Best Free Accounting Software For Small Businesses

Overseeing the expenses of a small business can often be a troublesome task, but it does not have to break the bank. Imagine having free accounting software that smooths your finances and saves you valuable time😉. 

Several free accounting software programs are available for small businesses to manage their finances quickly. Even though free accounting software does not have the range of options available in the paid version, it is quite beneficial for managing your finances.

Without delay⏰, let’s unveil some free accounting software that can change your way of handling business financial matters. These free business accounting software features include invoicing and tracking financial reports.

Comparing Free Accounting Software

Software	Top Features	Best For
Wave	Invoicing, Accounting, ACH payment processing, Automatic reminders	Integration
Xero	Bank connections, Bills payment, Bank reconciliation, Tracking expenses	Collaborative accounting
ZipBooks	Vendor and customer management, Sales orders, Invoicing and tracking, Analytical reporting	Perfect invoices solutions
Zoho Books	Mobile accounting, Seamless sink your bank into your books, Manage vendor bills, Collaboration, and Portal Management	Customized invoices
Akaunting	Customized invoices, Better financial management, Sound vendor management system, Security	Open-source nature
Odoo	Customized invoices, Worldwide compatibility, Fully integrated, Supports multi-language and multi-currencies	Enterprise Resource Planning(ERP) software
NCH Express Accounts	Track business expenses, Create over 20 financial reports, Customer management, Financial transactions	Bank reconciliation
BrightBook	Generates VAT returns, Reporting, time-tracking and payroll integration, and cash management system	Generating tax reports
Sunrise	Unlimited bank transactions, Double-entry accounting, Unlimited customizable invoices, and Cash and tax management.	Expense tracking
Cloud Books	Time-tracking, Billing, Invoicing, financial and production management	Financial reporting

What Is Accounting Software?

Accounting software is a computer program that allows accountants, bookkeepers, and small business owners to track and report a company’s financial activities. However, the functions of accounting software may vary from one product to another. 

Similarly, accounting software allows detailed tracking of financial transactions, making accounting calculations easier to analyze. While accounting software was not established, these tasks were performed by hand, using journals. This was time-consuming and inaccurate.

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10 Free Accounting Software For Small Businesses

Many small business owners sacrifice quality to find affordable accounting software. However, No more sacrifices now as we discuss 10 free accounting software programs for your business with top-notch quality. 

1. Wave

Wave is one of the best free business accounting software. It keeps your finances in order, and you can track expenses by connecting Wave to unlimited bank accounts. Likewise, you can send invoices, track sales tax, and create reports with Wave. 

Wave can be a fruitful solution for those with less accounting knowledge. Because of its accessible solution provider features, you can collaborate with unlimited partners and accountants. 

Wave’s Features 

• Invoicing
• Accounting
• ACH payment processing
• Automatic reminders

Wave’s Pros and Cons

Pros

• Have an invoicing application for IOS and Android. 
• Manages the transaction smoothly and efficiently.
• The Invoice management system is authentic and hassle-free.
• Handles multi-currency promptly.

Cons

• Sometimes, it would trouble you while linking bank accounts.
• In some cases, the unavailability of time-tracking features.
• Lacks support(except for knowledge base or chatbots).
• Only limited options for analyzing fixed asset depreciation. 

Best For: Integration with the third-party apps.

2. Xero

Xero is also considered one of the best free accounting software for small businesses. You can opt for Xero accounting software for your business to run things smoothly and to keep tidy online bookkeeping records.

You can also name Xero as free bookkeeping software for its better record-keeping and tracking features. Using this software, your work will be easier as it will be easy to pay bills, claim expenses, accept payments, and manage contracts.

Xero’s Features

• Bank connections
• Bills payment
• Bank reconciliation
• Tracks expenses
• Manage Xero contacts

Xero’s Pros and Cons

Pros

• Cloud-based, so don’t need to install or download.
• Can collaborate with advisors for real-time conversations and better financial management.
• No need to re-enter details, so simplify the bank reconciliation process.
• Firmly Secure, reduces fraud and attacks. 

Cons

• Lacks support for Exchange Traded Products (ETD).
• If integration with third-party apps is not done correctly, unexpected errors will arise.
• Sometimes, it takes a long time to respond to customers.
• Although Xero is easy to download, users face problems while fully learning its functions.

Best For: Collaborative accounting.

3. ZipBooks

One of the best free bookkeeping software is ZipBooks, which is suitable for small businesses. Because of its bookkeeping tools, you can handle unlimited users and vendors. The main motive for establishing ZipBooks is to provide intelligence to help small businesses succeed. 

People using ZipBooks are thrilled with its key features, such as sending expenses, tracking time, and invoicing. However, the free version has limited features and can connect to only one bank account.

ZipBooks’ Features

• Vendor and customer management
• Sales orders
• Invoicing and tracking
• Analytical reporting
• Accept prepayments

Zipbooks’s Pros and Cons

Pros

• Free to support unlimited invoices.
• Accepts Square and PayPal payments system.
• Its interface is easy to navigate for beginners as well.
• Include time-tracking features. 

Cons

• Takes time for the response back. 
• Doesn’t support bank connections in Asia, Europe, or Central America.
• A free pack is only possible from a single bank account.
• Lack of export options.

Best For: Perfect invoices solutions

4. Zoho Books

Zoho Books is powerful business accounting software that meets the needs of small businesses and freelancers. It is cloud-based software that doesn’t need installation except for a stable internet connection.

This accounting software offers an end-to-end accounting system for all types of businesses, large or small. With key features like invoicing, billing, and expenses, Zoho Books stands out from the competition like other accounting software.

Zoho Books’ Features

• Mobile accounting
• Integrate your bank into your books
• Collaboration and Portal Management
• Tracking expenses

Zoho Books’ Pros and Cons

Pros

• Can manage all your estimates in a single dashboard.
• Tracks mileage.
• Easily integrate with other Zoho products.
• It is feature-rich accounting software.

Cons

• For advanced features, the paid version should be integrated.
• Difficult for new users to learn about its features.
• There is an invoice limit.
• No phone or chat support, though.

Best For: Customized invoices

5. Akaunting

Akaunting is free online accounting software without a premium version. Despite its free status, it offers a variety of features for evolving businesses, enhancing the quality of the small company.

Akaunting provides open-source accounting software with various security, vendor management, and reporting features. You can also access advanced features, but only through third-party apps. 

Akaunting Features

• Customized invoices
• Better financial management with expense tracking
• Sound vendor management system
• Security

Akaunting Pros and Cons

Pros

• Open source software, offering flexibility.
• Easy to navigate and use as it is user-friendly.
• Multi-currencies transaction support.
• Offers integration with various third-party apps.

Cons

• It is a completely free version, so it lacks advanced features.
• Customizing invoices may need some technical experts, leading to a learning curve for users.
• There may be security vulnerabilities due to open source. 
• Depend on third-party apps for better features.

Best For: Open-source nature

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6. Odoo

One of the free accounting software is Odoo, which makes it easy to send professional invoices and receive online payments. Similarly, for a single user, this accounting software is free. The use of Odoo helps monitor your sales transactions and expenses.

Meanwhile, Oddo is chargeable if you add additional users. The program must be updated for this. But, for a small business to run smoothly and manage financial transactions, Odoo would be a perfect choice.

Odoo’s Features

• Customized invoices
• Worldwide compatibility
• Fully integrated
• Supports multi-language and multi-currencies
• Attractive invoice templates

Odoo’s Pros and Cons

Pros

• Gives an all-in-one solution.
• Highly flexible and customizable.
• Eliminates licensing costs and is cost-effective.
• Contains an active community of developers and users.

Cons

• Complexity in customization.
• Involves a learning curve for the users.
• Initial implementation can be time-consuming.
• Performance issues in complex problems. 

Best For: Enterprise Resource Planning (ERP) software

7. NCH Express Accounts

NCH Express Accounts is free accounting software suitable for businesses with up to five employees. Likewise, this software allows you to generate quotes, send invoices, and track expense records. 

NCH Express Accounts provides more than 20 financial reports to control the business’s financial realization. Furthermore, NCH Express Accounts allows the division of sales by customer, member, and item.

NCH Express Accounts’ Features

• Track and record business expenses
• Creates over 20 financial reports
• Customer management
• Creates quotes and invoices
• Financial transactions

NCH Express Accounts’ Pros and Cons

Pros

• Basic and user-friendly.
• Helps to track losses, profit, and payments.
• A single computer tracks business invoicing and payments.
• Free forever for a business with at least five employees.

Cons

• Doesn’t automatically import transactions from a bank account.
• Lacks project accounting features.
• No mobile app, though.
• Very difficult to use this software on the cloud.

Best For: Bank reconciliation 

8. Brightbook

Brightbook is a free online and cloud-based accounting tool best suited for freelancers, contractors, startups, and businesses with under five employees. It enables the creation of invoices in any currency and the addition of PayPal links or credit card payment options on any invoice.

For example, Brightbook has account functions for multiple companies under one login, and you can provide your accountant access. It also gives available tax documents as a preview for easy access.

Brightbook’s Features

• Generates VAT returns easily
• Reporting
• Time-tracking and payroll integration
• Cash management system
• Supplier and purchase order management

Brightbook’s Pros and Cons

Pros

• Completely free to use for the business having five employees.
• Beginners can learn quickly about the processing.
• Supports unlimited invoices.
• Reports like statements and transaction records are available.

Cons

• There is no integration available.
• Lacks double-entry accounting features.
• Have to import bank details manually.
• No expense tracking.

Best For: Generating tax report

9. Sunrise

Sunrise is a type of free bookkeeping software suitable for small businesses. It lets you categorize and download transactions, track income and spending, generate bills, and accept payment through the Internet and smart devices.

In this case, upgrading to it, Sunrise provides its customers with professional bookkeeping services, such as monthly statements and tax preparation.

Sunrise’s Features

• Unlimited bank transactions
• Double-entry accounting
• Unlimited customizable invoices
• Cash and tax management
• Expenses tracking and record keeping

Sunrise’s Pros and Cons

Pros

• Very good for bookkeeping and invoicing.
• Easy and user-friendly to use.
• Provides great customer service.
• The product is robust, and the implantation process is fast.

Cons

• Lack of integration.
• Financial reporting options may be basic.
• Lacks tracking features.
• The expenses are difficult to post.

Best For: Expense tracking

10. Cloud Books

Cloud Books gives free invoicing and accounting services to freelancers and other small business organizations. You can send estimates as well as invoices, you can accept payments, and keep detailed records of your expenses.

Although the free package has the same functions as the paid one, you are allowed to send only five invoices per customer a month. If you would like to create as many invoices as you want, you can do so by upgrading to the paid version for only $10 monthly.

Cloud Books’ Features

• Time-tracking and record-keeping
• Financial and production management
• Automatic Billing
• Invoicing and Email integration
• Usage of multi currencies

Cloud Books’ Pros and Cons

Pros

• Intuitive and easy to navigate.
• Free for businesses having at least five staff.
• Does not require expensive, on-premise infrastructure. 
• It is flexible and scalable.

Cons

• If the internet is not stable, the software doesn’t work.
• Lacks customer support.
• Can’t access it from different locations.
• When your data is stored on the cloud, it is no longer available in the physical storage.

Best For: Financial reporting

How To Choose The Best Free Accounting Software?

Although free accounting software is free, it costs precious time. Switching between software wastes time, as all the data needs to be re-entered each time, which can be hectic and cost more time. 

So, you must choose the best free accounting software that meets your current needs and can grow with your business. Some features like time tracking, invoicing, customer support, and scalability must be available in those free accounting software.

You must be careful about the following things to choose the best free accounting software:

1. Scalability

Every business owner wants to grow their business more than today. So, as your business expands, your accounting needs will also grow. Therefore, you need to choose software that offers top-tier plans and add-ons that can scale with your company.

The more your business expands, the more complex your tasks will become. Hence, you must look for more scalable software with extra features to handle complex tasks. This is a great option rather than switching to a new system. 

2. Mobile App and Cloud Access

If the accounting software is cloud-based, it is accessible anywhere with a stable internet connection. Cloud-based accounting software allows you to access data from any corner with an internet connection.

Before choosing the best free accounting software, look for software with solid mobile websites or apps. The desktop-based option will be fruitful if you use the software from a single computer.

3. Share Information with the Bookkeeper or Accountant

Sharing information with your bookkeeper or accountant might be the best option for getting the best free accounting software. Before choosing an accounting software, consult with them for better ideas.

They may know about the free accounting software as they typically work with paid products like Xero or QuickBooks Online. The errors should be minimal, so choosing the best accounting software is necessary. 

4. Customer Support

You must ensure that the accounting software you choose offers trustworthy customer support. The issue won’t be solved quickly if the accounting software doesn’t value customer support. Before choosing the best accounting software for your business, look for software that provides email, phone, and chat support options.

Similarly, the best solution is to look at the accounting software’s feedback and reviews. Your chosen accounting software must reduce errors, streamline accounting processes, and increase business productivity.

5. Security 

While looking for the best accounting software, you must ensure that security is strong. This must be a top priority for any accounting process. Therefore, make sure your chosen accounting software offers powerful security measures.

Likewise, security measures include two-factor authentication, data encryption, and regular backups. In addition, you should check the provider’s history for any cyber attacks to make sure they have a good security track record.

6. Compatibility 

Before choosing free accounting software like Wave, Xero, or Zoho Books, ensure it works smoothly and can easily be integrated with your existing programs. The chosen free accounting software must also work efficiently with other tools you use often.

You use other tools such as payroll, tax, and financial management software; they shouldn’t be hampered by accounting software. Hence, compatibility is vital in preventing data errors and increasing business peak productivity. 

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Conclusion

In a world where money matters, free accounting software for small businesses is a sign of empowerment. Various free accounting software, such as Wave, Cloud Books, Zoho Books, etc., provide efficiency to small business owners and freelancers. 

Contrary to the belief that accounting software is complex and expensive, free accounting software enables entrepreneurs to grasp the company’s finances firmly with complete features like expense tracking, invoicing, and basic reporting.