1. Xero

Xero is definitely a contender if we're talking about cheap accounting software for small businesses in 2025. It's known for being reliable and having standard accounting features. Plus, its reporting is excellent, and the mobile app is super user-friendly. Let's take a closer look at why we think it's a great option.

Xero is a scalable, cloud-based accounting solution that's perfect if you need multi-user access. It handles bills, payroll expenses, sales, and even inventory management, making it a solid pick for businesses that are growing.

One of the things we like most is how well Xero plays with others. It integrates with over 1,000 third-party apps, including payroll, CRM, and e-commerce tools. This creates a seamless financial ecosystem, which can save us a ton of time and hassle.

Xero's standout features include strong collaboration tools. You can give employees, accountants, or financial advisors different access levels, ensuring everyone has the right permissions.

Here's a quick rundown of what makes Xero stand out:

• Supports unlimited users, which is great for teams.
• Automates bills, expense tracking, and invoice management.
• Includes inventory tracking and integrates with payroll via Gusto.
• Provides cash flow forecasting tools to predict future finances.

2. FreshBooks

Okay, let's talk about FreshBooks. We've been playing around with it, and honestly, it's pretty solid, especially if you're all about invoicing and keeping track of time. It's not trying to be everything to everyone, and that's actually a good thing. It knows what it's good at and sticks to it.

One of the things we appreciate is how intuitive it is. You don't need to be an accountant to figure it out, which is a huge plus for those of us who'd rather focus on, you know, actually running our businesses. The interface is clean, and things are generally where you expect them to be.

Here's a quick rundown of what we've found:

• Invoicing is a breeze. You can customize templates, set up automated payment reminders, and generally make the whole process less painful.
• Expense tracking is pretty straightforward. You can connect your bank accounts and credit cards, or just manually enter stuff as you go.
• Time tracking is built right in, which is great if you bill clients by the hour. You can easily log your time and then turn it into an invoice.

FreshBooks really shines if you're a freelancer or a small service-based business. If you're selling physical products, it might not be the best fit, but for invoicing and time management, it's definitely worth checking out.

Of course, it's not perfect. It can get a little pricey if you need to add a bunch of team members, and the inventory tracking is pretty basic. But overall, we think it's a great option for a lot of small businesses.

3. QuickBooks Online

We think QuickBooks Online is a solid choice for many small businesses. It's one of the most well-known accounting software options out there. Let's explore why it might be the right fit for you.

QuickBooks Online is an industry leader, offering a strong feature set and scalability. Transaction tracking is a breeze, and it has robust reporting tools. It also has invoicing and mobile app functionality.

• It's user-friendly, even if you're new to accounting software.
• It offers advanced tools for in-depth financial tracking.
• It integrates with many other business applications.

QuickBooks Online is a powerful tool, but manual expense tracking can still take time. Consider how it integrates with other tools you use to streamline your processes.

4. Wave

Wave is often mentioned as a solid, free option, and honestly, it's hard to argue with free! It's particularly good if you're just starting out and need something to manage your finances without immediately hitting your wallet. We've found it's best suited for very small businesses, especially those that are service-based and don't have a ton of inventory to track.

The main draw is definitely the free accounting software. You can track income and expenses, send invoices, and even generate basic reports without paying a dime. Of course, there are paid add-ons if you need more advanced features, but the core accounting functionality is free. It's a pretty sweet deal.

Here's a quick rundown of what we like and some things to consider:

• User-friendly interface: It's relatively easy to get the hang of, even if you're not an accounting whiz.
• Free core features: As mentioned, the free plan is surprisingly robust.
• Good for small businesses: If you're a freelancer or have a very small team, it can be a great fit.

However, keep in mind that Wave might not scale as your business grows. The features are somewhat limited compared to paid options, and the customer support can be a bit slow at times. Also, while the accounting software is free, they do charge for payment processing and payroll, so factor that in.

If you're looking for a no-cost entry point into accounting software, Wave Accounting is definitely worth checking out. Just be aware of its limitations and whether it will meet your needs in the long run.

5. Zoho Books

Zoho Books is another strong contender in the affordable accounting software arena. We've found it to be particularly appealing for businesses already invested in the Zoho ecosystem. It plays well with their CRM and other business tools, which can really streamline operations. It's a solid choice if you're looking for something that can scale with you as your business grows.

Zoho Books offers a free plan, which is pretty generous in terms of features. You can do things like multi-lingual invoicing and manage multiple bank accounts. There are also paid plans that unlock even more functionality. It's worth checking out their pricing plans to see what fits your needs.

Zoho Books is ideal for growing small businesses and established companies that need customization, automation, and scalability. It's especially useful for businesses that operate internationally or already use Zoho's suite of business tools.

Here's a quick rundown of what we like and some potential drawbacks:

• Comprehensive accounting features
• Customizable invoices and reports
• Multi-currency support

On the downside, it can get a little complex if you only need basic accounting. Also, some features require paid add-ons, which can increase the overall cost. But overall, it's a feature-rich option that's worth considering, especially if you need accounting software for a small business.

Zoho Books is a great tool for managing your finances. It helps you keep track of your money, send invoices, and even manage your expenses easily. If you want to learn more about how Zoho Books can help you, visit our website for more information!

Frequently Asked Questions

What is Xero and what does it offer?

Xero is an online accounting tool that started in 2006. It connects with over 1,000 apps like Stripe and PayPal to help businesses manage their finances easily.

How much does FreshBooks cost?

FreshBooks has three pricing plans: Lite, Plus, and Premium, making it flexible for different business needs.

Is Wave accounting software really free?

Yes, Wave offers a free version that includes essential features for small businesses, making it a great choice for those on a budget.