Fed up with manually tracking my finances as a freelancer, I decided to check out some free accounting software for small businesses. And I was truly amazed at all the exciting options I discovered.
If you’re just starting a business, or maybe you’re a freelancer, small business owner, or sole proprietor who can’t afford to pay for accounting software, consider a free option and plan to upgrade later.
In this post, I’m going to share 11 top free accounting and bookkeeping software for small businesses. But first, let’s start with the basics.
Table of Contents
- What is free accounting software?
- Free Accounting Software Limitations
- Best Free Accounting Software
- How to Choose the Best Free Accounting App for Your Business
- What is the best bookkeeping software for small businesses?
- Get Started with Free Accounting and Bookkeeping Software
What is free accounting software?
A free accounting software is a digital program that automates basic accounting and bookkeeping tasks, at zero cost. In most cases, you can use it to store financial information, track income, expenses and payments, create and send invoices and also generate financial reports.
Using a free accounting software is way smarter than manually tracking your business finances, which can be difficult, mistake-prone, and time-consuming. It’s ideal for freelancers, startups, and small businesses with basic accounting and bookkeeping needs.
However, free accounting software usually has limitations when compared to paid versions.
Free Accounting Software Limitations
Here are four limitations common to most free accounting software.
1. Limited number of users
Many free accounting software solutions only allow you to grant access to a fixed number of users — and that “fixed number” is often one. If you need to have multiple people within your organization regularly leverage the solution, you might want to explore the possibility of leveraging a paid option.
2. Lack of scalability
Several free accounting applications limit the number of transactions you can carry out or the number of records you‘re allowed to maintain — as your business scales, you’ll likely be dealing with more of both. So in some cases, going with a free accounting solution might not be sustainable.
3. Difficulty migrating your data
If you need to shift from one accounting application to another, your existing data will have to shift too. Some free accounting solutions make that process more convoluted and frustrating than others — bear that in mind when you pick your preferred platform.
4. Lack of access to a fuller suite of features
Free accounting solutions are free for a reason. In many cases, they‘re offered in the context of a «freemium» model — they essentially provide the bare essentials as a preview for a fully fleshed-out application. When leveraging a free accounting program, you’re likely settling for less until you can justify springing for the premium option.
Now, let’s look at eleven top free accounting and bookkeeping software applications on the market.
1. Wave
Its entire suite of accounting features is available for free — including unlimited income and expense tracking, the ability to run multiple businesses from a single account, and unlimited bank and credit card connections.
Most of Wave‘s issues are relatively nit-picky. For one, it doesn’t allow users to track accounts payable. It also doesn’t have a comprehensive mobile application for its accounting features.
Still, the program is one of the sounder, more robust free accounting applications available, and it’s scalable enough to accommodate everyone from independent contractors to sole proprietors to small business owners.
Why I like it: With its accessible setup and interface, Wave is easy to use. You can create unlimited estimates, invoices, bills, and bookkeeping records, connect unlimited bank accounts and credit cards, and it integrates with HubSpot CRM. You can also manage cash flow and customers in one dashboard and export accounting reports.
Best for: Sole proprietors and small businesses
2. ZipBooks
In addition to its robust accounting features, ZipBooks also provides a user-friendly platform for financial software development, allowing businesses to customize and expand their financial capabilities as needed.
It also covers certain invoicing and quote-related bases — plus the ability to accept payment via credit card or PayPal. It’s a powerful, easy-to-use solution, but its free plan is extremely free plan-ish.
The program‘s features you can access with a free plan are restricted to the point that it might be easy to outgrow. You can only link one bank account and view basic reports with its starter option. Should your needs extend beyond that, you’ll need to upgrade to one of its premium plans.
And while those upper-tier plans are reasonably priced, they’re obviously not what someone who wants a free plan is looking for. Again, the solution itself is sound, but if you want a free program that will remain free as you scale, you should look elsewhere.
Why I like it: You can invoice in multiple currencies, send unlimited invoices, accept digital payments through Square and Paypal, track and manage unlimited customers and vendors, and chat with customer support.
Best for: Small businesses looking to upgrade from spreadsheets
3. GnuCash
GnuCash is a free, open-source accounting solution that can be downloaded for Linux, Windows, and Mac OS X. It offers double-entry accounting resources, a checkbook-style register, scheduled transactions, and customizable visual reporting.
GnuCash‘s initial setup and somewhat dated-looking interface might turn a lot of potential users off. But if you’re willing to tough out its tricky installation and don‘t need your accounting solution to be particularly pretty, you’re left with a solid application that covers a lot of bases for free.
That said, it‘s not much of a long-term solution for businesses anticipating a lot of growth. It’s better suited for sole proprietors who need a program to get them through their day-to-day life. If you fit that bill, check GnuCash out.
Why I like it: The double entry feature helps to balance the books and the budget management tool for financial strategy. GnuCash is compatible with more than one operating system and can handle international currencies and dates.
Best for: Sole proprietors
4. Brightbook
Brightbook is a web-based accounting solution tailored to suit the needs of independent contractors, freelancers, and small business owners — though it tends to work better for the former two.
The program is essentially designed to democratize accounting software. It has an extensive suite of features available for free — including resources for invoicing, visibility into your cash flow, financial reporting, and drafting financial statements — along with some paid features available for one-time fees.
One area where Brightbook struggles is its lack of mobile support. The program doesn‘t have a mobile application, and it can’t be accessed via mobile browsers. And the application itself isn’t quite as sophisticated as some of the more well-established options.
Still, Brightbook is a solid option for freelancers or independent contractors — specifically creative professionals. It’s a little bare-bones, but it still covers a lot of bases that other options on this list might have stuck behind paywalls.
If you‘re looking for a comprehensive suite of accounting features and don’t mind working with a relatively stripped-back program, consider checking Brightbook out.
Why I like it: You can use Brightbook for multiple companies, track and reconcile inflows and outflows, and give access to multiple users. In addition, you can send branded invoices and quotes in any currency, generate financial reports, and get a complete view of your business once you log in.
Best for: Creative professionals and freelancers
5. Akaunting
Akaunting is a free, open-source accounting solution for small businesses and freelancers with a global reach and a sizable user base. There are two offers namely Akaunting On-Premise and Akaunting Cloud.
Only Akaunting On-Premise has a free plan with an impressive list of features at zero cost — making it one of the few “one-stop-shop” solutions on this list. It features a client portal — allowing you to share transactions and invoices with your clients and accept bulk payments.
Akaunting boasts a base of over 270,000 users and is available in over 50 languages.
However, the free plan limits you to 1000 invoices per year, one company, and allows just one user and an accountant. Because you have to install and access it on your own server, you’re responsible for the setup, installation, and maintenance. Also, the only support available is a community forum
This software is one of the less accessible ones on this list when it comes to ease of use. But if you’re in the market for a free, comprehensive accounting solution that you can host on your own server, look into Akaunting.
Why I like it: You can invoice in multiple currencies, manage unlimited customers and vendors, set up recurring payment reminders and create unlimited reports. Akaunting also supports multiple bank accounts, integrates with HubSpot CRM, allows you to import bank transactions and manage employees.
Best for: One person businesses with their own server
6. Zoho Books
The platform has end-to-end accounting resources to handle the more monotonous, frustrating elements of this side of your business — including invoicing and raising sales orders. The program also has a client portal to help you seamlessly connect with your customers.
With a user-friendly interface and a solid mobile application, Zoho Books is one of the more straightforward, accessible solutions listed here. But it still comes with its share of limitations, including a lack of payroll management resources. The free plan also only gives you access to email support — not chat or voice.
But apart from those issues, Zoho Books is a pretty sound application. If its suite of features covers your needs and your business meets its revenue requirements, consider looking into Zoho Books’ free plan.
Why I like it: In addition to its accessible and user-friendly interface, you can enable the self-service customer portal, do multilingual invoicing, add multiple bank and credit card accounts, automate payment reminders, and generate 50+ reports. Also, Zoho Books has a solid mobile application and integrates with HubSpot CRM.
Best for: Scaling businesses
7. ProfitBooks
ProfitBooks was designed for business owners without accounting knowledge. There’s nothing to download or install. It’s simple and easy to use, available online, and provides several attractive features at no cost.
Trusted by over 100,000 businesses around the world, it has a mobile app for android and iOS and you can create invoices, manage vendors and customers, track inventory and much more.
ProfitBooks also provides in-app chat support, a support center with plenty of how-to guides, a Youtube channel with demos and tutorials, and a business blog filled with relevant articles on growing a business.
On the other hand, it only supports a single user. And you can only create up to 25 invoices per month and manage up to 100 customers.
Why I like it: Accessible interface that’s simple to use. You can create professional invoices in different currencies, track payables and receivables, manage customers, taxes, inventory and suppliers, accept online payments, and get 40+ financial reports.
Best for: Early-stage startups and growing businesses
8. Manager
Manager is a free accounting software with comprehensive features that meets the needs of many small businesses. You can get an overview of your business financial status at any point in time, record transactions, create quotations, issue invoices and track payments, generate reports and much more.
Because there are no time or usage limits, you can enter as much data as you like and use all the features for free, for as long as you like.
You have to download the free version to your laptop or desktop but it works great with Windows, Mac and Linux. As a result, your data is stored on your computer and there’s no integration with bank accounts or other apps.
Also, the only support available is a detailed guide section that provides information on how to set up, configure, and use Manager.
Why I like it: In addition to basic accounting features, you can issue purchase orders, manage bills from suppliers, monitor stock levels, manage inventory, track income and expenses for specific projects, and even generate employee payslips. You can even customize the software for your specific needs by activating features you need and deactivating those you don’t.
Best for: Freelancers and small businesses on a tight budget
9. NCH Express
NCH Express Account is another free accounting software that can be downloaded quickly to your Windows or Mac desktop at no cost. You can use it to document and report on incoming and outgoing cash flow, track payments and deposits, view balances and reports, and stay on top of your sales, receipts, payments, and purchases.
NCH is free for one user and for businesses with up to 5 employees only. Bank transactions can only be added manually because you cannot connect it to a bank account. And there is no mobile app. The learning curve can also be steep for anyone without any form of bookkeeping knowledge or experience using accounting software.
Why I like it: NCH can generate 20+ financial reports at any time and integrates easily with other NCH products like timesheets, project management, inventory management, employee productivity, and more.
Best for: Accountants and small business owners with bookkeeping knowledge and experience
10. Odoo
Odoo is a free accounting software you can enjoy at no cost, with unlimited users forever. It’s a modern cloud accounting software that provides most of the accounting and bookkeeping features businesses are looking for.
From double-entry accounting, automated invoice management, and payment processing to standardized invoice formats, a customer portal, and much more. There’s also a fully functional mobile app with all the desktop features, access to an eLearning platform, and 24/5 support.
By the way, Odoo is a collection of open-source business apps for accounting, CRM, inventory, project management, and more. With around 12 million users, they provide a one-app free plan. And if you choose Odoo accounting under this plan, you can enjoy it free for as long as you like. But if you want more apps, you’ll have to pay
Why I like it: The platform is simple, user-friendly, and attractive, while the interface is also very fast. Due to automation and smart AI matching, data entry and other tedious tasks are eliminated, thereby saving you plenty of time. Odoo also provides real-time financial reports, automated late payment follow-ups, multi-currency support and integrates with 28,000 banks around the world.
Best for: SMEs looking for a robust free bookkeeping app with worldwide capabilities
11. Baselane
Baselane is a free cloud based platform created for independent landlords to manage their rental property finances. Trusted by over 30,000 landlords, key features include banking, rent collection, bookkeeping, powerful reporting and analytics, as well as some insurance and lending products.
You can automate rent collection, income and expense tracking, create unlimited monthly reports, seamlessly integrate existing bank accounts, auto-generate financial and tax reports, gain real-time cash flow and performance insights and enjoy a free checking account loaded with attractive benefits. Customer support is available through live chat, email and phone.
However, Baselane only allows one user, does not offer accountant access and is not suitable for property management companies. It also has no mobile app, no tenant screening features, and no paid plans.
Why I like it: The platform is intuitive, user-friendly, and provides everything a landlord needs to manage their rental property finances in one place. There’s a dedicated tenant portal, automated rent reminders, and a free checking account with no minimum deposit or balance requirements. You can even create unlimited virtual accounts and cards.
Best for: Independent landlords and Airbnb owners
How to Choose the Best Free Accounting App for Your Business
With so many fantastic options available, I understand how overwhelming the process of picking just one can become. But it doesn’t have to be, and here’s the secret. To choose the best free accounting app for your business, consider the following key factors:
1. Accessibility
If you‘re in the market for free accounting software, odds are you’re not an accountant. You‘re trying to grow a business, and if you want to make that happen, you need to focus on your long-term plans and day-to-day operations. You don’t want to exhaust too much time and energy learning a convoluted, overly technical accounting software — at least not yet.
As your business expands, leveraging an accounting platform with an accessible interface and straightforward functionality is in your best interest. So when you’re trying to pin down the right free accounting software for your company, prioritize accessibility.
2. Connectivity with credit cards and bank accounts
Manual receipt entry can be a massive time drain for businesses — particularly ones with a high transaction volume. So finding free accounting software that can connect with your credit cards and bank accounts to help automate that process is always a good call when exploring your options.
3. The ability to export your records
As your business expands, it‘s almost bound to scale out of your free accounting software’s limited capabilities. When you see that kind of growth, you‘ll probably want to upgrade to a paid accounting application. But moving on from your free solution doesn’t mean moving on from the data you accrued in it.
You need to maintain the historical records contained in your free program as you make the shift to a new application. Plan for that process ahead of time by leveraging a program that will let you seamlessly export and migrate those existing records to a paid platform.
4. The specific features you need
At the end of the day, your business is your business — and you have specific needs and priorities that will dictate what you want out of an accounting solution.
For example, do you need free software that provides financial planning templates? Or maybe you prefer having a budget template you can customize for your business?
In essence, make sure you understand what those needs and priorities are, and seek out programs with the features required to accommodate them.
What is the best bookkeeping software for small businesses?
Looking at all the free and paid options available, there are so many accounting and bookkeeping software for small businesses.
The best one for you will depend on your needs and budget, which may not be the best for another. In short, there’s no single best bookkeeping software for small businesses.
But having said that, here are my top recommendations:
- If you’re looking for a free option, my top picks are Wave, ProfitBooks, and Odoo.
- If you’re looking for a low-cost option, my top picks are Akaunting Cloud, Zip Books, and Zoho Books.
- If you’re looking for an all-around option, my top picks are paid options with premium features like Zoho Books, FreshBooks, and QuickBooks Online.
Get Started with Free Accounting and Bookkeeping Software
Even if you can’t afford to pay for accounting software, you don’t have to manually track and organize your finances anymore. Instead, start using any of these free accounting software at zero cost.
Whether you prefer a downloadable or cloud-based option or even an open source software, there’s something for various business needs and preferences.
To be honest, I was pleasantly surprised at the wide variety of options available and my personal favorites include Wave, Zoho Books, ProfitBooks, Odoo and Baselane.
Remember, free accounting solutions are designed to help get you off the ground. So, once you‘re bringing on more clients or processing more transactions than your free program allows for, it’s probably time to upgrade to a paid option.
Editor’s note: This post was originally published in October 2020 and has been updated for comprehensiveness.