The 10 Best Accounting Software Programs for 2023 Compared

The best accounting software makes invoicing, payroll, taxes, and expense tracking a breeze. With all the data automatically entered into an online database and neatly sorted for convenience, you’ll have a clear overview of the profitability of your business, more control over your cash flow, and quick and easy access to all details regarding your business spending.

In this article, we’ve reviewed and compared the 10 best accounting software solutions, looking at their features, pricing plans, and pros & cons to help you make an informed decision and choose the one that perfectly aligns with the needs of your business.

The Best Business Accounting Software Ranked

Here’s a quick rundown of the best online accounting software solutions for 2023:

1. FreshBooks — The best option for businesses of all sizes. It’s a simple, easy-to-use accounting software with built-in time tracking and project management features.
2. Oracle NetSuite — Customizable cloud accounting solution with great fixed asset management, ideal for larger companies with multiple facilities across the country.
3. Zoho Accounting — Ideal accounting software solution for retailers, perfect for inventory management, automating payment reminders, and collecting deposits and advance payments.
4. Xero — Easy to learn, perfect for solo entrepreneurs and small businesses that are running their own books.
5. Bonsai — CRM and accounting software in one app, with hundreds of templates, a client portal, and built-in time tracking and project management tools.
6. Sage — Excellent option for entrepreneurs who want to learn how to run their own books, thanks to the Sage Accountants Network.
7. QuickBooks — Popular cloud accounting software with inventory management and project profitability tracking, ideal for small to medium-sized businesses.
8. TurboTax — The #1 tax prep provider in the United States, offering fully outsourced, assisted, and DIY tax filing through their platform.
9. Melio — The best free payment processing solution for ACH Bank Transfers, with built-in payment tracking, custom invoices, and easy bill capture.
10. Wave — Free invoicing and accounting functionalities for freelancers and small businesses, with access to personalized one-on-help from Wave advisors.

How Do Accounting Programs Work?

Most accounting software providers allow you to connect your business bank accounts to the software, so every payment you send or receive is automatically tracked. Additionally, they can also track time spent on specific projects, helping you calculate billable vs. non-billable hours and eliminating any possibility of human error.

As such, accounting programs are vastly superior to spreadsheets and tables. They give you accurate insight into your business finances at any point in time, greatly facilitate data entry, prevent costly errors, and save a ton of valuable time so you can focus on growing and expanding your business.

Is the Best Free Accounting Software Good Enough?

Only a handful of providers we’ve reviewed offer a free plan, with access to some key invoicing and accounting functionalities without having to commit to a monthly subscription. However, this doesn’t mean the tools are actually free.

They’ve adopted a freemium business model — a free base service with fees for every transaction, which can often end up being more money than if you simply subscribe to a paid service.

The reason why there aren’t any completely free accounting tools is simple — they take a lot of time and money to develop, plus the provider needs to pay a monthly cost of maintaining the servers the information is stored on.

In any case, accounting software saves you a ton of valuable time, which you can then invest into growing your business and getting more billable hours in. In the long run, it more than pays off to invest in a full-featured, paid business accounting tool for access to all of its functionalities.

The 10 Best Bookkeeping Software Programs Reviewed

Here are in-depth reviews of the best business accounting software solutions on the market, so you can see exactly what each provider offers and choose the one that’s the best fit for your business.

1. FreshBooks — The Best Accounting Software Provider for Businesses of All Sizes

FreshBooks is an affordable, easy-to-use accounting software that makes invoicing and accounting a breeze. It comes with built-in time-tracking functionality, so you’ll never miss a minute of billable work or spend days reviewing timesheets and checking invoices.

With FreshBooks, you can easily customize your Chart of Accounts, create expense categories, track business assets and expenses, and generate insightful reports with a single click. You can also invite your accountant and their team of up to 10 people and provide them with permission-based access, so they can access reports, add journal entries, review and manage invoices, and file taxes for you.

Even if you don’t have an accountant, you can create professional-looking invoices in seconds, thanks to FreshBooks’ invoice generator. You can then add your company’s logo and colors, customize the email with the invoice link, and send it to clients across the globe in seconds.

FreshBooks also lets your business accept credit cards (MasterCard, Visa, American Express) and ACH, so you can let your clients pay in their preferred way, ensuring that you get paid faster. It also automatically sends payment due date reminders, so you won’t have to spend time chasing clients for payments.

Another area where FreshBooks excels is expense tracking. The software lets you snap receipt photos, forward email receipts to your business accounts, and even import expenses directly from your business bank account, so you’ll never have to worry about manual entry again.

In addition to all the accounting features, FreshBooks also lets you manage projects, ensure that your team is in sync, manage contractors with ease, and share key business files with clients, stakeholders, and team members in an instant.

2. Oracle NetSuite — Customizable Cloud Accounting Solution With Great Fixed Asset Management

Oracle NetSuite offers a full suite of solutions that help companies keep tabs on everything that’s going on in their business, automate administrative tasks, enhance productivity, and ultimately improve their bottom line.

The NetSuite Cloud Accounting software is designed to help improve financial control, let you close deals faster, and handle every financial aspect of your business with ease. The software greatly simplifies recording business transactions, managing payables, collecting taxes, and generating financial reports.

Everything is neatly organized in a clean, albeit slightly dated, UI, so you’ll have real-time access to all the data you need to make informed business decisions and manage your cash flow.

NetSuite Cloud Accounting also saves you a ton of valuable time by allowing you to automate menial, repetitive tasks, such as creating new journal entries or reconciling account statements. This frees up your accountants to focus on reviewing transaction details, running payroll, filing taxes, and analyzing financial trends.

One functionality that makes NetSuite stand out from other accounting software solutions is fixed asset management. The tool enables you to easily manage and control the full lifecycle of depreciating and non-depreciating assets, all the while eliminating the need for manually entering everything in spreadsheets.

This makes it infinitely easier to track land, equipment, furniture, machinery, and vehicles across multiple facilities, which is why NetSuite is the best accounting software for real estate investors and even those in the construction industry.

Another thing worth noting is that NetSuite supports a variety of bank payments and payment processing solutions, making it easy to invoice your clients for the completed work and reduce the waiting times for outstanding invoices.

3. Zoho Accounting — Ideal Accounting Software for Retailers, Perfect for Inventory Management

Zoho Accounting is another great online accounting tool that helps you streamline everything from negotiating deals with your clients to invoicing and payroll. If you’re looking for a way to give your clients more payment options and get paid faster, Zoho Books is the perfect choice.

It lets you generate invoices from quotes in seconds, customize and polish them with logos, brand colors, and fonts, and send them globally. The tool also features automated payment reminders that you can turn on or off, so you can be as subtle or as insistent as you like.

You can also set up recurring invoices and secure them with your digital signature so your clients know everything’s in order. What’s more, Zoho Books also lets you collect deposits and advance payments, as well as easily handle returns and refunds, giving you more time to focus on developing your business.

It goes without saying that you can also track all your payables with Zoho Books, but the tool goes a step further and also allows you to create and send purchase orders, upload receipts, track landed costs, send bills for approval, associate vendors with expenses, and even record vendor credits.

Zoho Books is a must-have for retailers, as well, since it allows you to effortlessly keep track of your inventory levels at all times. You can also set reorder points, and the software will automatically create and send purchase orders to your vendors, ensuring you never run out of stock.

The software also allows you to easily sort your inventory with crucial information like SKUs (Stock Keeping Units), cost, or available stock. Every inventory change is recorded in real-time, so you’ll always know what your best-selling items are. For even more info, you can always generate detailed inventory reports and reorganize your stock accordingly.

4. Xero — Easy to Learn, Perfect for Solo Entrepreneurs and Small Businesses

Xero is the best option for small businesses, given that it’s incredibly easy to use, so you can manage everything from bills and expenses to payroll runs and even projects without having to hire an accountant.

One of the key aspects Xero can help you with is expense tracking. You can take photos of receipts with your phone to quickly upload expenses into your account, instantly approve expense claims, monitor employee spending, and manage expenses on the go.

You can also connect your business bank accounts to Xero to automate the entry of every bank transaction and keep track of every dollar coming in and out of your business, all the while keeping your banking information secure with the latest encryption standards.

With Xero, you can also set up payment options for the services your business provides. The company’s expert will help you do so for free, so you can give your customers a multitude of ways to pay and add “Pay Now” buttons to your checkout pages to facilitate payments.

Every payment is automatically processed for fraud, so you can safely accept credit card payments without worrying about scams or fraudulent charges.

Xero also greatly facilitates payroll runs by letting you set up recurring monthly payments for your staff, send payments in batches, and even connect third-party payment solutions to the accounting software.

Another key feature of Xero is bank reconciliation. This makes it easy to keep your account balances and bank statements up to date, ensures that each business transaction is recorded and accounted for, and saves you a ton of valuable time by letting you reconcile in bulk.

As a robust solution, Xero also offers inventory management with stock level tracking, in-depth inventory reports, and the ability to effortlessly add items to invoices with one click.

5. Bonsai — CRM and Accounting Software in One App

Bonsai is a robust accounting app that lets you handle everything from CRM (Customer Relationship Management) to invoicing with ease. The dashboard is super-simple and intuitive, so you can handle every financial aspect of your business even if you’ve never used any accounting or bookkeeping software before.

What’s unique about Bonsai, in comparison to other accounting tools on our list, is that it also features a client portal. This makes onboarding new clients infinitely easier, as it provides you with a platform to share important work documents, keep records of communication, and monitor all tasks and to-dos in one place.

To further facilitate the process of obtaining new clients, Bonsai includes “engagement letters” with your electronic signature, which function as legally binding documents and are a great way to collect upfront payments and deposits, as well as outline the nature of the relationship between your business and the client.

There are dozens of templates to choose from, and the letters (emails) are fully customizable. In addition to email templates, Bonsai offers a template for virtually every aspect of your business, including proposals, quotes, contracts, invoices, briefs, and tax forms.

As a result, it saves you hours of work every week and ensures that every interaction with your clients is recorded, that every member of your team knows exactly what they should be working on, and that everyone’s paid on time.

Bonsai also features a built-in time tracker, making it easy to keep tabs on billable hours. It also enables your team to turn hours worked into invoices with a single click, so your accountants won’t have to spend hours comparing timesheets and checking invoices for accuracy.

6. Sage — Excellent Option for Entrepreneurs Who Want to Learn to Run Their Own Books

Sage is a tool designed for accountants, with features and functionalities that automate the bulk of the work, minimize the chances of human error, and save valuable time. One of the key features is AutoEntry, which lets you scan bank statements, either individually or in bulk, to minimize errors and save hours of work.

The feature also remembers all the details of your transactions, so you don’t have to manually type them every single time. Another way to save valuable time with Sage is through invoice templates. After you’ve created a customized invoice with detailed descriptions of services, you can then save it as a template for future use, as well as create recurring monthly invoices for your existing clients.

Sage also makes it easy to get paid on time by letting you offer a wide variety of payment options to your clients, including everything from credit and debit cards to vouchers and real-time online payments.

You can also leverage Sage to automate your payroll runs, ensuring that every member of your team gets paid the correct amount on time. You only need to enter the hourly rate for each employee, and the software does the rest. It automatically calculates all deductibles, including taxes, insurance, and PTO, so you don’t have to spend a week each month triple-checking every invoice to ensure that the salaries are correct.

Another reason to opt for Sage is that you’ll get access to the Sage Accountants Network and learn everything you need to know about running your own books. This is invaluable for solo entrepreneurs and startups who can’t afford to hire a full-time accountant but need to ensure every financial aspect of their business is taken care of.

7. QuickBooks — Cloud Accounting Software With Inventory Management and Project Profitability Tracking

QuickBooks is another excellent cloud-based accounting solution that also offers additional utility in terms of inventory management and compliance. It securely stores all your business data on the cloud, so you can access it from anywhere, all the while adhering to any industry-specific rules and regulations regarding data handling.

The software allows you to connect and sync all your business accounts, making it easy to track all business expenses in one place. You can also snap photos of receipts in an instant with the QuickBooks mobile app, and the software will automatically match the receipt with an existing bank transaction.

Additionally, all expenses are sorted into appropriate categories for easier tracking, ensuring that you never miss a tax deduction. And speaking of taxes, QuickBooks performs automatic tax calculations each quarter, so you’ll know exactly how much you’ll need to set aside. Plus, you’ll have all the required documents on standby, so you’ll be fully prepared for tax filing.

Another advantage of QuickBooks is the ability to create custom invoices, add billable hours, and track each invoice in real-time. You’ll know the moment a client views an invoice and processes payment, so you’ll always know where your money is.

The software also provides payment dispute protection, safeguarding you against chargebacks. Plus, QuickBooks also boasts excellent inventory management and tracking functionalities, providing valuable inventory insights and real-time alerts to ensure you’re never understocked.

To top it all off, QuickBooks even monitors the cost of individual projects against the income, so you’ll be able to see the profit margins of all ongoing projects at a glance and see exactly which clients are bringing you the most money.

8. TurboTax — The #1 Tax Prep Provider in the United States

TurboTax isn’t a full-fledged accounting solution but rather one that focuses on tax filing. You’ll have the option of completely outsourcing tax filing to an expert, doing taxes with assistance from a professional, or handling everything on your own through the software.

Although TurboTax offers very little apart from tax prep and filing, they are the best at what they do, with a full guarantee that their calculations will be 100% correct. In other words, you’ll get every dollar back on your tax refunds and won’t have to worry about the paperwork or spend days, if not weeks, preparing for tax filing.

If you want to do everything yourself, that’s also a viable option since the experts at TurboTax will guide you through the entire process step-by-step and ensure you learn all the ins and outs of tax filing. They’ll also double-check everything to ensure complete accuracy, as well as provide Live Support should you have any questions after the initial training.

The company also offers free one-on-one audit guidance each year, so you’ll be fully prepared for an IRS audit as well. All in all, this is an excellent service for freelancers, solo entrepreneurs, or people who have just created a startup and want to make sure that they do everything by the book.

9. Melio — The Best Free Payment Solution for ACH Bank Transfers

Melio is an online payment solution that makes it easy to pay your employees, create and send professional invoices to your clients, and keep track of all payables and receivables.

What’s great about Melio is that it seamlessly integrates with Xero and Quickbooks, allowing you to connect your clients’ accounts and eliminate double data entry. This also ensures transparency and improves trust since both you and your clients will have access to real-time data and can clearly see every invoice and all billable hours on both ends.

Another reason to choose Melio as your payment solution is that there are no sign-up fees for you or for your clients. In other words, creating a Melio account is completely free, and you’ll have access to all the key functionalities like:

• Approval workflows
• Bill capture
• Custom payment requests
• Payment tracking
• Data export

If you opt for the ACH Bank Transfer as your payment method, you won’t have to pay Melio a dime. So, if you’re looking for the best free accounting software solution, look no further. That said, you will be charged fees for every other type of transfer, ranging from $1.50 for a mailed check to $20 for international payments.

Put simply, Melio can be an incredible option if you’re working with a handful of clients that rely on ACH Bank Transfer as their payment method, but it can also be extremely expensive if you’re sending dozens of invoices each month to international clients.

10. Wave — Free Invoicing and Accounting Functionalities for Small Businesses and Freelancers

Wave is an easy accounting software specifically designed for small businesses. It features an intuitive, user-friendly dashboard with step-by-step instructions for every aspect of running your business finances, including an area called “Things You Can Do” that serves as a helpful reminder.

Regarding Wave’s functionalities, you’ll be able to build custom invoices from professionally designed templates, offer your clients a variety of online payment options, track all invoices and expenses, and complete monthly payroll runs in minutes.

The number one reason why freelancers, consultants, and self-employed entrepreneurs opt for Wave is that the invoicing and accounting features of the software are completely free. You will, however, be charged a small fee on every payment you receive, ranging from 1% for bank payments to 3.4% + $0.60 per AMEX (American Express) transaction.

This is a great pricing structure if you have a few big clients, but if you’re a freelancer that sends a dozen invoices to clients monthly, the fees represent a huge pay cut, which is why Wave is at the very bottom of our list.

Another thing worth noting regarding Wave is that the provider offers 1:1 sessions with professional accountants that can either coach you or handle the work for you, so you’ll be in good hands if you opt for this provider.

Top Accounting Programs Compared

Here’s a comparison table of the top online and desktop accounting software providers, so you can see exactly what each solution excels at and choose the one that’s the best fit for your business:

Key Factors to Consider When Picking Accounting Software

As you’ve seen from our reviews, every accounting software solution is different. While some are comprehensive and help you manage every financial aspect of your business, others are more niche, focusing on specific areas like invoicing or taxes.

Depending on the industry you’re in, the size of your business, and the clients you work with, some accounting programs will be a much better fit than others. To determine which provider is the best for your business, here are the key factors you need to take into consideration:

Features and Functionalities

When comparing two or more accounting software solutions, the first thing you should look at is the features each software offers. Some providers have a dedicated Features page that explains how their tool can help your business, while others have the features listed under their pricing plans.

In any case, you should carefully consider what you need the accounting software for. It helps to talk to your accountant or finance team and write down the key areas the software needs to cover, such as invoicing, payroll, tax filing, inventory management, etc.

Once you’re aware of the features you need, you’ll be able to narrow down your options to several providers. Just make sure you’re not overpaying for a feature-rich software that has dozens of features you’ll never use or paying for a tool that lacks key functionalities you need.

User Limitation

Accounting programs often impose limitations on the number of users you can add to your account. This isn’t something you can afford to overlook, especially if you’re planning on running payroll through the software since you’ll need to add every employee in order to allow them to track billable hours and convert their timesheets to invoices.

So, carefully read through the limitations of different pricing plans, as they should clearly state how many users can be added to the account based on your tier. If the information isn’t clear, you can always reach out to the provider’s support or talk to their sales department to get a straightforward answer.

Ease of Use

It’s no use paying hundreds of dollars for accounting software if you’ll end up never using it because it’s too complex. That’s why you should always watch the videos on the provider’s website or request a demo before you make a purchase.

Seeing the program in action will give you a much better idea of how easy or difficult it will be to use in day-to-day business. Thankfully some do offer free versions, too, so be sure to make use of these.

Scalability

Accounting software isn’t something you’re going to use for a month; it’s a long-term investment. That’s why you should think about where your business will be in a year, three, or five years from now in terms of the number of employees and clients.

Based on your projected growth, you should look for a solution that will allow you to easily add new users to your account, upgrade or downgrade your subscription tier, and add functionalities you may need later down the line.

Device Compatibility

When selecting a provider, carefully check what devices and operating systems their software is compatible with. For example, the best accounting software for Mac might not be compatible with Windows or might not offer a mobile application, so only your employees with Macs will be able to utilize it.

That’s why we strongly recommend the best cloud accounting software since it can be accessed from any device at any time.

Integrations

When it comes to expense tracking, payroll, tax filing, and other financial aspects of running a business, it’s imperative to have all the required data in one place to ensure accuracy. That’s why it’s vital that your new accounting software solution integrates with the tools you’re already using.

Otherwise, you’d have to waste a ton of valuable time on manual, double data entry. This also increases the risk of human error, which can be costly, especially when it comes to taxes.

Cost

Lastly, you should compare the prices of different solutions. This doesn’t mean simply looking at the price tags of different subscription plans side by side. You need to also consider the value you’re getting for your money in terms of features and functionalities you’ll have access to, as well as any additional fees that may apply to every transaction.

Conclusion – What is the Best Accounting System for 2023?

Every business could greatly benefit from an accounting system, so it’s no surprise to see a wide variety of providers develop and perfect these solutions. As a result, there are plenty of options for you to choose from based on your industry, company size, and specific needs.

If you’re still on the fence after reading through our reviews, we recommend FreshBooks, especially if you haven’t used accounting or financial software before. It’s easy to set up and use, yet it offers all the functionalities you need to efficiently handle every financial aspect of your business.

In addition to invoicing, expense tracking, payroll, and tax filing, FreshBooks comes with built-in time tracking and project management functionalities, so it can help streamline other areas of your business and ultimately improve your bottom line.

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Aleksandar Stevanovic

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Aleksandar Stevanovic

Alex is a Senior Software Content Writer at Techopedia. He focuses on creating reader-oriented comparison pages, reviews, research pieces, and editorials. With nearly a decade of experience, he’s written for numerous leading brands across various niches, such as The Tech Report, Bitcoincasinos.com, CEX.IO, Forbes, Business2Community, and many more. His expertise in cybersecurity has made him a popular authority on privacy tools such as VPNs, password managers, blockchain technology, cryptocurrencies, and antivirus software. You'll find Alex working on cars, playing guitar, and cooking fantastic food in his spare time. You can reach Alex on Twitter: @stevanovic_alex

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