Best Bookkeeping Software for Small Business

Based on the latest information available in 2025, here are the top accounting software options for small businesses:

QuickBooks Online

QuickBooks Online is the best all-in-one accounting software for small businesses [1][3]. It offers a comprehensive set of features, including:

  • Invoicing and payment collection
  • Expense tracking
  • Financial reporting
  • Payroll integration
  • Time tracking
  • Fixed asset management

QuickBooks Online is known for its scalability and wide range of integrated tools, making it suitable for growing businesses [3]. However, due to its extensive feature set, it can be more expensive than some competitors and may have a steeper learning curve [1].

Xero

Xero is an intuitive, cloud-based accounting platform ideal for small to medium-sized businesses [3]. Key features include:

  • Real-time bank feeds
  • Multi-currency support
  • Fixed asset management
  • Inventory tracking
  • Online payment integration

Xero integrates seamlessly with over 800 apps and offers excellent customer support [3]. However, it provides limited phone support and can be costly for small businesses.

FreshBooks

FreshBooks is well-suited for freelancers and service-based small businesses [3][4]. Its strengths include:

  • Time tracking
  • Customizable invoicing
  • Client management
  • Automatic tax calculations
  • Online payments

FreshBooks offers a simplified, intuitive interface and great mobile app functionality [3][4]. However, it may lack some advanced accounting tools needed by larger businesses.

Sage 50 Accounting

Sage 50 Accounting is a robust option for businesses with complex accounting needs [3][5]. It provides:

  • In-depth record and transaction forms
  • Advanced inventory management tools
  • Voluminous reports
  • Microsoft 365 integration

While powerful, Sage 50 Accounting is Windows-only, can be resource-heavy, and lacks mobile apps [5].

Zoho Books

Zoho Books offers a comprehensive suite of features at an affordable price point [3][5]. Highlights include:

  • Multiple sales and purchase form types
  • Customizable reports
  • Fast, clean user interface
  • Excellent mobile apps

Zoho Books integrates well with other Zoho business software but may be too complex for some smaller businesses [5].

When choosing accounting software, consider your business size, industry, budget, and specific accounting needs. Many of these options offer free trials, allowing you to test their features before committing to a subscription.

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Citations:

[1] https://www.lendingtree.com/business/best-software/
[2] https://www.podium.com/article/accounting-software-for-small-business/
[3] https://qbtechs.com/top-10-us-accounting-software-for-your-business-in-2025/
[4] https://www.techradar.com/best/accounting-software-small-business
[5] https://www.pcmag.com/picks/the-best-small-business-accounting-software
[6] https://invedus.com/blog/top-bookkeeping-software-for-small-businesses/
[7] https://www.invensis.net/blog/best-accounting-software-for-small-businesses
[8] https://tipalti.com/blog/small-business-accounting-software/
[9] https://www.reddit.com/r/Bookkeeping/comments/13lyri9/small_business_bookkeeping_software/
[10] https://www.nerdwallet.com/p/best/small-business/accounting-software
[11] https://online.jwu.edu/blog/best-accounting-software-for-small-businesses/
[12] https://www.cnbc.com/select/best-accounting-software-for-small-businesses/
[13] https://www.youtube.com/watch?v=Kb_x8MxKQ5w&vl=en-US
[14] https://coachilly.com/best-online-accounting-software-for-small-businesses/
[15] https://jamietrull.com/2024/12/09/cloud-based-accounting-software/
[16] https://www.youtube.com/watch?v=G4H-h2WI5fs