QuickBooks has more than 7 million online customers, according to the most recent data from its parent company, Intuit. But it isn't the best accounting software choice for every small business. Self-employed entrepreneurs and micro-business owners, especially, might find that QuickBooks alternatives offer simpler solutions at a lower price point. Other competitors can accommodate an unlimited number of users, unlike QuickBooks, and provide a similarly robust feature set.
Here are the best QuickBooks alternatives for small businesses, including what sets them apart.
Our Nerdy picks for
Our pick for
Overall alternative
While QuickBooks has long dominated the accounting software market, Xero is increasingly rising as a top alternative. It’s robust accounting software that is packed with features and is available in three pricing tiers. With a base plan that’s half the cost of QuickBooks Online’s entry-level accounting plan and that has nearly all the same capabilities, Xero stands out as an excellent QuickBooks alternative.
Xero
5.0
NerdWallet rating
on Xero's secure website
Starting at
$15/month
Additional pricing tiers (per month): $42, $78.
Promotion
30-day free trial
or monthly discount (terms vary).
Xero allows unlimited users at every subscription tier, a valuable feature for businesses where several users may need at least limited access to the system to run reports or analyze performance. In terms of functionality and features, Xero is one of QuickBooks Online’s biggest competitors and has a more customizable dashboard that lets each user rearrange or hide panels.
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Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No phone number for customer support listed.
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Read full review
Our pick for
Freelancer-friendly features
The low cost of FreshBooks’ monthly plans along with its invoicing and time and expense tracking features make this accounting software especially appealing for freelancers. FreshBooks also offers a full-featured mobile app, which makes it easy to track mileage from your phone, send invoices and communicate with clients.
FreshBooks
4.5
NerdWallet rating
on FreshBooks' secure website
Starting at
$17/month
Additional pricing tiers (per month): $30, $55, custom.
Promotion
30-day free trial
or monthly discount (terms vary).
FreshBooks is a simple and affordable option for freelancers and very small businesses that don’t require many users and prioritize being able to operate on the go via mobile app. It’s an especially inexpensive choice for those who can work within lower-tier plans’ billable client limits, and all plans include time tracking.
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Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Lacks features that quickly growing companies need, like audit trails for accountants to review.
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Read full review
Our pick for
Zoho suite integrations
If you’re already using one of Zoho’s other business apps, or you’re interested in an ecosystem of business software that integrates seamlessly, then Zoho Books may suit your accounting needs well. It has multiple plan options, including a free accounting plan, so it can scale up as your business evolves. Zoho Books is light on third-party software integrations, but it integrates with a number of other Zoho apps, including CRM, Expense and Inventory.
Zoho Books
4.5
NerdWallet rating
on Zoho Books' secure website
Starting at
$0
Additional pricing tiers (per month): $20, $50, $70, $150, $275.
Promotion
14-day free trial
of the Premium plan.
Zoho Books packs an impressive collection of features and capabilities for an affordable price, and higher-tier plans let users automate workflows and track project profitability. It’s an especially good choice for users that already use the company’s other in-house apps.
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Pros
- Less expensive than some competitors; free plan available for businesses with less than $50k in annual revenue.
- Email support in free plan; phone and chat support in paid plans.
- Rich feature set includes excellent invoicing, inventory management, workflow rules and a capable mobile app.
- Add accounting widgets to your phone’s home screen; track time using your Apple Watch.
Cons
- Fewer third-party integrations and reports than some competitors.
- No plan includes more than 15 users (can add additional users for a fee).
Read full review
Our pick for
Desktop solution
With cloud accounting software dominating the market, it can be challenging to find well-built, reasonably priced and reliable desktop-based accounting software. That’s where Sage 50 Accounting delivers. Its monthly plans are priced considerably lower than QuickBooks Enterprise, which is now the only remaining QuickBooks desktop accounting solution. Sage 50 also includes industry-specific reports, which not many of its competitors do.
Sage 50 Accounting
3.5
NerdWallet rating
on Sage 50 Accounting's secure website
Starting at
$59/month
Additional pricing tiers (per month): $96.58, $160.
Promotion
Discount for the first year
(terms vary).
Sage 50 Accounting is a desktop product that has to be locally installed, but it includes features you’d find in cloud-based software, like automated bank reconciliation. This makes it a good solution for small-business owners who are hesitant to adopt an entirely cloud-based system or don’t have reliable internet access. Entrepreneurs who are newer to accounting will also appreciate having a dedicated account representative and free training modules to help them get used to the software.
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Pros
- Advanced inventory tracking and job costing features.
- Industry-specific features for construction, retail and professional services businesses.
- Phone and chat support, plus a dedicated account representative in all plans.
Cons
- Lowest-tier plan doesn’t include audit trails.
Read full review
Our pick for
Free software
Wave’s accounting (and invoicing) software may be free, but it doesn’t skimp on all your necessary accounting functions and features. It uses the industry-standard double-entry accounting method, lets you customize your chart of accounts and gives you the freedom to switch between cash basis and accrual basis accounting for your reports. It also includes features for automatic reconciliation. For small businesses with basic bookkeeping and invoicing needs, Wave’s free software is likely to deliver.
Wave Accounting
3.5
NerdWallet rating
Starting at
$0
Free (Wave makes money via paid money management products).
Promotion
N/A
Unlike some “freemium” software products, Wave doesn’t put out a bare-bones free product as bait, then load it down with costly upgrades. The free accounting software lets you add unlimited collaborators, along with unlimited bank and credit card connections. It can be a simple solution for small, service-based businesses.
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Pros
- Free.
- Unlimited partners, collaborators and accountants.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails. There are no additional plans to increase functionality.
- Must subscribe to Wave’s paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No third-party integrations, mileage tracking feature or ability to accept in-person card payments.
Read full review
Our pick for
Enterprise solution
Unlike QuickBooks Enterprise, NetSuite is cloud-based enterprise-level accounting software. In fact, NetSuite’s integrated accounting solution offers accounts receivable and accounts payable as well as tax management alongside day-to-day accounting functions like managing cash and a general ledger. For midsize and larger businesses, NetSuite’s powerful accounting software and additional business and financial management products are worth consideration.
NetSuite
Starting at
N/A
Quote-based.
Promotion
N/A
Business owners that foresee extreme growth, like global expansion, may consider a cloud-based enterprise resource planning product like NetSuite, as opposed to accounting software intended only for small businesses. Clients can customize their plans with add-on modules and additional users.
Pros
- Can scale to accommodate larger, enterprise businesses.
- Offers an array of other software products, like CRM, HR, supply chain management, global business management and commerce software for larger companies.
- Industry-specific software solutions for a wide range of businesses, including nonprofits, advertising and digital marketing, consulting, retail and food and beverage.
Cons
- Pricing is not transparent.
- Setup fee.
» MORE: Best invoicing software for small businesses
Our picks for the best QuickBooks alternatives
Xero
Best overall QuickBooks alternative
Price:
$15 for the Early plan.
$42 for the Growing plan.
$78 for the Established plan.
Why we like it: Business owners who prefer ease of use and simplicity will appreciate Xero’s minimalist design and jargon-free language. Like QuickBooks, it's widely used, which makes it easy to find accountants who support it. Unlike QuickBooks, however, Xero allows unlimited users at all plan levels — and at a lower price point. As a QuickBooks alternative, Xero offers less expensive software that competes with QuickBooks’ rich feature set. Read our full Xero Accounting review.
» MORE: Xero vs. QuickBooks Online
FreshBooks
Best for freelancer-friendly features
Price:
$17 for the Lite plan.
$30 for the Plus plan.
$55 for the Premium plan.
Why we like it: With strong invoicing capabilities and an intuitive mobile app, FreshBooks is an affordable alternative for freelancers who might not need all of the features that QuickBooks offers its online customers. The software lets you log time, track mileage, snap photos of expense receipts, set up recurring invoices, send automatic payment reminders and accept payments online through FreshBooks Payments or Stripe. And unlike QuickBooks, which only lets you mark expenses as “billable” in the Online Plus plan and higher, FreshBooks lets you rebill clients for expenses in all plans. One downside: It comes with a stricter user limit. All plans, except the Select plan, include access for only one user; additional users cost $11 each per month. Read our full FreshBooks review.
» MORE: FreshBooks vs. QuickBooks Online
Wave
Best for free software
Price: $0.
Why we like it: Wave delivers on most of the basics for micro businesses and self-employed entrepreneurs without requiring expensive add-ons. It’s a solid QuickBooks alternative if you’re on a tight budget and run a small operation, but it’s not ideal for scaling your business. Still, it can be sufficient for businesses with straightforward financials, especially if your main objectives are keeping tabs on expenses, sending invoices and tracking income. Read our full Wave Accounting review.
» MORE: Wave vs. QuickBooks Online
Zoho Books
Best for Zoho suite integrations
Price:
$0 per month for the Free plan.
$20 per month for the Standard plan.
$50 per month for the Professional plan.
$70 per month for the Premium plan.
$150 per month for the Elite plan.
$275 per month for the Ultimate plan.
Why we like it: Zoho Books offers a lot of the same features as QuickBooks, like inventory management, reporting tags, invoicing and bank rules — but at a lower price. Higher-tier plans also include extra features you don’t find among all accounting software, like customizable workflow rules for email alerts and the ability to let your clients approve or comment on timesheets before adding billable hours to an invoice. If you commit to the Zoho ecosystem, you can smoothly integrate its CRM and other software with Zoho Books. If not, its third-party integrations might be limiting. Read our Zoho Books review.
Sage 50 Accounting
Best for desktop solution
Price:
$58.92 for the Pro Accounting plan.
$96.58 for the Premium Accounting plan.
$160 for the Quantum Accounting plan.
Why we like it: If your business is smaller in size and you have need for only a few users to access your accounting software, then Sage 50’s desktop accounting software is an excellent alternative to QuickBooks Desktop Enterprise, which is designed — and priced — for much larger organizations. You can purchase Sage 50’s mid-level plan, Premium Accounting, for less than QuickBooks Enterprise’s lowest-tier plan. Sage 50 Accounting will give you unlimited phone and chat support and advanced reporting, like you’d get with the least expensive QuickBooks Desktop Enterprise plan, in addition to advanced inventory tracking and management plus invoice tracking and a long list of additional features. Like QuickBooks, Sage 50 Accounting offers payroll as an add-on. Read our full Sage 50 review.
» MORE: Sage 50 vs. QuickBooks Online
NetSuite
Best for enterprise solution
Price: Quote-based.
Why we like it: If you run a large business or anticipate rapid growth of your business, then you may be interested in enterprise-level accounting software. While QuickBooks’ enterprise solution is locally installed on a desktop (unless you pay extra for cloud access), NetSuite’s solution is cloud-based from the start. That means you can get real-time access to your financial data anytime, anywhere. In addition to its core accounting features, NetSuite also offers CRM and HR solutions (including payroll) so you can centralize all of your software under one umbrella.
» MORE: NetSuite vs. QuickBooks Online
When to choose an alternative to QuickBooks
QuickBooks is a great option for growing small businesses that work frequently with an accountant or bookkeeper and that could benefit from detailed transaction tracking and in-depth reporting. With robust reporting, more than 750 integrations, scalable plans and customer support that’s available seven days a week, QuickBooks helps you keep a finger on the pulse of each area of your business. If you’re considering one of QuickBooks’ small-business products, the Plus plan gives you access to a range of useful features like inventory tracking, project profitability tools and billable expenses.
Just because QuickBooks comes with a lot of benefits, though, doesn’t mean it’s the right choice for every business. Here are some reasons you may want to explore QuickBooks alternatives:
The cost of QuickBooks can be high.
Simple Start and Essentials plans don’t let you mark expenses as billable.
Each plan limits how many users you can add.
And if you're a solopreneur who plans to keep your business very small, you can find simpler, more affordable options in our list of the best accounting software for freelancers and the self-employed.
» MORE: Read our review of QuickBooks Online
What is the best alternative to QuickBooks?
The best QuickBooks alternative for your business depends on your budget, the type of business you run and which features you need. In other words, the right fit will vary from business to business.
In terms of QuickBooks’ biggest competitors, Xero is a strong contender. It offers a lot of the same key features as QuickBooks at a lower price point and is growing in popularity in the U.S. Your accountant or bookkeeper will almost certainly be familiar with QuickBooks, but they may also know the ins and outs of Xero.
Is there a free alternative to QuickBooks?
One of the best free accounting software options is Wave Accounting. It’s not as scalable as QuickBooks, but it can accommodate solopreneurs and, in some cases, businesses with a handful of employees.
Wave has income and expense tracking, invoicing, basic reports and bank feeds, and it lets you add as many collaborators as you need for free. It doesn’t, however, integrate with point-of-sale systems or third-party apps for payroll.
» MORE: NerdWallet ’s top business software picks
Former NerdWallet writer Amrita Jayakumar contributed to this article.
