Best Free Accounting Software for Small Businesses of May 2023

NerdWallet independently reviewed 10 free accounting products before determining the top contenders. Here are our picks for the best free accounting software for small businesses.

NerdWallet independently reviewed 10 free accounting products before determining the top contenders. Here are our picks for the best free accounting software for small businesses.

Free accounting software can be sufficient for some microbusinesses, self-employed people and freelancers, but don’t think of it as only a temporary solution. Consider your business’s growth trajectory before making a decision. Would more robust small-business accounting software better fit your needs down the road? It’s important to choose a product that your business won’t grow out of — this will help you avoid tedious data transfers and learning curves.

Small-business accounting software helps entrepreneurs keep track of where their money is coming from and going to. The best free accounting software covers the basics in at least a couple of areas, including double-entry accounting, invoicing, online bank connections and third-party integrations.

Small-business accounting software helps entrepreneurs keep track of where their money is coming from and going to. The best free accounting software covers the basics in at least a couple of areas, including double-entry accounting, invoicing, online bank connections and third-party integrations.

Though you won’t find a formal account for liabilities in Brightbook, you can still upload your bills to the software so you can keep track of what you owe vendors and suppliers. And once you’ve paid a bill, just check it off as “paid.”

Though you won’t find a formal account for liabilities in Brightbook, you can still upload your bills to the software so you can keep track of what you owe vendors and suppliers. And once you’ve paid a bill, just check it off as “paid.”

The dashboard gives you quick insights, like money owed to you and cash flow. It’s a plus whenever free products come with reporting capabilities, but Brightbook offers fewer reports than some competitors. Because it’s a single-entry system, for example, you won’t find a balance sheet. You can, however, view basic reports on profit and loss, taxes, sales, bills and expenses.

The dashboard gives you quick insights, like money owed to you and cash flow. It’s a plus whenever free products come with reporting capabilities, but Brightbook offers fewer reports than some competitors. Because it’s a single-entry system, for example, you won’t find a balance sheet. You can, however, view basic reports on profit and loss, taxes, sales, bills and expenses.

Brightbook is a straightforward, single-entry online accounting solution for freelancers and self-employed professionals who don’t need to track accounts for inventory, assets or liabilities. You can use it to send quotes to clients, convert them to invoices, bill for time, add discounts or taxes, and accept payments via PayPal.

Brightbook is a straightforward, single-entry online accounting solution for freelancers and self-employed professionals who don’t need to track accounts for inventory, assets or liabilities. You can use it to send quotes to clients, convert them to invoices, bill for time, add discounts or taxes, and accept payments via PayPal.

Free plan is limited to one user and one accountant.

Free plan is limited to one user and one accountant.

Must subscribe to a paid plan to access key features like a chart of accounts, general ledger, double-entry accounting and bank connections.

Must subscribe to a paid plan to access key features like a chart of accounts, general ledger, double-entry accounting and bank connections.

However, you don’t have to pay anything to access unlimited invoicing, calculate sales tax, create customer and vendor lists, set up recurring invoices or send payment reminders to clients. And while some competitors only offer multi-currency options in paid plans, Akaunting’s free plan lets you invoice clients in different currencies.

However, you don’t have to pay anything to access unlimited invoicing, calculate sales tax, create customer and vendor lists, set up recurring invoices or send payment reminders to clients. And while some competitors only offer multi-currency options in paid plans, Akaunting’s free plan lets you invoice clients in different currencies.

Users can pick and choose from add-ons for inventory, double-entry accounting, payment processing and expense claims — for a fee — to build a more robust plan as their business needs evolve. Although you’re able to manually import bank transactions, you have to pay extra for automatic syncing.

Users can pick and choose from add-ons for inventory, double-entry accounting, payment processing and expense claims — for a fee — to build a more robust plan as their business needs evolve. Although you’re able to manually import bank transactions, you have to pay extra for automatic syncing.

Akaunting’s free plan is intended for freelancers and self-employed entrepreneurs who don’t need features like a chart of accounts or a general ledger. It doesn’t use double-entry accounting, meaning you can’t track asset and liability accounts.

Akaunting’s free plan is intended for freelancers and self-employed entrepreneurs who don’t need features like a chart of accounts or a general ledger. It doesn’t use double-entry accounting, meaning you can’t track asset and liability accounts.

Can connect only one bank account in the free plan.

Can connect only one bank account in the free plan.

The company offers a separate Growth plan for generating customer reviews and managing business listings, too. It’s not free, but still worth a mention, since it could be a valuable feature for businesses that are just getting started and want to increase their brand awareness.

The company offers a separate Growth plan for generating customer reviews and managing business listings, too. It’s not free, but still worth a mention, since it could be a valuable feature for businesses that are just getting started and want to increase their brand awareness.

Aside from payment options, free plan subscribers can also integrate with business apps like Gusto and Slack. Some competitors, like Wave, offer their own in-house payroll software, but it’s hard to find a free product that integrates with a popular third-party alternative like Gusto. In addition to offering these integrations, ZipBooks lets you snap photos of your expense receipts, track customer and vendor details, and send custom quotes and invoices. But you’ll have to subscribe to a paid plan to schedule recurring invoices and send automated payment reminders.

Aside from payment options, free plan subscribers can also integrate with business apps like Gusto and Slack. Some competitors, like Wave, offer their own in-house payroll software, but it’s hard to find a free product that integrates with a popular third-party alternative like Gusto. In addition to offering these integrations, ZipBooks lets you snap photos of your expense receipts, track customer and vendor details, and send custom quotes and invoices. But you’ll have to subscribe to a paid plan to schedule recurring invoices and send automated payment reminders.

ZipBooks’ free plan stands out for its Square and PayPal payment integrations, a feature some companies only provide in paid plans or as an add-on. This is especially nice for small-business owners who accept payment in-person with a Square card reader.

ZipBooks’ free plan stands out for its Square and PayPal payment integrations, a feature some companies only provide in paid plans or as an add-on. This is especially nice for small-business owners who accept payment in-person with a Square card reader.

Free plan is limited to one user and one accountant.

Free plan is limited to one user and one accountant.

Can upgrade to one of five different paid plans to increase functionality.

Can upgrade to one of five different paid plans to increase functionality.

The free plan covers a lot of ground in its own right, though. You can send up to 1,000 invoices per year (as long as your business makes less than $50,000 in revenue annually), accept online payments through Stripe and PayPal, send estimates and recurring invoices, manage 1099 contractors and create bank rules for categorizing transactions. There’s also a mobile app that lets you send invoices via iMessage or add widgets to your iPhone’s home screen so that you can easily access overdue invoices.

The free plan covers a lot of ground in its own right, though. You can send up to 1,000 invoices per year (as long as your business makes less than $50,000 in revenue annually), accept online payments through Stripe and PayPal, send estimates and recurring invoices, manage 1099 contractors and create bank rules for categorizing transactions. There’s also a mobile app that lets you send invoices via iMessage or add widgets to your iPhone’s home screen so that you can easily access overdue invoices.

Zoho Books’ free plan puts a limit on invoices and users, but unlike other options, it has the capacity to grow with your business. The lowest-tier paid plan, for example, gives you access to reporting tags, project expense tracking and 24/5 phone and chat support. Higher-tier plans include more advanced features, like workflow rules, purchase orders, cash flow forecasting and custom roles. And you can integrate with a wide range of other Zoho suite products, like Zoho CRM, Commerce, Payroll and Inventory (additional subscription fees may apply).

Zoho Books’ free plan puts a limit on invoices and users, but unlike other options, it has the capacity to grow with your business. The lowest-tier paid plan, for example, gives you access to reporting tags, project expense tracking and 24/5 phone and chat support. Higher-tier plans include more advanced features, like workflow rules, purchase orders, cash flow forecasting and custom roles. And you can integrate with a wide range of other Zoho suite products, like Zoho CRM, Commerce, Payroll and Inventory (additional subscription fees may apply).

Must subscribe to Wave’s paid services (payroll, payments, advisor, etc.) to receive customer support from a human.

Must subscribe to Wave’s paid services (payroll, payments, advisor, etc.) to receive customer support from a human.

Wave offers its own payroll software and payment processing, but you can’t integrate with third-party options.

Wave offers its own payroll software and payment processing, but you can’t integrate with third-party options.

Its invoicing feature, in particular, is hard to beat and competes with those of more expensive products. You can create and send unlimited invoices, send automated reminders to clients, set up recurring invoices, and track client communication and payment history. On top of that, the software offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services.

Its invoicing feature, in particular, is hard to beat and competes with those of more expensive products. You can create and send unlimited invoices, send automated reminders to clients, set up recurring invoices, and track client communication and payment history. On top of that, the software offers different invoice templates depending on the type of business you run: consulting, freelance, legal services, marketing or professional services.

Wave tops the list for hitting the mark in multiple categories. The free accounting software lets you add unlimited collaborators and import transactions from an unlimited number of bank and credit card accounts. From there, it automatically categorizes transactions and matches them to paid bills or invoices. Wave can also generate the most important financial statements (profit and loss, balance sheet and cash flow statement) along with reports on sales tax, payroll, aged receivables and aged payables.

Wave tops the list for hitting the mark in multiple categories. The free accounting software lets you add unlimited collaborators and import transactions from an unlimited number of bank and credit card accounts. From there, it automatically categorizes transactions and matches them to paid bills or invoices. Wave can also generate the most important financial statements (profit and loss, balance sheet and cash flow statement) along with reports on sales tax, payroll, aged receivables and aged payables.

How to choose free small-business accounting software

Even though you’re not investing money when picking a free accounting software platform, you are investing your time. Plus, changing apps may mean inputting your financial data each time.

Consider these questions when deciding which free accounting software is best for your business.

How accessible is it?

You won’t always be in front of a computer, which means that on-the-go accessibility is a must. Look for platforms that have robust mobile websites or accounting apps , when possible, to help you manage your money from wherever you are. Most accounting software is cloud-based, meaning it’s accessible anywhere there’s an internet connection.

Can it scale?

Your accounting needs might be modest today, but they may not stay that way forever. If you think your business will grow in the future, make sure your accounting software offers higher-tier plans that can scale with your company.

Is it compatible with your bookkeeper’s or accountant’s software?

Your financial professionals need to be able to access your books easily and with minimal risk of error. Check with your bookkeeper or accountant before choosing software. While accountants typically work with paid products like QuickBooks Online or Xero , they may be familiar with some of the free ones listed here, too.

Does it include must-have features?

Free accounting software should have some combination of the following features:

• Double-entry accounting. 

• Income and expense tracking. 

• Invoicing. 

• The ability to automatically import your bank transactions so that you can categorize them.

• Third-party integrations or in-house software options for payments, payroll, etc. 

However, it often lacks features you’d find in more robust small-business accounting software — think inventory management, advanced reporting and live support. If a free system doesn’t have everything you need, you’ll need to consider add-ons, upgraded versions or a different product altogether.

What if free accounting software isn’t a good fit?

Free accounting tools are great when they cover your requirements. But if a product doesn’t make it easy to manage your money, you’ll save time going with a paid option instead. You can usually opt for free trials before committing to a paid platform, too. Then you can get a better idea of how user-friendly it is.