Best Bookkeeping Software in 2026: 8 Options Compared for Small Businesses

Key takeaways

• QuickBooks Online is the safest default for most US small businesses because accountants know it, but it is the pricey one: Simple Start lists at $38 a month.
• Wave Starter is the best free bookkeeping software for a one-person business, with unlimited invoices and bookkeeping records at $0, though card payments carry fees.
• Zoho Books has a free plan for businesses with revenue of $50,000 a year or less, and paid plans start at $15 a month on annual billing.
• Xero's Early plan costs $27 a month at regular price but caps invoices at 20 and bills at 5 a month.
• GnuCash is the only open-source option here and has no paid tier, but it is desktop software with no mobile app listed.

Quick comparison

The best bookkeeping software

This is general information, not accounting or tax advice. If you are unsure how to record something or what you owe, talk to a CPA or enrolled agent. We looked at software that records income and expenses, sends invoices and produces reports, and we used each vendor's own US pricing page in October 2026.

1. QuickBooks Online

• Best for: Most US small businesses and their accountants
• Starting price: Free / $38 per month (Simple Start)
• Free plan: Yes (limited)
• Website: quickbooks.intuit.com

QuickBooks is the name most US small business owners have heard, and for many that is a good reason to pick it. If your bookkeeper or CPA already works in QuickBooks, sharing access is simple, and the software handles invoices, expenses, bank feeds and reports.

Intuit's pricing page lists Simple Start at $38 a month for one user, Essentials at $85 for three users, Plus at $140 for five and Advanced at $340 for 25. New customers get 50% off for the first three months, which brings Simple Start to $19 at the start. A 30-day free trial is offered. The page also shows a Free plan at $0 for one user with no accountant access. Press coverage of the launch describes tight monthly caps, such as two invoices, so treat it as a starter, not a long-term home.

The honest catch is that prices rise after the promo, and a business that needs several users climbs the ladder quickly. If you are a one-person shop with simple books, you may be paying for features you do not use.

Pros

• The tool most US accountants already know
• plans for 1 to 25 users
• 30-day free trial on paid plans

Cons

• Regular prices are the highest on this list
• promo discounts last only 3 months

2. Xero

• Best for: Growing teams that want unlimited users
• Starting price: $27 per month (Early)
• Free plan: Free trial
• Website: xero.com

Xero is a cloud accounting platform that charges per plan, not per person. That makes it appealing for a business with a bookkeeper, a manager and an owner who all need to log in.

For US customers, Xero lists three plans: Early at $27 a month, Growing at $59 and Established at $97. New US customers buying on xero.com can get 90% off for the first 6 months, which brings Early to $2.70 and Growing to $5.90. That offer is listed as ending November 2, 2026, so check whether it still runs. Early allows 20 invoices and 5 bills per month, which suits very small operations.

Payroll is separate. Xero Payroll, powered by Gusto, is listed at $36 a month plus $6 per employee or contractor, so a business with staff should add that to the total. Xero is a strong pick if you expect to grow, but the cheapest plan is tight if you send many invoices.

Pros

• No per-user license fees
• Growing and Established plans have no listed invoice or bill limits
• free Xero Coach for the first 90 days

Cons

• The cheapest plan caps you at 20 invoices and 5 bills a month
• payroll is an extra cost

3. FreshBooks

• Best for: Freelancers and service businesses who invoice
• Starting price: $23 per month (Lite)
• Free plan: Free trial (30 days)
• Website: freshbooks.com

FreshBooks started as invoicing software and still feels like it. If you bill clients for time or projects, such as consultants, designers or contractors, the invoice and expense flow is easy to follow, and the dashboard shows who owes you money.

Pricing is based on the number of billable clients. The pricing page lists Lite at $23 a month for 5 clients, Plus at $43 for 50 clients and Premium at $70 for unlimited clients, with Select as a custom plan. An 80% promotional discount applies to the first 4 months on the monthly plans, and added users cost $11 a month each. The trial runs 30 days with no credit card required.

That client-based pricing is the catch. A business with many small customers, like a retailer or a restaurant, will outgrow Lite quickly, and the cost climbs. For solo service providers with a handful of clients, it is often the friendliest option.

Pros

• Built around invoicing and getting paid
• 30-day trial with no credit card required
• 30-day money-back guarantee

Cons

• Lite covers only 5 billable clients
• extra users cost $11 a month each

4. Wave

• Best for: Solo owners on a budget
• Starting price: Free / $19 per month (Pro)
• Free plan: Yes
• Website: waveapps.com

Wave is the answer to "what is the best free bookkeeping software?" for many micro-businesses. The free Starter plan lists unlimited invoices, estimates, bills and bookkeeping records, a mobile app and a dashboard for cash flow, which covers basic needs for a freelancer or side business.

The money comes from other places. Credit card payments on Starter cost 2.9% plus $0.60 per transaction (3.4% plus $0.60 for Amex), and payroll is a paid add-on. Pro costs $19 a month or $190 a year and adds automatic bank transaction import, automatic categorization, unlimited receipt capture and late-payment reminders. On the Starter plan, receipt capture appears as a paid add-on on the comparison table.

Wave works best if you are comfortable entering or importing transactions yourself. It is less suited to a business with many bank accounts or complex inventory, and automatic import works only with banks that Plaid supports.

Pros

• Free plan with unlimited invoices, estimates, bills and bookkeeping records
• mobile app
• low-cost Pro plan

Cons

• Automatic bank import needs the Pro plan
• card payments cost 2.9% plus $0.60 per transaction on Starter

5. Zoho Books

• Best for: Small businesses that want a free start
• Starting price: Free / $15 per month (Standard, billed annually)
• Free plan: Yes
• Website: zoho.com

Zoho Books is part of the large Zoho suite, and it is one of the more generous options if you are starting small. The pricing page lists a Free plan with one user plus one accountant, 1,000 invoices and 1,000 bills or expenses a year. It stays available as long as your revenue for the financial year is $50,000 or less.

Paid plans on annual billing are Standard at $15 a month, Professional at $40, Premium at $60, Elite at $120 and Ultimate at $240. Paying monthly raises those to $20, $50, $70, $150 and $275. Extra users cost $2.50 a month each on annual billing. Standard includes 3 users and 5,000 invoices a year.

The drawback is that Zoho's tools can feel like a lot if you only want simple books. Once your revenue passes the free threshold, you must move to a paid plan, so plan for that.

Pros

• Free plan for revenue up to $50,000 a year
• affordable paid tiers with several users
• high invoice limits on paid plans

Cons

• Free plan allows 1 user plus 1 accountant and 1,000 invoices a year
• monthly billing costs more

6. FreeAgent

• Best for: Freelancers and sole traders
• Starting price: $22 per month
• Free plan: Free trial (30 days)
• Website: freeagent.com

FreeAgent keeps things simple with one plan. The US pricing page lists it at $22 a month, or $220 a year on annual billing, and includes sales tax reporting and multi-currency invoicing. A 30-day free trial is offered, and the page says there are no set-up fees.

New customers get 50% off for the first six months on monthly billing ($11 a month), or 50% off the first year on annual billing, according to the page. Smart Capture Unlimited, an optional receipt-scanning add-on, costs $6 a month.

FreeAgent suits freelancers and very small businesses who want a tidy tool that explains their numbers without a lot of options. Larger teams who need multiple user tiers or complex inventory will find it limiting, and its accounting-first approach may feel basic for accountants used to QuickBooks.

Pros

• One simple plan with sales tax reporting and multi-currency invoicing
• 30-day free trial
• no set-up fees

Cons

• Only one plan
• Smart Capture Unlimited costs $6 a month extra

7. GnuCash

• Best for: Technical users who want free desktop software
• Starting price: Free
• Free plan: Yes
• Website: gnucash.org

GnuCash is the oldest idea on this list and the only one with no paid tier at all. It is open source, built and maintained by volunteers, and the site describes it as personal and small-business financial accounting software with double-entry accounting, reports, graphs and scheduled transactions.

You install it on your own computer, import data from files such as QIF and OFX and keep control of your records. The current release listed on the site is version 5.17, and it supports Windows, macOS and Linux. There is no subscription, which makes it appealing for people who dislike recurring fees.

The cost is time. The site does not mention a cloud version or mobile app, and it does not list online invoicing or bank feeds the way QuickBooks and Xero do. It fits a hobbyist, a very small business with simple needs or someone who understands double-entry bookkeeping already.

Pros

• Free and open source under the GNU GPL
• double-entry accounting
• runs on Windows, macOS and Linux

Cons

• No cloud or mobile app mentioned on its site
• steeper learning curve than modern cloud tools

8. Akaunting

• Best for: Owners who may want a self-hosted option
• Starting price: $8 per month (Standard, billed yearly)
• Free plan: Free trial
• Website: akaunting.com

Akaunting is a smaller, less well-known accounting platform that offers both a cloud version and self-hosted installations. The cloud Standard plan is $12 a month, or $8 a month on yearly billing, for one company, one user plus one accountant and up to 1,000 invoices.

The tiers add capabilities as you move up. Premium ($24 a month yearly) adds double-entry accounting, bank feeds, expense claims and a client portal for up to 10 users. Elite ($56 yearly) adds payroll, inventory and receipt scanning, and Ultimate ($145 yearly) is aimed at accountants. Each plan has a free trial.

It is a good value for a tech-comfortable owner who wants something cheaper than QuickBooks. The weaknesses are a smaller community, fewer accountants who know it and a pricing page that is inconsistent about the support level. Check it carefully before moving your records.

Pros

• Low-cost cloud plans
• apps can be added as needed
• self-hosted installations are also available

Cons

• Features like double-entry and bank feeds start at the $24 Premium tier
• its pricing page is inconsistent about support level

How we picked these

We compared bookkeeping tools using each vendor's US pricing page, plan comparison tables and product descriptions in October 2026. We did not test the software ourselves over months, so our notes are based on what the vendors publish. Where press coverage filled a gap, as with the QuickBooks Free plan, we said so.

We kept the list to tools that suit small businesses, include a published price or free plan, and cover the basics: tracking income and expenses, invoicing and reports. We mixed the market leaders with lower-cost and open-source choices, and we noted what each one limits, such as invoices, users or clients.

How to choose bookkeeping software

Start with your accountant. If your CPA already uses QuickBooks or Xero, using the same tool saves everyone time. Then think about volume: how many invoices you send each month, how many people need to log in and whether you pay staff.

Look past the promo price

Many plans are heavily discounted for the first few months. QuickBooks halves its price for 3 months, FreshBooks takes 80% off for 4 months and Xero takes 90% off for 6 months. Use the regular price when you compare, because that is what you will pay for years.

Check the extras that cost money

Payroll, receipt scanning, extra users and card processing are often separate charges. Wave takes a per-transaction fee on card payments, Xero adds payroll at $36 a month plus $6 per person, and FreshBooks charges $11 a month per added user.

Keep your records portable

Make sure you can export your data in a standard format. Whichever tool you choose, keep a backup of your transactions and tax documents so you are not stuck if you switch.

Frequently asked questions

What is the best bookkeeping software for a small business?

QuickBooks Online is the most common choice in the US because accountants know it, but it is also the most expensive at regular price. Xero and Zoho Books are strong alternatives. Choose by invoice volume, users and the tool your accountant prefers.

What is the best free bookkeeping software?

Wave Starter is a strong pick for solo owners, with unlimited invoices and bookkeeping records at $0. Zoho Books has a free plan for businesses with revenue up to $50,000 a year, and GnuCash is free desktop software. All three have trade-offs such as fees, thresholds or a steeper learning curve.

Is there a good bookkeeping app for my phone?

Wave lists a mobile app on its free plan, and most cloud tools here, including QuickBooks, Xero, FreshBooks and Zoho Books, offer phone access. GnuCash is desktop software only, based on its site.

What is the difference between bookkeeping software and online accounting software?

In practice, the two terms overlap. Bookkeeping covers recording income and expenses, while accounting software adds reports, invoicing and tax tools. Most of the online accounting software listed here does both.

Do I still need an accountant if I use bookkeeping software?

Often yes, especially at tax time or if you have employees. Software records and organizes your numbers, but it does not replace advice on taxes or compliance.

Sources

1. https://quickbooks.intuit.com/pricing/
2. https://www.techrepublic.com/article/news-intuit-quickbooks-free-accounting-plan/
3. https://www.xero.com/us/pricing-plans/
4. https://www.freshbooks.com/pricing
5. https://www.waveapps.com/pricing
6. https://www.zoho.com/us/books/pricing/
7. https://www.freeagent.com/en/pricing/
8. https://www.gnucash.org/
9. https://akaunting.com/pricing