The Best Accounting Software for Small Businesses in 2026
QuickBooks, Xero, FreshBooks and Wave compared on price, users and ease of use, so you can pick the one your accountant won't sigh at.
Here's the shortcut most guides won't give you: ask your accountant which software they use. Many accountants work mostly in one or two systems, and picking the same one makes year-end cheaper and less painful.
If you don't have an accountant yet, or they don't mind, here's how the main options compare.
Quick picks
- Most popular in the US, most features: QuickBooks Online
- Best value for growing teams: Xero (unlimited users on every plan)
- Best for freelancers who mainly send invoices: FreshBooks
- Free for very small businesses: Wave
Prices at a glance
Starting prices in the US as of October 2026, which change often, especially after first-year discounts:
| Cheapest plan | Users on cheapest plan | Free plan | |
|---|---|---|---|
 QuickBooks Online |
About $38/mo (Simple Start) | 1 | No |
 Xero |
About $25/mo (Early) | Unlimited | No |
| FreshBooks | About $23/mo (Lite) | 1, up to 5 billable clients | No |
| Wave | Free (Starter) | 1 | Yes |
QuickBooks Online
QuickBooks is the default choice for many US small businesses, and almost every bookkeeper knows it. It connects to your bank, categorizes transactions, handles invoices, tracks sales tax and produces the reports your accountant needs. Add-ons cover payroll, inventory and more.
Downsides: it's not cheap, the price has gone up most years, and the cheapest plan is for one user only. Watch the first-year discount: the regular price kicks in afterwards.
Xero
Xero's standout feature is unlimited users on every plan, so you can give your bookkeeper, partner and accountant access without paying per seat. It's clean, strong on bank reconciliation and very popular in the UK, Australia and New Zealand.
Downsides: the cheapest plan limits how many invoices and bills you can send, and US payroll needs a separate add-on partner.
FreshBooks
FreshBooks started as invoicing software and it shows. It's the friendliest option for freelancers and service businesses: good-looking invoices, time tracking, expenses and payment reminders. The Lite plan caps you at five billable clients, so it suits small client lists.
Downsides: less suited to product businesses with inventory, and the client limits push you up the plans as you grow.
Wave
Wave's starter plan is free for invoicing and basic bookkeeping. It makes money from payment processing and paid add-ons instead. For a sole trader with simple finances, it's a very reasonable place to start.
Downsides: fewer features and integrations than the paid options, and card payments come with processing fees (as they do everywhere).
How to choose in five minutes
- Does your accountant have a preference? Use that.
- More than one person needs access? Xero is the easy maths.
- You mostly send invoices for your time? FreshBooks.
- US product business that wants every feature? QuickBooks.
- Just starting, simple finances? Wave, then upgrade later.
Freelancer who only needs invoicing? See the best invoicing software for freelancers. Torn between the big two? Read QuickBooks vs Xero.
