Efficient accounting software for small businesses is essential to manage finances, save time, and ensure compliance – especially for smaller teams. Modern tools are user-friendly and packed with features that help business owners stay in control and make informed decisions. Discover the best accounting software for small businesses!
Core features of accounting software for small business
Choosing the right accounting software for small businesses means focusing on tools that simplify financial management and support your growth. This includes automating repetitive tasks, reducing errors as well as compliance and integration to your current systems.
- Intuitive features: Easy to use, even without accounting experience
- Real-time data access: Monitor cash flow, expenses, and income instantly
- Security: Encryption, two-factor authentication, and GDPR compliance to protect sensitive data
- Compliance: Automated tax calculations, invoice standards, and VAT returns
- Scalability: Add users, upgrade plans, and integrate tools as your business grows
Main difference between small business accounting software and enterprise solutions
Small business software focuses on simplicity and fast setup. In contrast, ERP solutions are tailored for larger organisations with complex structures.
| Small Business Accounting Software | Enterprise Accounting Solutions (ERP) |
| Target users | Freelancers, start-ups, small teams | Medium to large companies |
| Complexity | Low, easy to learn | High, often requires training |
| Features | Core tasks (invoicing, expenses, reports) | Full-suite (finance, HR, logistics, planning) |
| Scalability | Moderate, add-ons available | High, modular and fully customisable |
| Integrations | Common apps (e.g. PayPal, Shopify) | Custom APIs, CRM, SCM, HR integrations |
| User access | Limited user roles | Role-based access with approval processes |
| Compliance & reporting | Localised tax tools | Global standards, detailed compliance reporting |
5 best accounting software for small businesses
The following sections compare the best accounting software for small businesses. Each has its own strengths depending on your needs and industry.
| QuickBooks | Xero | FreshBooks | Wave | Zoho Books |
| Target group | Business owners, SMEs | Freelancers, SMEs, accountants, bookkeepers | Creatives, freelancers, SMEs | Freelancers, start-ups | From freelancers to scaling SMEs |
| Primary functions | Invoicing, bookkeeping, tax | Bank feeds, invoicing, projects | Time tracking, invoicing, payments | Invoicing, accounting, payroll | Automation, inventory, VAT |
| Integrations | QuickBooks App Store | Xero App Store | FreshBooks App Store | Limited | Multiple integrations |
| Pricing model | Monthly from €19 | Monthly from $29 | Monthly from $21 | Free Starter Plan | Free Starter Plan |
QuickBooks
With over 3.4 million SMEs, QuickBooks is one of the most established accounting platforms for small businesses. It features a full suite of tools including invoicing, expense tracking, VAT submissions, bank reconciliation, and payroll support. The software is cloud-based with a strong mobile app. Its dashboard is detailed and user-friendly, which gives business owners a clear view of their financial health.
Pros
- Comprehensive features for growing businesses
- Integrates with hundreds of third-party apps
- Strong support and regular updates
- Cost-efficient subscription plans
Cons
- Costs increase with additional users
- Small features such as recurring transactions require premium-priced subscription plans
Xero
Xero is a modern accounting tool designed for freelancers, agencies, and smaller teams. It’s well-known for its strong automation capabilities, and real-time financial tracking. Next to direct bank feeds and payroll, Xero offers basic project management features and easy collaboration with accountants through Xero’s partner program.
Pros
- Excellent automation (bank rules, recurring invoices)
- Multiple integrations via Xero App Marketplace
Cons
- Limited local support
- Relatively expensive basic plan
FreshBooks
FreshBooks is best suited to service-based professionals like designers, consultants, and contractors. It simplifies time tracking, project-based billing, and client communication. FreshBooks places a strong emphasis on user experience with clean visuals and simple workflows. It’s particularly effective for users who charge by the hour or work with multiple clients.
Pros
- Excellent for time and project tracking
- Customisable invoices and easy online payments
Cons
- Less suitable for businesses with inventory or complex accounting needs
Wave
Wave is an accounting software for small businesses, which mainly caters to freelancers and start-ups. It includes all the basics: invoicing, expense tracking, receipt scanning, and even payroll in selected countries. Although the feature set is more limited than paid alternatives, it offers unbeatable value for sole traders or start-ups with simple accounting needs.
Pros
- Starter Plan free to use
- Covers the essentials for small-scale bookkeeping
Cons
- Limited integrations and automation
Zoho Books
Zoho Books is a powerful and affordable solution and part of the larger Zoho ecosystem. Therefore, it integrates with tools like Zoho CRM, Inventory, and Projects, which is particularly valuable for scaling businesses. It supports advanced features such as automation and workflow rules, which makes it an excellent choice for businesses with more complex needs.
Pros
- Highly scalable and customisable
- Integrates deeply with other Zoho tools
- Starter Plan free to use
Cons
- Initial setup can be time-consuming
- Some features locked behind higher-tier plans
Automate your accounting with amnis
Most accounting software for small businesses is designed to manage invoices and reconcile books – but what about facilitating international business payments, handling multi-currency transactions, or streamlining team-wide spending? That’s where amnis takes things further.
With a single multi-currency account, amnis connects your finance operations with modern banking infrastructure, allowing you to pay like a local in the UK, US, EU, and beyond. No foreign accounts. No delays. Just smooth, automated workflows across currencies and countries.
Finance teams using amnis report significant time savings, with some cutting expense processing time in half. Built-in Auto-Accounting for recurring card transactions ensures spending is tracked and categorised automatically, reducing manual follow-up and reconciliation. Combined with real-time transaction tagging, easy invoice uploads, and multiple integrations with tools like bexio, Sage, ABRA, or SAP, your accountant spends less time chasing receipts and more time focusing on growth. For custom systems, amnis also offers a robust API and secure H2H (SFTP) integration.
With multi-currency debit cards, advanced B2B payment methods, and full 24/7 self-service, you can manage your entire financial stack – from banking and expenses to accounting – all in one place.
Try amnis today and experience what modern finance automation feels like.
