The Best Business Accounting Software Services of 2024

Managing your business finances with spreadsheets might work when you first start out, but it can soon become challenging and lead to errors. That’s where accounting software comes in. We’ve reviewed and tested leading solutions on the market and chose the best accounting software for your business. The platforms on this list can help you streamline the process of tracking your expenses and revenue, reduce manual errors and understand the financial health of your business at a glance. These tools are indispensable to helping a small business grow, and with our firsthand insights and guidance below, you’ll be able to easily select the best accounting software for your needs and your budget.

This example of an accounting software dashboard comes from our test of QuickBooks Online, one of our best picks.

To determine the best accounting software, our team of small business experts conducted hands-on testing of the leading platforms on the market. We looked for cost-effective, easy-to-use products that offer time-saving features, such as automated bank feeds, automatic payment reminders, and online invoicing and payment acceptance. We also searched for software with robust, customizable financial reporting that provides a comprehensive view of your business’s finances. Our review involved live demonstrations of the platforms and firsthand testing of the software. We also analyzed customer feedback from business owners who use the software in their daily operations. Learn more about our methodology.

There are typically two types of pricing models for accounting software: perpetual licensing or a recurring subscription. With a perpetual licensing model, you make a one-time payment for unlimited access to the software. With a subscription pricing model, you pay a monthly or annual fee.

For subscription pricing, expect to pay anywhere from $15 per month for a basic starter plan to $350 per month for a more advanced service plan. Other factors, like the included features and number of users, affect the monthly cost as well.

Regardless of the pricing model you select, watch out for hidden fees. These can include charges for customization options, installation or setup services, integrations, and maintenance or support services.

If your business is on a tight budget, consider free accounting software. Wave, for instance, provides many of the accounting and invoicing features you would find in paid programs. Zoho Books also offers a free plan for businesses with under $50,000 in annual revenue.

When you’re choosing accounting and billing software for your business, we strongly encourage you to take advantage of free trials to test the solutions and see which one offers the tools you need. Plus, spending time with the software beforehand will help you feel more confident in your decision.

Many aspects of accounting software make it a useful tool. If you’re a small business owner, it’s important to know which features to look for. Most online accounting software offers accounts receivable, accounts payable, banking and reporting features. Some programs include inventory management, project management, time tracking and payroll tools.

Here are some of the core features to look for in accounting software:

Bank Feed

This feature connects the software to your business bank and credit card accounts to provide a daily update of your transactions. This saves time, as you will not have to upload transactions manually. It also gives you a daily, rather than monthly, overview of your accounts. A real-time bank-feed feature can assist with reconciliation, which allows you to make it a small daily task rather than a monthly ordeal.

Dashboard

When you log in to your account, you’ll be greeted by a dashboard that shows you an overview of your account activity and key metrics, such as cash flow, profit and loss, account balances, expenses, accounts payable and receivable, and sales. Some accounting programs allow you to rearrange the information.

Online Invoicing

If your business sends invoices, the ability to email them and accept online payments helps you get paid faster. Most accounting programs integrate with third-party payment processors; others require you to use their in-house processing services. It’s a plus for accounting software to serve as an invoice generator.

Recurring Invoices

With this feature, you can schedule the system to automatically generate and send invoices for recurring charges, such as subscriptions. You can choose how frequently invoices are sent — daily, weekly, monthly or annually — and indicate whether there’s an end date to the billing.

The best accounting software offers easy ways to track your outstanding invoices and accounts receivable. This example comes from our test of Xero.

Automatic Payment Reminders

This feature helps you remind customers about upcoming and past-due payments. Some have sample email text that you can use or customize. You can then choose when you want the reminders to be sent. Some programs give you the option to send thank-you emails to customers after you receive their payments.

Bank Reconciliation

Smart reconciliation tools identify potential matches between your bank transactions and the invoices you’ve entered into the accounting software. This saves you the time it would otherwise take to sift through your bank account for this information. You can then approve or deny the suggested matches. The best applications suggest potential matches as you reconcile your accounts, and a few include a reconciliation tool in their mobile apps.

Financial Reporting

Every accounting program can generate financial reports. But some are more basic than others, and some require you to subscribe to a pricier plan for advanced reporting. If you need specific types of financial reports, make sure they’re included in the software application and plan you choose. Detailed reports can help you interpret your financial data to make informed business decisions.

Mobile Apps

Not all accounting and invoicing programs have mobile apps, but the best ones do. There is, however, quite a range in the capabilities of mobile apps. Some can only capture receipts for expense tracking, some allow you to create and send invoices, and others have almost every feature the web-based software does. It’s worth checking if the software you’re considering offers a mobile app and, if so, what features will help you manage your business while you’re away from the office.

Integrations

The ability to connect your accounting software to other business programs you use saves you valuable time because you don’t have to manually transfer data from one system to another. Payroll, payment processing, the best point-of-sale (POS) systems and the best customer relationship management (CRM) software are just a few of the popular types of integrations that are available with accounting software. Integration with systems you already use also cuts down on training time for employees who will use the software.

Most accounting software comes with a third-party app marketplace for integrations. This example comes from our test of QuickBooks Online. 

Tracking for Billable Hours

If you’re a consultant or your business bills clients by the hour, you need accounting software that allows you to track and bill your time or that integrates with the time-tracking program you already use. This is an important feature in the best accounting software for freelancers.

Inventory Management

If you have a retail, e-commerce or distribution business, you need an application that helps with inventory tracking and purchase orders. You may need to subscribe to a top-tier plan to get this feature, unless you use ZarMoney. If you need more advanced inventory features, look for software that integrates with a dedicated inventory management system.

Project-Based Billing

Firms, freelancers and consultants who work with clients on projects or jobs should look for accounting software that helps them track their projects’ tasks and budgets. The software should allow you to invoice customers for tracked time and bill them for project expenses.

Xero’s project-based billing tools are ideal for businesses that need to track materials and labor costs, ensuring each project stays on track and profitable.

Support for Multiple Businesses

Several programs we evaluated let you add more than one business to your account, though some companies charge extra for this convenience. Also, the types of accounting methods that are important to you will depend on the specific needs of your business. For example, if you run a small freelance business, project-based billing might be the most important feature. Or, if you plan to do some work on your mobile device, a full-featured mobile app might be at the top of your list.

Want more options to choose from? These accounting software options are viable alternatives to the best picks listed above and may deserve your consideration if none of our favorites seem to fit the bill for your business.

• Oracle NetSuite: For larger businesses that need a more powerful platform, Oracle NetSuite’s accounting software checks all the boxes. While its higher price point kept it off our list of best picks, it’s powerful enough to warrant it for enterprise-level companies that need sophisticated software that can manage the books and then some. As a sprawling enterprise resource planning (ERP) system, Oracle NetSuite is tailored to the needs of the individual business and pricing is custom. The company offers a 14-day free trial, though, so you can get a sense of how the software works and whether it’s right for your business. Check out our full review of Oracle NetSuite for more information.
• Sage 50: If you’re looking for robust reporting and deep data-driven insights, Sage 50 is the accounting software for you. Starting at $49.58 per month, Sage 50 offers some of the strongest reporting tools we encountered in our review. While its higher price point and lack of a free trial kept it off our best picks list, it’s still a viable option for businesses that thrive on data analysis for decision making. Check out our full review of Sage 50 for more information.
  
• Melio: Businesses that are looking for a free tool to support their bill pay and manage accounts payable should look no further than Melio. As you might expect from a free tool, Melio’s capabilities are somewhat limited compared to platforms that we named to our best picks list — but Melio does quite a lot without impacting a business’s budget. Very small businesses or new businesses can rely on Melio to make sure their accounts payable is organized and bills are paid on time and with ease, making it a useful tool to help get your accounting in order for no additional charge. It can also integrate with more comprehensive accounting tools as your business grows, so there’s no unwieldy data migration needed when adopting new accounting software. Check out our review of Melio for more information.
  
• ZarMoney: Retail businesses and others that require advanced inventory management tools should consider ZarMoney. This cost-effective platform starts at just $15 per month and includes useful features for monitoring your inventory, whether that’s the goods you’re selling or the raw materials used in your manufacturing process. ZarMoney offers a 15-day free trial so you can take it for a test spin before buying. Although we were disappointed by the lack of a mobile application, we found ZarMoney an effective tool with strong integrations to other common business software, so you can easily tie it into your existing tech stack. Check out our review of ZarMoney for more information.
  
• Neat: If you like to keep meticulous records, Neat is the accounting software you need in your corner. A strong tool for managing receipts and tracking expenses, Neat starts at $16.66 per month when billed annually and gives you all the tools to stay organized. If you want to test it out before committing, you can sign up for a 14-day free trial. You can even integrate Neat with your document management software to ensure nothing is filed out of place. Check out our review of Neat for more information.

According to data from The Brainy Insights the global accounting software market is projected to reach $37.63 billion by 2032. This figure reflects a compound annual growth rate of 10.5 percent across the decade. The following trends are likely to be part of that growth, shaping accounting software as it evolves to meet growing businesses’ needs.

Cloud computing

Prior to the growth of cloud-based technology, accounting software existed solely on a computer, with few or no connections with other technologies. This limited bank connections and 24/7 access — two major issues that cloud-based technology has solved. Plus, cloud-based technology has fueled the growth of accounting mobile apps, which can benefit any small business.

Artificial Intelligence

AI is set to drive continued growth in the accounting software sector. This technology is powering automation tools that streamline key accounting processes, thus minimizing tedious work. It’s also behind live-chat tools that make it easier to provide customer service.

Blockchain

Blockchain technology is another major development that is revolutionizing accounting software. With blockchain, businesses will eventually see transaction records moved to a tamper-proof ledger. We expect this to greatly enhance the security and internal controls provided by accounting software.

Data visualizations

Although reporting and visuals are already part and parcel of accounting software, these features may grow in importance in 2024. In fact, the 2024 U.S. CPA exam places an extra emphasis on using data, analytics and automation to power forecasting and planning. We thus expect accounting software to prioritize the most powerful data visualization tools possible in 2024.