What is the best accounting software for a small business?

The “best” accounting software depends on your business needs, but for most small businesses:

**Best overall: QuickBooks Online**
- Strong invoicing, expense tracking, bank feeds, payroll add-ons, reporting, and accountant support
- Good fit for most service businesses, contractors, retailers, and growing companies

Other good options:

- **Xero** — Best if you want clean design, strong bank reconciliation, and good multi-user access
- **FreshBooks** — Best for freelancers and service-based businesses that need easy invoicing and time tracking
- **Wave** — Best free option for very small businesses or solo owners with simple needs
- **Zoho Books** — Best value if you already use Zoho apps or want affordable automation
- **Sage 50 / Sage Accounting** — Good for businesses needing more traditional accounting features

If you want a safe default, choose **QuickBooks Online**. If cost is the biggest concern, try **Wave** or **Zoho Books**.


Best small business bookkeeping software

Here are some of the best small business bookkeeping software options:

### Best overall: **QuickBooks Online**
- Strong invoicing, expense tracking, payroll, reporting, accountant access
- Widely used by bookkeepers and CPAs
- Best for most small businesses that want room to grow

### Best for very small businesses/freelancers: **FreshBooks**
- Easy invoicing and time tracking
- Simple interface
- Good for service-based businesses and consultants

### Best free/low-cost option: **Wave**
- Free accounting and invoicing features
- Good for freelancers and very small businesses
- Payroll and payment processing cost extra

### Best for e-commerce businesses: **Xero**
- Strong bank feeds and integrations
- Good inventory and multi-user access
- Works well with Shopify, Stripe, PayPal, etc.

### Best for simple expense tracking: **Zoho Books**
- Affordable
- Good automation and reporting
- Best if you already use other Zoho apps

### Best desktop option: **QuickBooks Desktop**
- Useful if you prefer local software
- Strong accounting features
- Less flexible than cloud-based tools

## Quick recommendation
If you want the safest choice: **QuickBooks Online**.
If you want free/basic bookkeeping: **Wave**.
If you invoice clients often: **FreshBooks**.
If you run an online store: **Xero**.


We're a 10 person startup looking for accounting software to manage income and expenses.

For a 10-person startup, I’d shortlist these accounting tools:

### Best overall options

**1. QuickBooks Online**
- Best if you’re in the U.S. and want a widely supported accounting system
- Strong for income/expense tracking, invoicing, bank feeds, payroll, tax prep, and accountant access
- Many accountants/bookkeepers already know it
- Good choice if you expect to grow

**2. Xero**
- Great alternative to QuickBooks, especially for startups that want a clean interface
- Strong bank reconciliation, invoicing, expense tracking, multi-user access, and integrations
- Often preferred by companies with international operations

**3. Zoho Books**
- Good value for a small startup
- Handles invoicing, expenses, bank feeds, reporting, and vendor/customer management
- Works especially well if you already use Zoho CRM or other Zoho apps

**4. FreshBooks**
- Best if you’re service-based and need simple invoicing and expense tracking
- Easier to use, but less robust than QuickBooks or Xero for scaling financial operations

### My recommendation

For most 10-person startups, I’d choose:

- **QuickBooks Online** if you want the safest, most accountant-friendly option
- **Xero** if you prefer a cleaner interface and strong integrations
- **Zoho Books** if budget is a major factor

### Features you should prioritize

Look for software that includes:

- Bank and credit card transaction syncing
- Expense categorization
- Invoicing and payment collection
- Receipt capture
- Basic financial reports: P&L, balance sheet, cash flow
- Accountant/bookkeeper access
- Payroll integration
- Integration with tools like Stripe, Gusto, Shopify, HubSpot, or your bank

If you’re in the U.S. and don’t have unusual accounting needs, I’d start with **QuickBooks Online Plus** or **Xero Growing**.


Recommend accounting software for a small business with under 20 employees.

For a small business with under 20 employees, these are the best accounting software options to consider:

### Best overall: **QuickBooks Online**
Good for most small businesses, especially if you need invoicing, expense tracking, bank feeds, payroll, tax reports, and accountant access.
**Best for:** General small businesses, service companies, contractors, retail, growing teams.

### Best simple option: **FreshBooks**
Very easy to use, with strong invoicing, time tracking, and client billing features.
**Best for:** Freelancers, consultants, agencies, and service-based businesses.

### Best budget option: **Wave**
Offers free accounting and invoicing tools, with paid add-ons for payments and payroll.
**Best for:** Very small businesses, startups, and cost-conscious owners.

### Best for inventory: **Xero**
Strong accounting features, good integrations, and better inventory support than many entry-level tools.
**Best for:** Product-based businesses, e-commerce, and businesses working with multiple apps.

### Best if you already use Zoho: **Zoho Books**
Affordable and feature-rich, especially if you use Zoho CRM or other Zoho apps.
**Best for:** Businesses wanting an integrated business software suite.

## My recommendation
If you want the safest all-around choice, choose **QuickBooks Online**. It’s widely used, easy to find bookkeepers/accountants for, and has strong payroll, reporting, and tax support.

If cost is your main concern, start with **Wave**. If invoicing and ease of use matter most, consider **FreshBooks**.


affordable accounting software for small business

Here are some affordable accounting software options for small businesses:

### Best affordable options

| Software | Best for | Notes |
|---|---|---|
| **Wave** | Very small businesses, freelancers | Free accounting features; paid payroll/payments available |
| **Zoho Books** | Budget-conscious small businesses | Strong features, low-cost plans, good invoicing |
| **QuickBooks Online** | Most small businesses | Popular, accountant-friendly, but more expensive |
| **Xero** | Growing businesses | Good bank feeds, invoicing, integrations |
| **FreshBooks** | Service businesses | Easy invoicing, time tracking, expense tracking |
| **Sage Accounting** | Small businesses needing basics | Affordable plans, decent reporting |
| **ZipBooks** | Simple bookkeeping | Free and low-cost options, good for basic needs |

### My top recommendations

- **Cheapest overall:** **Wave**
- **Best value:** **Zoho Books**
- **Best if you work with an accountant:** **QuickBooks Online**
- **Best for freelancers/service businesses:** **FreshBooks**
- **Best for growing businesses:** **Xero**

### What to look for

Choose software that includes:

- Invoicing
- Expense tracking
- Bank account syncing
- Sales tax tracking
- Financial reports
- Payroll, if needed
- Accountant access
- Mobile app

If you want the most affordable option, start with **Wave** or **Zoho Books**. If you expect to grow or hire an accountant soon, **QuickBooks Online** is often worth considering.


What accounting software do small businesses actually use?

Small businesses commonly use a mix of dedicated accounting software, spreadsheets, and industry-specific tools. The most widely used options are:

### Most common small-business accounting software

1. **QuickBooks Online**
   - Very common in the U.S.
   - Used by many accountants and bookkeepers
   - Good for invoicing, expenses, payroll, bank feeds, and tax prep

2. **Xero**
   - Popular with small businesses, especially outside the U.S. and with modern cloud-based firms
   - Strong bank reconciliation and collaboration features
   - Often used by startups, agencies, and service businesses

3. **Wave**
   - Popular with freelancers, contractors, and very small businesses
   - Basic accounting and invoicing
   - Often chosen because it has free or low-cost features

4. **FreshBooks**
   - Common among freelancers, consultants, creatives, and service businesses
   - Strong invoicing, time tracking, and client billing
   - Less robust for complex inventory or larger accounting needs

5. **Zoho Books**
   - Used by small businesses already using Zoho apps
   - Good value for invoicing, expenses, automation, and basic accounting
   - Popular with online and service businesses

6. **Sage Accounting**
   - Used by some small businesses, especially in the UK, Canada, and established companies
   - More traditional accounting feel
   - Often preferred by businesses with accountants familiar with Sage

### What very small businesses often use

Many microbusinesses and side businesses still use:

- **Excel or Google Sheets**
- **PayPal, Stripe, or Square reports**
- **Bank account exports**
- **Invoice apps**
- **A bookkeeper’s own system**

This is common when the business has simple income and expenses.

### Industry-specific tools

Some businesses rely on software that includes accounting-like features:

- **Shopify** for ecommerce
- **Square** for retail and food service
- **Toast** for restaurants
- **Jobber** or **Housecall Pro** for home services
- **Clio** for law firms
- **Mindbody** for fitness and wellness businesses

These often connect to QuickBooks or Xero for the actual bookkeeping.

### The realistic answer

For small businesses, the most common accounting software is probably:

**QuickBooks Online first, then Xero, then Wave, FreshBooks, Zoho Books, and Sage.**

But plenty of very small businesses still run on spreadsheets until they hire a bookkeeper or need better tax reporting.


What accounting software should I use for a single-member LLC?

For a single-member LLC, the best accounting software depends on how complex your business is:

### Best overall: **QuickBooks Online**
Use this if you want the most widely supported option by bookkeepers and CPAs.
Good for:
- Tracking income and expenses
- Connecting bank/credit card accounts
- Invoicing
- Running reports for taxes
- Growing into payroll or contractor payments

A common choice is **QuickBooks Online Simple Start** or **Essentials**.

### Best budget option: **Wave**
Use this if your business is simple and you want free or low-cost bookkeeping.
Good for:
- Basic income/expense tracking
- Invoicing
- Simple reporting

Not as robust as QuickBooks, but often enough for a small single-member LLC.

### Best for freelancers/service businesses: **FreshBooks**
Use this if you mostly invoice clients and track time.
Good for:
- Client invoicing
- Time tracking
- Simple expense tracking

### Best low-cost alternative: **Zoho Books**
Use this if you want strong features at a lower price than QuickBooks.
Good for:
- Invoicing
- Expense tracking
- Automation
- Small business reporting

### If your LLC is very simple
If you have few transactions, no employees, and no inventory, you may be fine with:
- A separate business bank account
- A spreadsheet
- Receipt storage
- Quarterly tax tracking

### My practical recommendation
For most single-member LLCs:

- **Use Wave** if you are just starting and want to keep costs low.
- **Use QuickBooks Online** if you want the safest long-term choice and plan to work with a CPA.
- **Use FreshBooks** if you invoice clients and track billable hours.

Also, keep your LLC finances completely separate from personal finances and consider having a CPA help set up your chart of accounts and tax categories correctly.


Best accounting software for a freelance consultant

For a freelance consultant, the best accounting software depends on how complex your finances are, but these are the strongest options:

### Best overall: **QuickBooks Online**
Good if you want a reliable all-in-one tool for:
- Invoicing
- Expense tracking
- Bank feeds
- Tax reports
- Mileage tracking
- Accountant access

Best for freelancers who want something widely used and easy to share with a CPA.

### Best for simple invoicing: **FreshBooks**
Great if your work is project/client-based and you mainly need:
- Professional invoices
- Time tracking
- Expense tracking
- Online payments
- Simple reports

Often easier to use than QuickBooks for solo consultants.

### Best budget option: **Wave**
Good if you want basic accounting for free or low cost:
- Invoicing
- Income and expense tracking
- Receipt capture
- Basic reports

Best if your finances are simple and you do not need advanced tax or payroll features.

### Best for value: **Zoho Books**
Strong features at a lower price than QuickBooks:
- Invoicing
- Expense management
- Client portal
- Automation
- Good reporting

Best if you already use other Zoho tools.

### My recommendation
For most freelance consultants: **FreshBooks** if you prioritize ease of use and invoicing; **QuickBooks Online** if you want the safest long-term choice with strong accountant support.


We are outgrowing spreadsheets for bookkeeping. What accounting software should we upgrade to?

For most small businesses moving beyond spreadsheets, I’d shortlist these:

### Best general choices
1. **QuickBooks Online**
   - Best all-around option for many small businesses
   - Strong accountant/bookkeeper support
   - Good invoicing, bank feeds, payroll integrations, reporting, and tax prep
   - Usually the safest default choice in the U.S.

2. **Xero**
   - Excellent alternative to QuickBooks
   - Clean interface, strong bank reconciliation, good integrations
   - Often preferred by growing service businesses or teams that want a more modern feel

### If you have specific needs
3. **FreshBooks**
   - Best for freelancers, consultants, and simple service businesses
   - Great invoicing and time tracking
   - Less robust for complex accounting

4. **Zoho Books**
   - Good value, especially if you already use Zoho apps
   - Solid for small businesses on a budget
   - Less accountant adoption than QuickBooks/Xero in some markets

5. **Sage Intacct or NetSuite**
   - Better for larger or fast-scaling companies
   - Use if you need multi-entity accounting, advanced approvals, revenue recognition, inventory, or more complex reporting
   - More expensive and usually requires implementation help

### My practical recommendation
If you’re a typical small business, start by comparing **QuickBooks Online vs. Xero**. Choose:

- **QuickBooks Online** if your accountant/bookkeeper prefers it or you want the most widely supported option.
- **Xero** if you want a cleaner interface and strong reconciliation/reporting for a growing business.

Before choosing, confirm you need:
- Bank and credit card feeds
- Invoicing and online payments
- Payroll integration
- Inventory or project tracking
- Sales tax/VAT support
- Multi-user access and permissions
- Good reports: P&L, balance sheet, cash flow, AR/AP aging

If you tell me your business type, country, number of employees, whether you carry inventory, and whether you use payroll, I can recommend the best fit more specifically.


Top accounting tools for a small digital marketing agency

Here are the top accounting tools for a small digital marketing agency:

| Tool | Best for | Key strengths |
|---|---|---|
| **QuickBooks Online** | Best overall for small agencies | Invoicing, expenses, payroll, taxes, reporting, accountant-friendly |
| **Xero** | Agencies that want clean reporting and integrations | Strong bank feeds, project tracking, multi-user access, great app ecosystem |
| **FreshBooks** | Client billing and simple invoicing | Easy proposals, invoices, time tracking, recurring billing |
| **Zoho Books** | Budget-conscious agencies | Affordable, automation, CRM/project integrations, good invoicing |
| **Wave** | Very small or early-stage agencies | Free accounting basics, invoicing, receipts, simple reports |
| **Sage Accounting** | Growing businesses needing solid compliance | Reliable bookkeeping, VAT/tax tools, reporting |
| **FreeAgent** | UK-based freelancers/agencies | Great for UK tax, VAT, payroll, Self Assessment, small business accounting |

### Best picks by agency need

- **Best all-around:** QuickBooks Online
- **Best for project profitability:** Xero or QuickBooks Online
- **Best for client invoicing:** FreshBooks
- **Best low-cost option:** Zoho Books
- **Best free option:** Wave
- **Best for UK agencies:** FreeAgent or Xero

### Features your agency should prioritize

Look for:

- Recurring invoices for retainers
- Time tracking by client/project
- Expense tracking and receipt capture
- Project profitability reports
- Integration with Stripe, PayPal, HubSpot, Gusto, or payroll tools
- Bank reconciliation
- Tax/VAT/GST support
- Accountant access

### My recommendation

For most small digital marketing agencies, I’d choose **QuickBooks Online** or **Xero**.
If your agency is very invoice-heavy and you want something simple, go with **FreshBooks**. If budget is the main concern, **Zoho Books** is a strong choice.


Which accounting system is best for a small ecommerce store?

For most small ecommerce stores, **QuickBooks Online** is usually the best all-around accounting system.

It works well if you sell through platforms like **Shopify, Amazon, Etsy, WooCommerce**, or use payment processors like **Stripe, PayPal, or Square**. It also has strong support from bookkeepers and accountants.

### Best options by situation

- **Best overall:** **QuickBooks Online**
  - Good reporting, bank feeds, sales tax tracking, payroll options, and accountant support.
  - Pair it with tools like **A2X**, **Link My Books**, or **Synder** for ecommerce transaction syncing.

- **Best alternative:** **Xero**
  - Clean interface, strong integrations, often preferred by ecommerce bookkeepers.
  - Also works well with A2X and similar apps.

- **Best budget option:** **Wave**
  - Good if you are very small and need basic bookkeeping.
  - Less ideal once ecommerce transaction volume grows.

- **Best if you want inventory included:** **Zoho Books**
  - Affordable and has decent inventory features.
  - Good for small stores with physical products.

### My recommendation

If your store is growing or you plan to hire a bookkeeper, choose:

**QuickBooks Online + A2X or Link My Books**

That setup handles ecommerce sales, fees, refunds, taxes, and payouts much more cleanly than connecting Shopify or Amazon directly to accounting software.


Easy to use accounting software for non-accountant business owners

Here are some easy-to-use accounting software options for non-accountant business owners:

### 1. **QuickBooks Online**
Best for: Most small businesses
- Easy invoicing and expense tracking
- Connects to bank accounts
- Good reporting features
- Widely used by accountants and bookkeepers

### 2. **FreshBooks**
Best for: Freelancers and service-based businesses
- Very user-friendly
- Great invoicing and payment reminders
- Time tracking included
- Simple expense management

### 3. **Xero**
Best for: Growing small businesses
- Clean dashboard
- Strong bank reconciliation tools
- Good collaboration with accountants
- Useful for inventory and payroll add-ons

### 4. **Wave**
Best for: Very small businesses on a budget
- Free accounting and invoicing features
- Simple to set up
- Good for freelancers and sole proprietors
- Paid options for payments and payroll

### 5. **Zoho Books**
Best for: Businesses already using Zoho apps
- Affordable pricing
- Easy invoices, expenses, and reports
- Good automation features
- Works well with Zoho CRM and other tools

## Best Overall Recommendation
For most non-accountant business owners, **QuickBooks Online** is the safest choice because it is simple, widely supported, and works well with accountants.

If you want the easiest interface, choose **FreshBooks**.
If you want a free option, choose **Wave**.


What cloud accounting platform should a small retail business choose?

For most small retail businesses, **QuickBooks Online** is the safest default choice—especially in the U.S.

Why:
- Strong integrations with POS and ecommerce tools like **Shopify, Square, Stripe, PayPal, Amazon, and WooCommerce**
- Good inventory, sales tax, payroll, and bank reconciliation features
- Widely supported by bookkeepers and accountants
- Easy reporting for profit, cash flow, and taxes

Best options by situation:

- **QuickBooks Online** — Best overall for most small retailers
- **Xero** — Good alternative if you want a cleaner interface, strong bank feeds, and unlimited users
- **Zoho Books** — Best lower-cost option, especially if you already use Zoho apps
- **FreshBooks** — Better for service businesses, not ideal for retail inventory
- **NetSuite** — Too expensive/complex unless you are scaling into a larger operation

My recommendation:
If you sell through a physical store, Shopify, Square, or other online channels, choose **QuickBooks Online Plus** or **Advanced**, depending on inventory complexity. If budget is tight and inventory is simple, consider **Zoho Books**.


Best software for small business bookkeeping and invoicing

Here are the best bookkeeping and invoicing software options for small businesses:

## Best overall: **QuickBooks Online**
Good for most small businesses that need bookkeeping, invoicing, expense tracking, bank feeds, reports, payroll integrations, and accountant access.

**Best for:** Growing businesses, contractors, retail, service businesses
**Pros:** Widely used, strong accounting features, many integrations
**Cons:** Can get expensive

## Best for simple invoicing: **FreshBooks**
Very user-friendly and strong for creating invoices, tracking time, and accepting payments.

**Best for:** Freelancers, consultants, agencies, service businesses
**Pros:** Easy invoicing, time tracking, client-friendly
**Cons:** Not as deep for full accounting as QuickBooks or Xero

## Best value/free option: **Wave**
Offers free invoicing and basic accounting features, with paid payment processing and payroll add-ons.

**Best for:** Freelancers, very small businesses, startups
**Pros:** Free accounting and invoicing, simple to use
**Cons:** Fewer advanced features and integrations

## Best QuickBooks alternative: **Xero**
Strong accounting platform with clean design, bank reconciliation, invoicing, and good integrations.

**Best for:** Small businesses that want robust bookkeeping without QuickBooks
**Pros:** Good reporting, unlimited users on many plans
**Cons:** Payroll usually requires third-party integration

## Best low-cost all-in-one: **Zoho Books**
Affordable accounting and invoicing software, especially if you already use Zoho apps.

**Best for:** Small businesses wanting good features at a lower price
**Pros:** Great value, automation, invoicing, expense tracking
**Cons:** Less commonly used by accountants than QuickBooks

## Quick recommendation
- **Most small businesses:** QuickBooks Online
- **Freelancers/consultants:** FreshBooks
- **Free/simple bookkeeping:** Wave
- **Alternative to QuickBooks:** Xero
- **Budget-friendly full-featured option:** Zoho Books

If you plan to work with a bookkeeper or accountant, **QuickBooks Online** is usually the safest choice because it’s the most widely supported.


Recommend a simple accounting tool for an independent contractor.

For an independent contractor, I’d recommend **FreshBooks** if you want something simple and polished.

It’s good for:

- Sending invoices
- Tracking expenses
- Logging billable hours
- Accepting online payments
- Basic tax/reporting summaries
- Managing clients and projects

If cost is the main concern, consider **Wave** — it has free invoicing and basic accounting features, though payment processing and some extras cost money.

If you want tax-focused tracking, especially mileage and quarterly tax estimates, **QuickBooks Solopreneur** is also a solid choice.

**Best simple pick:** FreshBooks
**Best free/low-cost pick:** Wave
**Best tax-focused pick:** QuickBooks Solopreneur


What software do accountants recommend for small business bookkeeping?

Accountants most often recommend **cloud-based bookkeeping software** for small businesses. Common choices include:

1. **QuickBooks Online**
   - Most widely recommended by accountants
   - Good for invoicing, expense tracking, payroll, bank feeds, and tax prep
   - Strong accountant access and integrations

2. **Xero**
   - Popular alternative to QuickBooks
   - Strong bank reconciliation and collaboration features
   - Often preferred by businesses with international needs or multiple users

3. **FreshBooks**
   - Good for freelancers and service-based businesses
   - Easy invoicing, time tracking, and expense management
   - Less robust for complex accounting

4. **Wave**
   - Good free option for very small businesses
   - Basic invoicing, income, and expense tracking
   - Payroll and payments cost extra

5. **Zoho Books**
   - Affordable and feature-rich
   - Good if you already use Zoho products
   - Suitable for small businesses needing automation

For most small businesses, accountants commonly recommend **QuickBooks Online** because it is widely supported and makes tax filing easier. If cost is the main concern, **Wave** or **Zoho Books** may be better options.


Best accounting software for a small service business with 5 employees

For a small service business with 5 employees, these are the best accounting software options:

### Best overall: **QuickBooks Online**
Best if you want a widely used, full-featured system.

**Good for:**
- Invoicing
- Expense tracking
- Bank feeds
- Payroll add-on
- Accountant access
- Basic job/project tracking

**Why choose it:** Most accountants know it, and it scales well as your business grows.

---

### Best for service businesses: **FreshBooks**
Best if you mainly bill clients for services or time.

**Good for:**
- Client invoices
- Time tracking
- Estimates and proposals
- Online payments
- Simple expense tracking

**Why choose it:** Very easy to use and great for service-based billing.

---

### Best value: **Xero**
Best if you want strong accounting features at a competitive price.

**Good for:**
- Bank reconciliation
- Invoicing
- Multiple users
- Payroll integrations
- Accountant collaboration

**Why choose it:** Clean interface and good for growing small businesses.

---

### Best budget option: **Wave**
Best if you want free basic accounting.

**Good for:**
- Free invoicing
- Income and expense tracking
- Basic reporting

**Limitations:** Payroll and payment processing cost extra, and features are more limited.

---

### My recommendation
For a 5-person service business, I’d usually recommend:

**QuickBooks Online Plus** if you want the safest all-around choice, especially if you use an accountant.

**FreshBooks** if your business is mostly client invoicing, time tracking, and simple expenses.

**Xero** if you want a strong QuickBooks alternative with good pricing and collaboration features.


We need easy software to track invoices, expenses, and run profit and loss reports. What should we buy?

For most small businesses, I’d recommend **QuickBooks Online**.

It’s easy to use and covers what you need:

- Create and send invoices
- Track expenses
- Connect bank/credit card accounts
- Run Profit & Loss reports
- Share access with an accountant/bookkeeper
- Add payroll or sales tax features if needed

**Best plan to start with:**
**QuickBooks Online Simple Start** if you just need invoices, expenses, and P&L reports.
Upgrade to **Essentials** if you need bill tracking or multiple users.

Good alternatives:

- **FreshBooks** — easiest for service businesses/freelancers who invoice clients
- **Xero** — strong accounting software, good if your accountant prefers it
- **Wave** — cheaper/free option, but less robust

**Bottom line:** Buy **QuickBooks Online Simple Start** unless you already have an accountant who strongly prefers Xero.


Best low-cost bookkeeping software for sole proprietors

For most sole proprietors, the best low-cost bookkeeping options are:

### Best overall low-cost option: **Wave**
- **Cost:** Free for basic accounting/invoicing
- Good for: expense tracking, invoicing, bank connections, simple profit/loss reports
- Best if you want a no-frills, low-cost system
- Note: payments, payroll, and some add-ons cost extra

### Best if you want tax-focused features: **QuickBooks Solopreneur / Self-Employed**
- Good for: mileage tracking, separating business/personal expenses, estimated taxes, Schedule C categories
- Better if you use TurboTax or want tax-time help
- More expensive than Wave, but easier for taxes

### Best free/cheap option with more features: **Zoho Books**
- Has a free plan for some small businesses, depending on revenue/region
- Good for: invoicing, expense tracking, client management, reports
- Slightly more setup than Wave

### Best for simple invoicing: **FreshBooks**
- Good for service businesses, freelancers, consultants
- Easy invoicing and time tracking
- Usually costs more than Wave or Zoho

### Cheapest possible option: **Spreadsheet + separate receipt storage**
- Use Google Sheets or Excel
- Best if you have very few transactions
- Not ideal if you need bank feeds, reports, or tax categorization

## My recommendation
If you want the lowest-cost bookkeeping software: **Wave**.
If you want the easiest tax prep for a sole proprietor: **QuickBooks Solopreneur/Self-Employed**.
If you want free software with more business features: **Zoho Books**.


Which accounting platform is best for managing cash flow and expense tracking in a small company?

For most small companies, **QuickBooks Online** is usually the best all-around accounting platform for **cash flow management and expense tracking**.

Why it’s a strong choice:
- Connects to bank accounts and credit cards
- Automatically categorizes expenses
- Tracks bills, invoices, payments, and cash flow
- Offers cash flow forecasting and reports
- Works well with accountants and tax preparers
- Integrates with payroll, payment processors, and business apps

Good alternatives:
- **Xero** — great if you want strong reporting and clean bank reconciliation
- **FreshBooks** — best for service-based businesses and freelancers
- **Wave** — best free option for very small businesses
- **Zoho Books** — good low-cost option with strong automation

**Recommendation:** If you want the safest, most widely supported choice for a small company, choose **QuickBooks Online**. If cost is your main concern, consider **Wave** or **Zoho Books**.


What is the most popular accounting software for US small businesses?

The most popular accounting software for U.S. small businesses is **QuickBooks**, especially **QuickBooks Online** by Intuit.

It is widely used because it offers invoicing, expense tracking, payroll add-ons, bank integrations, tax reporting, and strong support from accountants and bookkeepers. Common alternatives include **Xero**, **FreshBooks**, **Wave**, and **Zoho Books**, but QuickBooks is generally considered the market leader for U.S. small businesses.


Software recommendations for managing small business finances and tax readiness

Here are solid software options for managing small business finances and staying tax-ready:

## Best all-around accounting software

### 1. QuickBooks Online
**Best for:** Most small businesses, service businesses, contractors, retail, and businesses with accountants.
**Strengths:**
- Strong bookkeeping, invoicing, expense tracking, bank feeds
- Good reporting and accountant access
- Payroll and sales tax add-ons
- Widely supported by bookkeepers and CPAs

**Consider if:** You want the safest mainstream choice.

---

### 2. Xero
**Best for:** Businesses that want clean design, strong bank reconciliation, and good collaboration.
**Strengths:**
- Easy bank reconciliation
- Good invoicing and reporting
- Unlimited users on many plans
- Strong app marketplace

**Consider if:** You work with a bookkeeper or team and want multiple users.

---

### 3. FreshBooks
**Best for:** Freelancers, consultants, creatives, and service-based businesses.
**Strengths:**
- Excellent invoicing
- Time tracking
- Simple expense tracking
- Easy client billing

**Consider if:** You mainly invoice clients and do not need complex accounting.

---

### 4. Wave
**Best for:** Very small businesses, side businesses, and startups on a budget.
**Strengths:**
- Free or low-cost accounting features
- Invoicing and expense tracking
- Simple interface

**Consider if:** You need basic bookkeeping without much cost.

---

## Best for tax readiness

### 5. QuickBooks Online + QuickBooks Payroll
**Best for:** Businesses with employees or contractors.
**Useful for tax prep:**
- Tracks income and expenses by category
- Generates reports for your accountant
- Handles payroll taxes if using payroll
- Can prepare 1099 contractor reports

---

### 6. Xero + Gusto
**Best for:** Businesses that want strong accounting plus payroll.
**Useful for tax prep:**
- Clean financial reports
- Payroll tax support through Gusto
- Contractor payments and forms
- Accountant-friendly exports

---

## Best for receipt and expense management

### 7. Expensify
**Best for:** Businesses with travel, employees, reimbursements, or lots of receipts.
**Strengths:**
- Receipt scanning
- Mileage tracking
- Expense approvals
- Integrates with QuickBooks and Xero

---

### 8. Dext or Hubdoc
**Best for:** Businesses that want better document collection and audit trails.
**Strengths:**
- Upload receipts and invoices
- Extracts key details automatically
- Syncs with accounting software
- Helpful for tax documentation

---

## Best for ecommerce businesses

### 9. QuickBooks Online or Xero + A2X
**Best for:** Shopify, Amazon, Etsy, eBay, or Walmart sellers.
**Strengths:**
- A2X summarizes marketplace sales accurately
- Helps with fees, refunds, sales tax, and payouts
- Avoids messy transaction imports

---

## Best simple setup for many small businesses

For a typical small business, I’d recommend:

**Option A: Simple service business**
- QuickBooks Online or FreshBooks
- Separate business bank account
- Receipt capture app
- CPA/bookkeeper access

**Option B: Growing business**
- QuickBooks Online or Xero
- Gusto for payroll
- Expensify or Dext for receipts
- Monthly bookkeeping review

**Option C: Ecommerce business**
- Xero or QuickBooks Online
- A2X for sales channel syncing
- TaxJar or Avalara if sales tax is complex

---

## Features to look for

Choose software that can handle:

- Bank and credit card syncing
- Income and expense categorization
- Invoicing and payment collection
- Receipt capture
- Mileage tracking
- Payroll integration
- Sales tax tracking, if applicable
- 1099 contractor reporting
- Profit and loss statements
- Balance sheet and cash flow reports
- Accountant access
- Data export for tax filing

---

## My top recommendation

If you want the safest choice: **QuickBooks Online**.

If you want a cleaner interface and multiple-user collaboration: **Xero**.

If you are a freelancer or consultant: **FreshBooks**.

If you are just starting and need free/low-cost basics: **Wave**.

For tax readiness, the most important thing is not just the software—it’s keeping records updated monthly, separating business and personal accounts, saving receipts, and reconciling bank accounts regularly.


Best accounting software for a local coffee shop or restaurant

For a local coffee shop or small restaurant, the best accounting software is usually:

## Best overall: QuickBooks Online
**Best for:** Most independent coffee shops and restaurants
**Why it’s good:**
- Easy bookkeeping, invoicing, bill tracking, and financial reports
- Integrates with POS systems like **Square**, **Toast**, and **Shopify**
- Works well with payroll providers
- Easy for accountants to use
- Good sales tax and expense tracking

**Recommended plan:** QuickBooks Online Plus if you want class/location tracking, inventory, or more detailed reporting.

## Best if you use Square POS: Square + QuickBooks Online
**Best for:** Coffee shops using Square Register or Square POS
Square handles payments, daily sales, tips, and basic reporting, while QuickBooks handles accounting.

## Best if you use Toast POS: Toast + QuickBooks Online
**Best for:** Restaurants, cafés, and coffee shops with kitchen operations
Toast is strong for restaurant operations, staff, tips, menus, and sales reporting. Pair it with QuickBooks for accounting.

## Best budget option: Wave
**Best for:** Very small shops with simple books
Wave is cheaper and simple, but it’s not as strong for restaurants, inventory, payroll, or POS integrations.

## Best for growing restaurants: Restaurant365
**Best for:** Multi-location or more complex restaurants
Restaurant365 is more advanced and restaurant-specific, with inventory, food costs, scheduling, and accounting. It’s usually overkill for a small single-location coffee shop.

### My recommendation
For most local coffee shops or small restaurants:

**Use QuickBooks Online + your POS system, such as Square or Toast.**

If you are a small coffee shop with simple operations, choose **Square POS + QuickBooks Online**.
If you are a full-service restaurant or need kitchen/tip management, choose **Toast + QuickBooks Online**.


We need software to reconcile bank accounts and handle client invoicing. Recommendations?

Here are solid options for bank reconciliation + client invoicing:

### Best all-around options

**1. QuickBooks Online**
- Good for small to mid-sized businesses
- Strong bank feeds and reconciliation
- Client invoicing, recurring invoices, online payments
- Good accountant support and integrations
- Best if you want the most common, widely supported option

**2. Xero**
- Excellent bank reconciliation workflow
- Clean invoicing and payment tracking
- Strong integrations with payroll, inventory, CRM, etc.
- Good for growing businesses and teams
- Often preferred by accountants outside the U.S., but strong globally

**3. FreshBooks**
- Very user-friendly invoicing
- Great for freelancers, consultants, and service businesses
- Time tracking, expenses, online payments
- Bank reconciliation is available but not as accounting-heavy as QuickBooks/Xero

**4. Zoho Books**
- Good value for money
- Bank reconciliation, invoicing, automation, approvals
- Works well if you already use Zoho CRM or Zoho apps
- Good for small businesses wanting a lower-cost platform

**5. Wave**
- Free or low-cost accounting features
- Invoicing and basic bank reconciliation
- Best for very small businesses or startups
- Less robust than QuickBooks/Xero for more complex needs

### If you are larger or need advanced finance controls

**6. Sage Intacct**
- Stronger for multi-entity, approvals, reporting, and controls
- Better for mid-market companies
- More expensive and implementation-heavy

**7. NetSuite**
- Full ERP with accounting, invoicing, inventory, CRM options
- Best for scaling companies with more complex operations
- Higher cost and setup effort

### My quick recommendation

- **Small business:** QuickBooks Online or Xero
- **Freelancer/service provider:** FreshBooks
- **Budget-conscious small business:** Zoho Books or Wave
- **Growing company needing advanced reporting/controls:** Sage Intacct or NetSuite

If you want one safe default, I’d recommend **QuickBooks Online** for most small businesses, or **Xero** if you want a cleaner reconciliation experience and strong integrations.


What is the best cloud-based accounting software for a growing SMB?

For most growing SMBs, **QuickBooks Online** is usually the best all-around cloud accounting software.

It’s strong for:

- **Bookkeeping and financial reporting**
- **Invoicing, expenses, bank feeds, and payroll**
- **Inventory and project tracking on higher plans**
- **Integrations with banks, ecommerce, POS, and business apps**
- **Easy access to accountants and bookkeepers**

That said, the “best” choice depends on your needs:

| Software | Best for |
|---|---|
| **QuickBooks Online** | Most SMBs that want broad features and accountant support |
| **Xero** | Growing businesses that want strong collaboration, clean interface, and good integrations |
| **FreshBooks** | Service businesses, freelancers, and agencies focused on invoicing/time tracking |
| **Zoho Books** | Cost-conscious SMBs already using Zoho apps |
| **Sage Intacct** | More complex SMBs needing stronger financial controls and reporting |
| **NetSuite** | Fast-growing companies outgrowing SMB accounting and needing ERP-level tools |

**Recommendation:**
If you’re a typical growing SMB, start with **QuickBooks Online Plus or Advanced**. If you expect multi-entity accounting, complex revenue recognition, or ERP needs soon, consider **Sage Intacct** or **NetSuite** instead.


Best accounting software for small construction subcontractors

For most **small construction subcontractors**, the best accounting software is usually one of these:

## Best overall: **QuickBooks Online Plus or Advanced**
**Best for:** Small subs who need affordable accounting, job costing, invoicing, payroll, and integrations.

**Pros**
- Easy to use and widely supported by bookkeepers/CPAs
- Good job/project tracking
- Works with apps like Knowify, Buildertrend, Jobber, Housecall Pro, and Gusto
- Strong invoicing, expense tracking, bank feeds, and reporting

**Cons**
- Construction features like retainage, certified payroll, and WIP reporting may require add-ons or workarounds

**Best fit:** Electricians, plumbers, HVAC, drywall, roofing, flooring, painting, landscaping, and other small trade contractors.

---

## Best construction-specific option: **Knowify**
**Best for:** Subcontractors who want job costing, estimates, change orders, time tracking, and invoicing in one place.

**Pros**
- Built specifically for construction trades
- Strong estimating and job costing
- Handles change orders and progress billing
- Integrates with QuickBooks

**Cons**
- Usually best paired with QuickBooks for full accounting

**Best fit:** Subs managing multiple jobs, crews, and change orders.

---

## Best for growing contractors: **Sage 100 Contractor**
**Best for:** Larger or growing subcontractors needing deeper construction accounting.

**Pros**
- Strong job costing, payroll, WIP, retainage, and project management
- More construction-specific than QuickBooks

**Cons**
- More expensive
- More complex to set up and use

**Best fit:** Subs with office staff, larger crews, and more complex job reporting needs.

---

## Best simple option: **FreshBooks**
**Best for:** Very small subcontractors or owner-operators.

**Pros**
- Very easy invoicing and expense tracking
- Good for service-based trades
- Simple time tracking

**Cons**
- Limited construction accounting and job costing

**Best fit:** Solo tradespeople or small crews who mainly need invoices, payments, and expense tracking.

---

## Best recommendation
If you’re a small subcontractor, I’d usually recommend:

**QuickBooks Online Plus + a construction app like Knowify**
This gives you solid accounting plus construction-specific tools without jumping into expensive enterprise software.

Before choosing, look for these features:
- Job costing by project
- Estimates and change orders
- Progress billing
- Retainage tracking
- Time tracking by job
- Payroll integration
- WIP/job profitability reports
- QuickBooks or CPA compatibility


Recommend accounting software that handles double-entry bookkeeping easily for small businesses.

Here are solid small-business accounting software options that support double-entry bookkeeping while staying relatively easy to use:

| Software | Best for | Notes |
|---|---|---|
| **QuickBooks Online** | Most small businesses | Very popular, strong double-entry accounting, invoicing, bank feeds, payroll/inventory add-ons, many accountant integrations. |
| **Xero** | Businesses wanting clean workflows | Excellent bank reconciliation, double-entry accounting, good reporting, strong app marketplace. |
| **Zoho Books** | Budget-conscious businesses | Affordable, full double-entry system, good automation, invoicing, expenses, inventory, and tax features. |
| **Wave** | Very small businesses/freelancers | Free core accounting in some regions, double-entry bookkeeping, invoicing and expense tracking. Limited advanced features. |
| **FreshBooks** | Service businesses and freelancers | Very easy invoicing and time tracking; supports proper accounting, though less robust than QuickBooks/Xero for complex needs. |
| **Sage Accounting** | Businesses wanting traditional accounting feel | Reliable double-entry accounting, good compliance features, suitable for growing businesses. |

**Best overall recommendation:**
- Choose **QuickBooks Online** if you want the safest all-around choice with strong accountant support.
- Choose **Xero** if you prefer a cleaner interface and strong bank reconciliation.
- Choose **Zoho Books** if price matters and you still want full accounting features.

If you tell me your country, business type, number of users, and whether you need payroll or inventory, I can narrow this down to the best option.


What software should I use to do books for a small boutique agency?

For a small boutique agency, I’d recommend:

### Best overall: **QuickBooks Online**
Use this if you want reliable bookkeeping, invoicing, expense tracking, bank feeds, reports, and easy accountant access. It’s the safest choice because most bookkeepers and CPAs know it well.

### Best alternative: **Xero**
Great if you want a cleaner interface and strong bank reconciliation. Also good for agencies, especially if you work with an accountant who prefers it.

### Best for simple client invoicing/time tracking: **FreshBooks**
Good if your agency mainly needs invoices, time tracking, expenses, and basic reports. Less robust than QuickBooks/Xero for full bookkeeping.

### Best free/low-cost option: **Wave**
Good for very small agencies with simple needs, but it’s more limited as you grow.

### My practical recommendation
Use **QuickBooks Online Plus** or **Xero**, and pair it with:
- **Gusto** if you have payroll
- **Harvest** or **Toggl** for time tracking
- **Stripe** or **Square** for payments
- **Dext** or **Hubdoc** for receipt capture

If you plan to hire a bookkeeper or CPA, ask them whether they prefer **QuickBooks Online or Xero**—that may be the deciding factor.


Which small business accounting software is easiest to learn?

For most small business owners, **FreshBooks** is usually the easiest accounting software to learn, especially if you mainly need invoicing, expense tracking, and simple reports.

A quick breakdown:

- **FreshBooks** — Easiest for beginners, freelancers, and service businesses.
- **Wave** — Very simple and low-cost/free, good for very small businesses.
- **QuickBooks Online** — Most widely used, powerful, but has a steeper learning curve.
- **Xero** — Clean interface and good features, but slightly less beginner-friendly than FreshBooks.
- **Zoho Books** — Affordable and capable, but can feel more complex at first.

**Best overall for ease of learning:** FreshBooks
**Best if you want the most common industry standard:** QuickBooks Online
**Best free/simple option:** Wave


Best user-friendly accounting software for a micro-business

For a micro-business, the best user-friendly accounting software usually depends on whether you need invoicing, expense tracking, payroll, or tax support.

### Best overall options

**1. QuickBooks Online — Best all-around**
- Good for invoicing, expenses, bank feeds, reports, taxes, and accountant access
- Widely used, so accountants are familiar with it
- Best if you expect the business to grow

**2. Wave — Best free/low-cost option**
- Free accounting and invoicing features in many cases
- Simple and beginner-friendly
- Good for freelancers, solo businesses, and very small operations
- Paid add-ons may apply for payments or payroll

**3. Xero — Best for clean design and scalability**
- Easy to use with strong bank reconciliation
- Good for businesses that want a modern interface
- Works well if you have an accountant familiar with Xero

**4. FreshBooks — Best for service businesses**
- Excellent for invoicing, time tracking, and client billing
- Very user-friendly
- Best for consultants, freelancers, creatives, and small agencies

**5. Zoho Books — Best value**
- Affordable with strong features
- Good invoicing, expenses, automation, and reporting
- Works especially well if you already use other Zoho apps

### My recommendation

For most micro-businesses:

- **Choose Wave** if you want something simple and inexpensive.
- **Choose QuickBooks Online** if you want the safest, most accountant-friendly option.
- **Choose FreshBooks** if you mainly bill clients for services.
- **Choose Zoho Books** if you want strong features at a lower price.

If you’re just starting and want simplicity, I’d start with **Wave or FreshBooks**. If you already have regular income, expenses, and tax needs, go with **QuickBooks Online**.


We need a basic accounting package for a 2-person partnership. What should we buy?

For a 2-person partnership, I’d shortlist these:

1. **QuickBooks Online** — best all-around choice if you want something widely supported by accountants/bookkeepers. Good for bank feeds, invoicing, expenses, reports, and tax prep.
2. **Xero** — excellent alternative, often cleaner/easier to use, strong bank reconciliation, good accountant access.
3. **Zoho Books** — good value if you want lower cost and solid features.
4. **Wave** — good if you need very basic accounting and want a free/low-cost option, though less robust.

**My default recommendation:**
Buy **QuickBooks Online Simple Start or Essentials** if you’re in the U.S./Canada and want broad accountant compatibility. If you prefer a cleaner interface and your accountant supports it, choose **Xero Starter or Standard**.

Make sure whichever package you choose can handle:

- Separate business bank account feeds
- Income and expense tracking
- Invoicing, if needed
- Partner capital/equity accounts
- Basic profit & loss and balance sheet reports
- Accountant/bookkeeper access
- Export for tax preparation

Before buying, ask your accountant which platform they prefer. That often saves more time and money than choosing the cheapest software.


What accounting software offers the best value for a bootstrapped startup?

For a bootstrapped startup, the best value is usually:

### Best overall value: **Zoho Books**
Choose **Zoho Books** if you want low-cost accounting that can scale. It has invoicing, expenses, bank feeds, reports, recurring invoices, sales tax, and integrations. It also has a free tier in some regions/revenue bands, making it very startup-friendly.

### Best free/simple option: **Wave**
Choose **Wave** if you are very early-stage, have simple bookkeeping, and mainly need invoicing, expense tracking, and basic reports. It is often the cheapest practical option, though it is less robust than Zoho, Xero, or QuickBooks.

### Best if you want accountant compatibility: **QuickBooks Online**
Choose **QuickBooks Online** if you expect to work with an accountant, need payroll, want strong integrations, or plan to raise funding. It costs more, but many bookkeepers and CPAs prefer it.

### Best for international startups: **Xero**
Choose **Xero** if you operate internationally, use multiple currencies, or want a clean cloud accounting system with strong integrations.

## My recommendation
If you’re bootstrapped and cost-sensitive:

- **Pre-revenue or very simple business:** Use **Wave**
- **Growing startup with real operations:** Use **Zoho Books**
- **Need CPA/bookkeeper support or investor-ready books:** Use **QuickBooks Online**

For most bootstrapped startups, **Zoho Books offers the best balance of price, features, and scalability**.


Best accounting software for small creative freelancers and designers

For small creative freelancers and designers, the best accounting software depends on how much you need beyond basic invoicing.

## Best overall: **FreshBooks**
**Best for:** Designers, photographers, illustrators, marketers, and other service-based creatives.

**Why it’s good:**
- Easy invoicing and online payments
- Time tracking for billable projects
- Expense tracking and receipt capture
- Client/project organization
- Estimates and proposals
- Simple reports for taxes

**Best if you want:** An easy, freelancer-friendly tool that feels less “accounting-heavy.”

---

## Best budget option: **Wave**
**Best for:** Freelancers who want free or low-cost accounting.

**Why it’s good:**
- Free invoicing and accounting features
- Expense and income tracking
- Basic reports
- Simple to use

**Limitations:**
- Less robust project/time tracking
- Payroll and payment processing cost extra
- Not as polished for client/project workflows

**Best if you want:** Free basic bookkeeping and invoicing.

---

## Best for growing freelancers: **QuickBooks Online**
**Best for:** Freelancers who expect to scale, hire contractors, or work with an accountant.

**Why it’s good:**
- Strong bookkeeping and tax reporting
- Good bank syncing and categorization
- Widely used by accountants
- Handles more complex business needs

**Limitations:**
- More expensive
- Less creative-freelancer-friendly than FreshBooks
- Can feel overly complex for solo creatives

**Best if you want:** A serious accounting platform that can grow with your business.

---

## Best simple invoicing tool: **Zoho Books**
**Best for:** Freelancers who want affordable invoicing plus solid accounting.

**Why it’s good:**
- Clean invoicing
- Expenses, reports, bank feeds
- Good automation
- Affordable compared with some competitors

**Best if you want:** A balance between price and features.

---

## Best creative business suite: **Bonsai**
**Best for:** Freelancers who need contracts, proposals, time tracking, and invoicing.

**Why it’s good:**
- Proposals and contracts
- Client CRM
- Time tracking
- Invoices and payments
- Good for project-based creative work

**Limitations:**
- Not as full-featured for accounting as QuickBooks or FreshBooks

**Best if you want:** Client management plus invoicing, not just bookkeeping.

---

# My recommendation

If you’re a solo creative freelancer or designer, choose:

1. **FreshBooks** — best all-around for creative freelancers
2. **Wave** — best free/simple option
3. **QuickBooks Online** — best if you have an accountant or more complex finances
4. **Bonsai** — best if you need contracts/proposals as much as accounting

For most small creative freelancers, **FreshBooks is the best starting point** because it handles invoicing, expenses, time tracking, and taxes without being overly complicated.


What software should a small craft business use to track revenue and expenses?

For a small craft business, these are good options:

- **Wave** — Best free/low-cost option for simple revenue and expense tracking. Good if you’re just starting out.
- **QuickBooks Online** — Best overall if you want strong bookkeeping, tax reports, receipt tracking, mileage, and accountant access.
- **Xero** — Good QuickBooks alternative with solid bank feeds and reporting.
- **FreshBooks** — Good if you send invoices for custom orders or wholesale work.
- **Zoho Books** — Affordable option with good features for small businesses.
- **A spreadsheet** — Fine if your business is very small and you only need basic tracking.

If you sell through **Etsy, Shopify, Square, or PayPal**, choose software that connects to those platforms. For most craft businesses, I’d recommend:

**Best starter choice:** Wave
**Best long-term choice:** QuickBooks Online
**Best if you invoice customers:** FreshBooks

Also consider tracking:
- Sales revenue by platform
- Materials and supplies
- Shipping costs
- Marketplace fees
- Booth/vendor fees
- Packaging
- Mileage
- Home studio expenses, if applicable


Recommend an intuitive accounting system for a small consulting firm.

For a small consulting firm, I’d recommend **QuickBooks Online** as the best all-around intuitive accounting system.

Why it fits well:
- Easy invoicing and payment tracking
- Good expense categorization
- Bank and credit card syncing
- Time tracking and billable expense support
- Strong reporting for profit/loss, cash flow, and taxes
- Widely supported by bookkeepers and accountants
- Scales well as the firm grows

Best plan to consider:
- **QuickBooks Online Essentials** if you need multiple users, bill management, and time tracking
- **QuickBooks Online Plus** if you want project profitability tracking

Good alternatives:
- **Xero** — clean interface, strong accounting features, good if you work with an accountant who prefers it
- **FreshBooks** — very intuitive for invoicing, time tracking, and client-based consulting work, though less robust for full accounting
- **Wave** — low-cost/free option for very small firms with simple needs

My practical recommendation:
If you want the best balance of ease, features, and accountant compatibility, choose **QuickBooks Online**. If your firm mainly needs simple invoicing and time tracking, consider **FreshBooks**.


Which accounting software is best for multi-currency small business transactions?

For most small businesses, **Xero** is often the best choice for **multi-currency transactions**.

### Best overall: **Xero**
Good for businesses that send invoices, receive payments, pay bills, and reconcile bank accounts in multiple currencies.

**Why it’s strong:**
- Automatic exchange rates
- Multi-currency invoices and bills
- Tracks realized and unrealized foreign exchange gains/losses
- Good bank reconciliation
- Easy to use for small businesses
- Strong accountant support in many countries

### Best alternatives

| Software | Best for |
|---|---|
| **QuickBooks Online** | Businesses that want broad accountant support, payroll, and tax integrations |
| **Zoho Books** | Budget-conscious small businesses needing solid multi-currency features |
| **FreshBooks** | Freelancers/service businesses invoicing clients internationally |
| **NetSuite** | Larger or scaling businesses with multi-entity, inventory, or complex reporting needs |

### My recommendation
If you’re a typical small business doing regular international invoicing or payments, choose **Xero**.
If your accountant already works in QuickBooks, choose **QuickBooks Online** instead.


Best accounting software with automated bank feeds for small business

Here are some of the best small-business accounting software options with automated bank feeds:

| Software | Best for | Key strengths |
|---|---|---|
| **QuickBooks Online** | Most small businesses | Strong bank feeds, invoicing, expenses, payroll integrations, accountant support |
| **Xero** | Growing businesses and multi-user teams | Excellent bank reconciliation, unlimited users on many plans, strong reporting |
| **FreshBooks** | Freelancers and service businesses | Easy invoicing, time tracking, expense imports, simple interface |
| **Zoho Books** | Budget-conscious small businesses | Good automation, bank feeds, invoicing, inventory, strong value |
| **Wave** | Very small businesses or startups | Free accounting features, bank connections, invoicing; paid add-ons for payments/payroll |
| **Sage Accounting** | Traditional small businesses | Solid accounting tools, bank feeds, VAT/tax support in many regions |

### Best overall pick
**QuickBooks Online** is usually the safest choice for most small businesses because it has reliable bank feeds, strong bookkeeping features, broad accountant familiarity, and lots of integrations.

### Best alternative
**Xero** is excellent if you want clean bank reconciliation, multiple users, and strong automation.

### Best low-cost option
**Zoho Books** offers very good features for the price, especially if you already use Zoho apps.

Before choosing, check that your specific bank is supported for automated feeds in your country.


What is the best software for a small business owner who wants to do their own bookkeeping?

For most small business owners doing their own bookkeeping, **QuickBooks Online** is usually the best overall choice.

It’s popular because it offers:

- Easy bank and credit card syncing
- Invoicing and expense tracking
- Sales tax tracking
- Payroll add-ons
- Reports like profit & loss and balance sheet
- Wide accountant/bookkeeper support

Other good options:

- **Xero** — great alternative to QuickBooks, especially if you want a clean interface and strong accounting features.
- **Wave** — best free option for very small businesses or freelancers.
- **FreshBooks** — good for service businesses that mainly need invoicing, time tracking, and expense tracking.
- **Zoho Books** — affordable and good if you already use other Zoho tools.

**Best overall recommendation:**
Use **QuickBooks Online Simple Start or Essentials** if you want something reliable, widely supported, and scalable as your business grows.


Top cloud accounting platforms for micro-enterprises

Here are top cloud accounting platforms well-suited for micro-enterprises, freelancers, and very small businesses:

| Platform | Best for | Key strengths |
|---|---|---|
| **QuickBooks Online** | Overall small business accounting | Strong invoicing, expenses, bank feeds, reporting, accountant support |
| **Xero** | Growing micro-businesses | Clean interface, unlimited users on many plans, strong integrations |
| **FreshBooks** | Freelancers and service businesses | Excellent invoicing, time tracking, client billing, simple UX |
| **Wave** | Very small businesses on a budget | Free accounting and invoicing in some markets, easy to use |
| **Zoho Books** | Cost-conscious businesses | Affordable, feature-rich, good automation, integrates with Zoho apps |
| **FreeAgent** | UK freelancers and contractors | Great for UK tax, VAT, self-assessment, project tracking |
| **Sage Accounting** | Traditional small businesses | Good compliance features, solid reporting, trusted brand |
| **Kashoo** | Simple bookkeeping needs | Very easy setup, basic accounting, good for non-accountants |
| **Manager.io Cloud** | Basic global accounting | Low-cost, straightforward bookkeeping, desktop/cloud options |
| **ZipBooks** | Simple invoicing and bookkeeping | Easy invoicing, basic reporting, freelancer-friendly |

### Best picks by use case

- **Best overall:** QuickBooks Online
- **Best for freelancers:** FreshBooks
- **Best budget option:** Wave or Zoho Books
- **Best for UK micro-businesses:** FreeAgent
- **Best for multi-user collaboration:** Xero
- **Best for Zoho ecosystem users:** Zoho Books

### What to look for

For a micro-enterprise, prioritize:

- Easy invoicing and payment links
- Bank transaction imports
- Expense tracking and receipt capture
- Basic financial reports
- Tax/VAT/GST support for your country
- Mobile app
- Affordable pricing
- Access for an accountant or bookkeeper

If you are just starting and need something inexpensive, **Wave or Zoho Books** are strong choices. If you want a scalable, accountant-friendly option, choose **QuickBooks Online or Xero**.


We are starting a small LLC and need software to keep our accounts organized. What should we get?

For most small LLCs, **QuickBooks Online** is the safest default choice. It’s widely used by bookkeepers/CPAs, connects to banks and credit cards, handles invoicing, expense tracking, reports, and can add payroll.

### Best options by situation

- **Best overall:** **QuickBooks Online**
  - Good for most LLCs
  - Easy to find accountants who support it
  - Strong tax/reporting features
  - Add-ons for payroll, time tracking, receipts

- **Good alternative:** **Xero**
  - Clean interface
  - Strong bank reconciliation
  - Often preferred by some service businesses and accountants

- **Budget/free option:** **Wave**
  - Good for very small/simple businesses
  - Free accounting basics
  - Less robust as you grow

- **Good for freelancers/service businesses:** **FreshBooks**
  - Great invoicing and time tracking
  - Simpler than QuickBooks
  - Not as strong for full accounting complexity

- **Low-cost business suite:** **Zoho Books**
  - Affordable
  - Good if you already use Zoho apps
  - Solid features for the price

### My practical recommendation

If you expect to hire a bookkeeper/CPA, have payroll, track expenses, invoice clients, or want room to grow:
**Get QuickBooks Online Simple Start or Essentials.**

If your LLC is very simple with just a few transactions per month and you want to save money:
**Start with Wave or Zoho Books.**

### Also do these from the start

1. Open a separate business bank account and credit card.
2. Connect them to the software.
3. Track all income and expenses monthly.
4. Save receipts digitally.
5. Ask a CPA/bookkeeper to help set up your chart of accounts correctly.

For a typical new LLC, I’d choose **QuickBooks Online** unless cost is the main concern.


Best accounting tool for a small professional services firm

For a small professional services firm, the best all-around accounting tool is usually **QuickBooks Online**.

### Best overall: **QuickBooks Online**
Best if you want:
- Strong bookkeeping and reporting
- Invoicing and payment collection
- Expense tracking
- Payroll add-ons
- Accountant/bookkeeper familiarity
- Integrations with banks, CRMs, time-tracking, and tax tools

It’s a safe choice if you expect to grow or work with an outside accountant.

### Best alternatives

**Xero**
Best for firms that want a clean interface, strong bank reconciliation, and good collaboration with accountants. Often preferred outside the U.S.

**FreshBooks**
Best for consultants, agencies, and freelancers who care most about:
- Time tracking
- Project-based invoicing
- Simple client billing
Less robust than QuickBooks for deeper accounting.

**Zoho Books**
Best value if you already use Zoho CRM or want lower-cost accounting with solid invoicing, automation, and reporting.

**Wave**
Best for very small firms or solo consultants wanting a free/low-cost option. Good for basics, but less scalable.

### My recommendation
If you are a small professional services firm with employees, contractors, recurring clients, or plans to grow: **QuickBooks Online Plus** is probably the best choice.

If your business is mostly time-based client billing and you want simplicity: **FreshBooks** may feel easier.


What software do bookkeepers recommend for small business client accounting?

Bookkeepers commonly recommend these accounting software options for small business clients:

1. **QuickBooks Online**
   - Most widely used by bookkeepers and accountants
   - Good for invoicing, bank feeds, payroll, sales tax, reports, and integrations
   - Best for many general small businesses

2. **Xero**
   - Strong cloud accounting platform
   - Good bank reconciliation, multi-user access, and clean interface
   - Popular with service businesses and growing companies

3. **FreshBooks**
   - Good for freelancers, consultants, and service-based businesses
   - Strong invoicing, time tracking, and payment features
   - Less robust than QuickBooks or Xero for complex accounting

4. **Wave**
   - Free or low-cost accounting option
   - Useful for very small businesses, freelancers, or startups
   - Limited features compared with paid platforms

5. **Zoho Books**
   - Affordable and feature-rich
   - Works well if the business already uses other Zoho apps
   - Good for invoicing, expenses, automation, and reporting

6. **Sage Accounting**
   - Often used by more established small businesses
   - Good accounting controls and reporting
   - Less common among very small businesses than QuickBooks or Xero

7. **Aplos**
   - Often recommended for nonprofits, churches, and associations
   - Includes fund accounting and donation tracking

For most small business clients, bookkeepers typically recommend **QuickBooks Online** or **Xero** because they are cloud-based, widely supported, and integrate well with payroll, payment processing, inventory, and tax software.


Recommend simple financial management software for a small non-profit or business.

Here are simple financial management options for a small nonprofit or business:

### Best overall for small businesses
**QuickBooks Online**
- Easy to use and widely supported by bookkeepers/accountants
- Handles invoicing, expenses, bank feeds, reports, payroll add-ons
- Good if you expect to grow

### Best low-cost/free option
**Wave**
- Free accounting and invoicing features
- Good for very small organizations with basic needs
- Paid options for payments and payroll

### Best for nonprofits
**Aplos**
- Designed specifically for nonprofits and churches
- Supports fund accounting, donations, donor tracking, and reports
- Better fit than general business software if you manage restricted funds

### Best simple invoicing-focused option
**FreshBooks**
- Very user-friendly
- Great for service businesses, contractors, or consultants
- Strong invoicing, time tracking, and expense tools

### Best budget-friendly business accounting
**Zoho Books**
- Affordable and feature-rich
- Good invoicing, expense tracking, automation, and reporting
- Works well if you already use Zoho tools

### Best for accountants/bookkeeper collaboration
**Xero**
- Clean interface and good reporting
- Strong bank reconciliation and integrations
- Popular with accounting firms

### Best free desktop option
**GnuCash**
- Free and open-source
- Good for basic bookkeeping
- Less user-friendly and fewer cloud features

**My quick recommendation:**
- Small nonprofit: **Aplos**
- Small business wanting simple accounting: **QuickBooks Online** or **Wave**
- Very small budget: **Wave**
- Service-based business: **FreshBooks**


Best software for small business revenue and expense tracking

Here are the best software options for small business revenue and expense tracking:

### Best overall: **QuickBooks Online**
- Great for revenue, expenses, invoicing, payroll, taxes, and reports
- Strong bank syncing and accountant access
- Best for most small businesses

### Best for simplicity: **FreshBooks**
- Easy to use
- Good for freelancers, consultants, and service businesses
- Strong invoicing and expense tracking

### Best budget option: **Wave**
- Free accounting and invoicing tools
- Good for very small businesses or startups
- Paid add-ons for payments and payroll

### Best for growing businesses: **Xero**
- Excellent reporting and integrations
- Good for businesses with multiple users
- Strong bank reconciliation tools

### Best for all-in-one business tools: **Zoho Books**
- Affordable
- Works well with Zoho CRM, inventory, and other Zoho apps
- Good for small businesses that want automation

### Best for spreadsheet users: **Google Sheets or Excel**
- Low cost and flexible
- Best if your business is simple
- Requires more manual work and less automation

**My recommendation:**
For most small businesses, choose **QuickBooks Online**. If you want a free or low-cost option, start with **Wave**. If you’re a freelancer or consultant, consider **FreshBooks**.


What is the best accounting software for a small business?

The "best" accounting software depends on your specific business needs, but here are the top options based on common use cases:

*   **Best Overall:** **QuickBooks Online**
    * *Why:* Industry standard, scales easily, offers robust features (inventory, payroll, advanced reporting), and integrates with almost all business tools and accountants.
*   **Best for Growing Businesses:** **Xero**
    * *Why:* Excellent cloud-based software that allows unlimited users on all plans, making it great for collaboration as your team expands.
*   **Best for Service Businesses & Freelancers:** **FreshBooks**
    * *Why:* Highly intuitive, excellent for time-tracking, project management, and sending professional invoices.
*   **Best Free Option:** **Wave Accounting**
    * *Why:* Completely free for income/expense tracking and invoicing, making it ideal for micro-businesses, sole proprietors, and side hustles with tight budgets.

**Recommendation:**
* Choose **QuickBooks** if you want the safest, most comprehensive option that your CPA will prefer.
* Choose **Wave** if you need simple, free tools to get started.
* Choose **FreshBooks** if you bill clients by the hour or by project.


Best small business bookkeeping software

Here are the best small business bookkeeping software options based on specific needs:

*   **QuickBooks Online (Best Overall):** The industry standard, ideal for most businesses. Offers robust features, scales well, and is preferred by most accountants.
*   **Xero (Best for Business Growth):** Excellent QuickBooks alternative with a user-friendly interface, unlimited users on all plans, and strong inventory tracking.
*   **FreshBooks (Best for Service Businesses & Freelancers):** Top choice for self-employed professionals needing easy invoicing, client management, and time tracking.
*   **Wave (Best Free Option):** Ideal for sole proprietors and micro-businesses on a tight budget needing basic income, expense, and invoice tracking at no cost.
*   **Zoho Books (Best Value & Automation):** Excellent feature-rich, affordable option, especially if you already use other Zoho software.

**Summary Recommendation:** Choose **QuickBooks Online** if you want the standard software your accountant likely prefers, **Xero** if you have multiple team members, or **Wave** if you need a completely free basic tool.


We're a 10 person startup looking for accounting software to manage income and expenses.

For a 10-person startup, here are the best accounting software options based on your needs:

1. **QuickBooks Online** *(Best Overall)*
   * **Why:** Industry standard, highly scalable, and integrates seamlessly with almost all banks, tools, and payroll systems (crucial for 10 employees).
   * **Best for:** Companies planning fast growth and working with external accountants.

2. **Xero** *(Best for Collaboration)*
   * **Why:** User-friendly interface with strong expense tracking and inventory tools. Unlike QuickBooks, it offers unlimited user seats on all main plans.
   * **Best for:** Teams where multiple people need access to the software without extra per-user fees.

3. **FreshBooks** *(Best for Service-Based Startups)*
   * **Why:** Excellent for managing client invoices, billable time, and basic expense tracking. Very simple to use.
   * **Best for:** Agencies, consultancies, or service businesses.

4. **Wave** *(Best for Tight Budgets)*
   * **Why:** Completely free software for basic income and expense tracking and invoicing.
   * **Best for:** Bootstrapped startups with very straightforward financial needs (lacks advanced reporting and scalable payroll).

### Recommendation:
Start with **QuickBooks Online** for standard scaling and easy accountant handoff, or **Xero** if you need multiple team members logging in regularly.


Recommend accounting software for a small business with under 20 employees.

Here are the top accounting software recommendations for a small business with under 20 employees, depending on your specific needs:

*   **QuickBooks Online (Best Overall):** The industry standard. It offers robust financial reporting, easy scalability, seamless bank integration, and is the software most accountants prefer.
*   **Xero (Best Value for Multiple Users):** Includes **unlimited user access** on all plans without charging per-seat fees, making it very cost-effective if multiple employees need access. It features strong automation and a clean interface.
*   **FreshBooks (Best for Service-Based Businesses):** Ideal if your business relies heavily on invoicing, time-tracking, and project-based billing. Very user-friendly, though less tailored for businesses with heavy physical inventory.

**Payroll Tip:** Since you have up to 20 employees, pair your chosen software with **Gusto** for seamless payroll, employee benefits, and HR management (it integrates directly with QuickBooks and Xero).


affordable accounting software for small business

Here are the best affordable accounting software options for small businesses, categorized by price and best use case:

1. **Wave Accounting**
   * **Price:** **Free** (charges only for payment processing and payroll).
   * **Best for:** Solopreneurs, freelancers, and micro-businesses on a zero-dollar budget needing basic invoicing and expense tracking.

2. **Zoho Books**
   * **Price:** **Free** (for businesses with under $50k annual revenue); paid plans start at **$15/month**.
   * **Best for:** Growing small businesses that want powerful features, automation, and a generous free tier.

3. **Xero**
   * **Price:** Starts at **$15/month** (Early plan).
   * **Best for:** Micro-businesses needing simple, scalable accounting and modern bank reconciliation tools.

4. **FreshBooks**
   * **Price:** Starts at **$17/month** (frequent initial discounts available).
   * **Best for:** Service-based businesses, agencies, and consultants who prioritize invoicing, client management, and time tracking.

5. **QuickBooks Online**
   * **Price:** Starts at **$30/month** (Simple Start plan, often 50% off for the first 3 months).
   * **Best for:** Businesses looking for the industry standard that almost every accountant works with, though it is slightly pricier long-term.

**Quick Recommendation:**
* Go with **Wave** if you want completely free software.
* Go with **Zoho Books** or **Xero** for the best balance of low cost and robust features.


What accounting software do small businesses actually use?

Small businesses primarily use a handful of market-leading platforms depending on their size, industry, and budget:

**1. The Market Leaders (Most Common)**
* **QuickBooks Online:** The undisputed industry standard in North America, holding roughly 70%–80% of the small business market. Most bookkeepers and CPAs prefer it because they already know how to use it.
* **Xero:** The main alternative to QuickBooks, widely used globally (especially in Australia, New Zealand, and the UK) and rapidly growing in the US. It is favored for its clean user interface and unlimited user permissions on standard plans.

**2. Best for Freelancers & Solopreneurs**
* **FreshBooks:** Popular with service-based businesses, agencies, and consultants who prioritize invoicing, time tracking, and client management over complex accounting.
* **Wave:** A widely used, truly free accounting platform for micro-businesses, freelancers, and side hustles that only need basic income/expense tracking and simple invoicing.

**3. Best for Budget-Conscious Teams & Specific Needs**
* **Zoho Books:** Popular among small businesses that want an affordable, feature-rich tool or are already using other applications in the Zoho software ecosystem.
* **Sage (Sage 50 or Sage Intacct):** Common for slightly larger small businesses, particularly in inventory-heavy industries like manufacturing, construction, and wholesale distribution.


What accounting software should I use for a single-member LLC?

The best accounting software for a single-member LLC depends on your budget and business complexity:

* **Wave Accounting (Best Free Option):** Ideal if you have a tight budget and need simple income/expense tracking, invoicing, and basic reporting for tax time. It is 100% free for accounting features.
* **QuickBooks Online - Simple Start (Best Industry Standard):** Best if you plan to grow, hire an accountant (most CPAs prefer QuickBooks), or need detailed financial reporting.
* **FreshBooks (Best for Service Businesses):** Great if your business relies heavily on invoicing, project tracking, and client time-tracking.
* **Xero - Early Plan (Best Low-Cost Paid Option):** A solid, user-friendly alternative to QuickBooks with strong mobile features and affordable starter pricing.

**Quick Recommendation:** Start with **Wave** if you want a free, simple solution. Choose **QuickBooks Online** if you want the industry standard that easily syncs with your CPA at tax time.


Best accounting software for a freelance consultant

Here are the best accounting software options for a freelance consultant, depending on your primary need:

1. **FreshBooks (Best Overall)**
   * **Why:** Built specifically for service-based freelancers. It offers excellent time-tracking, project management, professional invoicing, and proposal creation.
   * **Best for:** Consultants who bill by the hour or project.

2. **Wave Accounting (Best Free Option)**
   * **Why:** Completely free for basic accounting, income/expense tracking, and invoicing (you only pay processing fees for online payments).
   * **Best for:** New consultants or those with simple financial needs on a budget.

3. **QuickBooks Self-Employed (Best for Tax Time)**
   * **Why:** Simplifies quarterly estimated taxes, tracks mileage automatically via mobile app, and integrates seamlessly with TurboTax.
   * **Best for:** US-based freelancers focused on easy tax preparation and mileage tracking.

4. **Xero (Best for Growth)**
   * **Why:** Scalable, easy to use, handles multiple currencies, and has strong expense-management features.
   * **Best for:** Consultants who plan to grow into a small agency or work with international clients.

**Summary Recommendation:** Go with **FreshBooks** for the best user experience and consulting-specific features, or **Wave** if you want a zero-cost starting point.


We are outgrowing spreadsheets for bookkeeping. What accounting software should we upgrade to?

The best choice depends on your business size and complexity, but here are the top recommendations based on standard upgrade paths:

### 1. Best Overall & Most Popular: **QuickBooks Online**
* **Best for:** Most small-to-medium businesses.
* **Why:** Industry standard, easy to find bookkeepers/CPAs who know it, integrates with almost every tool.
* **Price:** ~$30–$200+/month.

### 2. Best for Unlimited Users & Modern UI: **Xero**
* **Best for:** Growing teams, businesses that want a clean, user-friendly interface.
* **Why:** Strong inventory management, robust hub for receipts, and doesn’t charge per-user fees.
* **Price:** ~$15–$78/month.

### 3. Best for Very Small Businesses / Freelancers: **Wave Accounting**
* **Best for:** Simple, low-volume operational needs looking for a step up from spreadsheets without added cost.
* **Why:** Truly free core accounting and invoicing software (you only pay for credit card processing and payroll).
* **Price:** Free.

### 4. Best for Service-Based Businesses & Invoicing: **FreshBooks**
* **Best for:** Agencies, consultants, and service providers.
* **Why:** Excellent client-facing invoicing, project management, and built-in time tracking.
* **Price:** ~$19–$60+/month.

### 5. Best for Mid-Market & Fast Growth: **Sage Intacct** or **NetSuite**
* **Best for:** Advanced inventory, multi-entity businesses, or companies preparing to scale significantly past $5M+ in revenue.
* **Why:** Full Enterprise Resource Planning (ERP) capabilities beyond basic SMB software.

---

### Recommendation:
If you want the safest, most universal pick, go with **QuickBooks Online** (or **Xero** if you have multiple users who need access).


Top accounting tools for a small digital marketing agency

Here are the top accounting tools tailored for a small digital marketing agency, categorized by their strengths:

1. **QuickBooks Online** (*Best Overall & Industry Standard*)
   * **Why it fits:** Powerful reporting, seamless tax prep, and integrations with almost all marketing tools, CRMs, and payment gateways. Excellent for tracking profitability by client or project.

2. **FreshBooks** (*Best for Service Agencies & Invoicing*)
   * **Why it fits:** Designed specifically for service-based businesses. Offers built-in time tracking, client portals, automated recurring invoices (great for monthly retainers), and simple project proposals.

3. **Xero** (*Best for Growing Agencies & Team Collaboration*)
   * **Why it fits:** Supports unlimited users on all plans, making it cost-effective as your team grows. Strong handling of multi-currency transactions and extensive third-party app integrations.

4. **Bonsai** (*Best All-in-One Agency Management*)
   * **Why it fits:** Combines light accounting and expense tracking with client management features like proposals, contracts, scope-of-work templates, and time tracking.

5. **Wave** (*Best Free Option for Solopreneurs/Micro-Agencies*)
   * **Why it fits:** 100% free for core accounting and invoicing. Ideal for brand-new or solo marketing agencies with simple cash flow and low overhead.

### Recommendation:
* Choose **FreshBooks** if you prioritize quick invoicing, client retainers, and built-in time tracking.
* Choose **QuickBooks Online** if you need advanced reporting, project profitability tracking, and easy accountant collaboration.


Which accounting system is best for a small ecommerce store?

For most small e-commerce stores, the top options are **QuickBooks Online** and **Xero**.

Here is how to choose between them:

* **QuickBooks Online (Best Overall):** The industry standard. It offers the deepest ecosystem of integrations (Shopify, Amazon, WooCommerce, Stripe), strong inventory tracking, and is preferred by most accountants.
* **Xero (Best User Experience & Multi-Currency):** More user-friendly than QuickBooks, offers better multi-currency handling (great for international sales), and allows unlimited users on all plans.
* **Wave Accounting (Best Free Option):** Ideal if you are just starting out with very low sales volume and a tight budget, though it lacks native inventory tracking and direct e-commerce integrations.

**Recommendation:** Go with **QuickBooks Online** or **Xero**, and pair it with **A2X** (an integration tool) to automatically sync and summarize daily sales, fees, and payouts from your storefront into your books.


Easy to use accounting software for non-accountant business owners

Here are the easiest accounting software options tailored for non-accountants, depending on your needs:

1. **FreshBooks** (*Best overall for non-accountants*)
   * **Why:** Designed specifically for service-based small businesses. It features an extremely intuitive interface focused on invoicing, time tracking, and simple expense management without overwhelming financial jargon.

2. **Wave Accounting** (*Best 100% free option*)
   * **Why:** Completely free for basic bookkeeping and invoicing. It is straightforward, clean, and ideal for freelancers, sole proprietors, or micro-businesses with simple financial needs.

3. **QuickBooks Online (Simple Start Plan)** (*Best if you plan to grow*)
   * **Why:** It has a slightly higher learning curve than FreshBooks, but it automates bank connections well. Because it is the industry standard, almost any tax professional or accountant can easily step in to help you later.

4. **Xero** (*Best for a simple visual dashboard*)
   * **Why:** Known for its clean layout, automated bank reconciliation, and easy-to-read cash flow summaries. It's user-friendly and allows unlimited users on all plans.

**Recommendation:**
* Choose **FreshBooks** if you bill clients for time/services.
* Choose **Wave** if you want a simple, zero-cost solution.
* Choose **QuickBooks** if you sell physical products or plan to hire employees soon.


What cloud accounting platform should a small retail business choose?

For a small retail business, the best choice depends on your specific Point of Sale (POS) system and budget:

1. **QuickBooks Online (Best Overall)**
   * **Why:** It is the industry standard, offers robust inventory management (Plus plan and above), and integrates seamlessly with almost all POS systems (Square, Shopify, Clover, Lightspeed). Most accountants prefer it.

2. **Xero (Best for Multiple Users & Growth)**
   * **Why:** It offers strong inventory tracking, integrates well with major retail apps, and includes **unlimited users** on all plans (unlike QuickBooks, which charges per user).

3. **Zoho Books (Best Budget Option)**
   * **Why:** Very affordable, includes built-in inventory features on lower-tier plans, and works great if you are a micro-retailer or already use other Zoho software.

**Quick Recommendation:** Choose **QuickBooks Online** for the easiest POS integration and accountant compatibility, or **Xero** if you need multiple staff members to access the system without paying extra fees.


Best software for small business bookkeeping and invoicing

The best software depends on your business size and specific needs:

*   **Best Overall:** **QuickBooks Online**
    * *Why:* Industry standard, scales well, highly detailed bookkeeping, and easy to share with accountants.
*   **Best for Service-Based Businesses & Freelancers:** **FreshBooks**
    * *Why:* Extremely user-friendly, excellent time-tracking, professional invoice templates, and simple client billing.
*   **Best Free Option:** **Wave Accounting**
    * *Why:* 100% free for basic bookkeeping and invoicing (you only pay standard credit card processing fees). Best for solopreneurs and micro-businesses.
*   **Best for Collaboration & Unlimited Users:** **Xero**
    * *Why:* Allows unlimited users on all plans, has strong inventory tracking, and offers a clean, modern interface.
*   **Best Value & Automation:** **Zoho Books**
    * *Why:* Affordable, features robust workflow automation, and integrates seamlessly if you use other Zoho apps.

**Recommendation:** If you plan to grow and hire an accountant, go with **QuickBooks** or **Xero**. If you want simple invoicing and time tracking, choose **FreshBooks**. If you have zero budget, start with **Wave**.


Recommend a simple accounting tool for an independent contractor.

The best simple accounting tool for an independent contractor is **Wave Accounting**.

**Why Wave:**
* **Free:** Core features (invoicing, expense tracking, receipt scanning) are 100% free with no hidden monthly fees.
* **Simple:** Easy-to-use interface designed specifically for sole proprietors and freelancers.
* **Essential Features:** Handles professional invoicing, links to your bank accounts to import expenses, and generates basic financial reports for tax time.

***

**Other quick alternatives depending on your needs:**
* **QuickBooks Self-Employed:** Best if you need built-in mileage tracking and quarterly estimated tax calculations (paid subscription).
* **FreshBooks:** Best if your work relies heavily on time-tracking and client-project billing (paid subscription).


What software do accountants recommend for small business bookkeeping?

Accountants most frequently recommend the following bookkeeping software for small businesses, depending on the business's specific needs:

1. **QuickBooks Online**
   * **Best Overall / Industry Standard:** Most widely used by accountants. It offers comprehensive reporting, scalability, advanced inventory tracking, and seamless integration with accountant workflows.

2. **Xero**
   * **Best QuickBooks Alternative:** Highly favored by modern accountants for its clean interface, strong automation, easy reconciliation features, and allowance for unlimited users on all plans.

3. **FreshBooks**
   * **Best for Service-Based Businesses & Freelancers:** Highly recommended for businesses that rely heavily on invoicing, time tracking, and simple project management.

4. **Wave**
   * **Best Free Option:** Recommended for micro-businesses, freelancers, or sole proprietors with straightforward accounting needs who want a completely free base tool.

5. **Zoho Books**
   * **Best for Automation & Zoho Users:** Great for small businesses looking for strong customizable workflows and affordable pricing, especially if already using other Zoho products.

**Summary:** If you plan to work directly with an accountant, **QuickBooks Online** or **Xero** are the top two professional choices.


Best accounting software for a small service business with 5 employees

For a 5-employee service business, the best accounting software depends on how you bill clients:

1. **FreshBooks** (*Best overall for service businesses*)
   * **Why:** Built specifically for service providers. Excellent for time tracking, project management, and sending professional client invoices.
   * **Best if:** You bill clients by the hour or by project.

2. **QuickBooks Online** (*Best for scalability and payroll*)
   * **Why:** The industry standard that every accountant uses. Offers robust reporting, easy add-on payroll for your 5 employees, and hundreds of app integrations.
   * **Best if:** You want standard accounting, easy payroll integration, and plan to grow.

3. **Xero** (*Best for team access & value*)
   * **Why:** User-friendly interface with strong reconciliation tools and **unlimited users** on all plans (unlike QuickBooks, which charges per user). Integrates seamlessly with Gusto for payroll.
   * **Best if:** Multiple employees need access to the software without extra fees.

### Bottom Line Recommendation
* Go with **FreshBooks** if your main focus is time tracking and client billing.
* Go with **QuickBooks Online** if you want the most widely supported software with built-in payroll.


We need easy software to track invoices, expenses, and run profit and loss reports. What should we buy?

Here are the top recommendations based on your needs, budget, and business type:

1. **FreshBooks** (*Easiest to Use*)
   * **Best for:** Freelancers, service businesses, and non-accountants who want a simple, intuitive interface.
   * **Why buy it:** It makes creating invoices and scanning receipts effortless, and generates simple P&L reports with a few clicks.

2. **QuickBooks Online** (*Best Overall & Industry Standard*)
   * **Best for:** Growing businesses or anyone working with an external accountant/CPA.
   * **Why buy it:** It is the standard for small business accounting. It easily automates bank feed imports, expense tracking, professional invoicing, and robust P&L reporting.

3. **Wave** (*Best Free Option*)
   * **Best for:** Solopreneurs and micro-businesses on a tight budget.
   * **Why use it:** It is 100% free for invoicing, expense tracking, and basic financial reporting (you only pay standard fees if you accept credit card payments through them).

4. **Xero** (*Best Alternative to QuickBooks*)
   * **Best for:** Small-to-medium businesses looking for clean, easy-to-use cloud accounting with strong features.

### Quick Recommendation:
* Go with **FreshBooks** if ease of use is your absolute top priority.
* Go with **QuickBooks Online (Simple Start)** if you want standard software that your accountant will prefer.
* Try **Wave** first if you want a zero-cost solution.


Best low-cost bookkeeping software for sole proprietors

Here are the best low-cost and free bookkeeping software options for sole proprietors:

1. **Wave Accounting — *Best Overall (100% Free)***
   * **Cost:** $0/month (charges only if you process payments or payroll).
   * **Best For:** Freelancers and solopreneurs looking for standard double-entry accounting without monthly fees.
   * **Key Features:** Unlimited income and expense tracking, professional invoicing, receipt scanning, and basic reporting.

2. **Zoho Books — *Best Free Plan for Low Revenue***
   * **Cost:** Free (for businesses earning under $50k/year); paid plans start at $15/month.
   * **Best For:** Sole proprietors who want automated workflows and room to scale.
   * **Key Features:** Bank reconciliation, automated payment reminders, custom invoicing, and client portal.

3. **FreshBooks (Lite Plan) — *Best for Invoicing & Service-Based Solopreneurs***
   * **Cost:** Starts around $19/month (frequently discounted to ~$6/month for the first few months).
   * **Best For:** Service providers who bill by the hour or project.
   * **Key Features:** Unlimited time tracking, professional invoicing, expense logging, and mileage tracking via mobile app.

4. **QuickBooks Self-Employed — *Best for Simplified Tax Prep***
   * **Cost:** ~$20/month.
   * **Best For:** Solopreneurs who want easy quarterly estimated tax calculations and direct integration with TurboTax.
   * **Key Features:** Automatic mileage tracking, expense categorization (Schedule C), and invoice creation.

**Recommendation:** Start with **Wave**—it covers all essential bookkeeping needs for sole proprietors completely free.


Which accounting platform is best for managing cash flow and expense tracking in a small company?

**QuickBooks Online** is generally the best accounting platform for managing cash flow and expense tracking in a small business.

### Why QuickBooks Online is the top choice:
* **Cash Flow Management:** Includes a built-in Cash Flow Planner that uses predictive analytics to forecast cash flow based on recurring income and expenses.
* **Expense Tracking:** Offers robust bank feed integration, automated categorization, and a mobile app that allows you to snap photos of receipts and match them to transactions instantly.
* **Scalability & Accountant Support:** It is the industry standard, making it easy to integrate with hundreds of third-party apps and share data with outside accountants.

---

### Top Alternatives:
* **Xero:** Best if you have multiple team members needing access, as it offers unlimited users on all plans, an intuitive dashboard for cash flow visibility, and excellent expense management.
* **Wave:** Best for micro-businesses or startups on a tight budget. It is completely free and covers basic expense tracking and invoicing, though its cash flow forecasting tools are limited.


What is the most popular accounting software for US small businesses?

The most popular accounting software for US small businesses is **QuickBooks** (specifically **QuickBooks Online**), developed by Intuit. It holds the largest market share in the US small business sector.