Managing finances can feel overwhelming for small business owners, startups, and solo entrepreneurs. Tracking expenses, generating balance sheets, managing cash flow, and preparing for taxes often requires expensive software or a significant amount of manual work.
Free accounting software solves this problem by providing robust tools to manage your finances without the high cost. These platforms simplify bookkeeping, automate workflows, and give you a clear snapshot of your business’s financial health, all for free.
After reviewing G2 data, I’ve compiled a list of the best free accounting software. This guide is for anyone who wants to establish a reliable accounting system, explore multiple options, and find the right tool without incurring a significant expense.
FreshBooks: Best for small business invoicing and time tracking
For expense management, client billing, and simple accounting
Microsoft Dynamics 365 Business Central: Best for enterprise accounting
For integrated finance, operations, and business management
QuickBooks Desktop Enterprise: Best for comprehensive accounting
For advanced reporting, inventory, and multi-user access
QuickBooks Desktop Pro: Best for small business desktop accounting
For invoices, payroll, and standard bookkeeping
QuickBooks Online: Best for cloud-based small business accounting
For accessible bookkeeping, invoicing, and expense tracking
QuickBooks Online Advanced: Best for growing businesses
For enhanced reporting, automation, and multi-user workflows
TallyPrime: Best for Indian businesses
For GST compliance, accounting, and inventory management
Xero: Best for cloud accounting with collaboration
For invoicing, bank reconciliation, and multi-currency support
Zoho Books: Best for integrated small business finance management
For automated workflows, invoicing, and reporting
Still not sure about what’s best for your accounting needs? Check out our detailed comparison of accounting tools below.
|
Best free accounting software
|
G2 Rating | Free plan | Paid plan |
| FreshBooks | 4.5/5 ⭐ | 30-day free trial available |
Starting at
$8.40/month
|
|
Microsoft Dynamics 365 Business Central
|
4/5 ⭐ | 30-day free trial available |
Starting at $80.00/month/user
|
|
QuickBooks Desktop Enterprise
|
4.3/5 ⭐ | 30-day free trial available |
Starting at
$2210/year
|
|
QuickBooks Desktop Pro
|
4.3/5 ⭐ | 30-day free trial available |
Starting at $84/month
|
|
QuickBooks Online
|
4/5 ⭐ | 30-day free trial available |
Starting at $38/month
|
|
QuickBooks Online Advanced
|
4.5/5 ⭐ | 30-day free trial available |
Starting at $4.60/month
|
| TallyPrime | 4.5/5 ⭐ | 7-days free trial available |
Starting at $86
for 3 months
|
| Xero | 4.4/5 ⭐ | 30-day free trial available |
Starting at $5.80/month
|
| Zoho Books | 4.4/5 ⭐ | Yes, feature-limited |
Starting at $15/month
|
The global accounting software market is expanding rapidly as businesses of all sizes adopt digital tools to manage finances, automate bookkeeping, and improve financial accuracy. The market is forecasted to grow to around $31.25 billion by 2030.
While many powerful platforms are paid, free accounting software options are gaining traction, offering core functionalities without upfront costs, which is especially helpful for bootstrapped teams and solo entrepreneurs.
Below are some of the best free accounting software tools I recommend for small businesses and freelancers:
To build this list, I began with G2 data, shortlisting top-rated tools based on their G2 scores and consistent performance in the free accounting software category.
From there, I reviewed product specs and recent, verified user feedback to confirm that these products deliver real value and to understand where each one stands out.
The goal was simple: to see whether these tools are as good as they claim, what each one is best for, and whether there’s a free version or free trial you can try with minimal risk. And because this is a free-focused list, I paid extra attention to what you can actually do without paying — such as whether the free tier includes core features, how long the free trial lasts, and what limitations might prompt you to upgrade.
The screenshots featured in this article may be a mix of those taken from the vendor’s G2 page or from publicly available materials.
The product list below contains real user reviews from the best free accounting software category page. It’s important to note that in the context of this list, vendors offering a free trial are also considered free.
To be included in this category, a solution must:
*This data was pulled from G2 in 2025. Some reviews may have been edited for clarity.
FreshBooks is an online accounting platform that helps businesses save time with task automation. It makes financial record-keeping easy with features such as invoicing, expense tracking, payment processing, and sales tax reporting 14% of G2 reviewers praise the ability to provide pre-built and custom reports and dashboards. You can also send proposals, set up recurring billing, and run business health reports using FreshBooks.
| Pros of FreshBooks |
Cons of FreshBooks
|
| Robust mobile apps for iOS and Android |
Lacks inventory management functionalities
|
| Self-service client portal for invoice payment |
Fewer report and invoice customization options
|
| Easy for users with limited accounting knowledge |
May lack some advanced features for large businesses
|
"FreshBooks has been one of the most creative accounting services ever since. You can pick it up right away and go whenever you want. As a startup and a multidisciplinary artist, much of my business has been part-time, so I have been in and out. However, FreshBooks has always been there and has had my data ready. That supported my small business before and after the pandemic. It's flexible and pleasant to log in to, and it's so useful!
My favorite features are the timer and the expenses in the project menu. I love how all the features work together to save time and make things easy for my clients. The service has provided most of what I need and very little of what I don't. The platform doesn't look stale and exciting. It's an inviting app that feels very comfortable to use. Customer service is extremely responsive as well."
- FreshBooks Review, M. A.
"I wish it were easier to keep things accurate. For example, within expenses, I wish I could sub-categorize expense accounts instead of having to create journal entries. I also wish transactions could be coded to assets and liabilities, as well as expenses and the cost of goods. I feel like I have to do more steps to keep my bookwork accurate, and it gets very confusing."
- FreshBooks Review, Bridget V.
Microsoft Dynamics 365 Business Central is an all-in-one business management platform that helps businesses connect finance, sales, service, and operations in a single tool. Perfect for small and mid-sized organizations, this platform creates and manages general ledger, accounts payable, accounts receivable, and cash flow for financial agility.
| Pros of Microsoft Dynamics 365 Business Central |
Cons of Microsoft Dynamics 365 Business Central
|
| Extensive features for managing finance, sales, service, and operations |
It can be expensive for small businesses
|
| AI-driven predictive analytics and insights |
May require professional assistance for setup
|
| Integrates with other Microsoft products |
Limited offline functionality
|
"I like how it easily connects with other Microsoft tools like Office 365, making it super convenient. It has everything you need to manage finances, operations, sales, and customer service in one place. Plus, it’s user-friendly and can be customized to fit your business perfectly. Being cloud-based, it’s accessible from anywhere and can grow with your business."
- Microsoft Dynamics 365 Business Central Review, Vojtěch M.
"Microsoft Dynamics 365 Business Central may not be the most intuitive software at first, as there is a bit of a learning curve initially, especially for users unfamiliar with similar business management platforms. Moreover, it can be pricey, especially for smaller businesses. Implementation and support fees are also substantial costs. Some integrations with third-party tools can be difficult."
- Microsoft Dynamics 365 Business Central Review, Rohan M.
QuickBooks Desktop Enterprise is designed for businesses with extensive accounting needs. According to G2 Data, 63% users highlighted the ability to manage, track, and report on multiple payment types, with customizable and automated purchase-to-pay workflows.
The platform offers a range of features, including inventory management, custom reporting, and pricing rule management. Users can access data remotely while ensuring data security with automated backups and user access controls. Apart from these wide range of features, the platform also helps you manage sales orders, vendor transactions, and payroll functionalities.
| Pros of QuickBooks Desktop Enterprise |
Cons of QuickBooks Desktop Enterprise
|
| Tailored editions for various industries |
Advanced features can be complex to set up
|
| Highly customizable reporting options |
Requires regular updates and maintenance
|
| Advanced data protection |
Steeper learning curve for new users
|
"It's user-friendly and easy to use. Multiple users can use it, but only the admin has the authority to modify certain important settings. Bank feeds are a cool feature, and we can upload bulk transactions with GL, which can record bulk transactions within a few minutes."
- QuickBooks Desktop Enterprise Review, CA Hiten S.
"One potential disadvantage of QuickBooks Desktop Enterprise is its higher cost than other versions of QuickBooks."
- QuickBooks Desktop Enterprise Review, Jamila G.
QuickBooks Desktop Pro caters to small to medium-sized businesses, handling various accounting tasks such as invoicing, payroll management, expense tracking, and inventory management. It supports accounts payable and receivable to allow you to stay on top of vendor and customer payments. QuickBooks Desktop Pro helps businesses generate cash flow statements, profit and loss reports, and balance sheets. Other features include bank reconciliation, tax preparation, job costing, and time tracking.
| Pros of QuickBooks Desktop Pro |
Cons of QuickBooks Desktop Pro
|
| Robust accounting features |
Requires manual update installation
|
| Custom reports for financial insights |
It can be complex to set up initially
|
| Data security |
Some features are available at additional costs
|
"I like having all of my financial information in one place, the ease of creating and sending invoices, merchant services, and Outlook integrations, and my bookkeeper being able to use it to keep everything up to date."
- QuickBooks Desktop Pro Review, Bernhard H.
"Sometimes the system will glitch or have little quirks like the paycheck preview screen being too small to view all information."
- QuickBooks Desktop Pro Review, Yuneis A.
QuickBooks Online streamlines accounting processes with features such as income and expense tracking, custom invoice creation, estimate generation, and seamless bank account syncing. According to G2 Data, 1468 G2 reviewers praise it's ability to automates chronological tracking of transactions that have affected a specific operation, procedure, event or record. Through this tool, users can generate sales and profit reports, manage and pay bills, and more. QuickBooks Online also allows you to track inventory, prepare 1099 forms, and monitor profitability.
| Pros of QuickBooks Online |
Cons of QuickBooks Online
|
| Intuitive and easy to use |
Can be expensive for small businesses
|
| Access financial data from anywhere |
Fewer customization options
|
| Time-saving automation |
May face occasional downtime
|
"We like that it is easy to start accounting journal entries for any new entities considered to have a separate balance sheet. It has a large variety of ready-to-use and set-up functionality. QuickBooks Online is connected to most baking APIs and factoring accounts in North America. It is priced very well for companies of every size and use case."
- QuickBooks Online Review, Andrii L.
"Although QuickBooks Online has many useful features, the pricing plan has some disadvantages. Furthermore, I occasionally have to utilize other tools to handle the project because it is not very configurable to match practically all tasks."
- QuickBooks Online Review, Sara C.
Looking for paid upgrades? Here’s my breakdown of the best accounting systems in 2025.
QuickBooks Online Advanced provides powerful accounting solutions to mid-sized and growing businesses. The platform features custom business analytics, visual cash flow, revenue dashboards, and cash flow visualization. Businesses can also create custom user roles, access real-time data from multiple locations, and track mileage using this online accounting software.
| Pros of QuickBooks Online Advanced |
Cons of QuickBooks Online Advanced
|
| Easy batch transaction processing |
Limited inventory management features
|
| Automatic data backups and multi-factor authentication |
Advanced features may require training
|
| Dedicated account team and on-demand training |
Higher price point compared to QuickBooks Online plans
|
"This is valuable for businesses that deal with stocks. QuickBooks Online Advanced can grow with businesses, accommodating increased transaction volumes and complexity without requiring a switch to a different platform. The ability to generate customizable reports provides valuable insights into financial performance, helps with decision-making, and gives users peace of mind regarding the safety of their financial data."
- QuickBooks Online Advanced Review, Mohammad A.
"Customer service is not good. If client payments fail, it logs it as "payment disputed" (even if it was just due to insufficient funds), and it is not easy to clear. Additionally, sometimes payments will be processed only to be returned to the customer, and QuickBooks retains all the fees. No issue with Stripe on this. The payment won't even go through, to begin with an accurate reason as to why."
- QuickBooks Online Advanced Review, Ashley D.
TallyPrime is a business management solution that makes it effortless to manage receivables, payables, and payment timelines. The platform enables businesses to track stock movement, optimize cash flow, and create insightful reports. According to G2 Data, it takes approximately 12 months to see ROI from the tool. Companies use it to comply with tax regulations, along with other features such as e-invoicing, payroll management, credit management, and enhanced security.
| Pros of TallyPrime |
Cons of TallyPrime
|
| Simplifies complex accounting tasks |
Fewer customization options
|
| Real-time insights into business financials |
Limited payroll functionality
|
| Can be used offline |
Lacks integrations with other applications
|
"TallyPrime has a straightforward user interface, GST compliance, support for many currencies, powerful inventory management, banking features, and data security."
- TallyPrime Review, Deep D.
"This software does not seamlessly integrate with other third-party applications, which is challenging for the business. TallyPrime is not mobile friendly, so you cannot expect accessibility on the go."
- TallyPrime Review, Swetank D.
Xero revolutionizes accounting for small and medium-sized companies with its cloud-based capabilities. It enables you to effortlessly create invoices and quotes, reconcile bank transactions, and gain an overview of your financial performance. The platform also enables you to manage and forecast your cash flow. Advanced plans unlock features for managing expense claims, multiple currency transactions, and job costing.
| Pros of Xero |
Cons of Xero
|
| Access financial data from anywhere |
Limited customer support
|
| Intuitive and easy to learn |
Advanced features require time to master
|
| Integrates with over 800 third-party apps |
May be expensive for smaller businesses
|
"Apart from seamless accounting services, Xero offers direct integration with many popular inventory management software like CIN7 Core, making it easy for businesses to have perfect synchronization of data across an organization. Once connected, Cin7 Core becomes the central hub for inventory-related activities. Purchases, sales, and manufacturing processes sync seamlessly with Xero. It integrates well with job cards and links inventory to specific jobs. I have experienced prompt support from the customer service team for troubleshooting and resolving in case of occasional sync issues."
- Xero Review, Sharath P.
"The lack of interest in engaging and actually listening to your customers. These current changes you are promoting don't have the basic functionality of the current version. e.g., tracked inventory needs to show the available inventory in quotes and invoicing. Please stop making unnecessary changes. If it isn't broken, don't fix it! All you are doing is annoying your users and giving us a reason to start looking around for alternative software."
- Xero Review, Rachel O.
Zoho Books is the go-to solution for accountants, small-scale businesses, and mid-market organizations. Its core features include invoicing, sales order management, banking, inventory management, expense tracking, and reporting. According to G2 Data, 43% users praised real-time inventory tracking that maintains accurate 'on hand' information by matching reserved inventory from purchase and sales orders. Users can also manage audit trails, documents, e-invoicing, and GST filing with Zoho Books.
| Pros of Zoho Books |
Cons of Zoho Books
|
| Competitive pricing plans |
Lacks integrated payroll functionalities
|
| Integrates with Zoho apps and third-party tools |
Limited custom workflows and reports
|
| Advanced automation for recurring tasks |
Limited number of transactions or users on low-tier plans
|
"All accounting tasks have been easier to carry out through Zoho Books. The ease of entering data and doing automatic calculations is the best thing that can happen to me. I don't like accounting because of all the number management involved. However, with Zoho Books, it is much easier to carry out operations. It has been my salvation to generate accounts receivable because they are also very secure, and you have confidence that the data entered will not be exposed."
- Zoho Books Review, Caroline B.
"Zoho Books has limitations in customization for reports and invoices. It is easy to integrate with other Zoho applications, but challenging to integrate with third-party applications. Migrating data for a business with a large amount of data is very complicated."
- Zoho Books Review, Guru B.
Have more questions? Find the answers below.
For small businesses, FreshBooks and QuickBooks Online are highly recommended. FreshBooks excels in invoicing and time tracking, while QuickBooks Online offers robust, cloud-based accounting features that enable efficient finance management.
Medium-sized companies often benefit from QuickBooks Online Advanced for its scalability and Microsoft Dynamics 365 Business Central for enterprise-level functionality and integration capabilities.
Startups can leverage Zoho Books for integrated finance management and FreshBooks for easy invoicing and expense tracking, making initial accounting straightforward and user-friendly.
QuickBooks Desktop Pro and QuickBooks Online both provide intuitive interfaces and payroll management, ideal for businesses looking to simplify employee payments alongside accounting.
Xero and Zoho Books stand out for their integration capabilities, allowing smooth connectivity with CRMs, payment gateways, and other business applications.
Freelancers often prefer FreshBooks for its simplicity and time-tracking features, making it easy to invoice clients and manage projects without complex accounting setups.
Growing businesses can benefit from QuickBooks Online Advanced for scalability and Microsoft Dynamics 365 Business Central for comprehensive enterprise accounting needs.
Enterprises seeking cloud solutions often choose Microsoft Dynamics 365 Business Central or Xero due to their robust cloud infrastructure and collaboration features.
Depending on business size, QuickBooks Online (for small to medium-sized businesses) and Microsoft Dynamics 365 Business Central (for larger enterprises) are top-rated service providers that strike a balance between features and support.
QuickBooks Online and Zoho Books provide seamless bank account integration, allowing automatic transaction imports and reconciliations to simplify financial management.
Whether you’re a small business owner, freelancer, or solo entrepreneur, focus on what you love doing.
I recommend using free or affordable accounting software to handle invoices, track expenses, and simplify accounting tasks without adding extra costs.
Try out the solutions listed above, I’m confident you’ll find a tool that fits your needs and helps you save valuable time.
Looking to calculate assets, liabilities, and equity without relying on a tool? Check out this free balance sheet template to get started!
This article was originally published in 2024. It has been updated with new information.
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