Too many small business owners pick accounting software based on price without realizing how much time, insight, and efficiency they’re leaving on the table. Whether you’re tracking expenses or preparing reports for investors, the right business bookkeeping software should support your growth, not hold you back. Check out the top five accounting tools for 2025, comparing features, pricing, integrations, and scalability.
Choosing the Right Accounting Tools in 2025
For many small business owners, the right accounting tools can save hours every month, reduce costly errors, and provide insights that fuel better decisions. But too often, founders choose their accounting tools based solely on price or name recognition—only to find out later that the software doesn’t scale, lacks features, or can’t integrate with their other systems.
So, what should you be looking for in a modern business bookkeeping software?
You’ll want tools that:
- Are easy to use but still powerful enough to support growing complexity
- Integrate seamlessly with your bank, payroll system, CRM, or marketing platform
- Provide customizable reports so you can track profitability, cash flow, and marketing spend with ease
- Scale with your business as you add team members, clients, or revenue streams
- Match your business model, whether you’re an SaaS startup or a service-based company
Today’s accounting tools can do far more than just keep your books clean. They help you understand what’s working, where you’re leaking money, and how to plan for the future.
Business Accounting Tools You Need to Know
With dozens of options on the market, finding the right accounting tools for your business can feel overwhelming. The best choice depends on your goals, your industry, and how hands-on you want to be with your numbers. Let’s take a look at some of the top tools available:
#1: QuickBooks Online
QuickBooks Online remains the most widely used business bookkeeping software for small and mid-sized companies—and for good reason. It balances power with usability and has a robust ecosystem of add-ons.
- Best for: Small businesses expecting to scale, especially with inventory or payroll
- Key features: Invoicing, expense tracking, payroll, custom reports, budgeting, inventory, and time tracking
- Integrations: Shopify, Square, Gusto, HubSpot, Stripe, and hundreds more
- Pricing: Starts at $30/month; higher tiers support more users and advanced features
Why it works: QuickBooks offers the flexibility to grow with your business. It supports accrual and cash accounting, allows for custom financial reports, and has strong support for tax prep and multi-user access.
Watch out for: It can feel overwhelming for solopreneurs or service providers with simple needs. Many key features are gated behind higher-tier plans.
#2: Xero
Xero is a strong contender for businesses that want something sleek, user-friendly, and internationally friendly. It’s especially popular among startups operating across currencies or needing strong financial dashboards.
- Best for: Service-based startups, consultants, and international businesses
- Key features: Real-time bank feeds, invoicing, bills, inventory, and strong mobile access
- Integrations: 1,000+ apps including Gusto, HubSpot, Salesforce, and Shopify
- Pricing: Starts at $15/month for basic plans; $42/month for growing businesses
Why it works: The interface is clean and intuitive, and its multi-currency support is a standout feature. Xero also shines with customizable dashboards that help visualize cash flow and profitability at a glance.
Watch out for: Limited phone support and some features (like expense claims or advanced analytics) require add-ons or upgrades.
#3: Wave
Wave is one of the few truly free accounting tools on the market, and it’s surprisingly capable for freelancers, consultants, and pre-revenue startups who just need the essentials.
- Best for: Solo founders and small service businesses with simple needs
- Key features: Invoicing, expense tracking, receipt scanning, and basic reporting
- Integrations: Limited—mostly internal or through Zapier
- Pricing: Core accounting is free; payment processing and payroll are paid add-ons
Why it works: It’s hard to beat free. Wave is perfect for founders who need clean books, professional invoices, and tax-ready reports without monthly software fees.
Watch out for: It doesn’t scale well. If you need multiple users, advanced reporting, or deep integrations, you’ll outgrow Wave quickly.
#4: Zoho Books
Zoho Books is part of the larger Zoho suite and offers deep functionality for a fraction of what competitors charge. It’s ideal for founders who want robust features and automation without breaking the bank.
- Best for: Bootstrapped startups and product-based businesses
- Key features: Project tracking, invoicing, inventory, automation workflows, client portal
- Integrations: Best with Zoho apps, but also connects with Stripe, PayPal, G Suite, and more
- Pricing: Starts at $20/month with generous functionality even at lower tiers
Why it works: Zoho Books punches above its weight, offering tools like recurring billing, client portals, and workflow automation at lower price points than most competitors.
Watch out for: If you’re not using the broader Zoho ecosystem, integration and user experience can feel clunky compared to more standalone tools.
#5: FreshBooks
FreshBooks is built with freelancers, consultants, and small teams in mind. It shines in service-based industries where time tracking and client billing are essential.
- Best for: Service providers, solo consultants, and creative professionals
- Key features: Time tracking, project management, estimates, retainer billing, and team collaboration
- Integrations: Asana, Trello, Gusto, Shopify, Slack, Stripe
- Pricing: Starts at $19/month; more features unlock with team or premium plans
Why it works: It’s incredibly intuitive and designed around the needs of time-based service businesses. Invoicing is a breeze, and it includes automatic reminders and payment options.
Watch out for: It’s not ideal for businesses with inventory or complex payroll needs. Some find the reporting less robust compared to Xero or QuickBooks.