Accounting software helps small businesses track income, expenses, invoicing, and taxes. This guide compares the best accounting platforms for 2025.
Accounting Software Quick Facts 2025
- Price range: $0 - $200/month
- Free options: Wave (fully free), ZipBooks
- Most popular: QuickBooks Online
- Key features: Invoicing, expense tracking, bank feeds, reports
Top Accounting Software Compared
| Software | Starting Price | Best For | Rating |
|---|---|---|---|
| QuickBooks Online | $30/mo | Most businesses | |
| Xero | $15/mo | Growing businesses | |
| FreshBooks | $19/mo | Service businesses | |
| Wave | Free | Freelancers | |
| Zoho Books | Free-$30/mo | Small teams |
INDUSTRY STANDARD
QuickBooks Online
- Price: $30 - $200/month
- Features: Invoicing, expenses, payroll, inventory, reports
- Integrations: 750+ apps
- Accountant access: Easy collaboration with CPAs
- Pros: Most features, accountant preferred, robust
- Cons: Most expensive, can be complex
BEST INTERFACE
Xero
- Price: $15 - $78/month
- Features: Unlimited users on all plans
- Invoicing: Beautiful, customizable templates
- Pros: Clean interface, unlimited users, good mobile
- Cons: Invoice limits on lower plans
FREE OPTION
Wave
- Price: 100% Free (invoicing, accounting)
- Paid add-ons: Payroll, payments processing
- Features: Invoicing, receipts, reports, bank connections
- Pros: Completely free, surprisingly capable
- Cons: Limited features, no inventory
Key Features to Compare
- Invoicing: Create and send professional invoices
- Expense tracking: Categorize and track business expenses
- Bank feeds: Auto-import transactions from bank
- Financial reports: P&L, balance sheet, cash flow
- Inventory: Track products and stock levels
- Payroll: Pay employees, file taxes
- Multi-currency: Handle international transactions
Pricing Comparison
| Software | Basic | Mid-Tier | Premium |
|---|---|---|---|
| QuickBooks | $30/mo | $60/mo | $200/mo |
| Xero | $15/mo | $42/mo | $78/mo |
| FreshBooks | $19/mo | $33/mo | $60/mo |
| Wave | Free | Free | Free |
FAQ
Do I need accounting software?
If you have more than a few transactions per month, yes. It saves time, reduces errors, and makes tax time much easier.
Can accounting software replace an accountant?
For basic bookkeeping, yes. For tax strategy, financial planning, and complex situations, you still need a CPA.