Positive cash flow is essential for a small business to grow and thrive. But there are so many business expenses, it can be tough to keep costs to a minimum. Software is one of those costs, including the tools necessary to monitor income and expenses. Certainly, when it comes to finding the best accounting software for small businesses, free options can reduce the strain on your budget.
Currently, there are so many options, it can be tough to narrow it down to just one. So you’ll find that the best free accounting software for small businesses offers all the features you need while also minimizing admin time for you and your team.
Here are a few free accounting software for small business options to consider:
- Wave: Best Overall
- ZipBooks: Best for Solopreneurs
- Akaunting: Best for Global Businesses
- GnuCash: Best for New Businesses
- CloudBooks: Best for Microbusinesses
- Zoho Invoice: Best for Service Providers
- NCH Express Accounts: Best for Simple Accounting
| Software | Limits | Payment methods supported | Features offered |
| Wave | None | 2.9 percent + $0.60 credit card transactions, 3.4 percent + $0.60 Amex transactions, 1 percent bank transactions | Invoicing, bill payments, cashflow monitoring, expense tracking, payroll, reporting |
| ZipBooks | One user only on free account and no recurring invoicing or late payment reminders with free plan | Integrates with Square or PayPal | Invoicing, bill payments, cashflow monitoring, expense tracking, payroll, reporting |
| Akaunting | One company and one user (plus one accountant) only on free plan | Wide range | Invoicing, bill payments, cashflow monitoring, expense tracking, reporting |
| GnuCash | No limits on features | No payment integration provided | Invoicing, bill payments, cashflow monitoring, expense tracking, reporting |
| CloudBooks | One user can only create one invoice on free plan | Built-in PayPal and Stripe integration | One invoice only on free plan |
| Zoho Invoice | Unlimited users and invoicing | Integrates with multiple major platforms, including PayPal and Stripe | Invoicing, cashflow monitoring, expense tracking, reporting |
| NCH Express Accounts | Five users only on free plan | Integrates with Authorize.net, Eway, and PayPal | Invoicing, bill payments, cashflow monitoring, expense tracking, reporting |
Free Accounting Software for Small Businesses
Wave: Best Overall
Invoice, track expenses, and monitor your cash flow with this small business accounting software. Free plans include unlimited income and expense tracking, unlimited users, and instant funds transfers.
Although Wave is one of the best free accounting software for small businesses, it does have a few downsides. For the most part, customers complain about the clunky interface and lack of phone support.
Pros
- Free plan has unlimited users and invoicing
- Automated payment reminders
- Connects to bank for easy funds transfers
Cons
- Can be difficult to navigate
- Limited customer service options
Pricing
Although Wave is free for most of the features you’ll need, the fees can be higher than with other services. As a result, you’ll pay 2.9 percent + $0.60 per credit card transaction and 1 percent on each bank transaction. Additionally, American Express payments come with a fee of 3.4 percent + $0.60.
ZipBooks: Best for Solopreneurs
When it comes to small business accounting software, free plans can have limited bookkeeping features. But that’s where ZipBooks shines. You’ll get all the usual invoicing and expensing features, but ZipBooks also adds in advanced reporting that will help you stay on top of your business’s cashflow.
Although customers largely praise ZipBooks, there have been some reports of glitches. One issue that comes up often relates to getting money from ZipBooks to the business’s bank account. Since ZipBooks only offers customer service through chat or email, if you prefer phone support, you might find getting help with any issues frustrating.
Pros
- Free plan has unlimited users and invoicing
- Built-in integration with Square and PayPal
- Includes time tracking
Cons
- No recurring invoicing with free plan
- No late payment reminders with free plan
- Limited customer service options
Pricing
When you’re looking for the best accounting software for small business, free options often limit features. With ZipBooks, you’ll get most features free, but you will need to upgrade to a paid plan for multiple users or direct integration with more than one bank account. Paid plans start at $15 a month.
ZipBooks lets you accept payments through Square, Stripe, or PayPal. At. this time, fees through Square and Stripe are 2.9 percent + $0.30 per transaction, while PayPal’s rates are 2.9 percent + a variable fixed fee per transaction.
Akaunting: Best for Global Businesses
Cashflow tracking is easy with Akaunting, thanks to a user-friendly dashboard. You’ll get all your payables, receivables, account balances, and profit and loss charts in a visually appealing interface.
But what makes Akaunting great free bookkeeping software for small businesses is its platform compatibility. In addition to the web and mobile versions, you can also install Akaunting and use it on your PC or Mac. However, there’s a tradeoff in the form of bugs users often experience when trying to use Akaunting in their preferred environment.
Pros
- Visually appealing dashboard
- Web, mobile, and desktop versions available
- Integrates with large number of payment processors located around the globe
Cons
- Glitches and bugs often reported
- No payroll management
- Slow customer service response
Pricing
Akaunting’s free plan includes one company, one user and one accountant, four apps, and community support. You’ll get unlimited invoicing, bill paying, customers, and vendors, and multiple currencies. Paid plans expand these features and start at $36 per month. Akaunting integrates with a large number of third-party payment plans to handle your processing, including PayPal, Stripe, and Square.
GnuCash: Best for New Businesses
When it comes to free small business bookkeeping software, GnuCash gets bonus points for being completely free. While the interface is nothing fancy, if your emphasis is on bookkeeping instead of invoicing and payments, GnuCash could be a great choice.
Where GnuCash lacks a little is in its accounts receivable processes. You can invoice within the software, but there’s no payment portal or one-click payment option. Your clients will need to follow the instructions on the invoice to pay.
Pros
- All features are free
- Advanced bookkeeping features
- Large community of users
Cons
- Lacks user friendliness
- No integrated payment processing
- Complicated setup process
Pricing
GnuCash is completely free. Note that although you’ll pay processing fees if your clients use third-party payment processors, the accounting, bill payment, and invoicing features of GnuCash are all free. Although GnuCash does accept donations on its site, this is voluntary.
CloudBooks: Best for Microbusinesses
CloudBooks doesn’t have a free plan. What they do have is a trial that requires no credit card and has no expiration. It’s limited to one user, though, and is designed to help you create one invoice.
Before you look at this tool on the best accounting software for small business free list, some users have reported ongoing emails after the free trial. Although the interface is attractive and user-friendly, some reviewers have reported less-than-friendly reporting features.
Pros
- No expiration on free trial
- Attractive interface
- Easy to use
Cons
- Free plan is limited to 1 user and 1 invoice
- Ongoing emails after trial
- Reporting features are lacking
Pricing
To try CloudBooks, you’ll just need to input your name and your email. The features are limited in the free trial version. Paid plans start at $9.95 a month and include unlimited invoices, unlimited clients, and unlimited expenses.
Zoho Invoice: Best for Service Providers
If all you need is to invoice clients, Zoho Invoice could become your go-to solution. This tool can help you track your hours, convert them to invoices, and send payment reminders. Additionally, there’s an expense tracking feature that will expedite things at tax time.
Zoho might be a top invoicing solution, but if you’re looking at the best free online accounting software for small businesses, hoping for an all-in-one product, you won’t get everything you need here. Also, customers complain about inadequate automation, such as having to manually move unbilled hours to invoices.
Pros
- Automatic payment reminders
- Time tracking makes billable hours easy
- All features are free
Cons
- Strength is in invoicing, not bookkeeping
- Less automation than other platforms
Pricing
The goal of freemium models like this is to funnel customers into other products. Although Zoho Invoice is completely free, you may find yourself gravitating to companion products like Zoho Subscriptions. With Subscriptions, you’ll still be limited to 500 customers and three users unless you pay at least $49 a month.
NCH Express Accounts: Best for Simple Accounting
Smaller businesses and sole proprietors can easily get everything they need with NCH Express Accounts, which is free for up to five users. You’ll get invoicing, accounting, and in-depth reports.
NCH Express Accounts takes a more traditional approach to its solutions, providing software you download to each Mac or PC. There is no web or mobile version available, so you’ll only be able to access it from that computer. Although customers praise the software’s accounting functions, they complain about the steep learning curve.
Pros
- Free for up to five users
- Steep learning curve
- Access to most features a small business will need
Cons
- No web or mobile version available
- No payroll integrations
Pricing
NCH Express Accounts is free for up to five users. Once you’ve exceeded that threshold, you’ll pay a one-time fee of $139.
How to Choose Best Free Accounting Software for Small Business
If you’re trying to find the best accounting software for small businesses, free is only one consideration. Each business is unique, so take a quick inventory of your accounting needs before choosing one. Here are a few important factors to get you started.
- Scalability: Sure, you might be a small business with one or two employees today, but eventually you’ll add employees and serve more customers. Look for a solution that will grow with you.
- Payment integration: The best free accounting and budgeting software for small businesses makes it easy for clients to pay. The more payment options you can offer, the more likely you are to enjoy rapid payment turnaround.
- Device compatibility: Not all accounting solutions are mobile-friendly. If you think you’ll ever need to manage your accounting on the go, look for one that’s compatible with your device.
- Platform compatibility: If you use existing solutions for your business, make sure they’re compatible. Also, check to ensure it works with any tax preparation software you might use.
- Learning curve: Although you’ll need to put time into learning new software, some take more time than others. Make sure your provider offers training materials that will help you get up to speed quickly.
- Protect your bottom line: As you’re picking solutions, make sure you can create invoices that clearly outline terms and legally protect your business.
The Bottom Line on Best Free Accounting Software for Small Business
The best free accounting software for small businesses offers all the features you need. Also, it grows with you. With the money you’ll save on accounting software, you’ll have extra funds to put into building your business.
Choosing the right accounting software can significantly impact your business’s financial management. The best small business accounting software should be user-friendly and affordable. The right software can save time and money, streamline financial management, and improve business decision-making.
