Best Free Accounting Software Programs for 2023
This article is part of a larger series onAccounting Software.
Wave and Zoho Books Free are our top two free accounting software. Wave allows unlimited users and is always free, while Zoho Books has paid plans with many more features that your company will need as you outgrow the free option.
Here are our seven recommendations for the best free accounting software for small businesses:
- Wave:Best overall free accounting software for unlimited users
- Zoho Books:Best for free accounting software that can easily be scaled
- Baselane:Best free rental-specific accounting software for independent landlords
- ZipBooks:Best for assisted bookkeeping with free accounting software
- GnuCash:Best open-source accounting software
- NCH Express Accounts:Best free desktop accounting software for businesses with five or fewer employees
- Zoho Invoice:Best free software for managing invoices
At-a-Glance Comparison of the Best Free Accounting Software
Software |
Free Plan Limitations |
Scalable, Such as Availability of Premium Plans |
Accessibility |
Standout Free Features |
---|---|---|---|---|
|
No limitations; includes unlimited users |
✕ |
Cloud |
|
|
Only for businesses with less than $50,000 in revenue; only one user |
✓ |
Cloud |
|
|
Only one user |
✕ |
Cloud |
|
|
Only one user |
✓ |
Cloud |
|
|
Only one user |
✕ |
Desktop only (Windows, Linux, and Mac) |
|
|
Limited to companies with five employees |
✓ |
Desktop only (Windows and Mac) |
|
|
No limitations |
✕ |
Cloud |
|
Retailers need accounting software that tracks their cost of goods sold (COGS), which the free software on our list won’t do. We highly recommend any business with significant inventory to subscribe to QuickBooks Online Plus or Advanced for high-quality inventory accounting in easy-to-use software. QuickBooks Online tops our list of thebest retail accounting software.
Wave: Best Overall Free Accounting Software With Unlimited Users
Pros
- Free accounting and invoicing
- Easy to set up
- Vendor bills and customer invoices can be created and tracked easily
- Offers bookkeeping assistance for a fee
Cons
- Bank reconciliations don't work if there are checks written that have not cleared the bank
- Very limited mobile app functionality
- Cannot track project profitability
General Features
- Bookkeeping support through Wave Advisor at $149 per month
- Assisted payroll services through Wave Payroll for $35 per month for tax service states and $20 per month for self-service states
- Recurring invoices
- Autofill items into invoices and bills
- Sales tax tracking
Wave is our top choice because it offers many accounting features and unlimited seats for free. Since it doesn’t have higher plans, some of its features are already considered premium in paid software, like sending recurring invoices and adding sales tax. Moreover, Wave has bookkeeping support for businesses wanting to outsource their bookkeeping to a Wave Advisor.
Zoho Books: Best for Scalability
Pros
- Free plan for businesses with less than $50,000 in annual revenue
- Competitive features at an affordable price
- Can reconcile bank accounts even when checks are outstanding
- Fantastic mobile app
Cons
- Free plan is only for a single user
- Billing, inventory, and project accounting is available only in the Professional and Premium plans
- 定制报表和预算只可用the Professional Plan
General Features
- Manage up to 1,000 invoices per year
- Online and offline payments
- Recurring invoices
- Mileage and expense tracking
- Bank and credit card statement imports
- Payment gateways through PayPal and Stripe
因为Zoho书的六个计划,你可以升级to any tier, depending on the kind of features you need. Hence, it is an outstanding software for businesses needing room for growth. We also recommend it because of its excellent customer support and outstanding mobile app functionality.
Baselane: Best Rental-specific Accounting Software for Independent Landlords
Pros
- Responsive customer service via phone, email, and live chat
- Software is free for both landlords and tenants
- Easy to use with intuitive dashboard
Cons
- No tenant screening features
- No mobile app
- No access for accountants
General Features
- Free rental property calculator and rental property ROI calculator
- Tenant rent payment collection
Free landlord-specific bookkeeping software
- Rental performance dashboards
- Access to lending and insurance
Baselane is a cost-effective option for independent landlords and real estate investors who want an easy-to-use solution for receiving rent payments and managing finances. It has excellent bookkeeping tools so that landlords can track income and expenses to simplify tax preparation, and its online bank account even pays interest and allows landlords to earn cash back on purchases.
*Baselane isn’t rated because it isn’t intended to be used as general accounting software.
ZipBooks: Best for Assisted Bookkeeping That Comes With a Free Plan
Pros
- Bookkeeping service comes with ZipBooks plan for free
- Easy to use, even for nonaccountants
- Able to attach receipts to transactions
- Unlimited customers and vendors
Cons
- No mobile app
- Can only connect one bank or credit card account
- Cannot import transactions from comma-separated values (CSV) or spreadsheet files
- No inventory tracking features
General Features
- Unlimited invoicing to unlimited customers
- Payment gateways from PayPal or Stripe
- Account for value-added tax (VAT), taxes, and invoice discounts
- Multicurrency invoicing
- Track vendor and customer details
If you think you might need bookkeeping assistance, ZipBooks is a great option. In addition to its free plan, it offers an assisted bookkeeping option that gives you access to a personal bookkeeper and tax filing assistance. And if you sign up for this plan, you’ll receive the ZipBooks software for free.
On a tangent, we recommend ZipBooks as an alternative to Zoho Books Free because ZipBooks Free doesn’t have a revenue cap per year. ZipBooks is also a good pick if you don’t sell inventory because the software doesn’t have inventory tracking features.
选择ZipBooks和波?阅读我们的comparison of ZipBooks vs Waveto learn which free accounting software is more suitable for your needs.
GnuCash: Best Open-source Accounting Software
Pros
- Outstanding cash management and amortization features
- Free and customizable
- No internet connection required
Cons
- Requires programming expertise to modify or enhance the source code
- No option to remotely share data with another user
- Very hard to use
- Customer support is software manual only
General Features
- Checkbook-style register for recording cash, check, and credit card transactions
- Transaction scheduling
- Customizable reports for profit and loss (P&L) statements, balance sheets, portfolio valuations, and cash flow
- Multicurrency accounting
- Stocks and mutual fund accounting
GnuCash is a niche software for those who prefer open-source software. It is free to download and can be installed on multiple operating systems like Linux and FreeBSD. As open-source software, it can be reprogrammed to have additional capabilities beyond the vanilla version.
NCH Express Accounts: Best Free Desktop Accounting Software for Businesses With 5 or Fewer Users
Pros
- Reconcile bank and credit card accounts even when timing differences exist
- Free for companies with fewer than five users
- Easy to use considering it’s a traditional accounting software program
Cons
- Cannot establish a live connection with your bank or credit card account
- Remote access to your program requires configuration of your firewall and router
- No mobile app
- Steep learning curve for non-accountants
General Features
- Sales and A/R management and reporting
- Basic financial statements and other specific financial reports like sales by customer report, sales by salesperson report, and many more
- Purchases and A/P management and reporting
- Check creation and printing
- Purchase order creation
If you find GnuCash complicated to use, NCH Express Accounts is an easier alternative. It’s also a desktop software that’s free if you have five or fewer users, and it’s packed with features found in paid solutions. However, we recommend it only if you or your bookkeeper have experience in using accounting programs as it is not beginner-friendly.
Microsoft Excel is a helpful tool to supplement your free accounting software by providing some of the missing accounting functions. Read ourguide on how to use Excel for accountingto learn how to track invoices, bills, COGS, and inventory costs. Plus, you get a free downloadable template.
Zoho Invoice: Best for Managing Invoices
Pros
- Totally free with no limitations or in-app purchases
- Perfect for Zoho users
- Easy to use for freelancers
Cons
- Cannot manage incoming invoices from suppliers
- Not a full accounting system
- No mobile app
General Features
- Seamless integration between Zoho apps like Zoho Books
- Customize and personalize invoices
- Manage customer invoices using invoice statuses
- Send invoices in multiple currencies
- Create recurring invoices
Most freelancers and gig workers only need a solution for tracking and managing invoices for their income. Hence, we recommend choosing Zoho Invoice since it’s more convenient to use than full accounting software.
*It doesn’t have a score because we don’t consider it accounting software. However, we still included it because it has no limitations and is good for unlimited users.
How We Evaluated Free Accounting Software
We evaluated the best free accounting software in terms of general features and whether they have the basic functions of paid solutions, such as bank feeds and bank reconciliations. Finally, we assessed the platforms based on pricing, ease of use, and our own expert evaluation.
40% of Overall Score
We considered the software’s general accounting features, banking, A/P, A/R, tax, and reporting features. Since we were evaluating free applications, we gave higher points to products that offered premium accounting features. Moreover, we looked into whether they contained at least the basic features needed in small business accounting.
5% of Overall Score
Inventory accounting appears to be an elusive feature in most free accounting software. If you need inventory accounting, we recommend going with a paid accounting program. Hence, we gave inventory a light weight. We evaluated the software’s ability to track inventory costs and stock levels. More importantly, we took into consideration whether the software could track the COGS automatically and compute the cost of ending inventory.
5% of Overall Score
Just like inventory accounting, project accounting is an elusive feature. Project accounting is essential for service-based businesses looking for a free accounting software product. That’s why we evaluated the software’s ability to do more than just bill clients and create estimates.
25% of Overall Score
Most users looking for a free accounting software service intend to self-manage the books. For ease of use, we gave higher scores to products that are easy for non-accountants to use. We also considered accessible customer service and support networks.
5% of Overall Score
A mobile app should help on-the-go users keep their books organized. It should let users send invoices, send payments, receive payments, and enter bills. We also like to see advanced features, like viewing reports and recording time worked.
20% of Overall Score
We considered user ratings in the evaluation of free accounting software. User reviews have a large percentage because we want to take into account the feedback of actual software users. Since these platforms are free, there is an abundance of reviews from users who have tried the software.
Frequently Asked Questions (FAQs)
If you are a budget-conscious small business or freelancer and only need simple accounting, like income and expense tracking and invoicing, then you should consider free accounting software. Don’t use free tools if you buy and sell goods as you’ll need tocalculate your COGSby hand.
When looking for the best free accounting software, determine the features you need and find out which programs offer those. Do you require an invoicing solution? Do you have multiple users? Do you want the ability to manage projects? Other factors you should consider include ease of use, customer support, and user reviews.
Small businesses should look for essential features, such as income and expense tracking, invoicing, and reporting. Also, check for a free mobile accounting app—which is important in today’s digital age. We recommend Zoho Books’ mobile app because it allows you to perform many basic functions, such as sending invoices, recording bills, accepting payments, and recording time worked.
Bottom Line
Wave is the overall best free accounting software for small businesses because it has no limitations, unlike other free options. Both ZipBooks and Zoho Books have great free plans but are limited to a single user—we recommend choosing either one if you don’t have plans to scale in the near future.
If you’re looking for accounting software with all the features you’ll ever need, we recommend checking out QuickBooks Online’s Plus.