We might earn a small income when you click on some of our links.

Every organization requires finance for the smooth functioning of business operations. Therefore, having a record of all financial transactions is imperative to sustain the growth for the long-term.  

Accounting is paramount for keeping a precise record of financial inflows and outflows within an organization. Regardless of the size of an enterprise, managing the financial side is a challenging task.  

The time, when people used to interpret financial reports manually, is long gone. Dealing with the financial system of a business hassle-free is no longer in the realms of fantasy, but a reality.

What is Accounting Software?

Maintaining accounts can be a nerve-wracking task for small business owners. Accounting software is computer programs that let businesses to process and record financial transactions within modules, which include payroll, journal, ledger, account payable, account receivable, and a lot more.  

Thanks to accounting software, it has become easier than ever to manage bookkeeping, manage stock orders, and handle other task management requirements without the need of an accountant.  

Lately, I’ve been asked to shed light on the best inexpensive accounting software for small businesses. So, are you interested in knowing about the software? Well, I’ve done the groundwork and come up with a list of reputed accounting software.

Best and Low-Cost Accounting Softwares for Small Business 

Outlined below is a list of top inexpensive accounting software for small businesses.  

Buckle up!

1. FreshBooks

First, on our list of best accounting software is FreshBooks that has gained massive goodwill for making financial management an easy undertaking. It is an ideal option for those who need to run a subscription model business and need time tracking capability.  

FreshBooks Accounting Software-Low-Cost Accounting Softwares

It provides the precise location of the customers opening the invoice. Regular secure backup is an added advantage. Besides, businesses have full control over the financial operations from a single dashboard. A mobile application lets companies monitor the business all the time.  

When it comes to prices, plans start from $15/month to $50/month, depending upon the number of clients. The application works well for both Android and iOS devices.  

2. Wave

Businesses ought to consider this free accounting software called Wave. Great for small businesses, this accounting software meets seven out of eight criteria. It stands out from the hordes of competitors because of no limitation to connect bank and credit card accounts to your books.  

Wave Accounting Software-Low-Cost Accounting Softwares

Without any cost, a business can add guest collaborators, expense tracking, income tracking, invoice, and scan receipts.  

Make sure to note, online payment through the invoice requires 2.9% charges + $0.30 for every credit card payment. In the case of payroll, Wave charges $35 per month. In terms of pricing, it gives good bang for the bucks.  

3. QuickBooks

The widely used automated accounting software simplifies the complex accounting processes. QuickBooks is best for all shapes of organizations because it lets businesses handle everything, including accounting, bookkeeping, invoicing, and sales tax.  

QuickBooks Accounting Software-Low-Cost Accounting Softwares

As a business grows, the software application serves the needs accordingly. You can access your account from anywhere at any time. With QuickBooks, you get Customizable reports and dashboards.

The features include access to financial statements, unlimited tech support, connectivity with bank and credit card accounts, and acceptance of online payments. Its plans go from $7/month to $30/month. Though it is a bit costly, it saves a significant amount of time and resources for businesses.  

4. Xero

Another best software for small businesses to consider is Xero. If you are looking for software popular for its ease of use, Xero is something you should look at. It allows businesses to create purchase orders, track inventory, and send custom invoices right from the mobile or tablet.  

Xero Accounting Software-Low-Cost Accounting Softwares

The software has brought a revolution in the accounting world. It makes the process of double bookkeeping easier, even for the first-timers. It has gained an edge over others because the software provides the best user experience. In countries such as the US, Australia, Europe, and the UK, this software has gained massive traction over the years. With the support of the help centre, businesses can maximize the potential of the product.  

Affordable accounting software works well for small business enterprises. The basic plan starts from $9/month, and a professional plan starts with $29/month. The application supports both Android and iOS devices.  

5. GoDaddy Bookkeeping

GoDaddy Bookkeeping is worth considering when looking for a low-cost option. For retailers and eCommerce sellers, it is the best platform, which allows enterprises to consolidate online sales in one place for a better overview of the financial health of the business.  

GoDaddy Bookkeeping-Low-Cost Accounting Softwares

It imports data from Etsy, eBay, Amazon, and Paypal. After that, it puts the information to create invoices and calculate tax estimates. It isn’t a good option if you are searching for a solution offering extensive reporting, project management, and international billing capabilities. The Get Paid plan starts at $4.99/month, and the Premium plan starts at $14.99/month.

6. Sage Business Cloud Accounting

If you are looking for software to help you save time on administrative tasks, then Sage will be a top option. The software program works by tracking payments & expenses, sending invoices, and calculating the taxes. Therefore, the process of managing payments and expenses becomes hassle-free.  

With the help of Microsoft Outlook, businesses can access account balances, transaction history, and even customer details. From scheduling backup to integration, Sage helps with all the tasks.  


Managing accounts and performing accounting operations becomes hassle-free with this amazing accounting software. If you are someone looking for collaboration and tracking tools, this software isn’t worth giving a try. The accounting plan starts from $46/month for a single user and goes up to $182.91/month for three users.  

7. Zoho Books

Manual work of keeping a track of transaction history, auditing, and interpreting financial reports is a matter of past. Zoho Books accounting software lets businesses manage and handle business cash flows and finances.  

It simplifies data entry, organizes the crucial data, and provides reports of financial transactions of businesses. The accounting solution is designed to help users to make sound business decisions. Due to the ease-of-use factor, it is a preferred choice for many small businesses.  


The accounting software provides a plethora of benefits, including uptime, best support, hassle-free accounting, and security. Whether accepting payments online or sending customers professional invoices, the software serves many purposes.

With Zoho Books, users get full control over financial management. Features, such as balance sheet creation, Profit and loss, cash flow statement, and a few more contribute greatly. So far, the pricing is concerned, basic plan stats $9/month, and professional plan starts at $29/month.  

8. Tipalti

Cloud-based payment automation software, Tipalti, is widely popular for helping businesses meet strict deadlines. From late payments, complications due to human error, administrative overload, and non-compliance, the software helps solve all these issues. As a result, it becomes possible to decrease the time spent on financial management.

Tipalti Accounting Software

Apart from this, the software automates payment operations that include onboarding and tax compliance. The best part is that around 50 percent of payment processes in 190 countries. For financial reporting and payment reconciliation, software gains an edge over others. Besides, it makes the payment process more comfortable because of the many payment method options. It is a leading payment reporting system and helps with generating payment reconciliation reports. All these things are done with minimum interruption from managers.

9. Bench Accounting (Service)

The best inexpensive accounting service is worth considering for your small business.  An intuitive web app offers accounting and bookkeeping services. For handling number-crunching needs, it assigns professional teams. This way, companies can focus on core competencies to bring in more profit and revenue.


Since bench accounting is both a platform and a service, it removes the stress of dealing with accounting and bookkeeping. Companies of various sizes benefit from bench accounting because the web-based client app lets businesses enjoy many features. Businesses only require gathering receipts, invoices, and other transaction information. Right after submitting the data through a web app, a professional team categorizes the transactions and reconciles the statements of accounts.  

Which Accounting and Bookkeeping Software is Best For My Business?

In today’s highly competitive world, entrepreneurs are striving hard to keep pace with the business world. Those who quoted that time is money was perhaps aware of the fact that evaluating expenditure and profit is the foolproof way to monitor the progress. However, financial bookkeeping is a tedious and time-consuming activity. Accounting software helps reduce the workload by automatic calculations.  

Having a list of software is excellent, but many businesses find it challenging to identify the right one for business needs. Here is a list of things to consider when searching for bookkeeping or accounting software for your business.

1. Identify the Business Requirements

For keeping track of inventory, receipts, and sales tax is necessary for small businesses, So, are you too looking for a platform to help you with this process? Consider making a list of accounting requirements and prioritize them accordingly.  

Many times, the bells and whistles of software that provide a plethora of features distract business owners. Avoid this by choosing software that meets your business needs.  

2. Define Your Budget

Before you begin researching accounting software, determine the amount you would want to spend on bookkeeping or accounting software. It will help you save your time looking for accounting software that is outside the realms of possibility.  

Once you define your budget, it becomes easy to search for a software solution within that budget. Indeed, there is some wiggle room, but try not to go more than 20% of the set budget.  

3. Accounting Software Features

Looking for account software features may seem evident at first, but the process needs careful attention on its way. Accounting features of the software can allure business owners. For instance, if you run your business in the United States, then you need to make sure not to get starry-eyed about software that provides accounting service for worldwide teams. The reason behind this is that later on, you will find yourself paying more than what is needed for your business.

The best way to avoid the distraction is by returning to the prioritized accounting requirements of your business. After that, evaluate accounting software that fits within the budget and serve the majority of needs.

4. Ask the Right Questions

Finance is the backbone of every company because it helps with the smooth functioning of business transactions. In case you are looking for software that needs a sales process, it is whimsically essential to ask the right question at the correct time. Questions may include:

  • Tell me about the security of API
  • What is the Process to Back up System Data?  
  • What are the additional costs or charges?
  • Does the Customer Support Provide Round the Clock Service?
  • Tell me about clients that you have worked with

5.  Make Your Personalized Decision

Accounting software helps with recording the financial transaction of business.  No business owner ever said that we couldn’t wait to buy more software applications. Certainly, business owner searches for other software when the current solution fails to meet the growing needs of the business.

There is no need to switch software in a few months just because you have outgrown that already. Being realistic about your business growth helps to identify how the product grows as the business scales.  

Useful Reading Small Business Finance:


For a business owner, building a business is full of a roller coaster ride where highs are astonishing, while the lows are daunting.

Since time is a precious asset for any business, it is necessary to make the right decisions at the right time. With this in mind, a business owner has a wide array of tasks to accomplish throughout the entrepreneurship journey.

There are many accounting software providing an end-to-end business solution for small businesses. It is imperative to choose one that meets the needs of your organization.

Written By
Adam Miller is an expert in the accounting software field and works for XDesk. He has dedicated a decade to understanding how accounting programs can help an organization in managing their finance. Apart from an interest in accounting, he is also an avid gamer and loves to take long walks with his 8-year old son Michael on the weekends.

Related Post