offers an unlimited number of invoices.
Cons
- The software offers limited client support for the free plan.
- There is only one invoice template option.
2. GnuCash
GnuCash is powerful accounting software recommended for small businesses. It is one of the most popular free accounting programs that answers users’ current demand for transparency in all financial operations. GnuCash is an open-source platform so that anyone can edit or develop the code of this software. It significantly quickens the double-entry accounting system and is quite reliable, guaranteeing accuracy and compliance with accounting standards.
GnuCash is ideal for individuals who know how to code or are fine with manual data entry. This completely free software solution covers all your basic accounting needs, including a checkbook-style register, scheduled transactions, and account reconciliation. In addition, its wide array of reporting, including profit and loss statements, balance sheets, portfolio valuation reports, etc.
Features
- Double entry accounting
- Scheduled transactions
- Statement reconciliation
- Customer tracking
- Vendor tracking
- Invoicing and bill payment
- Sales tax and billing terms
Pros
- It is a user-friendly, open-source software.
- The platform provides all basic accounting features.
- It is ideal for desktop use.
Cons
- The software is not cloud-based.
- It only offers self-service tools for user queries.
3. BrightBook
BrightBook is another top contender on our list of free online accounting software. It is one of the best free accounting software optimized for the financial management needs of freelancers and small business enterprises. It features an easy-to-use interface that simplifies handling accounting tasks, even for those without experience. The software provides a complete set of powerful tools for basic accounting and bookkeeping in small businesses.
It provides detailed profit and loss reports, financial statements, and tax reports to show your accountants exactly what they need to see. Its multi-currency support feature is its unique selling point, making it ideal for cross-border businesses. BrightBook is an ideal free accounting software for those who are well-familiar with financial processes and are looking for free software to manage them.
Features
- Invoicing
- Bill payments
- Financial reporting
- Profit and loss statement
- Tax reports
- Financial planning
- Payroll processing
- Instant insights
- Multiple companies support
- Multiple users support
Pros
- The software features a simple and convenient interface.
- It offers unlimited invoices and supports unlimited users.
- It offers an extremely high level of data security.
Cons
- The software has limited provision for integrations.
- Some fundamental features like expense tracking and double-entry accounting are missing.
4. Sunrise
Sunrise account software is a great choice for the banking and financial requirements of small companies and self-employed individuals. This free desktop accounting software is on the list specifically because of its comprehensive accounting features, such as accounting automation, invoicing, payments, transaction tracking, etc. The software provides professional-looking invoice templates and also lets you customize and create invoices that reflect your brand.
Its user-friendly interface makes professionals less dependent upon complex calculations and simplifies bookkeeping tasks. The software supports additional third-party apps that fulfill every business’s different requirements. Moreover, payments are also quite simple with Sunrise as it accepts popular applications like PayPal and Square.
Features
- Customized invoices
- Bank account syncing
- Accounts receivable
- Accounts payable
- Multicurrency support
- Budgeting
- Expense management
Pros
- It offers unlimited customized invoices.
- The software supports unlimited bank transactions.
- It supports double-entry and multi-currency accounting.
Cons
- Its free-forever plan also comes with a price tag.
- The platform does not support time or project tracking.
5. CloudBooks
CloudBooks differentiates itself from other free bookkeeping software by including comprehensive accounting and project management features, which is why it is good for freelancers and small businesses with a limited budget. It provides advanced time tracking and expense management features that make the projects more organized for users. It also provides detailed reports on profit and loss statements, payment collection, tax payments, etc., and helps users stay on top of their earnings and spending.
CloudBooks helps users prepare estimates for thier clients and can turn these estimates into invoices with a single click acting as a streamlined invoicing solutions. On top of that, it can keep track of both paid and unpaid invoices and notify and remind your clients to complete their payments. This free software also supports secure payments through credit cards, cash, or PayPal.
Features
- Billing and invoicing
- Customizable invoices
- Expense tracking
- Inventory tracking
- Payment processing
- Time tracking and management
- Tax management
Pros
- The software is cloud-based, so it makes accessibility easier.
- It features a neat and clear interface that is easy to use.
- It also offers time tracking and project management features.
Cons
- Its invoice layout options may be confusing for new users.
- It offers a restricted number of invoices on the free version.
Suggested Read: What is ERP? Everything You Need to Know
6. Wave
Wave’s uniqueness lies in its pledge to simplify accounting for small businesses with its useful accounting features, such as invoicing, expense tracking, receipt scanning, and more. Wave also provides you with an in-house team of accounting, payments, and payroll coaches. The software lets you create attractive invoices and connect unlimited bank accounts and credit cards for easy expense management.
Wave is feature-rich, user-friendly, and easily accessible, and it helps to keep track of your income and expenses painlessly. It monitors your cash flow, keeps you organized, and prepares you well in advance before the tax season. This robust business accounting software provides trends and reports to help you keep track of your business health.
Features
- Double entry accounting
- Invoicing and banking
- Bank account connections
- Credit card connections
- Payment processing
- Expense and income tracking
- Cashflow monitoring
Pros
- It gives you robust reporting options.
- The platform provides unlimited invoices and receipts.
- It offers unlimited bank and credit card connections.
Cons
- The software only provides self-serve support.
- It lacks important features like time tracking and inventory management.
7. Akaunting
Akaunting is an online accounting software that simplifies web accounting for small businesses. It is great for users who are looking for freedom and customization as one of the primary features. Akaunting distinguishes itself as a feature-rich software that helps with various accounting functions like cash flow management, bank account management, expense tracking, easy invoicing, and so on.
Local currency support and user-friendliness make this tool apt for small enterprises working internationally. It also provides automatic payment reminders for quick payments. Though it might not have as many integrations as some other options, its open-source nature and extensive capabilities make Akaunting a top pick for those looking for a personalized business accounting solution.
Features
- Open source accounting
- Easy invoicing
- Vendor management
- Deposits and transfers
- Customer management
- Customer summary
- Email templates
Pros
- It has a personalized and user-oriented interface.
- It is easy to install and configure.
- The software offers a full suite of accounting features.
Cons
- It provides only basic reporting features.
- The software offers limited customer support.
8. ProfitBooks
ProfitBooks excels at convenience and affordability, which makes it perfect for small businesses looking for their first accounting system or startups. Its intuitive interface stands out from the competition because it makes it easy for novice accounting teams to handle finances without requiring them to be financial experts. Whether you want to create beautiful invoices, record advance payments, receive online payments, manage cash flow, track account receivables, or generate comprehensive reports, ProfitBooks can do it all.
This outstanding accounting software also helps businesses with inventory management. It gives users a complete view of stock levels, allowing them to handle orders efficiently. Additionally, ProfitBooks can also help your business stay compliant with tax regulations by tracking business expenses, generating detailed tax reports, and collaborating with accountants online.
Features
- Unlimited invoices
- Unlimited contacts
- Account receivables
- Billing and invoicing
- Purchase management
- Inventory management
- Sale order management
Pros
- The software is easy to set up and gets you started without any training.
- It offers multi-level security to protect your valuable data.
- It is easy to integrate with payment gateways.
Cons
- The software has limited integration capability.
- It lacks advanced functionality like multi-currency support.
Recommended Read: 16 Best Software and Tools for Small Businesses
9. Zoho Books
Zoho Books is a comprehensive free accounting software for growing businesses. It accomplishes crucial accounting tasks for small businesses, keeping them on top of their finances. This powerful cloud-based accounting software provides smooth integration with other Zoho apps, making it seamless for users already using the Zoho suite of services. Zoho Books can help businesses with invoicing, inventory management, project management, and much more.
Its intuitive and straightforward interface provides a clear understanding of your overall finances. It can generate quick business reports, such as profit and loss statements, balance sheets, cash flow statements, etc. Zoho Books has an application available on the Apple or Google Play stores, which can help you manage your accounting needs on the go.
Features
- Banking integration
- Customized invoices
- Expense management
- Inventory management
- Multi-currency support
- Payment gateway integration
- Barcode integration
Pros
- The software can integrate with other Zoho apps.
- It has its own scripting language to code custom functions.
- Its scalability feature supports changing business requirements.
Cons
- It has limited automation features in the free version.
- It can be quite challenging for non-coding professionals.
10. myBillBook
myBillBook is proficient online accounting software packed with numerous basic and advanced accounting features. The free version of this robust software includes customized invoices, all-in-one billing, cash flow management, inventory management, business management, e-invoicing and e-way billing, online marketing, bank accounts management, and other bonus features.
The main advantage of myBillBook is its usability features, which allow business owners with basic finance knowledge to start using it without a problem. The multi-user, multi-device, and multi-business functionalities of this software let you handle and run your business accounting from anytime, anywhere.
Features
- Accounts receivable
- Inventory management
- Billing and invoicing
- GST compliance
- Expense tracking
- Automated billing
- Workflow management
Pros
- It provides all basic accounting features for small businesses.
- Its user-centric interface is ideal for non-accounting professionals.
- The customer support is satisfactory.
Cons
- The free desktop accounting software has limited features.
- It lacks detailed financial reporting and e-way bill generation.
Conclusion
Choosing the right free accounting software is essential for your small business’s financial health and success. With a myriad of options available, it’s important to consider factors such as ease of use, feature set, and scalability when making your decision. The top 10 free accounting software options highlighted in this guide offer a range of features to suit various business needs, from basic invoicing and expense management to more advanced financial reporting and inventory management.
FAQs
1. Are there any limitations to free accounting software?
Unfortunately, open-source accounting software lacks advanced features. The free versions support fewer integrations and restricted tools compared to the more advanced paid software. Users may also face caps or restrictions that specify either a limit on the number of transactions or the number of users.
2. When should you upgrade from free accounting to paid?
Businesses should evaluate whether to use paid accounting software instead of its free counterparts when there is a demand for advanced features, increased support options, or scalability issues. Further, if the constraints of free business accounting software hinder the company’s operations or decrease efficiency, small businesses can consider switching to paid accounting software.
3. Is there free bookkeeping software for personal use?
Of course, you can indeed get free online bookkeeping software for personal use, which offers some basic features, such as expenditure tracking, budget information, etc. These types of solutions, unlike business accounting packages, usually provide features that cater to individual financial management requirements.
4. Can free accounting software handle complex financial tasks?
There is a range of free accounting software available today that is competent enough to efficiently carry out complex financial chores. Still, in a situation where the company has a heavy financial load, even though basic reporting needs are met, the sophistication of the software may fall short for jobs that require advanced features such as inventory management, payroll processing, detailed financial analysis, etc.
Akarsh is a B2B & SaaS content writer, having experience of over 3 years in the industry. His expertise lies in creating targeted content for Telephony, VoIP, and CRM domains. His proficiency also includes fine-tuning content for SEO optimization, guaranteeing enhanced visibility and engagement. Akarsh is committed to remaining at the forefront of emerging SaaS trends to ensure the creation of relevant and relatable content that adds value.
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