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The Cheapest Accounting Software For Small Business
Every business needs accounting software, but not every business can (or should) spend a fortune. Here are the cheapest accounting software options for businesses of all sizes.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Every business should use accounting software, but what if you’re on a tight budget? The good news is that you don’t have to pay a high monthly fee to track your income and keep your business and personal expenses separate. In fact, you may not have to pay anything at all for the best accounting software.
In this post, we’re breaking down the best cheap accounting options for small businesses. Whether you run a small business and plan to scale in the future or simply do some freelance work on the side, this list has something for everyone.
The Cheapest Accounting Software Options For Small Business
The best and cheapest accounting software should offer basic accounting features and no long-term contracts at a competitive monthly price. It should also be easy to learn and use and offer good support resources.
Here are our picks for the best cheap accounting software:
Freelancers & small businesses with unlimited users
Pros
Free plan with no limitations
Easy to use
Supports unlimited users
Expert help available for bookkeeping and taxes (additional fees apply)
Cons
Not scalable
Limited customer support for free plan users
Why We Chose Wave As The Best Cheap Accounting Software
Free accounting software usually limits features or has an outdated, hard-to-navigate interface, but not Wave. Wave takes the top spot as the overall best cheap accounting software because it's easy to use (even if you've never used accounting software) and offers basic accounting features for unlimited users -- all at no cost.
While Wave is a great option for smaller businesses and freelancers, it lacks the scalability and advanced features larger businesses with more complex accounting needs would want. Still, for basic accounting features wrapped up in one modern, easy-to-use package, Wave simply can't be beat.
If you want basic accounting features with time-saving automations
The Wave Starter plan is completely free. You can upgrade to the Wave Pro plan for a low monthly fee to add automatic receipt captures, automated late payment reminders, discounted pricing rates, and more. You’ll also need the paid plan if you want live chat and email support.
Add-ons are also available for everything from payroll to tax filing and professional bookkeeping services. These features are all available for a one-time or monthly fee.
Wave Extra Costs
Price
Wave Payroll
$20 – $40/month + $6/employee or contractor
Wave Payments
2.9% – 3.4% + $0.60 per transaction
Digital Receipt Captures
$11/month (or $96/year)
Wave Bookkeeping
$149+/month
Wave Tax Coaching
$229
Wave Accounting & Payroll Coaching
$379
Tax Filing
$115+ plus $49 per state filed
Wave Features
Wave doesn’t have the most advanced features, but it has enough to cover basic bookkeeping and accounting tasks. These features include:
Unlimited invoices & estimates
Customizable invoices
Expense tracking
Contact management
Basic inventory
Reporting
Mobile apps
Choose Wave If...
You want free basic accounting software with no limitations
You’re a freelancer or small business that doesn’t need advanced features
Promo: Try Xero with 90% off for six months when you sign up via our link. No promo code required. Claim your discount
Pros
Supports unlimited users for no additional fee
1,000+ integrations
Excellent support resources
Scalable to grow with your business
Cons
No free plan available
Moderate learning curve
Why We Chose Xero As The Cheapest Scalable Accounting Software
If you need a scalable accounting solution that grows with your business, Xero is an excellent choice. Xero comes loaded with features, and while there is a learning curve, numerous support resources make it pretty easy to learn the software. Xero also integrates with an impressive 1,000+ apps and software.
Unlike some of the other options on this list, Xero doesn't offer a free plan. However, it does have three pricing plans starting at $20/month. These plans grow with your business and are priced competitively when compared to similar software options. Best of all, you don't have to worry about paying for higher-tier plans or add-ons for additional users -- all Xero plans support unlimited users at no extra cost.
If you need accounting software with advanced analytics, multicurrency support, and project management for unlimited users
While there are some limitations on the Early Plan, this option is good for smaller businesses or freelancers that don’t need to send unlimited invoices.
A 30-day free trial is available to test the software. Xero also frequently runs discounts for significant savings for new users.
While it doesn’t have built-in payroll, Xero integrates with Gusto for payroll. An advanced inventory add-on is also available.
Xero Extra Costs
Price
Gusto Payroll
Starts at $49/month + $6/month/employee
Xero Inventory Plus
$39/month
Xero Features
Xero has plenty of great features to help keep your finances in order. Standout features include:
Ideal for small businesses with growth potential in the near future
Pros
Free plan available
Excellent customer support
Easy to use
Good basic accounting features (even on the free plan)
Cons
No payroll
Limited inventory
Why We Chose ZipBooks For Best Cheap Accounting Software With Excellent Support
One area where many accounting software programs fall short is customer support -- but this isn't the case with ZipBooks. ZipBooks offers excellent customer support, which earned a nearly perfect rating in our complete review.
That isn't all that ZipBooks offers. ZipBooks has an easy, intuitive interface, a solid set of basic accounting and bookkeeping features, and a free plan to help customers save money. While it does lack add-ons like payroll and the inventory feature is as basic as it gets, ZipBooks is a great choice for businesses that want affordable accounting software without the bells and whistles (and the pricing that comes with).
If you want unlimited users and have advanced reporting needs
ZipBooks has three pricing plans that are all quite affordable when compared to its competitors. You can get hands-on with the software by signing up for the free plan, or you can sign up for a 30-day free trial for its paid plans.
ZipBooks keeps it simple, so there are no add-ons available.
ZipBooks Features
If you opt for the ZipBooks Starter plan, you’ll have access to these features:
Unlimited invoices, quotes, and estimates
Multicurrency invoicing
Expense tracking
Customer & vendor management
Payment processing through Square or PayPal (processing fees apply)
Basic reporting
If you upgrade to one of ZipBooks’ paid plans, you’ll get additional features and automations like:
Support for unlimited users
Custom invoice emails & receipts
Auto billing
Recurring invoices
Automated payment reminders
Auto categorization
Custom chart of accounts
Project management
Time tracking
Choose ZipBooks If...
You want free accounting software
You don’t need advanced features or add-ons like payroll or inventory management
You want software that comes backed with great customer support
Why We Chose QuickBooks Solopreneur As The Best Cheap Accounting Software For Freelancers
If you're a freelancer or independent contractor who doesn't need the features (or monthly cost) of QuickBooks Online, QuickBooks Solopreneur is worth a look. QuickBooks Solopreneur allows you to easily monitor and track business income and expenses, send invoices, and accept payments.
QuickBooks Solopreneur is especially great for taxes, offering everything from automatic mileage tracking to expert tax support. Add in ease of use, a mobile app, and a competitive monthly price, and it's easy to see why this is a solid choice for one-person businesses.
Freelancers that need basic accounting features and expert tax assistance
QuickBooks Solopreneur has a single pricing plan. Intuit frequently runs promotions for new users to lower the initial costs. A free 30-day trial is available if you’d prefer to simply test the software before buying.
Payment processing fees and tax filing services are add-ons that are available for an extra cost.
QuickBooks Solopreneur Extra Costs
Price
Tax Filing
$169+
Payment Processing
1% – 3.5% per transaction
QuickBooks Solopreneur Features
QuickBooks Solopreneur isn’t advanced accounting software (if you need that, check out the other options on this list or QuickBooks Online). What it does offer is several useful tools for freelancers, sole proprietors, independent contractors, or small single-member LLCs. Here’s what to expect:
Unlimited invoices & estimates
Income & expense tracking
Automatic mileage tracking
Tax deductions
Receipt capture
Payment processing
Sales tax tracking
Growth goals
Expert tax guidance
Mobile app
Choose QuickBooks Solopreneur If...
You’re a freelancer, IC, or sole proprietor
You want software that offers great federal tax support
You want basic bookkeeping features and don’t need project management, inventory, or advanced accounting features
Merchant Maverick has been researching and reviewing accounting and invoicing software since 2013. Our writers have tested over fifty different accounting programs, including online apps and locally-installed software. In each review, we evaluate pricing, features, ease of use, customer service, and user reviews.
When comparing different accounting software apps, we consider many data points, including relative pricing, the number of standard accounting features available, invoicing and quote creation, the presence of a client portal, and time tracking tools. Our lists of the best accounting programs include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility, tax support, advanced reporting tools, numerous niche features, and competitive monthly pricing.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the accounting software included meets our internal standards for quality and reputation.
Which Cheap Accounting Software Is Right For Your Business?
Before choosing accounting software, make sure to consider more than just pricing. Does it have the features you need? Are you a beginner who needs software with no learning curve? Do you want something that grows with your business?
Once you’ve determined what your business needs, be sure to sign up for free plans or free software trials and demos before committing. While it’s important to get something that fits your budget, it’s just as (or even more) important to get something that’s going to work for you and your business.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
