17 Best Free Accounting Software for Small Business in 2025

For accounting, invoicing, and expenses, Kashoo offers simple software designed to save entrepreneurs time. With a list of features, including automatic bank transaction imports and multiple account connection capabilities, Kashoo offers a variety of helpful business accounting tools. However, this is geared towards small businesses and may not be the best choice for fast-scaling companies. You also get a free 30-day trial to try the software, which means no financial risk for you. Startups can initially rely on free accounting software like Wave to handle their basic accounting needs effectively. However, as the business expands, they may need to upgrade to a paid plan to unlock advanced features, such as payroll processing and inventory management.

Easy Access

• Akaunting offers all the tools to handle your money online, from invoicing to expenditure monitoring to accounting.
• Using free accounting software for small businesses not only saves money but also keeps your accounts neat.
• Free or low-cost options can be a great starting point, but make sure they won’t limit your growth down the line.
• It provides a full suite of accounting features like expense management professional invoicing, VAT, bank feeds, and more than 300 third-party integrations.
• Typically, small business owners can expect to invest between $15 and $100 per month for software.
• Beyond size, your industry often comes with its own set of compliance rules, reporting standards, and common operational workflows.

As Future Firm highlights, these “significant time savings” mean your team can shift their focus from tedious manual work to more strategic activities that actually drive growth. Imagine your finance experts spending less time crunching numbers and more time analyzing them to provide valuable insights. If you’re just starting out or running a one-person show, free accounting software for small business might be all you need. Look for tools that cover the basics like invoicing, expense tracking, and simple reporting. Wave’s free plan is best for freelancers and small businesses with fewer than ten employees, particularly those in professional services where transactions are invoice-driven. However, invoices carry a “powered by Wave” watermark on the free plan, and customization is minimal compared to systems like Zoho Books.

Retail & eCommerce businesses

Less Accounting also offers a four-tier bookkeeping service option as well. You pay based on your monthly expenses, and come tax time, you’re ready to pass them off to your accountant. Your chosen startup accounting software should easily handle increased transaction volumes and complexity as accounting services for startups your business expands.

Can free accounting software handle taxes?

As your company grows, staying on top of expenditures from across your organization becomes more and more complex, and capturing receipts for purchases of $75 or greater is critical for future audit purposes. By understanding your needs, exploring your options, and leveraging partnerships with trusted advisors, you can find the perfect fit for https://www.theclintoncourier.net/2025/12/19/main-advantages-of-accounting-services-for-startups/ your business. Onboard employees, track their time, and pay them — all in one place. Wave and ZipBooks are solid choices here—easy to use, zero cost, and built for solo operators. You can choose from seven templates and modify headings, footers, and sections to best suit your needs.

Be sure to compare features, read every accounting software review you can find, and choose a platform that works for your budget, your goals, and your workflow. Accounting software sends invoices automatically, tracks payments, and reminds clients—so nothing falls through the cracks. Looking to compare paid accounting software for your small business?

Xero is one of the best online accounting software for startups that helps streamline essential financial data with finesse. It excels in accounting tasks, such as invoice management and bank reconciliation. For larger organizations or businesses with more complex financial needs, Sage Intacct offers a robust, cloud-based financial management system. It’s designed to handle more intricate accounting processes, providing advanced features for automation, in-depth reporting, and ensuring compliance. Zoho Books’ free plan is ideal for freelancers, sole proprietors, and small businesses earning under $50,000 per year. Choosing the right accounting software for startups can save time, improve financial accuracy, and help businesses grow.

• While many free accounting tools serve startups and freelancers well, Barawave offers a free trial of an AI-powered platform designed to scale beyond basic bookkeeping.
• Coupled with Zoho Invoice, Zoho Books is a well-rounded and completely free solution for freelancers on a budget.
• It’s highly popular among small businesses and startups because of its simplicity and GST compatibility.
• Though it requires a steeper learning curve and investment, its scalability and customization options make it worth considering for high-growth startups.
• Before choosing a service, ensure that there are plans available to grow alongside your business as you reach your goals.
• Choosing the best accounting software for startups poses some unique challenges.

Best for Working with an accountant

But with so many options available, choosing the right software can be challenging. Compliance is non-negotiable, and Brex makes it easy to stay compliant. Our platform comes with built-in features to automatically enforce your company’s spending policies at the time of spend, reducing the risk of non-compliant expenses. Every transaction and approval is meticulously recorded, creating a detailed audit trail that can be invaluable during financial reviews. Brex also is designed with regulatory compliance in mind for standards like SOX and GAAP and offers secure storage for all your financial documents, including receipts and invoices. This comprehensive approach not only reduces your risk but also simplifies the audit process, potentially saving your team countless hours of preparation time.