Compare All Accounting Software 2026

Accounting software automates financial record-keeping including invoicing, expense tracking, bank reconciliation, tax preparation, and financial reporting. Modern cloud-based solutions like QuickBooks Online and Xero replace manual spreadsheets and desktop software with real-time, multi-user access from anywhere.

Accounting software typically costs $10-$100+ per month. Entry-level plans for freelancers start at $10-$20/month. Small business plans with full features run $30-$60/month. Advanced plans with inventory, multi-currency, and project tracking cost $60-$100+/month. Most offer discounts of 50-75% off for the first 3-6 months.

QuickBooks Online ($30-$200/month) dominates the US market with deeper tax features, payroll integration, and accountant ecosystem. Xero ($15-$78/month) is more popular internationally, offers unlimited users on all plans, and has a cleaner interface. Choose QuickBooks for US-focused businesses; Xero for international or multi-currency needs.

Hidden costs include: payroll add-ons ($45-$125/month + per-employee fees), payment processing fees (2.9% + $0.25 per transaction), additional user seats ($11-$40/user/month on QuickBooks), third-party app integrations, accountant/bookkeeper access fees, and automatic price increases after promotional periods end.

Zoho Books is free for businesses with under $50K annual revenue. Wave (now owned by H&R Block) offers free invoicing and accounting with paid payroll and payments. GnuCash is a free open-source desktop option. For growing businesses, free tools typically lack inventory management, project tracking, and multi-currency support.

Essential features include: bank feed integration (automatic transaction import), invoicing with online payment acceptance, expense tracking with receipt scanning, financial reports (P&L, balance sheet, cash flow), tax preparation support, and multi-user access. Advanced needs include inventory management, project costing, and payroll integration.

FreshBooks ($19/month) is purpose-built for freelancers and service businesses with best-in-class invoicing, time tracking, and client management. Zoho Books (free under $50K revenue) is the most affordable option. QuickBooks Simple Start ($30/month, often discounted to $15) is the most widely supported by accountants.

Switching is moderately difficult. Most platforms can import chart of accounts, contacts, and open invoices via CSV. However, historical transaction data, reconciliations, and custom reports don't transfer cleanly. The best time to switch is at the start of a fiscal year. Budget 1-2 weeks for migration and consider hiring a bookkeeper to assist.

Spreadsheets work for very simple businesses with few transactions. Once you exceed 20-30 monthly transactions, accept payments, need tax reporting, or work with an accountant, dedicated software pays for itself in time saved. The automation of bank feeds alone saves 5-10 hours per month for most small businesses.

QuickBooks Online is the most popular choice for US small businesses due to its extensive feature set, accountant network, and third-party integrations. Xero is the top alternative for those wanting unlimited users and cleaner UX. FreshBooks is best for service-based businesses prioritizing invoicing and client management.