Why should you use accounting software?

Accounting software is an efficient system that saves time and reduces human error. It automates accounting software functions, which eliminates the problem of inefficient and inaccurate data entry. You can also connect the software to your business bank or credit card accounts. Important reports and financial statements, such as P&L statements and balance sheets, can be created from accounting programs. This is helpful when you're seeking funding from an investor. Not only does accounting software help you manage your cash flow, but it also streamlines financial tasks and puts everything you need to do in one place. This reduces confusion and keeps you abreast of how your company is doing.

Who can benefit from using accounting software?

Any company looking for help managing its finances should use an accounting tool. Especially for small business owners, it makes managing your finances easier by automating tasks and reduces human error in your data entry. Accounting software also helps you comply with local, state and federal tax laws. This software is useful for businesses looking to save time or set up a bookkeeping or accounting system. Accounting software lays the groundwork for that. It also helps manage your tax filing and business taxes.

Do you need online bookkeeping software instead of accounting software?

The term "online bookkeeping software" frequently is used interchangeably with "online accounting software" in the small business market. The best online accounting software applications have features for keeping the books and analyzing your business's financial health. However, there is a difference between a bookkeeper and an accountant. For our reviews, we focused on solutions that offer the ability to analyze financial data rather than solutions with basic bookkeeping options.

Is online accounting software secure?

The best online accounting software uses bank-grade data encryption to protect your account. Furthermore, it should either require or allow you to opt in to two-factor authentication, giving you another layer of security. Because the software is in the cloud, your data is safe, even if your computer is stolen or destroyed. If you have employees or an accountant accessing your accounting program, you can control the information they see by setting user permissions. The best accounting programs include a detailed history or audit log that shows which changes were made to your records, on what date and at what time by which user, giving you additional insight and control over any changes or entries made in your accounting program.

Is there free accounting software?

Yes. Some accounting software providers offer their services for free. Wave offers free accounting software and provides an array of key features to manage your financial data. Wave has no hidden fees, and you can access its invoicing, accounting and receipt-scanning functions for as long as you want at no charge. Instead of simply offering free trials, companies like Wave provide all the essentials for free. While free accounting software is available, it's important to find a program that gives you what you're looking for at the standard your company requires. Free doesn't always mean faulty, but some free services and software lack sophistication or efficiency. Cloud-based software can grow your business at an affordable price point as well.

What is the easiest accounting software to learn?

Our best picks, which include QuickBooks Online, Xero, FreshBooks, Zoho Books and Wave, are easy to use and have tips and hints within the software, plus online support resources designed for new business owners who don't necessarily have accounting experience, such as getting-started guides, video tutorials, webinars and how-to articles with step-by-step instructions. Many of these companies offer free trials. You shouldn't buy an accounting solution without first testing it to see how it works. Some companies even include hypothetical data for testing, which makes it easier to play with the program and see all the different features. We recommend exploring each platform you're considering to get a feel for how it works before paying.

Should I get accounting and payroll software?

Integrating payroll with your accounting software can save you time, but you don't necessarily have to get both systems from the same company. Many accounting software applications offer integrations with a variety of payroll services. If you prefer to use the same company for both, check out QuickBooks Online and Wave, which offer payroll as an add-on service to their accounting software. If you need more sophisticated solutions, it might be a good idea to check out the best payroll software for small businesses.

Should accounting software also serve as invoice generator software?

It’s not necessarily a deal-breaker if your accounting software doesn’t generate invoices. You can even learn how to create and send invoices with PayPal. However, for some companies, it is a necessity. If you’re a freelancer or a small business that expects to send invoices to clients regularly, it’s a good idea to look for accounting software that includes an invoice generator. The ability to create invoices quickly and send them to clients automatically can save your business important time. One fantastic choice for invoice generation is FreshBooks. With FreshBooks’ mobile app, you can quickly convert estimates into invoices with the click of a button.

When is the best time to switch accounting software?

The ideal time to switch your accounting software is as your company's fiscal year is ending. (This can correspond with the calendar year if that's what works best for your business.) Making a change at the start of the new fiscal year allows you to wrap up the reports from that time period and start the year reporting on new financial information, which makes the transition seamless and less complicated. If you can't wait until the start of the next fiscal year to make a change, the next best time is at the end of a fiscal quarter.

What should accounting software for small businesses include?

The whole idea behind accounting software is to make it easier for you to manage your operations. If it is too complex or requires a lot of manual entries, it may be a waste of time. Good accounting software should be easy to use, integrate with your bank and other apps and enable collaboration with your accountant. The best options also include invoicing, reporting and a mobile app.

What are the reasons to reconsider your existing accounting software?

You may want to change your accounting software for several main reasons: As your business grows, your needs may change and require you to consider a different accounting vendor that offers more features and functionality. Complaints among employees who use the software could also prompt a change. If your employees find it difficult to navigate, it could reduce productivity. Outdated software or a platform that doesn't integrate with other business applications is yet another reason to consider new accounting software.

How is automation being implemented in accounting software?

The trend toward automation in accounting software has been going on for several years. Today, it is used for a myriad of processes, including extracting information from tax documents, creating journal entries and freeing up bookkeepers by eliminating manual entries. Also, automation can help accountants streamline data entry and analysis.

The Best Accounting and Invoice Software Reviews of 2023

Our Top Picks for 2023	Xero Visit Site	Intuit QuickBooks Online Visit Site	Oracle NetSuite Accounting Software Visit Site	FreshBooks Accounting Software Visit Site	Zoho Books Visit Site	Melio	ZarMoney	Plooto	Wave Financial	Sage Business Cloud Accounting	Neat Accounting Software
Rating (Out of 10)	9.1	9.4	9.2	9.1	9.1	8.0	8.1	8.3	8.6	9.0	8.2
Best use case	Growing businesses	Small businesses	ERP tools	Invoicing	Process automation	Bill management	Report generation	Payments	Free software	Customization	Document scanning
Base price	$13 per month	$15 per month	Custom quote	$17 per month	$20 per month	Free	$15 per month	$23.60 per month	Free	$10 per month	$200 per year
Invoicing and payments?	Yes	Yes	Yes	Yes	Yes	Payments to your vendors	Yes	Yes	Yes	Invoicing	Yes
Number of clients supported on base plan	Unlimited (monthly limit of 20 invoices)	Unlimited	N/A	5	10	N/A	Unlimited	10	Unlimited	Unlimited	N/A
Free trial	30 days	30 days	N/A	30 days	30 days	Free version	14 days	30 days	Free version	30 days	14 days
Mobile app?	Yes	Yes	Yes	Yes	Yes	No	Yes	No	Yes	Yes	Yes
Third-party integrations?	Yes	Yes	Yes	Yes	Yes	QuickBooks	Yes	QuickBooks and Xero	Yes	Yes	QuickBooks
Reporting?	Yes	Yes	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes	Yes
Automated accounting tools?	Yes	Yes	Yes	Yes	Yes	No	No	Yes	Yes	Yes	Yes
Review Link	Read Xero Review	Read Intuit QuickBooks Online Review	Read Oracle NetSuite Accounting Software Review	Read FreshBooks Accounting Software Review	Read Zoho Books Review		Read ZarMoney Review	Read Plooto Review		Read Sage Business Cloud Accounting Review

There are many aspects of accounting software that make it a useful tool. Most online accounting programs offer A/R, A/P, banking and reporting features. Some even include tools for inventory management, project management, time tracking and payroll. Here are some core elements of accounting software you should look for.

Bank Feed

This feature allows you to connect to your business bank and credit card accounts to receive a daily update of your transactions. This saves you the time it would take to manually upload statements into the system and it gives you a daily overview of your accounts. This feature also assists with reconciliation, making 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 with an overview of your account activity and key metrics, such as cash flow, P&L, account balances, expenses, A/P, A/R and sales. Some software lets you customize what you see first by rearranging the information.

Online Invoicing

If your business sends invoices, the ability to email them and accept online payments can help you get paid faster. Some accounting programs integrate with third-party payment processors while other vendors require you to use their in-house processing services.

Recurring Invoices

With this feature, you can schedule the software to generate and send invoices for recurring charges automatically, 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. Many accounting software providers don’t have recurring invoice functionality (we’ve noted in our reviews which ones do).

Automatic Payment Reminders

This feature reminds your customers about upcoming and past-due payments. Some have sample email text you can use as is or customize. You can then choose when you want the reminders to be sent. Some programs also give you the option of sending thank-you emails to customers after you receive their payments.

Bank Reconciliation

Smart reconciliation tools identify potential matches between your bank transactions and the bills and invoices you’ve entered into the software, saving you the hours it would take to sift through records. You can then approve or deny the suggested matches. The best products we reviewed suggest potential matches as you reconcile your accounts and a few also include a reconciliation feature on their mobile apps.

Financial Reporting

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

Mobile Apps

Not every accounting and invoicing program has mobile apps, but the best ones do. However, there is quite a bit of variance in app capabilities. Some can capture receipts for expense tracking only, several allow you to create and send invoices and others have almost every feature the web-based software does. As mobile work becomes increasingly convenient, it’s worth verifying that a company offers a mobile app with its software.

Integrations

The ability to connect your accounting software to the other business programs you use saves you the time of manually transferring data from one system to another. Highly rated payroll services, payment processing platforms, top point-of-sale systems and customer relationship management software are some popular types of integrations you may want to look for. Integration with systems you already use also cuts down on training time for employees.

Tracking for Billable Hours

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

Inventory Management

If you have a retail or distribution business, you’ll want accounting software that tracks inventory and helps with purchase ordering. You may need to subscribe to a top-tier plan to get this feature. If you need more advanced inventory features, the best inventory software options feature 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 tasks and budgets. The software should allow you to invoice customers for tracked time and rebill them for project expenses.

Support for Multiple Businesses

Several programs we reviewed allow you to add more than one business to your account, though some of them charge extra for this convenience.

Artificial Intelligence

Many accounting software solutions are beginning to include artificial intellgence into its platform, either natively or via integrations. AI is being used to help detect errors, flag cash flow issues, make quicker decisions and speed up communication with collaborators.

The accounting software market is poised to continue growing as more businesses adopt cloud-based accounting programs. With more businesses adopting a hybrid work arrangement, the need for cloud-based services is still on the rise. Many accounting software providers have moved entirely toward a software-as-a-service model and we expect this will continue into 2023.

Business owners are considering the use of accounting software to reduce accounting headaches as working at home becomes the norm for many. According to market research from Fortune Business Insights, the accounting software market is poised to reach $20.4 billion in 2026, up from $11 billion in 2018. The industry continues to focus on making accounting software more accessible and user-friendly. Given the increasing preference for smartphones over desktops, we expect more providers to start offering mobile-first solutions and dedicated apps.

Like many other areas of financial technology, the accounting software space has many players that cater to small business owners, making competition fierce. That should continue in 2023, which is good news for small business owners, who will gain access to more tools and functionality. Expect additional features to speed up processes, save time and boost productivity.

Artificial intelligence (AI) and machine learning gained popularity, with many accounting applications implementing these advanced technologies to reduce manual data entry and automate redundant tasks. Analysis from Vantage Market Research found a growing demand for many accounting functions to be automated, fueling the need for more AI capabilities to be built into accounting software. We expect this trend to continue in 2023 as the accounting profession seeks to reduce human error and increase productivity.

We also see analytics as another major trend in the accounting industry. Professional accountants are increasingly taking on the responsibility of analyzing data and communicating business results and trends to managers and clients. Many accounting software services now offer data analysis and visualization tools and we expect those functions to expand and grow in importance over the coming years.

Reporting features are also growing increasingly important in a globalized world. More tax authorities are imposing real-time reporting requirements. These real-time reports contain details about your company’s profits and losses and AI technology increasingly powers this feature. We think business owners will seek software providers that support these new regulations.

Our Reviews

Xero: Best Accounting Software for Growing Businesses

Xero

Xero offers more than 1,000 app integrations.
Email and live chat support are available 24/7.
Not all accountants are familiar with Xero.

Editor's Rating: 9.1/10

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Every business starts small. But as a company grows, its financial needs change. Often you want an accounting program that you can stick with over the long haul and that’s where Xero comes in. Xero’s pricing and plans are based on size, making it our choice as the best accounting software for growing businesses.

Xero offers more than 1,000 integrations with existing business software applications. You may require more apps as your business grows, so this point of differentiation is important to keep in mind. Xero’s software can also run over 50 reports, including profit and loss (P&L) statements, aged receivables and a general ledger. There are also reporting options that offer customization and flexibility. We also like that you can manage both customers and suppliers with this accounting software and organize them into groups.

Xero is easy to use, which is another reason we chose it as the best for growing businesses. Xero’s interactive dashboard displays graphs and charts of crucial information, such as invoices due, bills you need to pay and a history of your bank account balance. New features from Xero emphasize data visualization, such as bar charts and pie charts, and the ability to drill down into revenue generators.Hubdoc is another new service that allows you to scan and capture documents. The software can extract the data from receipts and bills, and sync transactions with Xero.

Whether your business is in the early stages or growing, Xero has a plan and features to meet your needs. The software is easy to use and adapts alongside your business, making it our best pick for growing businesses.

Intuit QuickBooks Online: Best Accounting Software for Small Businesses

Intuit QuickBooks Online

QuickBooks Online has valuable accounting software features, including professional invoicing, expense tracking and cash flow management.
QuickBooks Live Bookkeeper connects you to accountants when you need expert help.
You can’t upgrade from the Self-Employed plan. If you think your business will grow, you may want to choose the Simple Start, Plus or Advanced plan.

Editor's Rating: 9.4/10

With its feature-rich cloud software, wide variety of integrations, affordable pricing and reputation, Intuit’s QuickBooks Online is our choice for the best accounting software for small businesses. QuickBooks has served small businesses for more than 20 years and for good reason. When you choose this accounting software, you get all the tools you need to support your operations now and in the future.

Even QuickBooks’ basic plan includes many features that other vendors charge extra for, including professional invoicing and the ability to accept payments, track expenses and manage your business’s cash flow. Higher-priced plans include batch invoices, business analytics, a dedicated support team, on-demand online training and integrations with BILL, Salesforce and HubSpot. With all of QuickBooks’ plans, you can snap photos of receipts and link expenses from your mobile device, integrate with several apps and access customer support.

Another key feature of QuickBooks that makes it ideal for small businesses is the ability to connect with a live accountant. Cloud accounting software automates many tasks, but sometimes you need an accounting professional. With QuickBooks’ Live Bookkeeper, you get access to a bookkeeper who sets up the software for you, categorizes transactions, reconciles accounts, closes books monthly and runs detailed reports.

QuickBooks offers a full suite of features and functionality at affordable prices, but that’s not the only reason we selected it as the best accounting software for small businesses. We also like its reputation and adoption rate. If you work with an accountant or accounting consultant, they are likely already familiar with QuickBooks. The same can’t always be said of other accounting software programs that we reviewed.

Oracle NetSuite Accounting Software: Best Accounting Software ERP Tools

Oracle NetSuite Accounting Software

Oracle NetSuite’s feature-rich accounting software also offers enterprise resource planning (ERP) functionality.
The accounts receivable (A/R) system automates the delivery and collection of invoices while the accounts payable (A/P) solutions automate payments.
You must contact a sales representative to learn how much the software will cost your company.

Editor's Rating: 9.2/10

NetSuite is a full-featured accounting and ERP program that enables you to manage all aspects of your small business ― billing, reporting and manufacturing ― from one dashboard. NetSuite offers a full A/R service that automates the delivery and collection of invoices as well as an A/P solution that automates payments. NetSuite’s tax tools also provide business owners with domestic and global tax management. Taxes can be processed easily according to local laws, removing a lot of the guesswork. The engine supports all currencies and exchange rates.

NetSuite also makes it easy to manage cash flow via its cash management feature, which provides you with insight and visibility to optimize cash flow and stay up to date on your company’s bank accounts. Business owners will appreciate NetSuite’s payment management system, which centralizes and simplifies payments. The planning and budgeting feature automates, processes and unifies the data, making it easier to create budgets and forecasts, model what-if scenarios and generate reports on different aspects of your business. You can set access permissions to ensure you’re always in control of your business’s finances.

In addition to all of the accounting features, NetSuite offers many ERP tools to manage finances, handle orders, manage production and supply chains and plan for the future.

While NetSuite may be too robust for microbusinesses or self-employed individuals, the software’s capabilities can help larger small businesses with lots of moving parts and complex business functions. That is why it’s our pick as the best accounting software with ERP functionality.

FreshBooks Accounting Software: Best Accounting Software for Invoicing

FreshBooks Accounting Software

You can create professional invoices, allow customers to pay invoices online and send automatic bill reminders.
Accounting features include time and expense tracking as well as automated bank and credit card entries.
FreshBooks can get pricey if you want to add several team members to your account.

FreshBooks makes it easy to create professional invoices, get paid quickly and track down past-due payments, but that just scratches the surface of what this accounting software can do. With competitive pricing, robust invoicing capabilities and other accounting features, FreshBooks is our choice as the best accounting software for invoicing.

Getting paid on time is a big pain point for small businesses. Remembering to bill clients, let alone chase down past-due bills, can fall by the wayside quickly as you focus on running your business. FreshBooks accounting software removes many of those challenges with its feature-rich invoicing capabilities. With FreshBooks, you can create professional invoices customized with your logo and message. Your clients can opt to pay their bills through the invoice, reducing the time it takes to get paid.

Do you have clients who tend to pay late? FreshBooks lets you create reminders and send alerts to customers when bills are due or past due. It also monitors the status of invoices after you send them, alerting you when customers receive and view them. With FreshBooks’ invoice generator, you can add tracked time and expenses to invoices.

Invoicing aside, FreshBooks includes many other features that small business owners will appreciate. One of the best additional tools is its time tracking. Small business owners can track the time they spend working on a project, connect a bank account and credit card to eliminate the need for manual entries and benefit from automatic updates. We found that FreshBooks’ time-tracking feature sets the service apart from competitors that require manual entry.

FreshBooks supports more than 80 apps and integrations, allowing you to connect this accounting software to other business services and systems you already use. If you have a larger business and want several users to access your account, FreshBooks may get pricey. However, for most small businesses that send a lot of invoices, FreshBooks is a standout.

Zoho Books: Best Accounting Software for Process Automation

Zoho Books

Zoho Books is available on iOS and Android devices, allowing you to accomplish accounting tasks from anywhere.
You can track bills, manage vendor credits and add reporting tags to transactions.
The highest tier limits you to 100,000 transactions per month.

Small business owners with few employees don’t need a complicated accounting program. They need to send invoices, automate payments and reminders and track expenses and projects. For many businesses, budget is also top of mind. Zoho Books checks all of those boxes and more, making it our best pick for automating processes.

Zoho Books is an intuitive accounting software program that offers a ton of features at an affordable price point. Mobile apps for phones, tablets and smartwatches allow you to accomplish accounting tasks from anywhere. We like that you can create and send invoices directly from the mobile app. Additionally, Zoho’s client portal also allows customers to view and pay invoices online.

With six pricing plans, Zoho Books offers something for businesses at all stages of growth. Zoho’s plans range between $15 per month for three users and $240 per month for 15 users. A free version is also available for a single user, albeit with reduced technical support and a limit of 1,000 invoices per year.

Zoho Books stands out beyond its pricing, thanks to its ability to automate accounting tasks. Zoho has its own proprietary programming language called Deluge that can be used to create custom functions for automation. Deluge is designed for non-programmers, although Zoho customers can seek help from an in-house professional. Ultimately, we found that Zoho’s built-in automation tools stood out the most among the accounting software we reviewed. The ability to eliminate tedious, error-prone tasks makes Zoho our best pick for automating processes.

Melio: Best Accounting Software for Bill Management

Melio

Melio doesn’t charge any fees for bank transfers.
You can pay over 7,000 vendors directly with Melio.
While its website is mobile-friendly, Melio does not have a stand-alone mobile app for iOS or Android.

Editor's Rating: 8/10

Some businesses just need a simple way to manage A/P and A/R. They don’t want an overly complicated or costly system. All they need is software to send and track invoices and ensure that they get paid. That’s where Melio and its free A/P software comes in. It’s a free, cloud-based software program that lets you schedule payments to vendors, making it our best pick for bill management.

With Melio, making payments via bank transfer is free while credit card payments cost 2.9 percent. You can also accept customer payments via card or bank transfer at no cost. Its ease of use sets Melio apart from other free A/P software. We found that adding vendors and scheduling payments from Melio’s network of 7,000 vendors can be done within minutes.

You first enter a vendor’s details, upload a file or take a photo of an invoice to get the payee in your account. Then you can schedule payments for the date and amount you want, with vendors receiving either a check or bank transfer. Melio integrates directly with a large network of prominent utility, telecom and other billers, making it easy to schedule automatic payments. This is a key feature that sets Melio apart from other software programs that we reviewed.

We also like Melio’s integration with QuickBooks. QuickBooks is powerful alone but, when combined with Melio’s payment data, it can provide deeper insights into cash flow and automation of A/P.

Melio may not be well suited for large companies, but it’s ideal for small businesses looking for a free payment management solution. Add integration with QuickBooks to the mix and it’s easy to see why Melio is our best pick for bill management.

ZarMoney: Best Accounting Software for Report Generation

ZarMoney

ZarMoney offers over 40 built-in reports.
The software connects with more than 9,600 banks in the United States and Canada.
Some cash-basis reports are not available.

Editor's Rating: 8.1/10

Small business owners need access to reports and data on their operations, which is exactly what ZarMoney provides. The number of insights provided by ZarMoney exceeds even those of more well-known software, such as QuickBooks.

The software includes over 40 built-in reports and many more customizable options, which is why it’s our choice as the best accounting software for report generation.

ZarMoney is an accounting software program that offers plans for entrepreneurs, small businesses and enterprises. It sticks to a simple pricing structure, charging a flat rate depending on the number of users. It offers three plans that range from $15 per month for one user to $350 per month for 30 or more users.

With the A/R tool, you can manage estimates and sales orders, offer customers payment terms and early payment discounts, text or email customers order alerts and enforce credit limits automatically at order entry and invoicing. ZarMoney supports online credit card payments and provides various payment management and tracking services.

The software connects with more than 9,600 financial institutions in the U.S. and Canada. ZarMoney imports bank transactions daily automatically for you to approve or edit. The accounting software also supports batch deposits of checks, cash and credit card sales; calculates sales tax; and transfers funds between banks.

We selected ZarMoney as the best for report generation, but this accounting software has so much more to like. With this cloud-based provider, you also get robust accounting, inventory and productivity features at a competitive rate.

Plooto: Best Accounting Software for Payments

Plooto

Plooto unifies payments, approvals, reconciliation and reporting, and you can automate your A/P and A/R.
You can add a vendor or supplier payee in seconds via the Plooto Network.
It syncs with QuickBooks and Xero only.

Editor's Rating: 8.3/10

As the old saying goes, time is money. To scale up your business, you need to spend less time on tedious tasks, such as A/P and A/R. Plooto addresses these needs at an affordable price point, which is why it’s our choice as the best accounting software for payments.

Plooto is an all-in-one payment platform that provides greater financial control and simplicity by unifying payments, approvals, reconciliation and reporting. Plooto’s workflow automation reduces errors, expedites your A/P process and improves how vendors get paid. It also provides end-to-end A/P and A/R automation.

Plooto lets you use the same system to pay anyone, even if that company or individual is outside the U.S. Adding vendors as a payee takes seconds with the Plooto Network of 120,000 suppliers and vendors. Search for your payee in the Plooto Network and then add them to your account with one click. If you can’t find a particular vendor, you can add them as a payee in minutes, saving you countless hours of performing repetitive A/P tasks.

Plooto also speeds up A/R. You can set up the software to send clients invoices automatically with instructions on how to make a payment. When the payment is received, it’s reconciled automatically. Through its Credit Card Acceptance feature, customers can pay invoices via credit cards, enabling you to get paid in as little as two business days. Plooto charges a flat rate of 2.9 percent plus 30 cents per transaction for credit card payments.

Plooto isn’t a traditional accounting software program, but if you want to optimize your A/P and A/R and maximize cash flow, Plooto is worth a deep dive. It automates many payment and accounting processes, integrates with QuickBooks and Xero and is priced competitively, making it our best pick for payments.

Wave Financial: Best Free Accounting Software

Wave Financial

Wave can link to your bank and credit card accounts to track your transactions automatically.
It offers standard bookkeeping services.
Compared to other accounting software selections, Wave’s app integrations are limited.

Editor's Rating: 8.6/10

If you’re a freelancer or the owner of a small business that doesn’t store much inventory, Wave’s accounting solution is ideal for you. It offers ample features and is easy to use, making it our choice as the best free accounting software

With Wave, there are no monthly or annual fees or software license, although add-on services cost extra. This gives you the flexibility to start a business with no upfront cost and add features only as you need them.

Wave’s free accounting software does not cap the number of transactions, invoices you generate or users who have account access. If you want to accept invoice payments online, Wave charges a flat 2.9 percent plus 60 cents per credit card transaction or 1 percent (with a $1 minimum fee) for automated clearing house bank transfers.

Just because Wave is a free service doesn’t mean it skimps on features. It holds its own compared to many paid software applications, automating many billing aspects and saving small business owners precious time. For example, you can create and schedule recurring invoices and track payments. There are automatic payment reminders and automatic syncing with your bank and credit card accounts. Wave also supports PayPal, enabling you to sync that transaction data.

Even though it’s a free program, Wave offers the standard bookkeeping services of many paid alternatives on the market. Small businesses strapped for cash should take a look at Wave as it may be a great solution to save money while keeping your books organized.

Sage Business Cloud Accounting: Best Accounting Software for Customization

Sage Business Cloud Accounting

Sage doesn’t limit the number of users who can access the software.
It has 24/7 support, including live chat with Sage accounting experts and one-on-one sessions.
You can accept payments via invoices only through Sage’s integration with Stripe.

Editor's Rating: 9/10

Sage Business Cloud Accounting is a low-cost, cloud-based program that lets you create and send invoices, track what you’re owed and automate bank reconciliations. At $10 per month, it’s an affordable accounting tool that helps you stay on top of your accounting tasks. For those with developer skills, Sage offers extensive options for tailoring the software to your needs, making it our best pick for customization.

With the Sage Accounting Start plan, you can create, track and send invoices as well as automatically reconcile bank entries. If you need more than that, the Sage Accounting plan enables business owners to send quotes, estimates and invoices; forecast cash flow; and manage purchase invoices. For the first three months, you can use Sage to snap and post receipts to your account. The Sage Accounting plan supports unlimited users and costs $25 per month.

Sage’s program is cloud-based and easy to set up as the learning curve isn’t steep. Sage integrates with Stripe, enabling users to add a “Pay Now” button on invoices. Freelancers can automate many accounting and invoicing tasks, including the auto-posting of expenses and payments, sending and tracking invoices and setting reminders and alerts. Sage integrates with several apps, including AutoEntry, Draycir, Avalara and Credit Hound.

With accounting software, one size doesn’t fit all, which is where Sage outclasses its competitors. If you hire a software developer, you can tailor a Sage solution that meets your requirements better. That makes Sage our best pick for customization.

Neat Accounting Software: Best Accounting Software for Document Scanning

Neat Accounting Software

Neat offers extensive text-parsing and document-scanning features.
It includes standard bookkeeping and invoicing abilities.
Neat is more expensive than some alternatives.

Editor's Rating: 8.2/10

Neat is accounting software that provides all the bookkeeping and invoicing basics. However, Neat originally was best known for its text-parsing technology. The company deftly incorporates financial document management into its accounting offerings, making it our choice as the best accounting software for document scanning.

Despite the rise of electronic recordkeeping, some business owners ― either by habit or necessity ― may still deal with large amounts of physical paper. Neat can help declutter your financial records with the ability to scan files, capture images on a smartphone and upload files from a computer. The software’s text parsing technology then matches up data from your bank records to the physical paper records, saving huge amounts of time and hassle from errors.

Additionally, Neat can generate a slew of P&L, cash flow, balance sheet and transaction reports. You can also create custom reports for expenses, sales tax and tax categories. Neat simplifies workflow further through suggested receipt-matching and tracking which tasks remain open. As for invoicing, Neat offers customizable templates and online payment through WePay.

Neat offers robust customer support, including an app frequently asked question (FAQ) help center as well as email, chat and phone support with a Neat Expert. There is a 14-day free trial and pricing comes in at $200 for an annual subscription, a bit on the higher end for the software that we reviewed. But for that price, you can access a set of bookkeeping, invoicing and document management features that can’t be found elsewhere in one software package.

Business owners dealing with large amounts of paper will find much value in Neat’s unlimited file storage, high-level encryption, mobile access and in-person support. For that, we rate Neat as the best accounting and invoicing software for document scanning.

The Best Accounting and Invoice-Generating Software for 2023

Table of Contents

The Best Accounting Software Providers

What Is Accounting Software?

How We Decided