Accounting Software for U.S. Small Businesses

Last updated December 31, 2025

Accounting software helps small businesses record financial transactions, track income and expenses, manage invoices and bills, and generate essential financial reports such as profit and loss statements and balance sheets. Using dedicated accounting software improves accuracy, reduces manual work, and supports better financial decision-making.

Today’s accounting software solutions generally fall into two categories: cloud-based platforms that operate online through a web browser, and desktop accounting software installed locally on a computer. This article reviews widely used accounting software options for U.S. small businesses, based exclusively on official information published by each provider.

Wave Accounting (Cloud)

Wave Accounting is a cloud-based accounting platform designed for small businesses and freelancers in the United States. According to the provider, Wave offers free core accounting features including income and expense tracking, bank connections, invoicing, and basic financial reporting.

Wave does not charge a monthly subscription fee for its core accounting tools. Businesses typically pay fees only when using optional services such as payment processing or payroll.

QuickBooks Online (Cloud)

QuickBooks Online is a cloud accounting solution from Intuit used by many U.S. small businesses. The platform supports expense tracking, invoicing, bank reconciliation, financial reporting, and integrations with payroll and tax tools.

QuickBooks Online is offered through subscription plans that vary by features, number of users, and reporting capabilities.

FreshBooks (Cloud)

FreshBooks is a cloud-based accounting and invoicing platform designed primarily for service-based businesses. It supports invoicing, expense tracking, time tracking, and financial reporting.

FreshBooks is available through paid subscription plans and typically offers a free trial for new users.

Zoho Books (Cloud)

Zoho Books is a cloud accounting solution that provides end-to-end accounting features including bank reconciliation, invoicing, purchase orders, automation rules, and financial reporting.

Zoho Books is offered through paid subscription plans and also provides a free plan for eligible micro-businesses in the United States, subject to provider-defined criteria.

Xero (Cloud)

Xero is a cloud accounting platform that connects small businesses with accountants, banks, and third-party applications. According to the provider, features include bank reconciliation, invoicing, expense tracking, and real-time financial dashboards.

Xero is available through subscription plans and typically offers a free trial for new users.

ZipBooks (Cloud)

ZipBooks provides cloud-based accounting software with a free starter plan. The free plan includes basic bookkeeping tools such as income and expense tracking, invoicing, and simple financial reports.

ZipBooks is an American accounting software provider, with paid plans available for businesses that require advanced automation and analytics.

Kashoo (Cloud)

Kashoo is a cloud accounting solution focused on simplicity and ease of use for small businesses. The software supports expense tracking, income recording, and financial reporting.

Kashoo is offered as a paid subscription service, with pricing based on business needs.

OneUp (Cloud)

OneUp is cloud-based accounting software that combines bookkeeping with inventory management and invoicing. According to the provider, OneUp supports accounting automation, inventory tracking, and financial reporting.

OneUp is available through paid subscription plans, with features varying by plan level.

GnuCash (Desktop, Open Source)

GnuCash is free, open-source desktop accounting software that supports double-entry bookkeeping. It includes features such as scheduled transactions and customizable financial reports.

GnuCash runs locally on Windows, macOS, and Linux and does not require a subscription or internet connection.

NCH Express Accounts (Desktop)

NCH Express Accounts is desktop accounting software provided by NCH Software. According to the provider, a free version is available for small businesses with up to five employees.

The free edition includes core accounting features such as income and expense tracking, accounts payable and receivable, invoicing, and basic financial reporting. Businesses that exceed the employee limit must upgrade to a paid license.

AccountEdge Pro (Desktop)

AccountEdge Pro is desktop accounting software designed for small businesses that prefer local data storage. The software supports invoicing, payroll, inventory, and financial reporting.

AccountEdge Pro is offered as a paid desktop solution with optional cloud connectivity features.

Sage 50cloud (Desktop / Hybrid)

Sage 50cloud is a desktop-based accounting solution with cloud-connected features. It supports advanced accounting, inventory management, and reporting for small and growing businesses.

Sage 50cloud is available through paid subscription or license options, depending on the configuration.

Choosing Accounting Software

When selecting accounting software, small businesses should consider whether cloud or desktop software better fits their workflow. Cloud platforms offer remote access and automatic updates, while desktop solutions provide local control over financial data.

Reviewing official feature descriptions, pricing models, and system requirements on each provider’s website is the most reliable way to choose the right accounting software.

Conclusion

Accounting software is essential for managing business finances efficiently and accurately. U.S. small businesses can choose from a wide range of cloud-based solutions such as Wave Accounting, QuickBooks Online, FreshBooks, Zoho Books, Xero, ZipBooks, Kashoo, and OneUp, as well as desktop options like GnuCash, NCH Express Accounts, AccountEdge Pro, and Sage 50cloud.

By comparing official product information and business requirements, companies can select accounting software that supports both current operations and future growth.