Our Pick Of The Best Accounting Software For Small Business In 2025

• Zoho Books
• FreshBooks
• Xero
• Intuit QuickBooks
• NetSuite
• Sage Business Cloud Accounting
• Neat
• Kashoo

The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.

We analysed 13 providers across 20 metrics to rank the best accounting software for small businesses. Our ratings consider factors such as transparent pricing, variety of features, availability of support and customer ratings. All ratings are determined solely by our editorial team.

Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.

Accounting software is a computer program that helps businesses track income and expenses. The software can also be used to generate reports, such as profit and loss statements and balance sheets. Most accounting software programs include features for invoicing, tracking payments and managing inventory.

There are many benefits of using accounting software, including:

• Time-saving: Automation features can save you time on tasks such as creating journal entries and reconciling statements.
• Compliance: Many accounting software programs offer features to help businesses with compliance, such as tax preparation and reporting.
• Anytime, anywhere access: With cloud-based accounting software, you can access your account from anywhere, at any time.
• Integration: Many accounting software programs integrate with other business applications, such as CRM and e-commerce platforms.
• Mistake reduction: By automating repetitive tasks and providing real-time insights, accounting software can help reduce mistakes.
• It’s affordable: Accounting software is much more affordable compared to hiring an accountant.
• Keeps you organised: Accounting software can help you organise your financial records and transactions in one place.

When choosing the best accounting software for your business, there are several factors you should consider, including price, features, the type of software you need and what your company’s specific needs are.

Types of Accounting Software

There are several different types of accounting software, including:

• Cloud-based accounting software: Hosted on the vendor’s servers and accessed via the internet, cloud-based accounting software is typically more affordable than on-premises software and offers anytime, anywhere access.
• On-premises accounting software: With on-premises software, you’re installing it on your company’s own servers. On-premises accounting software is typically more expensive than cloud-based software and can be more difficult to set up and maintain.
• Enterprise accounting software: This type of software is designed for large businesses with complex accounting needs. Enterprise accounting software is typically more expensive than other types of software and offers more features and customisation options.
• Small business accounting software: Designed for small businesses with simple accounting needs, small business accounting software is typically less expensive than other types of software and offers fewer features.
• Open-source accounting software: Free software such as this is typically more customisable than other types of paid software. However, open-source accounting software can be more difficult to set up and use.
• ERP accounting software: This type of software is designed to integrate with other business applications, such as CRM and e-commerce platforms. ERP accounting software can be more expensive than other types of software and can be more difficult to set up and use.
• Commercial accounting software: Commercial accounting software can be either cloud-based or on-premises, and is designed for businesses of all sizes.
• Industry-specific accounting software: As the name suggests, this type of software is designed for businesses in specific industries, such as construction, manufacturing or retail. Industry-specific accounting software typically offers features tailored to the needs of that industry.

Essential Features

Accounting software typically offers a range of features, including:

• Accounting: Creating and managing invoices, tracking expenses and revenues, and preparing financial statements.
• Billing and invoicing: With this system, you can streamline the process of issuing invoices, keeping tabs on payments and organising customer information.
• Inventory management: Tracking inventory levels, estimating inventory costs and creating purchase orders.
• Payroll: Though not all accounting software can process payroll, some offer features such as tracking employee hours, calculating payroll taxes and processing paychecks.
• Project management: Creating and tracking project budgets, assigning tasks to team members and monitoring project progress.
• Reporting: Generating financial reports, tracking business performance and creating custom reports.
• Customer relationship management (CRM): CRM includes features such as tracking customer contact information, managing customer interactions and tracking sales opportunities.

Limitations and Challenges

Accounting software can help businesses automate and streamline their accounting processes. However, there are some limitations and challenges to using accounting software, including:

• Cost: Accounting software can be expensive for businesses with complex needs.
• Implementation: It can take time and effort to set up and learn how to use accounting software.
• Integration: Accounting software may need to be integrated with other business applications, such as CRM or e-commerce platforms.
• Support: Some accounting software can be difficult to use and may require expert help to troubleshoot problems.
• Security: Accounting software may contain sensitive financial data, so it’s important to choose a system with strong security features.
• Customisation: Some accounting software may not offer the level of customisation that businesses need.
• Scalability: As businesses grow, they may need to upgrade to a more complex accounting system.
• Data entry: Accounting software typically requires manual data entry, which can be time-consuming and prone to errors.
• Reporting: Generating reports can be challenging, especially for businesses with complex data.
• Training: Employees may need training on how to use the accounting software.

Despite these challenges, accounting software can be a valuable tool for businesses of all sizes. When choosing accounting software, it’s important to consider the needs of your business and compare different features to find the best fit.

The cost of accounting software can vary depending on the features and complexity of the system. Generally, there are three types of pricing plans: basic, standard and premium. Basic plans typically offer the most essential features, while premium plans include more advanced features. For example, a basic accounting software plan might include features such as invoicing, expense tracking and financial reporting. A premium plan might include features such as inventory management, project management and CRM.

Your cost can also vary depending on the size of your business. Small businesses may be able to find a less expensive basic plan, while larger businesses may need to upgrade to a more expensive standard or premium plan.

It’s important to note that the cost of accounting software can vary greatly, so it’s important to compare different systems and plans to find the best fit for your business. You can choose a basic system and add à la carte options such as project management or CRM, or you can choose an all-in-one system that includes everything you need.

If you’re on a budget, you can reduce costs by opting for a less expensive plan, choosing à la carte options or only paying for the features you need. You can also save money by signing up for an annual subscription.

Compare Costs for Popular Accounting Software:

• Zoho Books: $16.50 AUD per month
• FreshBooks: $11.50 AUD per month for up to five clients
• Xero: $32 AUD per month
• Intuit QuickBooks: $6.25 AUD per month (for the first three months, then $25 AUD per month)
• Sage Business Cloud Accounting: Contact sales
• Neat: $US200 ($315 AUD) per year
• Kashoo: $US216 ($340 AUD) per year

To determine the best accounting software for small businesses, we considered providers in the space and narrowed it down to the top 13 options. We analysed these across five primary categories for a total of 20 different metrics. These were then weighted to favour features that matter most to small businesses.

Here are the metrics we used to evaluate the leading accounting software companies.

Pricing

To determine the best accounting software for small businesses, we reviewed the rates for each and compared the price to its feature set to determine each provider’s value for the price. We also considered the availability of long-term discounts, contract-free plans, money-back guarantees, and whether or not there are any hidden fees or added costs. Overall, pricing accounts for 5% of a product’s total score.

General Features

Not all accounting software is created equal, but not every business needs the same set of accounting features. Our team analysed the key features that every business will demand (e.g., expense tracking, reconciliation, reporting) and unique features such as mileage tracking, quotes and estimates that will better suit certain business needs. Features account for 55% of a product’s total score.

User Reviews

We looked at dozens of third-party user reviews to see if the providers live up to their marketing claims. This helped to gauge the quality of each product further and provide deeper insights into what each does well—and where they fall short. This section accounts for 5% of the final score.

Expert Score

Nothing compares to using the products when considering which is the best. We took our own first-hand expertise in the field of accounting and of using these providers to decipher which ones belong at the top of our roundup.

The best accounting software is not only affordable and feature-rich, but it is also designed to be easy to use. This helps make adopting the new software easier, while also ensuring that your team uses the software to track, manage and report accounting accurately. The expert score amounts to 35% of the final ranking.

About Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.