What is the best accounting software for a small business?

For most small businesses, **QuickBooks Online** is often the best overall accounting software because it’s easy to use, widely supported by accountants, and includes invoicing, expense tracking, bank feeds, payroll options, reports, and tax support.

Good alternatives:

- **Xero** — best if you want strong features and collaboration with multiple users.
- **FreshBooks** — best for freelancers and service-based businesses that need simple invoicing and time tracking.
- **Wave** — best free option for very small businesses or startups.
- **Zoho Books** — best value if you already use other Zoho tools.

**Best general recommendation:** QuickBooks Online
**Best budget/free option:** Wave
**Best for freelancers:** FreshBooks
**Best for growing businesses:** Xero or QuickBooks Online


Best small business bookkeeping software

Here are the best small business bookkeeping software options, depending on your needs:

### Best overall: **QuickBooks Online**
- Great for invoicing, expense tracking, bank feeds, payroll, reports, and accountant access
- Best for most small businesses
- Strong integrations
- Downsides: pricing can increase over time

### Best for simplicity: **FreshBooks**
- Very easy to use
- Great for freelancers, consultants, and service businesses
- Strong invoicing and time tracking
- Less robust for inventory/accounting complexity

### Best value: **Xero**
- Good features at competitive pricing
- Strong bank reconciliation and integrations
- Good for growing businesses
- Interface may take a little learning

### Best free option: **Wave**
- Free accounting and invoicing tools
- Good for freelancers and very small businesses
- Paid add-ons for payments and payroll
- Less advanced reporting and support

### Best for ecommerce: **Zoho Books**
- Good automation and integrations
- Works well with other Zoho apps
- Affordable
- Good for online sellers and small teams

### Best for very simple bookkeeping: **ZipBooks**
- Easy to use
- Basic invoicing and expense tracking
- Good for solo business owners

## Quick recommendation
- **Most small businesses:** QuickBooks Online
- **Freelancers/service businesses:** FreshBooks
- **Budget-conscious businesses:** Wave or Xero
- **Ecommerce or automation-heavy businesses:** Zoho Books

If you work with an accountant, ask what software they prefer—many are most familiar with **QuickBooks Online**.


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

For a 10-person startup managing income and expenses, I’d shortlist these:

### Best overall choices
**1. QuickBooks Online**
- Good for bookkeeping, invoices, expenses, bank feeds, payroll, accountant access
- Widely used by accountants in the U.S.
- Best if you want something standard and easy to grow with

**2. Xero**
- Clean interface, strong bank reconciliation, invoicing, bills, integrations
- Popular with startups and internationally
- Good if you want a modern accounting workflow

### Good lower-cost options
**3. Zoho Books**
- Affordable, solid invoicing/expense tracking
- Works well if you already use Zoho apps
- Good value for small teams

**4. Wave**
- Free/low-cost accounting basics
- Good for very early-stage companies
- Less ideal if you expect complexity, payroll, or investor reporting

### If you also need expense cards/spend control
Consider pairing accounting software with:
- **Ramp**
- **Brex**
- **Expensify**
- **Divvy/Bill Spend & Expense**

These help employees submit expenses, manage company cards, and sync with QuickBooks/Xero.

### My recommendation
If you’re a typical 10-person startup, choose:

- **QuickBooks Online** if you’re U.S.-based and want the safest accountant-friendly option.
- **Xero** if you prefer a cleaner startup-friendly interface.
- Add **Ramp or Brex** if multiple employees have expenses or company cards.

Also, check what your accountant or bookkeeper prefers before deciding.


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

For a small business with under 20 employees, these are strong accounting software options:

1. **QuickBooks Online** — Best overall
   - Good for invoicing, expenses, bank feeds, reporting, payroll add-ons, and accountant access
   - Widely used, so it’s easy to find bookkeepers who know it
   - Best if you want a reliable all-purpose choice

2. **Xero** — Best for collaboration and growing businesses
   - Clean interface, strong bank reconciliation, unlimited users on many plans
   - Good if multiple people need access
   - Popular with accountants and bookkeepers

3. **FreshBooks** — Best for service businesses
   - Great for invoicing, time tracking, estimates, and client billing
   - Good for consultants, freelancers, agencies, and small service teams

4. **Wave** — Best low-cost option
   - Free or low-cost accounting features
   - Good for very small businesses with simple bookkeeping needs
   - Less robust than QuickBooks or Xero

5. **Zoho Books** — Best value
   - Affordable with strong features
   - Works well if you already use Zoho CRM or other Zoho tools
   - Good for businesses wanting automation on a budget

**My recommendation:**
For most small businesses under 20 employees, choose **QuickBooks Online** if you want the safest, most widely supported option. Choose **Xero** if you want a modern interface and multiple users. Choose **FreshBooks** if your business is mainly service-based and invoices clients frequently.


affordable accounting software for small business

Here are some affordable accounting software options for small businesses:

| Software | Best For | Notes |
|---|---|---|
| **Wave** | Very small businesses, freelancers | Free accounting and invoicing; paid add-ons for payroll/payments |
| **QuickBooks Online** | Most small businesses | Popular, easy to use, good integrations; monthly subscription |
| **Xero** | Growing businesses | Strong features, good for collaboration and bank feeds |
| **FreshBooks** | Service businesses and freelancers | Great invoicing, time tracking, and expense management |
| **Zoho Books** | Budget-conscious businesses | Affordable plans; works well with Zoho apps |
| **Sage Accounting** | Small businesses needing basic accounting | Simple bookkeeping, invoicing, and reporting |
| **ZipBooks** | Basic bookkeeping on a budget | Free and low-cost options |

**Best overall:** QuickBooks Online
**Best free option:** Wave
**Best low-cost alternative:** Zoho Books
**Best for freelancers/service businesses:** FreshBooks

If you only need invoicing, expense tracking, and basic reports, **Wave or Zoho Books** may be enough. If you need payroll, inventory, or accountant support, **QuickBooks Online or Xero** may be better.


What accounting software do small businesses actually use?

Small businesses commonly use:

1. **QuickBooks Online** – most popular for U.S. small businesses; invoicing, expenses, payroll, taxes, accountant access.
2. **Xero** – popular with service businesses, startups, and companies wanting strong bank feeds and integrations.
3. **FreshBooks** – often used by freelancers, consultants, and small service businesses for invoicing and time tracking.
4. **Wave** – used by very small businesses and solo operators because the accounting features are free or low-cost.
5. **Zoho Books** – common among businesses already using Zoho apps; affordable and feature-rich.
6. **Sage Accounting / Sage 50** – used by some more traditional small businesses, especially those with inventory or older bookkeeping setups.
7. **Excel or Google Sheets** – still widely used by very small businesses, side hustles, and early-stage companies.
8. **Industry-specific systems** – restaurants, contractors, retailers, and nonprofits often use specialized tools that include accounting or connect to QuickBooks/Xero.

In practice, the most common answer is: **QuickBooks Online**, followed by **Xero**, **FreshBooks**, **Wave**, and **spreadsheets** for the smallest businesses.


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

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

### Best overall: **QuickBooks Online**
Use this if you want a widely supported option that accountants know well. Good for invoicing, expenses, bank feeds, reports, sales tax, contractors, and eventual payroll.

### Best simple/low-cost option: **Wave**
Good if you have a very small business, simple income/expenses, and want free or low-cost bookkeeping. Best for service businesses without complex needs.

### Best alternative to QuickBooks: **Xero**
Good if you want strong bank reconciliation, clean reporting, and possibly lower cost than QuickBooks. Also accountant-friendly.

### Best for freelancers/consultants: **FreshBooks**
Good if you mainly send invoices, track time, and manage client payments. Less robust for full bookkeeping than QuickBooks or Xero.

## My practical recommendation
- **Simple service business with few transactions:** Wave or FreshBooks
- **Growing business or you want accountant support:** QuickBooks Online
- **Tech-savvy and want a QuickBooks alternative:** Xero
- **Inventory, payroll, sales tax, or multiple payment platforms:** QuickBooks Online or Xero

As a single-member LLC, you should at minimum use software that can:
- Connect to your business bank/credit card accounts
- Categorize income and expenses
- Track receipts
- Generate profit & loss reports
- Separate business and personal finances
- Export reports for taxes

If you’re unsure, **QuickBooks Online Simple Start** is usually the safest default choice for a single-member LLC.


Best accounting software for a freelance consultant

For a freelance consultant, the best accounting software depends on your budget, invoicing needs, and tax complexity.

### Best overall: **QuickBooks Online**
Best if you want strong bookkeeping, expense tracking, tax reporting, bank feeds, and accountant support.
**Good for:** consultants who want something scalable and widely used.
**Downside:** more expensive than simpler options.

### Best for easy invoicing: **FreshBooks**
Very freelancer-friendly with polished invoices, time tracking, expenses, and online payments.
**Good for:** consultants billing hourly or by project.
**Downside:** accounting features are lighter than QuickBooks.

### Best free option: **Wave**
Free invoicing and basic accounting, with paid payment processing and payroll.
**Good for:** solo consultants with simple finances.
**Downside:** fewer advanced features and integrations.

### Best for international work: **Xero**
Strong accounting platform with good multi-currency support and integrations.
**Good for:** consultants with overseas clients or more complex bookkeeping.
**Downside:** can be less intuitive than FreshBooks.

### Best budget-friendly option: **Zoho Books**
Affordable, feature-rich, and good if you already use Zoho apps.
**Good for:** consultants who want value without paying QuickBooks prices.

## My recommendation
If you’re a solo freelance consultant, I’d choose:

- **FreshBooks** if invoicing and time tracking are most important
- **QuickBooks Online** if you want the best all-around accounting and tax support
- **Wave** if you want a free/simple starting point


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

It depends on your size, complexity, and location, but for most businesses moving beyond spreadsheets, these are the best options to consider:

### Best all-around choices

**1. QuickBooks Online**
- Best for: small businesses, service businesses, contractors, retailers
- Strengths: widely used, easy to find accountants/bookkeepers, strong bank feeds, invoicing, payroll integrations
- Good if you want the “default safe choice.”

**2. Xero**
- Best for: growing small businesses, teams that want cleaner workflows and collaboration
- Strengths: strong bank reconciliation, good integrations, multi-user access, popular with modern bookkeeping firms
- Good if you want something intuitive and scalable.

**3. Zoho Books**
- Best for: cost-conscious businesses or companies already using Zoho CRM/projects
- Strengths: affordable, good automation, invoicing, expenses, sales tax/VAT support
- Good if budget matters and your needs are fairly standard.

**4. FreshBooks**
- Best for: freelancers, consultants, agencies, client-service businesses
- Strengths: simple invoicing, time tracking, client billing
- Less ideal if you need inventory, complex accounting, or multi-entity reporting.

### If you are scaling fast or more complex

**5. Sage Intacct**
- Best for: larger growing companies, nonprofits, multi-location or multi-entity businesses
- Strengths: stronger reporting, approvals, departments, entities, audit controls
- More expensive and typically needs implementation help.

**6. NetSuite**
- Best for: companies needing ERP features beyond accounting
- Strengths: inventory, purchasing, order management, financials, multi-entity
- Best if you’ve outgrown small-business accounting tools entirely.

### My general recommendation

If you are a typical small or growing business, start by comparing:

**QuickBooks Online vs. Xero**

Choose **QuickBooks Online** if:
- You want the easiest accountant/bookkeeper support
- You need payroll and tax integrations
- You want a widely adopted standard

Choose **Xero** if:
- You want better multi-user collaboration
- You like clean bank reconciliation workflows
- You use lots of app integrations

### Questions to decide properly

Before choosing, consider:

1. How many users need access?
2. Do you need payroll?
3. Do you sell inventory/products or just services?
4. Do you need project/job costing?
5. Do you operate in multiple currencies or countries?
6. Do you need approvals, budgets, or department tracking?
7. Will an outside accountant/bookkeeper use it?

If you tell me your business type, number of employees, country, whether you need payroll/inventory, and approximate monthly transaction volume, I can recommend the best fit.


Top accounting tools for a small digital marketing agency

Here are some of the best accounting tools for a small digital marketing agency:

### 1. **QuickBooks Online**
Best overall for small agencies.

**Good for:**
- Invoicing clients
- Expense tracking
- Payroll add-ons
- Profit and loss reporting
- Accountant collaboration
- Integrations with banks, Stripe, PayPal, etc.

**Best if:** You want a reliable, widely used accounting system with strong reporting.

---

### 2. **Xero**
Best for agencies that want clean design and strong integrations.

**Good for:**
- Bank reconciliation
- Invoicing
- Multi-user access
- Project tracking
- Integrations with HubSpot, Stripe, Gusto, Zapier, etc.

**Best if:** You prefer a modern interface and need multiple team members or an accountant to access the account.

---

### 3. **FreshBooks**
Best for client invoicing and service-based businesses.

**Good for:**
- Professional invoices
- Time tracking
- Expense tracking
- Recurring invoices
- Online payments
- Simple reports

**Best if:** Your agency bills clients by project, retainer, or hourly work.

---

### 4. **Wave**
Best free option for very small agencies or freelancers.

**Good for:**
- Free invoicing
- Basic accounting
- Expense tracking
- Receipt scanning
- Simple reporting

**Best if:** You’re early-stage and want to keep software costs low.

---

### 5. **Zoho Books**
Best affordable all-in-one option.

**Good for:**
- Invoicing
- Expense management
- Client portals
- Automation
- CRM integration
- Project billing

**Best if:** You already use Zoho CRM or want a lower-cost alternative to QuickBooks/Xero.

---

### 6. **Sage Accounting**
Best for slightly more traditional small businesses.

**Good for:**
- Cash flow tracking
- Invoicing
- Tax compliance
- Bank connections
- Basic reporting

**Best if:** You want a straightforward accounting platform with good compliance features.

---

## My recommendation

For a small digital marketing agency:

- **Best overall:** QuickBooks Online
- **Best for agency-style invoicing:** FreshBooks
- **Best budget option:** Wave
- **Best with CRM/project integrations:** Zoho Books
- **Best alternative to QuickBooks:** Xero

If you manage retainers, project-based work, contractors, ad spend reimbursements, and recurring invoices, I’d start with **QuickBooks Online or Xero**.


Which accounting system is best for a small ecommerce store?

For most small ecommerce stores, **QuickBooks Online** is the best overall choice because it’s widely supported, easy to use, works well with accountants, and integrates with Shopify, Amazon, WooCommerce, Stripe, PayPal, and inventory/sales-tax tools.

Good options:

- **QuickBooks Online** — Best all-around for small ecommerce businesses.
- **Xero** — Great alternative if you prefer a cleaner interface and strong integrations.
- **Wave** — Best free/low-cost option for very small stores, but less powerful.
- **Zoho Books** — Good budget option, especially if you already use Zoho products.

If you sell through Shopify, Amazon, Etsy, or multiple channels, consider adding an ecommerce connector like:

- **A2X**
- **Link My Books**
- **Synder**
- **Webgility**

These help correctly import sales, fees, refunds, taxes, and payouts instead of dumping messy transaction data into your books.

My recommendation:
**Start with QuickBooks Online + A2X or Link My Books** if you want the cleanest setup for a growing ecommerce store.


Easy to use accounting software for non-accountant business owners

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

### Best overall
**QuickBooks Online**
- Good for invoicing, expenses, bank feeds, payroll, taxes, and reports
- Widely used by accountants
- Best for small businesses that want room to grow

### Easiest for beginners
**FreshBooks**
- Very user-friendly
- Great for invoicing, time tracking, expenses, and service businesses
- Best for freelancers, consultants, and small service companies

### Best simple option
**Wave**
- Free accounting and invoicing features
- Good for very small businesses, freelancers, or side businesses
- Payroll and payment processing cost extra

### Best for product-based businesses
**Xero**
- Clean interface and strong bank reconciliation
- Good inventory features and app integrations
- Best if you sell products or need multiple users

### Best all-in-one business tools
**Zoho Books**
- Affordable and easy to use
- Works well with other Zoho apps like CRM and inventory
- Good for small businesses on a budget

### Best for solopreneurs
**GoDaddy Bookkeeping**
- Simple income and expense tracking
- Helpful for basic tax reporting
- Best for sole proprietors and online sellers

## My recommendation
If you want something simple but powerful, choose **QuickBooks Online**.
If you want the easiest experience and mostly send invoices, choose **FreshBooks**.
If cost is the biggest concern, start with **Wave**.


What cloud accounting platform should a small retail business choose?

For most small retail businesses, **QuickBooks Online** is usually the safest choice.

Why:
- Strong **sales tax**, invoicing, expense tracking, and reporting
- Good **inventory tracking** for basic retail needs
- Integrates well with **POS systems**, Shopify, Square, PayPal, Stripe, and payroll tools
- Easy to find bookkeepers and accountants who know it
- Scales well as the business grows

Good alternatives:

- **Xero** — great if you want a clean interface, strong bank reconciliation, and good multi-user access. Popular outside the U.S.
- **Zoho Books** — best if you want a lower-cost option and already use Zoho apps.
- **FreshBooks** — better for service businesses than retail, so usually not my first choice for a shop with inventory.
- **Wave** — good for very small businesses on a tight budget, but limited for retail inventory and scaling.

My recommendation:
Choose **QuickBooks Online Plus** if you need inventory tracking, POS integrations, and accountant support. If your retail business sells through Shopify or Square, confirm the integration works well before committing.


Best software for small business bookkeeping and invoicing

Here are the best small business bookkeeping and invoicing software options, depending on your needs:

### Best overall: **QuickBooks Online**
- Strong bookkeeping, invoicing, reporting, sales tax, and payroll integrations
- Widely used by accountants
- Good for growing businesses
**Best for:** Most small businesses that want a full accounting system

### Best alternative to QuickBooks: **Xero**
- Clean interface, strong bank reconciliation, good reporting
- Unlimited users on many plans
- Great accountant collaboration
**Best for:** Businesses that want solid accounting with a simpler feel

### Best for freelancers and service businesses: **FreshBooks**
- Excellent invoicing, time tracking, estimates, and client payments
- Very user-friendly
- Less robust for complex accounting
**Best for:** Consultants, contractors, creatives, and solo businesses

### Best budget option: **Zoho Books**
- Affordable with strong invoicing and bookkeeping tools
- Integrates well with other Zoho apps
- Good automation features
**Best for:** Small businesses watching costs

### Best free option: **Wave**
- Free invoicing and basic accounting
- Paid payment processing and payroll add-ons
- Simpler than QuickBooks or Xero
**Best for:** Very small businesses, freelancers, or side businesses

### Quick recommendation
If you want the safest all-around choice, choose **QuickBooks Online**.
If you want easier invoicing and time tracking, choose **FreshBooks**.
If you want affordable but capable software, choose **Zoho Books**.


Recommend a simple accounting tool for an independent contractor.

For a simple accounting tool as an independent contractor, I’d recommend **Wave**.

**Why Wave is a good fit:**
- Free accounting and invoicing features
- Easy expense tracking
- Connects to bank accounts
- Good for solo contractors and freelancers
- Simple financial reports for tax time

If you want stronger tax features, also consider **QuickBooks Solopreneur**. It’s paid, but better for tracking deductions, mileage, and estimated taxes.

**Best pick overall:** **Wave** if you want simple and low-cost; **QuickBooks Solopreneur** if tax tracking is your priority.


What software do accountants recommend for small business bookkeeping?

Accountants most commonly recommend these bookkeeping tools for small businesses:

1. **QuickBooks Online**
   - Often the top recommendation by accountants
   - Good for bookkeeping, invoicing, payroll, tax prep, bank feeds, and reports
   - Works well if you plan to use an outside CPA or bookkeeper

2. **Xero**
   - Strong alternative to QuickBooks
   - Good bank reconciliation, invoicing, and collaboration with accountants
   - Popular with growing small businesses

3. **FreshBooks**
   - Best for freelancers, consultants, and service-based businesses
   - Easy invoicing, expense tracking, and time tracking
   - Simpler than QuickBooks or Xero

4. **Wave**
   - Good free option for very small businesses
   - Handles invoicing, expenses, and basic bookkeeping
   - Less robust for inventory, payroll, or complex reporting

5. **Zoho Books**
   - Affordable and feature-rich
   - Good if you already use other Zoho apps
   - Suitable for small businesses that want automation on a budget

6. **Sage Accounting**
   - Often used by more established businesses
   - Good reporting and accounting features
   - May be less beginner-friendly than QuickBooks or Xero

For most small businesses, accountants typically recommend **QuickBooks Online** because it is widely supported, integrates with many apps, and makes tax filing easier. If you want something simpler or cheaper, **Xero**, **FreshBooks**, or **Wave** may be better fits.


Best accounting software for a small service business with 5 employees

For a small service business with 5 employees, the best accounting software is usually:

## Best overall: QuickBooks Online
**Best for:** Most small service businesses
**Why:** Easy invoicing, expense tracking, payroll add-ons, bank feeds, accountant-friendly, strong reporting.

**Good plan:** QuickBooks Online Simple Start or Essentials
Choose **Essentials** if you need bill management, time tracking, or multiple users.

## Best alternative: Xero
**Best for:** Businesses that want strong accounting at a competitive price
**Why:** Clean interface, good bank reconciliation, unlimited users on many plans, strong reporting.

## Best for simple invoicing: FreshBooks
**Best for:** Consultants, agencies, freelancers, and service businesses that bill by project or time
**Why:** Very easy invoicing, time tracking, estimates, client management.

## Best budget option: Wave
**Best for:** Very small businesses with simple needs
**Why:** Free core accounting and invoicing, though payroll and payments cost extra.

## Best if you use Zoho apps: Zoho Books
**Best for:** Businesses already using Zoho CRM, Zoho Projects, or Zoho Workplace
**Why:** Affordable, feature-rich, good automation.

### My recommendation
If you want the safest, most widely supported choice: **QuickBooks Online**.
If you want lower cost and don’t mind a slightly different workflow: **Xero**.
If your business mainly sends invoices and tracks time: **FreshBooks**.

Also consider whether you need payroll, time tracking, project billing, sales tax, accountant access, and integrations with your bank or payment processor.


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

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

It’s easy to use and covers what you asked for:

- Create and send invoices
- Track expenses
- Connect bank/credit card accounts
- Categorize transactions
- Run Profit & Loss reports
- Share access with a bookkeeper/accountant

**Recommended plan:**
- **QuickBooks Online Simple Start** if you’re a small business with basic needs
- **QuickBooks Online Essentials** if you need multiple users, bill tracking, or more flexibility

Good alternatives:

- **Xero** — great if you want a clean interface and strong accountant/bookkeeper collaboration
- **FreshBooks** — best for freelancers/consultants who mainly invoice clients
- **Wave** — good low-cost/free option for very simple businesses
- **Zoho Books** — good value if you already use Zoho apps

My practical recommendation: **Start with QuickBooks Online Simple Start** unless your accountant prefers Xero. If you already have a bookkeeper/CPA, ask which platform they support before buying.


Best low-cost bookkeeping software for sole proprietors

Here are the best low-cost bookkeeping options for sole proprietors, depending on your needs:

## Best overall low-cost options

### 1. **Wave Accounting**
**Best for:** Free bookkeeping and simple invoicing
**Cost:** Free for accounting/invoicing; paid add-ons for payments/payroll
**Pros:**
- Free income and expense tracking
- Invoicing included
- Good for very small service businesses
- Easy to use
**Cons:**
- Limited advanced reporting
- Payroll and payment processing cost extra

**Best choice if you want the cheapest solid option.**

---

### 2. **QuickBooks Solopreneur / Simple Start**
**Best for:** Sole proprietors who want strong tax and reporting features
**Cost:** Usually low monthly fee, often discounted for first months
**Pros:**
- Mileage tracking
- Expense categorization
- Estimates quarterly taxes
- Easy to share with an accountant
**Cons:**
- More expensive than Wave
- Price can increase after promo period

**Best if you expect to use an accountant or want tax-friendly reports.**

---

### 3. **Zoho Books**
**Best for:** Low-cost full-featured bookkeeping
**Cost:** Free plan available for some small businesses; paid plans are affordable
**Pros:**
- Invoicing, expenses, bank feeds
- Good automation
- Professional reports
- Strong value for the price
**Cons:**
- Slightly more setup than Wave
- Free plan may have revenue/usage limits

**Best if you want more features without paying QuickBooks prices.**

---

### 4. **FreshBooks**
**Best for:** Freelancers and service-based sole proprietors
**Cost:** Low monthly plans
**Pros:**
- Excellent invoicing
- Time tracking
- Client-friendly payment options
- Very easy interface
**Cons:**
- Not as strong for full accounting as QuickBooks or Zoho
- Costs rise with more clients/features

**Best if you bill clients for services or time.**

---

### 5. **Xero**
**Best for:** Growing sole proprietors who may become a larger business
**Cost:** Monthly subscription
**Pros:**
- Strong bank reconciliation
- Good reporting
- Accountant-friendly
**Cons:**
- Often more than a sole proprietor needs
- Entry plan may limit bills/invoices

**Best if you want something scalable.**

---

## Quick recommendation

- **Cheapest/free:** Wave
- **Best for taxes and accountant support:** QuickBooks
- **Best value with more features:** Zoho Books
- **Best for freelancers who invoice clients:** FreshBooks
- **Best if you plan to grow:** Xero

For most sole proprietors trying to keep costs low, I’d start with **Wave** or **Zoho Books**. If tax prep and accountant compatibility matter most, choose **QuickBooks**.


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

For most small companies, **QuickBooks Online** is the best overall accounting platform for managing **cash flow and expense tracking**.

Why it’s a strong choice:
- Good cash flow dashboard and forecasting tools
- Easy bank and credit card syncing
- Strong expense categorization and receipt capture
- Invoicing, bill tracking, payroll, and tax reporting options
- Widely used by accountants and bookkeepers
- Scales well as the business grows

Good alternatives:
- **Xero** — best if you want clean reporting, strong bank reconciliation, and unlimited users on many plans.
- **FreshBooks** — best for service-based businesses, freelancers, and simple invoicing.
- **Wave** — best free option for very small businesses with basic needs.

**Recommendation:** If you want the safest all-around choice, choose **QuickBooks Online**. If collaboration and reporting are more important, consider **Xero**.


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

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

It’s widely used because it offers bookkeeping, invoicing, payroll integrations, tax reporting, bank syncing, and strong accountant support. Other popular options include **Xero**, **FreshBooks**, **Wave**, and **Zoho Books**, but QuickBooks is typically 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 overall accounting software

### 1. **QuickBooks Online**
Best for: Most small businesses, accountants, tax prep
Pros:
- Strong bookkeeping, invoicing, expense tracking
- Bank feeds and reconciliation
- Payroll and sales tax add-ons
- Widely used by accountants and tax professionals
Consider if: You want the safest, most widely supported choice.

### 2. **Xero**
Best for: Businesses that want clean design and strong integrations
Pros:
- Good bank reconciliation
- Unlimited users on many plans
- Strong app marketplace
- Good for service businesses and growing teams
Consider if: You collaborate with a bookkeeper or want modern cloud accounting.

### 3. **FreshBooks**
Best for: Freelancers, consultants, and service businesses
Pros:
- Excellent invoicing and time tracking
- Easy client billing
- Simple expense tracking
Consider if: You care more about invoicing and project billing than complex accounting.

## Lower-cost or simple options

### 4. **Wave**
Best for: Very small businesses, freelancers, side businesses
Pros:
- Free/low-cost accounting features
- Invoicing and basic expense tracking
- Simple interface
Cons:
- Less robust than QuickBooks or Xero
- Payroll/tax features vary by location

### 5. **Zoho Books**
Best for: Budget-conscious small businesses
Pros:
- Affordable
- Good automation
- Integrates well with Zoho CRM, Inventory, etc.
Consider if: You already use Zoho products or want value for money.

## For receipt and expense management

### 6. **Dext** or **Hubdoc**
Best for: Capturing receipts and bills
Pros:
- Scan/upload receipts
- Extracts vendor, date, amount
- Syncs with QuickBooks/Xero
Useful for: Reducing missing deductions and audit stress.

### 7. **Expensify**
Best for: Employee reimbursements and travel expenses
Pros:
- Receipt scanning
- Expense approvals
- Corporate card integrations

## Payroll and contractor payments

### 8. **Gusto**
Best for: U.S. payroll
Pros:
- Payroll tax filings
- Benefits administration
- Contractor payments and tax forms

### 9. **ADP or Paychex**
Best for: More complex payroll needs
Pros:
- Strong compliance support
- Good for multi-state or growing teams

## Tax readiness tools

### 10. **TaxDome**
Best for: Working with a tax professional
Pros:
- Secure document sharing
- E-signatures
- Organizer/checklist workflows

### 11. **Keeper**
Best for: Self-employed tax deduction tracking
Pros:
- Finds potential deductions
- Helps with tax estimates
- Good for freelancers/contractors

## My recommended setup

For most small businesses:

**QuickBooks Online or Xero**
+ **Dext or Hubdoc** for receipts
+ **Gusto** if you have payroll
+ Regular monthly reconciliation

For freelancers/consultants:

**FreshBooks or Wave**
+ **Keeper** or receipt tracking
+ Separate business bank account

## Key features to look for

Choose software that supports:

- Bank and credit card syncing
- Easy expense categorization
- Receipt storage
- Invoicing and payment tracking
- Sales tax/VAT tracking if applicable
- Payroll integration if you have employees
- Profit and loss reports
- Balance sheet
- Cash flow reporting
- Accountant access
- Exportable tax reports

## Tax-readiness checklist

To stay prepared year-round:

- Use a separate business bank account
- Reconcile accounts monthly
- Save digital receipts
- Track mileage if relevant
- Categorize owner draws vs. business expenses correctly
- Keep payroll and contractor records organized
- Review profit and loss quarterly
- Set aside money for taxes
- Give your accountant access before year-end

If you want the most accountant-friendly choice, go with **QuickBooks Online**. If you want a cleaner interface and good collaboration, choose **Xero**. If you’re a solo service provider, **FreshBooks** may be enough.


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 coffee shops/restaurants
**Why:** Easy bookkeeping, strong accountant support, payroll options, sales tax tracking, bank feeds, and integrations with POS systems like Square, Toast, Clover, and Shopify.

**Recommended plan:**
- **QuickBooks Online Plus** if you want class/location tracking or inventory
- **QuickBooks Payroll** if you handle payroll in-house

## Best simple/low-cost option: **Xero**
**Best for:** Owners who want clean, affordable accounting
**Why:** Good bank reconciliation, unlimited users, solid reporting, and integrations. Often simpler and cheaper than QuickBooks.

## Best for very small cafés on a budget: **Wave**
**Best for:** New or very small shops with simple finances
**Why:** Free basic accounting and invoicing.
**Downside:** Less powerful for payroll, inventory, and restaurant-specific needs.

## Best restaurant-specific option: **Restaurant365**
**Best for:** Growing restaurants or multi-location operators
**Why:** Built for restaurants with food cost tracking, inventory, vendor bills, labor reporting, and POS integration.
**Downside:** More expensive and likely overkill for a small single-location café.

## Best add-on for food cost/inventory: **MarginEdge**
**Best for:** Restaurants that want better inventory and recipe costing
**Why:** Integrates with QuickBooks/Xero and helps track invoices, COGS, food costs, and margins.

### My recommendation
For most local coffee shops or small restaurants:
**Use QuickBooks Online + your POS system integration** — for example, Square, Toast, or Clover — and add payroll if needed.

If you’re growing fast or have multiple locations, consider **Restaurant365** or **MarginEdge + QuickBooks**.


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

Here are good software options for bank reconciliation and client invoicing:

### Best all-around options

**1. QuickBooks Online**
- Strong bank feed and reconciliation tools
- Professional client invoicing, recurring invoices, payment links
- Good reporting and accountant access
- Best for small to mid-sized businesses

**2. Xero**
- Excellent bank reconciliation workflow
- Clean invoicing and payment tracking
- Strong integrations with banks, payment processors, payroll, and CRM tools
- Great if you want a modern cloud-based system

**3. Zoho Books**
- Good invoicing, bank reconciliation, expenses, and automation
- Usually more affordable than QuickBooks/Xero
- Works especially well if you already use Zoho CRM or Zoho apps

### Simpler or lower-cost options

**4. FreshBooks**
- Very easy to use for invoicing and payments
- Good for freelancers, consultants, and service businesses
- Bank reconciliation is available but not as robust as QuickBooks or Xero

**5. Wave**
- Free or low-cost accounting and invoicing
- Good for very small businesses
- Fewer advanced controls and integrations than QuickBooks/Xero

### More advanced options

**6. Sage Intacct**
- Better for larger or growing companies
- Strong accounting controls, approvals, multi-entity support
- More expensive and usually needs implementation help

**7. NetSuite**
- Full ERP system with invoicing, bank reconciliation, inventory, CRM, and finance
- Best for larger businesses with complex operations

### My general recommendation

For most small businesses, I’d shortlist:

1. **QuickBooks Online** — safest mainstream choice
2. **Xero** — best reconciliation experience and clean interface
3. **Zoho Books** — best value if budget matters

If you tell me your country, company size, number of bank accounts, invoice volume, and whether you need inventory, payroll, or multi-currency, I can narrow this down to the best 2–3 options.


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

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

**Why it’s a strong default choice:**
- Easy to use and widely adopted
- Strong invoicing, bank feeds, expense tracking, payroll, and reporting
- Large ecosystem of accountants, bookkeepers, and integrations
- Scales well for many small to mid-sized businesses
- Good fit for service businesses, retail, contractors, and general SMB use

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

- **Best overall for most SMBs:** **QuickBooks Online**
- **Best for international businesses or multi-currency:** **Xero**
- **Best for inventory-heavy SMBs:** **Zoho Books** or **QuickBooks Online + inventory add-ons**
- **Best for more complex, scaling companies:** **Sage Intacct**
- **Best for companies outgrowing SMB tools:** **NetSuite**
- **Best low-cost option:** **Zoho Books**

My practical recommendation:
If you are a typical growing SMB, start with **QuickBooks Online Plus or Advanced**. If you expect rapid growth, multiple entities, advanced approvals, or complex reporting, consider **Sage Intacct** or **NetSuite** instead.


Best accounting software for small construction subcontractors

Here are the best accounting software options for **small construction subcontractors**, depending on your needs:

## Best Overall: **QuickBooks Online + Construction Apps**
**Best for:** Small subcontractors who need affordable accounting, invoicing, payroll, and job costing.

**Pros**
- Easy to use and widely supported by bookkeepers/CPAs
- Good invoicing, expense tracking, bank feeds, and reporting
- Job costing available with classes/projects
- Integrates with apps like **Buildertrend, Knowify, JobTread, Housecall Pro, Gusto, and QuickBooks Time**

**Cons**
- Not construction-specific out of the box
- Work-in-progress reporting and advanced job costing may require add-ons

**Best fit:** Electrical, plumbing, HVAC, drywall, concrete, roofing, painting, and similar subcontractors.

---

## Best Construction-Specific Option: **Knowify**
**Best for:** Subcontractors who need estimates, job costing, contracts, change orders, and invoicing.

**Pros**
- Built specifically for contractors/subcontractors
- Strong job costing and project tracking
- Handles change orders and contract billing well
- Integrates with QuickBooks

**Cons**
- More specialized than basic accounting software
- May still need QuickBooks for full accounting

**Best fit:** Subs who need construction workflow plus accounting integration.

---

## Best for Growing Contractors: **Sage 100 Contractor**
**Best for:** Subcontractors needing deeper construction accounting.

**Pros**
- Strong job costing, payroll, billing, and reporting
- Good for work-in-progress and construction financial management
- More robust than QuickBooks

**Cons**
- More expensive and complex
- Usually requires setup/training

**Best fit:** Established subcontractors with multiple crews, bigger jobs, or government/commercial work.

---

## Best for Estimating + Project Management: **JobTread**
**Best for:** Contractors who want estimating, budgeting, proposals, change orders, and project tracking.

**Pros**
- Very contractor-friendly
- Strong estimating and job costing workflows
- Integrates with QuickBooks
- Good for managing projects from bid to invoice

**Cons**
- Accounting still typically handled in QuickBooks

**Best fit:** Subs who need better project controls but want to keep QuickBooks for accounting.

---

## Best Low-Cost Option: **Wave**
**Best for:** Very small subcontractors or solo operators.

**Pros**
- Simple invoicing and expense tracking
- Low cost
- Easy to use

**Cons**
- Limited job costing
- Not ideal for construction-specific reporting
- Not great as you grow

**Best fit:** One-person subcontractors with simple books.

---

# My Recommendation

For most small construction subcontractors:

### **QuickBooks Online Plus or Advanced + QuickBooks Payroll/Time**
Best if you want simple accounting, invoicing, payroll, and basic job costing.

### Add **Knowify** or **JobTread**
Best if you need better estimating, change orders, project tracking, and construction-specific job costing.

If you are doing larger commercial jobs, certified payroll, retainage, WIP reporting, or managing multiple crews, consider **Sage 100 Contractor** instead.


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

Here are good small-business accounting software options that handle double-entry bookkeeping well:

1. **QuickBooks Online**
   - Best overall for many small businesses
   - Strong double-entry accounting, bank feeds, invoicing, payroll, reports
   - Good accountant support and integrations

2. **Xero**
   - Great for growing businesses and collaboration
   - Clean double-entry system, strong bank reconciliation, inventory, invoicing
   - Popular with accountants and bookkeepers

3. **Zoho Books**
   - Good value for small businesses
   - Full double-entry accounting, invoicing, expenses, inventory, automation
   - Works especially well if you use other Zoho apps

4. **Wave**
   - Good free/low-cost option
   - Double-entry bookkeeping, invoicing, expense tracking, basic reports
   - Best for freelancers and very small businesses

5. **FreshBooks**
   - Best for service-based businesses
   - Easy invoicing, time tracking, expenses, and accounting reports
   - More user-friendly, though less robust than QuickBooks or Xero for complex bookkeeping

**My recommendation:**
For most small businesses, choose **QuickBooks Online** if you want the safest all-around option. Choose **Xero** if you prefer a cleaner interface and strong collaboration. Choose **Zoho Books** if cost matters most.


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

For a small boutique agency, I’d usually recommend one of these:

### Best overall: **QuickBooks Online**
Good if you want solid bookkeeping, invoicing, expense tracking, bank feeds, payroll add-ons, and easy accountant access. It’s widely used, so finding a bookkeeper who knows it is simple.

### Best alternative: **Xero**
Great for clean bookkeeping, bank reconciliation, invoicing, and working with an accountant. Many people prefer its interface over QuickBooks.

### Best for service-based agencies: **FreshBooks**
Good if you mostly need client invoicing, time tracking, expenses, and simple reporting. Less robust than QuickBooks/Xero for full accounting, but very user-friendly.

### Best low-cost option: **Wave**
Good if you’re very small and want basic bookkeeping and invoicing without a monthly fee. It’s more limited, but can work well early on.

### Best if you use Zoho tools: **Zoho Books**
Affordable and capable, especially if you already use Zoho CRM or other Zoho apps.

My short recommendation:
If you plan to grow or hire a bookkeeper, use **QuickBooks Online** or **Xero**. If you mainly need simple invoicing and expense tracking, use **FreshBooks**.


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, payments, and basic reports.

Quick comparison:

- **FreshBooks** — Easiest for non-accountants; great for freelancers and service businesses.
- **Wave** — Very simple and free for basic accounting; good for very small businesses.
- **QuickBooks Online** — Most popular and powerful, but has a steeper learning curve.
- **Xero** — Clean and capable, but better if you’re comfortable with accounting basics.

**Best overall for easiest learning:** FreshBooks
**Best free/simple option:** Wave
**Best if you expect to grow and hire a bookkeeper:** QuickBooks Online


Best user-friendly accounting software for a micro-business

For a micro-business, the best user-friendly accounting software depends on how simple your needs are and whether you need invoicing, payroll, inventory, or tax features.

## Best overall: **QuickBooks Online**
**Best for:** Most micro-businesses that want easy bookkeeping, invoicing, bank syncing, reports, and accountant access.
**Pros:** Very popular, easy to use, strong reporting, integrates with many apps, accountants know it well.
**Cons:** More expensive than some alternatives.

## Best for simplicity: **FreshBooks**
**Best for:** Freelancers, consultants, and service-based micro-businesses.
**Pros:** Very easy invoicing, time tracking, expense tracking, clean interface.
**Cons:** Less robust for complex accounting or inventory.

## Best low-cost option: **Wave**
**Best for:** Very small businesses, side hustles, or startups on a tight budget.
**Pros:** Free accounting and invoicing features, simple to use.
**Cons:** Payroll and payments cost extra; fewer advanced features.

## Best value with strong features: **Zoho Books**
**Best for:** Small businesses that want affordable software with solid automation.
**Pros:** Good pricing, invoicing, bank feeds, automation, integrates with Zoho apps.
**Cons:** Slightly more learning curve than FreshBooks or Wave.

## Best for product-based businesses: **Xero**
**Best for:** Businesses that need inventory, integrations, or collaboration.
**Pros:** Strong bank reconciliation, good integrations, scalable.
**Cons:** Interface may be less beginner-friendly than QuickBooks or FreshBooks.

### My recommendation
- If you want the safest all-around choice: **QuickBooks Online**
- If you’re a freelancer/service provider: **FreshBooks**
- If you want free/simple accounting: **Wave**
- If you want affordable but capable software: **Zoho Books**
- If you sell products or need inventory: **Xero**


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

If you want a simple, reliable choice: **buy Xero Standard** or **QuickBooks Online Essentials** — whichever your accountant/bookkeeper prefers.

For a 2-person partnership, you want software that can handle:

- Bank feeds and reconciliation
- Invoices and bills
- Expense capture/receipts
- VAT/sales tax if applicable
- Separate accounts for each partner’s **capital**, **drawings**, and **profit share**
- Reports: profit & loss, balance sheet, partner current accounts

**My default recommendation:**
**Xero Standard** — easy to use, good accountant support, strong bank feeds, and suitable for small partnerships.

**Good alternative:**
**QuickBooks Online Essentials** — also solid, especially if your accountant already uses it.

Before buying, ask your accountant: “Do you prefer Xero or QuickBooks?” Their answer should usually decide it.


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

For most bootstrapped startups, the best-value accounting software is usually:

## Best overall value: **Wave**
**Best for:** Very early-stage startups, freelancers, solo founders, simple service businesses
**Why:** Free core accounting, invoicing, expense tracking, and bank connections.
**Downside:** Payroll, payments, and advanced features cost extra; not ideal for complex inventory or scaling finance operations.

## Best low-cost option with more features: **Zoho Books**
**Best for:** Startups that want solid accounting, invoicing, automation, and reporting at a low monthly cost
**Why:** More robust than Wave and generally cheaper than QuickBooks or Xero.
**Downside:** Accountant/bookkeeper familiarity may be lower than QuickBooks in some markets.

## Best if you expect to hire a bookkeeper soon: **QuickBooks Online**
**Best for:** U.S.-based startups that want the most widely supported accounting platform
**Why:** Most accountants and bookkeepers know it, strong integrations, good payroll/tax ecosystem.
**Downside:** More expensive, and pricing can rise as you add features.

## Best for international or SaaS-style startups: **Xero**
**Best for:** Companies with international vendors, multiple currencies, or a finance team later
**Why:** Clean interface, good integrations, strong bank feeds.
**Downside:** Usually not the cheapest option.

### My recommendation
If you are pre-revenue or very early: **use Wave**.
If you want something affordable but more scalable: **use Zoho Books**.
If you know you’ll work with a U.S. accountant/bookkeeper: **use QuickBooks Online**.

For a bootstrapped startup, I’d avoid overpaying early. Start with **Wave or Zoho Books**, then move to QuickBooks/Xero once your bookkeeping becomes more complex.


Best accounting software for small creative freelancers and designers

For small creative freelancers and designers, the best accounting software usually depends on whether you need **simple invoicing**, **expense tracking**, **tax prep**, or **client/project management**.

### Best overall: **FreshBooks**
Great for designers, photographers, writers, and other creatives.

**Why it’s good:**
- Easy invoicing and payment reminders
- Time tracking for hourly projects
- Expense tracking
- Project profitability tools
- Client-friendly estimates and proposals

**Best for:** Freelancers who want simple accounting plus polished client billing.

---

### Best for taxes and bookkeeping: **QuickBooks Online**
More powerful than FreshBooks, especially if you want serious bookkeeping.

**Why it’s good:**
- Strong expense categorization
- Mileage tracking
- Tax-ready reports
- Integrates with accountants
- Scales well if your business grows

**Best for:** Freelancers who want a more complete accounting system or work with an accountant.

---

### Best free/low-cost option: **Wave**
A good choice if you’re just starting out and want basic accounting without a monthly fee.

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

**Best for:** Solo freelancers on a tight budget.

---

### Best for creative client workflow: **Bonsai**
Bonsai is especially popular with freelancers because it combines business admin with accounting basics.

**Why it’s good:**
- Proposals and contracts
- Invoicing
- Time tracking
- Client management
- Expense tracking

**Best for:** Designers who want contracts, proposals, invoices, and project tracking in one place.

---

### Best for project-based client work: **HoneyBook**
More focused on client experience than accounting, but useful for creatives.

**Why it’s good:**
- Proposals, contracts, invoices
- Client communication
- Payment collection
- Workflow automation

**Best for:** Brand designers, photographers, event creatives, and service-based studios.

---

## My recommendation

If you’re a solo creative freelancer, I’d choose:

1. **FreshBooks** — best all-around for invoicing, time tracking, and simple accounting
2. **Bonsai** — best if you also need contracts and proposals
3. **QuickBooks Online** — best if tax/bookkeeping accuracy is your priority
4. **Wave** — best if you want a free option

For most small creative freelancers and designers, **FreshBooks or Bonsai** will feel the most user-friendly.


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

For a small craft business, the best choice depends on how simple or complex your sales are:

- **Wave** — Good free option for basic income/expense tracking, receipts, invoicing, and reports.
- **QuickBooks Online** — Best all-around choice if you want strong bookkeeping, tax reports, bank syncing, inventory, and accountant access.
- **Xero** — Good alternative to QuickBooks, especially if you want clean reporting and integrations.
- **FreshBooks** — Good if you mostly invoice customers or take custom orders.
- **Craftybase** — Best if you need craft-specific inventory, material costs, and cost-of-goods-sold tracking.
- **Spreadsheet + bank statements** — Fine if you’re very small and just starting, but it gets harder at tax time.

If you sell on **Etsy, Shopify, Square, or PayPal**, choose software that integrates with those platforms. For most small craft businesses, I’d suggest starting with **Wave** if budget matters, or **QuickBooks Online** if you want something more robust and tax-friendly.

Also, use a separate business bank account and keep digital copies of receipts.


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** for hourly, project-based, or retainer work
- **Expense tracking** with bank and credit card syncing
- **Time tracking integrations** for consultants
- **Client and project profitability tracking**
- **Strong reporting** for cash flow, profit/loss, and taxes
- **Widely supported by accountants and bookkeepers**
- Scales well as the firm grows

Best plan: **QuickBooks Online Essentials or Plus**
- Choose **Essentials** if you mainly need invoicing, bills, and basic reporting.
- Choose **Plus** if you want project profitability and more detailed tracking.

Good alternatives:
- **FreshBooks** — very intuitive, great for solo consultants or small teams focused on invoicing and time tracking.
- **Xero** — clean interface, strong if you work with an accountant who prefers it.
- **Wave** — good free/low-cost option for very small firms, but less scalable.

My top pick: **QuickBooks Online Plus** if you want a reliable system that can grow with the firm.


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** because it has strong foreign currency support, automatic exchange rate updates, bank feeds, invoicing, bills, and clear reporting.

Good options:

- **Xero** — Best overall for small businesses handling multiple currencies; strong accounting and reporting.
- **QuickBooks Online** — Best if you want a widely used platform with lots of accountant support and integrations. Multi-currency is available on higher-tier plans.
- **Zoho Books** — Best value option, especially for smaller or cost-conscious businesses with international customers.
- **FreshBooks** — Good for freelancers or service businesses that invoice clients in different currencies, but less robust for full accounting.
- **NetSuite** — Best for larger or fast-growing businesses with complex international operations, but more expensive.

**My recommendation:**
Choose **Xero** if multi-currency accounting is a regular part of your business. Choose **QuickBooks Online** if your accountant already uses it or you need broad U.S.-based support.


Best accounting software with automated bank feeds for small business

Here are the best accounting software options with automated bank feeds for small businesses:

## Top picks

### 1. **QuickBooks Online**
**Best overall for small businesses**
- Strong automated bank feeds and transaction rules
- Good invoicing, expenses, payroll, reports, and accountant access
- Large bank and app integration network
- Best if you want a widely supported option

### 2. **Xero**
**Best for bank feeds and ease of use**
- Excellent automatic bank reconciliation
- Clean interface and strong reporting
- Good for businesses working with accountants or multiple users
- Often preferred by service businesses and growing companies

### 3. **FreshBooks**
**Best for freelancers and service businesses**
- Simple bank feeds, invoicing, time tracking, and expenses
- Very easy to use
- Less advanced than QuickBooks or Xero for inventory/accounting depth

### 4. **Zoho Books**
**Best value**
- Automated bank feeds, invoicing, expenses, projects, and reporting
- Usually cheaper than QuickBooks/Xero
- Great if you already use Zoho apps
- Bank feed availability can vary by country/bank

### 5. **Wave**
**Best free/low-cost option**
- Good for very small businesses, freelancers, and side businesses
- Bank connections, invoicing, and basic accounting
- Fewer advanced features and integrations

## My recommendation

- Choose **QuickBooks Online** if you want the safest all-around choice.
- Choose **Xero** if you want excellent bank reconciliation and a cleaner interface.
- Choose **Zoho Books** if cost is a major factor.
- Choose **FreshBooks** if invoicing clients is your main need.
- Choose **Wave** if you need a budget-friendly starter option.

Before choosing, check that your specific bank supports direct feeds in the software, as bank feed reliability varies by country and financial institution.


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 all-around choice because it’s widely used, easy to share with an accountant, and handles invoicing, expenses, bank feeds, sales tax, reports, payroll add-ons, and tax-time records well.

Good options depending on your situation:

- **QuickBooks Online** — Best overall for most small businesses; strong reporting and accountant support.
- **Xero** — Great alternative to QuickBooks; clean interface and strong bank reconciliation.
- **Wave** — Best free/low-cost option for very small businesses or freelancers with simple bookkeeping.
- **FreshBooks** — Best for service-based businesses that send invoices and track time.
- **Zoho Books** — Good affordable option, especially if you already use Zoho products.

If you’re unsure, I’d recommend starting with **QuickBooks Online Simple Start or Essentials** unless your business is very simple, in which case **Wave** may be enough.


Top cloud accounting platforms for micro-enterprises

Here are top cloud accounting platforms well-suited for micro-enterprises:

| Platform | Best for | Key strengths |
|---|---|---|
| **QuickBooks Online** | General small business accounting | Strong invoicing, expenses, bank feeds, reporting, accountant access |
| **Xero** | Growing micro-businesses | Clean interface, excellent bank reconciliation, integrations, multi-user access |
| **FreshBooks** | Freelancers and service businesses | Easy invoicing, time tracking, expenses, client payments |
| **Zoho Books** | Budget-conscious businesses | Affordable, good automation, invoicing, inventory, GST/VAT support in many regions |
| **Wave** | Very small businesses and startups | Free accounting and invoicing features, simple to use |
| **Sage Accounting** | Sole traders and small firms | Reliable bookkeeping, VAT/tax tools, bank connections |
| **FreeAgent** | UK freelancers and contractors | Strong tax estimates, expenses, invoicing, HMRC integration |
| **Kashoo** | Simple bookkeeping | Very easy setup, basic accounting, good for non-accountants |
| **ZipBooks** | Simple invoicing and tracking | Free/low-cost plans, simple reports, client billing |
| **Odoo Accounting** | Businesses needing modular ERP features | Accounting plus CRM, inventory, sales, and operations tools |

### Best picks by use case

- **Best overall:** QuickBooks Online
- **Best for freelancers:** FreshBooks
- **Best free option:** Wave
- **Best value:** Zoho Books
- **Best for UK sole traders:** FreeAgent
- **Best for scaling:** Xero
- **Best if you need inventory/ERP features:** Odoo

For most micro-enterprises, the best choices are usually **Wave** if you want free/basic accounting, **Zoho Books** if you want low-cost features, or **QuickBooks/Xero** if you want a widely supported platform with strong accountant compatibility.


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

For a small LLC, the best choice depends on complexity, but these are the most common good options:

### Best overall: **QuickBooks Online**
Good if you want a widely used system that accountants know well.
Best for: bookkeeping, invoicing, expense tracking, bank feeds, payroll add-ons, sales tax, reports.
Downside: can get expensive as you add features.

### Best alternative: **Xero**
Clean interface and strong accounting features.
Best for: small businesses that want good bookkeeping, bank reconciliation, invoicing, and accountant access.
Downside: payroll is usually handled through integrations.

### Best free/low-cost option: **Wave**
Good if your LLC is very small and you mostly need invoicing, income/expense tracking, and basic reports.
Best for: freelancers, consultants, very small service businesses.
Downside: less robust than QuickBooks or Xero.

### Best if you invoice clients a lot: **FreshBooks**
Very easy for invoicing, time tracking, and client billing.
Best for: consultants, agencies, contractors, service businesses.
Downside: not as strong for full accounting complexity.

### Best budget business suite: **Zoho Books**
Affordable and works well if you use other Zoho tools.
Best for: small businesses wanting accounting plus CRM/projects/invoicing.
Downside: fewer accountants are familiar with it compared with QuickBooks.

## My recommendation
If you want the safest, most accountant-friendly option: **QuickBooks Online Simple Start or Essentials**.

If you’re trying to keep costs low and your accounting is simple: **Wave**.

If you want a strong QuickBooks alternative: **Xero**.

## Features you should make sure it has
- Bank and credit card syncing
- Expense categorization
- Invoicing and payment tracking
- Profit & loss and balance sheet reports
- Receipt capture
- Accountant/bookkeeper access
- Payroll integration if you’ll pay employees
- Sales tax tracking if you sell taxable goods/services

Also, open a separate business bank account and business credit card for the LLC. That will make the software much easier to use and keep your records clean.


Best accounting tool for a small professional services firm

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

### Best overall: **QuickBooks Online**
Good for:
- Invoicing and online payments
- Expense tracking
- Bank reconciliation
- Payroll add-ons
- Tax prep and accountant access
- Reporting by client/project
- Broad integrations

Best fit if you want something widely supported by bookkeepers and accountants.

### Best alternatives

**FreshBooks**
Best if your business is heavily focused on:
- Time tracking
- Client invoicing
- Project-based billing
- Simple expense tracking

Great for consultants, agencies, freelancers, and small service teams.

**Xero**
Best if you want:
- Strong accounting features
- Clean interface
- Good collaboration with accountants
- Better value in some markets outside the U.S.

**Zoho Books**
Best if you want:
- Lower cost
- Solid invoicing and automation
- Integration with Zoho CRM and other Zoho apps

**Wave**
Best for very small firms that need:
- Free basic accounting
- Simple invoicing
- Basic bookkeeping

Less ideal as the firm grows.

### My recommendation
If you have employees, contractors, payroll, or plan to grow: **QuickBooks Online**.
If you mostly bill clients by time and want simple invoicing: **FreshBooks**.
If cost is the main concern: **Zoho Books** or **Wave**.


What software do bookkeepers recommend for small business client accounting?

Bookkeepers most commonly recommend these small-business accounting platforms:

1. **QuickBooks Online**
   - Most widely used by bookkeepers and accountants
   - Strong bank feeds, invoicing, payroll integrations, reporting, and app marketplace
   - Good for most small businesses

2. **Xero**
   - Popular with bookkeepers who manage multiple clients
   - Clean interface, strong bank reconciliation, unlimited users on many plans
   - Good for service businesses, startups, and growing companies

3. **FreshBooks**
   - Best for freelancers, consultants, and service-based businesses
   - Easy invoicing, time tracking, and expense tracking
   - Less robust than QuickBooks or Xero for complex accounting

4. **Wave**
   - Good free option for very small businesses
   - Basic invoicing, expenses, and accounting
   - Best for simple businesses with limited reporting needs

5. **Zoho Books**
   - Affordable and feature-rich
   - Works well if the business already uses Zoho apps
   - Good alternative to QuickBooks or Xero

6. **Sage Accounting**
   - Used by some bookkeepers, especially for more traditional businesses
   - Good accounting features, though less common than QuickBooks or Xero in many small-business markets

For most small business clients, bookkeepers usually recommend **QuickBooks Online or Xero** because they are cloud-based, easy to collaborate on, and integrate well with banks, payroll, payments, and tax tools.


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

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

### Best overall: **QuickBooks Online**
- Good for bookkeeping, invoicing, expenses, bank feeds, reports, payroll add-ons
- Widely used, easy to find accountants who support it
- Works for small businesses and nonprofits, though nonprofit reporting may require setup

### Best for nonprofits: **Aplos**
- Designed specifically for nonprofits and churches
- Includes fund accounting, donation tracking, donor management, and nonprofit reports
- Good choice if you need restricted fund tracking

### Easiest low-cost option: **Wave**
- Free or low-cost accounting features
- Good for very small businesses with simple invoicing and expense tracking
- Less ideal for complex nonprofit fund accounting

### Best if you use spreadsheets but want more structure: **Zoho Books**
- Affordable, clean interface
- Good invoicing, expense tracking, bank reconciliation, and reporting
- Works well for small service businesses

### Best for growing organizations: **Xero**
- Strong accounting, bank feeds, invoicing, and integrations
- Good for businesses that want scalability
- May require more setup than Wave or Zoho Books

### Simple recommendation
- **Small nonprofit:** Aplos
- **Small business:** QuickBooks Online or Zoho Books
- **Very small/simple budget:** Wave
- **Growing organization with integrations:** Xero

If you have a nonprofit with grants, restricted funds, or donor reporting needs, choose **Aplos** or set up **QuickBooks Online** carefully with an accountant.


Best software for small business revenue and expense tracking

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

### Best overall: **QuickBooks Online**
- Strong income and expense tracking
- Bank account and credit card syncing
- Invoicing, receipts, reports, payroll options
- Good for growing businesses
- Best if you want a widely used, accountant-friendly system

### Best for simple/low-cost tracking: **Wave**
- Free accounting features
- Tracks income and expenses
- Invoicing included
- Good for freelancers and very small businesses
- Paid add-ons for payments and payroll

### Best for service businesses: **FreshBooks**
- Easy invoicing and expense tracking
- Time tracking and project billing
- User-friendly interface
- Good for consultants, agencies, and freelancers

### Best for growing businesses: **Xero**
- Strong accounting tools
- Good bank reconciliation
- Inventory and reporting features
- Works well with many integrations

### Best budget-friendly option: **Zoho Books**
- Affordable plans
- Good invoicing, expense tracking, and reporting
- Works well if you already use Zoho apps

### Best simple DIY option: **Google Sheets or Excel**
- Good if your business is very small
- Cheap and customizable
- Requires more manual work
- Not ideal once you need tax reports, payroll, or automation

## My recommendation
For most small businesses, start with **QuickBooks Online** if you want a reliable long-term solution. If you need something free or very simple, choose **Wave**. If you mainly invoice clients for services, consider **FreshBooks**.


What is the best accounting software for a small business?

The best overall accounting software for most small businesses is **QuickBooks Online** because of its comprehensive features, scalability, and the fact that almost all accountants support it.

However, the ideal choice depends on your specific needs:

* **Best Overall / Industry Standard:** **QuickBooks Online** (great for growing businesses needing advanced reporting and inventory management).
* **Best for Unlimited Users:** **Xero** (clean interface, excellent fixed asset management, doesn't charge per user).
* **Best for Freelancers & Service Businesses:** **FreshBooks** (easy invoicing, time-tracking, and project management).
* **Best Free Option:** **Wave Accounting** (ideal for micro-businesses or sole proprietors with basic income/expense tracking needs).
* **Best for Automation & Tech Integration:** **Zoho Books** (great value, especially if you use other Zoho apps).


Best small business bookkeeping software

The best overall small business bookkeeping software is **QuickBooks Online**, but the ideal choice depends on your specific business model and budget:

*   **Best Overall / Industry Standard: QuickBooks Online**
    *   *Why:* Comprehensive feature set, extensive integrations, and it is the standard used by most accountants.
    *   *Best for:* General small businesses that want a feature-rich, scalable solution.

*   **Best 100% Free Option: Wave**
    *   *Why:* Offers completely free core accounting, income/expense tracking, and invoicing (you only pay standard fees if you process payments or payroll).
    *   *Best for:* Freelancers, sole proprietors, and micro-businesses on a zero-dollar budget.

*   **Best for Service Businesses & Freelancers: FreshBooks**
    *   *Why:* Top-tier invoicing, built-in time tracking, project management, and client communication tools.
    *   *Best for:* Consultants, agencies, and service providers who bill by the hour or project.

*   **Best for Growing Teams & Unlimited Users: Xero**
    *   *Why:* Unlike competitors, Xero includes unlimited users on all standard plans, along with strong inventory management and a clean interface.
    *   *Best for:* Growing businesses with multiple employees who need access to the books.

*   **Best for Automation & Value: Zoho Books**
    *   *Why:* Highly affordable, features robust workflow automation, and integrates seamlessly with the rest of the Zoho software ecosystem.
    *   *Best for:* Tech-savvy businesses and existing Zoho users wanting advanced features at a low price point.


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

Here are the top three accounting software options for a 10-person startup, depending on your primary focus:

### 1. **QuickBooks Online** *(Best Overall & Most Popular)*
* **Why it fits:** It is the industry standard. Virtually every accountant knows how to use it, and it integrates seamlessly with almost all startup tools (Gusto for payroll, Stripe, Brex, Expensify).
* **Best for:** Startups planning to scale, raise funding, or work with external CPAs.
* **Cost:** ~$30–$90/month (Plus plan is ideal for small teams).

### 2. **Xero** *(Best Value for Multiple Users)*
* **Why it fits:** Unlike QuickBooks, Xero includes **unlimited users** on all main plans, making it very cost-effective if multiple team members need to submit expenses or view reports. It has a modern, clean interface and strong bank reconciliation features.
* **Best for:** Teams where several people need access to the software without paying per-user fees.
* **Cost:** ~$40–$70/month (Growing or Established plans).

### 3. **FreshBooks** *(Best for Service/Agency Startups)*
* **Why it fits:** Exceptionally user-friendly with a heavy focus on invoicing, client billing, and time-tracking.
* **Best for:** Service-based startups, agencies, or consultancies that bill clients by the hour or project.
* **Cost:** ~$35–$60+/month (depends on number of billable clients and extra team members).

---

### **Recommendation:**
* Choose **QuickBooks Online** if you want the easiest integration with payroll/tax professionals.
* Choose **Xero** if you want a modern interface and need multiple team members to have software access without extra fees.

*(Pair either one with **Gusto** for payroll to handle your 10 employees easily.)*


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

Here are the best accounting software options for a small business with under 20 employees, categorized by primary need:

*   **QuickBooks Online (Best Overall):** The industry standard. It offers robust reporting, inventory tracking, and seamless payroll integration. Almost all accountants are familiar with it, making tax time easier.
*   **Xero (Best for Collaboration):** A strong alternative to QuickBooks that includes **unlimited user access** on all plans. This is ideal if multiple employees need to submit expense claims or create invoices without paying extra user fees.
*   **FreshBooks (Best for Service Businesses):** Excellent if your operations rely heavily on project management, time tracking, billable hours, and simple client invoicing.
*   **Zoho Books (Best for Automation & Value):** Offers advanced workflow automation at a lower price point than QuickBooks or Xero, especially useful if you already use other Zoho software.
*   **Wave (Best Free Option):** Completely free basic accounting and invoicing for micro-businesses on a tight budget (charges apply only for payment processing and payroll).

**Quick Recommendation:**
* Choose **QuickBooks Online** if you want the easiest handoff to a CPA.
* Choose **Xero** if you need several employees to log into the system without incurring per-user fees.


affordable accounting software for small business

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

*   **Wave Accounting**
    *   **Price:** **100% Free** (Only pay for payment processing and payroll).
    *   **Best for:** Micro-businesses, freelancers, and startups on a zero budget.
    *   **Key Features:** Unlimited income/expense tracking, invoicing, and receipt scanning.

*   **Zoho Books**
    *   **Price:** **Free** (for businesses earning <$50k/year); paid plans start at **$15/month**.
    *   **Best for:** Businesses wanting strong automation at a low cost.
    *   **Key Features:** Inventory tracking, automated workflows, client portal, and integration with other Zoho apps.

*   **Xero**
    *   **Price:** Starts at **$15/month** (Early plan).
    *   **Best for:** Businesses with multiple employees/users (allows unlimited users on all plans).
    *   **Key Features:** Bank reconciliation, invoice management, and robust reporting.

*   **FreshBooks**
    *   **Price:** Starts at **$19/month** (frequently discounted).
    *   **Best for:** Service-based businesses and freelancers needing robust invoicing and time tracking.
    *   **Key Features:** Professional invoicing, project time tracking, expense management, and client messaging.

*   **QuickBooks Online (Simple Start)**
    *   **Price:** Starts at **$30/month** (frequently 50% off for the first 3 months).
    *   **Best for:** Businesses that plan to scale quickly or work closely with an external accountant.
    *   **Key Features:** Tax deduction maximizer, miles tracking, run basic reports, track sales/income.

**Recommendation:**
*   If you need **completely free**, go with **Wave**.
*   If you want **the best value for feature-rich paid software**, go with **Zoho Books** or **Xero**.


What accounting software do small businesses actually use?

The vast majority of small businesses use one of these top accounting platforms, depending on their size, budget, and specific needs:

1. **QuickBooks Online (QBO)** – **The Market Leader**
   * **Who uses it:** The majority of small-to-medium businesses in North America.
   * **Why:** It is the industry standard. Almost every accountant and bookkeeper knows how to use it, and it integrates with virtually every business tool.

2. **Xero** – **The Best Alternative to QuickBooks**
   * **Who uses it:** Growing small businesses, especially in the UK, Australia, and cloud-forward US companies.
   * **Why:** Known for its user-friendly interface, strong mobile app, and allowing unlimited users on all plans (unlike QuickBooks).

3. **FreshBooks** – **Best for Service-Based Businesses & Freelancers**
   * **Who uses it:** Agencies, consultants, contractors, and freelancers.
   * **Why:** Excellent for client invoicing, proposals, time tracking, and basic expense management.

4. **Wave** – **Best for Very Small/Micro Businesses**
   * **Who uses it:** Sole proprietors, freelancers, and side hustlers with simple finances.
   * **Why:** The core bookkeeping and invoicing features are **100% free** (you only pay for payment processing and payroll).

5. **Zoho Books** – **Best Value & Automation**
   * **Who uses it:** Businesses already using the Zoho software ecosystem or those wanting strong workflow automation at a lower price point.

**Summary:** Most traditional small businesses default to **QuickBooks Online**. If they dislike QuickBooks, they usually choose **Xero**. If they are a brand-new or single-person business, they often start with **Wave** or **FreshBooks**.


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 type. Here are the top recommendations:

1. **QuickBooks Solopreneur** (or Simple Start) – *Best Overall*
   * **Why:** It’s the industry standard, automatically tracks Schedule C tax categories, and makes it easiest to share data with a CPA at tax time.

2. **Wave Accounting** – *Best Free Option*
   * **Why:** It offers completely free income/expense tracking and invoicing. It is ideal if you have a simple business and want to keep overhead at zero.

3. **FreshBooks** – *Best for Service-Based Businesses*
   * **Why:** Excellent for freelancers and consultants who need strong invoicing, client management, and time-tracking features.

4. **Xero (Early Plan)** – *Best Budget Alternative to QuickBooks*
   * **Why:** Simple, modern interface with good expense tracking at a lower starting price than QuickBooks.

**Bottom Line:**
* Use **Wave** if you want a reliable, 100% free solution.
* Use **QuickBooks** if you want seamless tax filing and plan to work with an accountant.


Best accounting software for a freelance consultant

The best overall accounting software for a freelance consultant is **FreshBooks**. It is designed specifically for service-based professionals, making it easy to track billable hours, send professional invoices, manage client retainers, and track expenses.

Here are the top options based on specific needs:

*   **Best Overall:** **FreshBooks** – Ideal for project-based consulting, time tracking, and seamless invoicing.
*   **Best Free Option:** **Wave** – Completely free for basic accounting and invoicing; ideal if you want zero software overhead.
*   **Best for Taxes & Mileage:** **QuickBooks Self-Employed** – Great for automatically tracking business mileage and separating business/personal expenses for easy quarterly tax estimates.
*   **Best All-in-One (Contracts + Accounting):** **Bonsai** – Built for freelancers who want proposals, contracts, time tracking, and invoicing in one platform.

**Recommendation:** Start with **FreshBooks** (or **Wave** if you are on a strict budget).


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

The best accounting software for your business depends on your specific needs, but here are the top upgrades from spreadsheets:

1. **QuickBooks Online (Best Overall & Industry Standard)**
   * **Best for:** Most small-to-medium businesses.
   * **Why:** It has the largest ecosystem of integrations, easily scales, and virtually every accountant or CPA knows how to use it.

2. **Xero (Best Alternative & Best for Teams)**
   * **Best for:** Growing businesses that need multiple user accounts.
   * **Why:** Features a clean, intuitive interface, excellent inventory tracking, and allows **unlimited users** on all plans (unlike QuickBooks, which charges per user).

3. **FreshBooks (Best for Service-Based Businesses)**
   * **Best for:** Agencies, freelancers, and consultancies.
   * **Why:** Built specifically around time tracking, client invoicing, project management, and proposals.

4. **Zoho Books (Best for Budget & Automation)**
   * **Best for:** Cost-conscious businesses and existing Zoho users.
   * **Why:** Offers strong workflow automation and robust features at a lower price point than QuickBooks or Xero.

---

### Recommendation on How to Decide:
* **Ask your CPA/Accountant first:** Most tax professionals have a strong preference (usually QuickBooks or Xero), which will save you time and money during tax season.
* **If you need multiple users on a budget:** Go with **Xero**.
* **If you want the safest, standard choice:** Go with **QuickBooks Online**.


Top accounting tools for a small digital marketing agency

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

### 1. **QuickBooks Online** (Best Overall & Industry Standard)
* **Why it fits agencies:** Offers robust project profitability tracking (ideal for tracking campaign-level ROI), seamless accountant access, and native integrations with most agency tools.
* **Key Features:** Advanced reporting, inventory/project management, mileage/expense tracking, easily scalable.

### 2. **Xero** (Best for Collaboration & Integrations)
* **Why it fits agencies:** Offers unlimited users on all plans, making it easy for account managers to submit expenses or view project budgets without paying per seat. Integrates well with CRM and project management tools like HubSpot and Asana.
* **Key Features:** Strong bank reconciliation, multi-currency support (great for international ad spend), automated invoicing.

### 3. **FreshBooks** (Best for Retainers & Client Invoicing)
* **Why it fits agencies:** Built specifically for service-based businesses. It makes setting up monthly client retainers, tracking hours against budget, and sending clean, professional invoices effortless.
* **Key Features:** Built-in time tracking, retainer management, proposals/estimates, client portal.

### 4. **Zoho Books** (Best for Automation & Tech Ecosystems)
* **Why it fits agencies:** If your agency uses the Zoho ecosystem (Zoho CRM, Zoho Projects), it offers deep integration and powerful workflow automation at a lower price point than QuickBooks.
* **Key Features:** Auto-billing, payment reminders, client portals, custom workflow rules.

### 5. **Wave** (Best Free Option for Solopreneurs)
* **Why it fits agencies:** Ideal for brand-new or single-person marketing agencies needing basic accounting without a monthly subscription fee.
* **Key Features:** Free core accounting and invoicing, simple expense tracking (charges only standard credit card processing fees).

---

### **How to Choose:**
* Choose **FreshBooks** if you rely heavily on **retainers and time tracking**.
* Choose **QuickBooks** or **Xero** if you need **detailed project profitability reports** and plan to scale.
* Choose **Wave** if you are just starting out with **zero budget**.


Which accounting system is best for a small ecommerce store?

For a small e-commerce store, the best accounting systems are **Xero** and **QuickBooks Online**, depending on your specific needs:

* **Best Overall: Xero**
  * **Why:** It offers unlimited users on all plans, handles multi-currency transactions smoothly, and is widely considered the most seamless platform for e-commerce integrations.
* **Best for Ecosystem & Finding Help: QuickBooks Online**
  * **Why:** It is the industry standard. Almost every accountant knows how to use it, and it connects natively with virtually all sales channels (Shopify, Amazon, eBay, WooCommerce).
* **Best Free Option: Wave Accounting**
  * **Why:** Completely free for basic bookkeeping and invoicing. Ideal if you are just starting out with low sales volume and a tight budget, though it lacks direct e-commerce inventory sync.

**Pro Tip:** For any system you choose, pair it with **A2X**. It automatically summarizes your store payouts (Shopify, Amazon, Etsy) and separates sales, taxes, refunds, and platform fees before sending them to your accounting software.


Easy to use accounting software for non-accountant business owners

Here are the easiest accounting software options designed specifically for non-accountants:

1. **FreshBooks** (*Best overall for ease of use*)
   * **Why it’s easy:** Built specifically for service-based small businesses and freelancers. It uses plain language instead of complex accounting jargon and focuses heavily on intuitive invoicing, expense tracking, and time tracking.

2. **Wave Accounting** (*Best free option*)
   * **Why it’s easy:** 100% free for basic accounting and invoicing. The dashboard is clean and straightforward, making it ideal for micro-businesses or solopreneurs who just need to track income, expenses, and send invoices.

3. **Xero** (*Best clean interface*)
   * **Why it’s easy:** Features an uncluttered layout and makes bank reconciliation simple—it automatically matches transactions and prompts you with easy "OK" approvals.

4. **QuickBooks Online (Simple Start Plan)** (*Best for future growth*)
   * **Why it’s easy:** The entry-level plan strips away complex features. While it has a slightly higher learning curve than FreshBooks, it automates bank categorization well and is the standard software almost every accountant knows if you hire help later.

### **Quick Recommendation:**
* Pick **FreshBooks** if you send invoices and want the easiest learning curve.
* Pick **Wave** if you want a zero-cost, simple income/expense tracker.
* Pick **QuickBooks** if you plan to scale quickly and hire an accountant soon.


What cloud accounting platform should a small retail business choose?

For a small retail business, **QuickBooks Online** is the best overall choice, with **Xero** as the top alternative.

Here is how to choose based on your specific needs:

1. **QuickBooks Online (Best Overall)**
   * **Why:** It is the industry standard and offers seamless, native integrations with almost every Point of Sale (POS) system (Square, Shopify, Clover, Lightspeed), making daily sales and inventory syncing effortless.
   * **Best for:** Retailers who rely heavily on a POS system or e-commerce platform.

2. **Xero (Best for Usability and Multi-User Access)**
   * **Why:** It has a cleaner, more intuitive interface than QuickBooks and includes unlimited users on all standard plans (ideal if multiple managers or employees need access).
   * **Best for:** Businesses looking for simple pricing and strong, built-in inventory tracking.

3. **Zoho Books (Best Budget Option)**
   * **Why:** It is significantly cheaper than QuickBooks and Xero while offering strong automated workflows and good inventory management.
   * **Best for:** Micro-retailers or startups on a tight budget.

**Bottom Line:** If you already use a popular POS system (like Square or Shopify), choose **QuickBooks Online** for the smoothest integration.


Best software for small business bookkeeping and invoicing

Here are the top software options for small business bookkeeping and invoicing, tailored to different needs:

*   **QuickBooks Online (Best Overall):** The industry standard. Highly scalable, offers advanced features (inventory, mileage tracking, reporting), and is preferred by most accountants.
    * *Best for:* Growing small businesses that want a comprehensive, standard tool.

*   **FreshBooks (Best for Service Businesses & Freelancers):** Extremely user-friendly with a heavy focus on professional invoicing, time tracking, proposal generation, and client management.
    * *Best for:* Agencies, consultants, contractors, and service providers.

*   **Xero (Best for Multiple Users):** A strong QuickBooks alternative that offers clean navigation, automated bank reconciliation, and allows **unlimited users** on every plan.
    * *Best for:* Businesses with multiple staff members needing system access.

*   **Wave Accounting (Best Free Option):** 100% free software for invoicing and core bookkeeping. You only pay standard processing fees if clients pay invoices online.
    * *Best for:* Sole proprietors, freelancers, and micro-businesses on a tight budget.

### **Quick Recommendation:**
* Pick **QuickBooks** if you plan to work closely with an accountant.
* Pick **FreshBooks** if you bill clients by the hour or project.
* Pick **Wave** if you want a reliable, zero-cost solution.


Recommend a simple accounting tool for an independent contractor.

**Wave Accounting** is the best simple, tool for independent contractors.

* **Why it’s ideal:** It is **100% free** for income/expense tracking and invoicing, has no limits on transactions or clients, and is extremely easy to set up.

**Best Paid Alternative:**
* **QuickBooks Solopreneur** (about $20/month): Best if you need built-in mileage tracking and direct integration with TurboTax for filing quarterly taxes.


What software do accountants recommend for small business bookkeeping?

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

1. **QuickBooks Online:** The overall industry standard. Recommended for most small to medium businesses because nearly all accountants know how to use it, and it offers robust features, detailed reporting, and broad third-party integrations.
2. **Xero:** The top alternative to QuickBooks. Highly recommended for modern, cloud-focused businesses due to its user-friendly interface, strong collaboration features, and plans that allow unlimited users.
3. **FreshBooks:** Recommended for service-based businesses, freelancers, and self-employed professionals who need easy invoicing, time tracking, and basic bookkeeping.
4. **Wave:** Recommended as a free, reliable option for micro-businesses, sole proprietors, or new startups with very straightforward financial needs.
5. **Zoho Books:** Recommended for businesses that require automated workflows, strong inventory management, or are already using the Zoho ecosystem.

**Pro Tip:** **QuickBooks Online** and **Xero** are by far the two most widely supported by professional accounting firms.


Best accounting software for a small service business with 5 employees

For a small service business with 5 employees, the top three accounting software options depend on your primary need:

### 1. **QuickBooks Online** (*Best Overall & Most Scalable*)
* **Why it fits:** It is the industry standard, making it easy to collaborate with an accountant. It handles invoicing, expense tracking, and time tracking well, and offers integrated payroll.
* **Best for:** Businesses planning to grow and wanting an all-in-one solution.
* **Pricing:** Starts around $30/month (plus payroll fees).

### 2. **FreshBooks** (*Best for Service-Based Businesses*)
* **Why it fits:** Purpose-built for service providers. It excels at client invoicing, project time-tracking, estimates, and client communication. Integrates seamlessly with Gusto for payroll.
* **Best for:** Businesses that prioritize easy invoicing and time/project tracking over complex accounting.
* **Pricing:** Starts around $19/month.

### 3. **Xero** (*Best Value for Multiple Users*)
* **Why it fits:** Unlike QuickBooks, Xero includes unlimited user access on all plans, which is ideal if all 5 employees need to log in to submit expenses or track time. Integrates with Gusto for payroll.
* **Best for:** Businesses wanting strong accounting features without per-user fee markups.
* **Pricing:** Starts around $15–$42/month.

---

### **Recommendation:**
* Choose **FreshBooks** if your main focus is simple invoicing, client management, and tracking billable hours.
* Choose **QuickBooks Online** if you want the standard system that any accountant can seamlessly manage.


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

Here are the best, easy-to-use software options depending on your budget:

1. **FreshBooks** *(Best for Ease of Use)*
   * **Why:** Extremely user-friendly and designed specifically for non-accountants. It makes sending invoices, snapping photos of expense receipts, and running a P&L report effortless.
   * **Cost:** Starts around $19/month.

2. **Wave Accounting** *(Best Free Option)*
   * **Why:** Completely free cloud software that connects to your bank account to auto-track expenses, sends professional invoices, and generates instant Profit & Loss statements.
   * **Cost:** 100% Free (you only pay processing fees if clients pay invoices online via credit card).

3. **QuickBooks Online (Simple Start)** *(Best Industry Standard)*
   * **Why:** The most widely recognized tool. It has a slightly higher learning curve than Wave or FreshBooks, but virtually every accountant knows how to use it, making tax time seamless.
   * **Cost:** Starts around $30/month.

**Bottom Line Recommendation:**
* Try **Wave** first if you want a straightforward, zero-cost solution.
* Choose **FreshBooks** if you want the easiest possible interface and dedicated customer support.


Best low-cost bookkeeping software for sole proprietors

Here are the best low-cost bookkeeping software options for sole proprietors, ranked by value:

### 1. **Wave Accounting** — *Best Overall Free Option*
* **Cost:** 100% Free (pay only standard credit card processing fees if you accept online payments).
* **Best For:** Sole proprietors who want full double-entry accounting without a subscription fee.
* **Key Features:** Unlimited income/expense tracking, customizable invoicing, receipt scanning, and simple financial reporting.

### 2. **Zoho Books** — *Best Free Plan for Low Revenue*
* **Cost:** Free (for businesses making under $50,000/year); paid plans start at $15/month.
* **Best For:** Businesses expecting to grow that need automation and mileage tracking.
* **Key Features:** Bank reconciliation, invoice templates, expense tracking, and offline mobile app support.

### 3. **ZipBooks** — *Best for Simple Invoicing & Usability*
* **Cost:** Free basic plan; paid plans start at $15/month.
* **Best For:** Freelancers and contractors who prioritize quick, easy invoicing.
* **Key Features:** Unlimited invoices, customer management, basic financial reporting, and online payments.

### 4. **QuickBooks Solopreneur** (formerly QB Self-Employed) — *Best for Tax Preparation*
* **Cost:** ~$20/month.
* **Best For:** Sole proprietors who want seamless integration with TurboTax for filing a Schedule C.
* **Key Features:** Automatic mileage tracking, tax estimations, expense sorting, and basic invoicing.

---

### **Recommendation:**
* **Choose Wave** if you want completely **free**, straightforward accounting with no hidden limits.
* **Choose Zoho Books** if you make under $50k/year and need **mileage/time tracking**.
* **Choose QuickBooks Solopreneur** if simplifying your **year-end taxes** is your top priority and you have a small software budget.


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

**QuickBooks Online** is widely considered the best overall accounting platform for small companies managing cash flow and expense tracking.

**Why it’s the top choice:**
* **Cash Flow Management:** Includes a built-in Cash Flow Planner that forecasts income and expenses based on historical data and pending transactions.
* **Expense Tracking:** Features automated bank feeds, smart categorizations, and a mobile app that allows you to snap photos of receipts for instant matching and storage.
* **Integration:** Connects seamlessly with almost all major banks, credit cards, and third-party software (like payroll and point-of-sale systems).

**Best Alternative:**
* **Xero:** A close runner-up that offers an intuitive cash flow dashboard and includes **unlimited users** on all plans, making it ideal if multiple team members need access.


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

The most popular accounting software for US small businesses is **Intuit QuickBooks** (specifically **QuickBooks Online**). It dominates the US market, holding roughly 80% of the small business accounting software market share due to its robust features, scalability, and integration with third-party apps, as well as its widespread adoption by accountants and bookkeepers.