If you’re running a small business, you already know how much time can go into managing your finances—chasing invoices, tracking expenses, prepping for tax season… it adds up fast. That’s where the right accounting software can make a world of difference.

To help you narrow down your options, we’ve rounded up four of the best accounting tools for small businesses in 2025:

FreshBooks

Xero

Zoho Books

QuickBooks Online

Each one brings something different to the table. Below, we break down what they offer, who they’re best suited for, their pros and cons, and how much they’ll cost you (in USD).

1. FreshBooks

FreshBooks is built with simplicity in mind. It’s ideal for freelancers and service-based businesses that need to invoice clients, track time, and keep everything organized without getting buried in complex accounting.

✅ Pros: Super easy to use, even if you’re not “a numbers person”, Great for invoicing, time tracking, and recurring billing, Clean, intuitive interface, Mobile-friendly

❌ Cons: Reporting features are a bit limited,Higher-tier plans needed for advanced features like double-entry accounting

Best For: Freelancers, consultants, creatives, and small teams that want invoicing + simple bookkeeping in one place.

Pricing: Lite: $19/month, Plus: $33/month, Premium: $60/month, Custom: Available for larger teams or complex needs

2. Xero

Xero is a flexible, cloud-based accounting tool that scales as your business grows. It’s especially popular among startups and small teams thanks to its extensive app integrations and clean interface.

✅ Pros: Unlimited users on all plans, Integrates with 1,000+ third-party apps, Real-time bank feed syncing, Great dashboard and financial overview tools

❌ Cons: No native payroll for U.S. or Canada (requires third-party integration), Slight learning curve if you’re brand new to accounting software

Best For: Small to medium-sized businesses that want room to grow and rely on integrations or advanced reporting.

Pricing: Early: $15/month, Growing: $42/month, Established: $78/month

3. Zoho Books

If you’re already in the Zoho ecosystem—or just want a powerful yet affordable option—Zoho Books is a great pick. It offers features you’d normally only find in higher-priced platforms, including workflow automation and deep customization.

✅ Pros: Incredible value for the price, Automation and custom workflows built-in, Seamless integration with Zoho CRM, Projects, Inventory, etc., Solid mobile app

❌ Cons: Not as many third-party integrations as others, Payroll support is limited to a few countries

Best For: Tech-savvy small businesses or startups already using Zoho apps—or anyone looking for powerful tools without breaking the bank.

Pricing: Free: For businesses earning under $50K/year, Standard: $20/month, Professional: $50/month, Premium: $70/month, Elite: $150/month, Ultimate: $275/month

4. QuickBooks

QuickBooks is the go-to for many small businesses—and for good reason. It offers a full suite of accounting features, works well with accountants, and has built-in tools for everything from invoicing to payroll.

✅ Pros: Extremely feature-rich, Easy to find accountants who use it, Excellent reporting and forecasting tools, Integrates with many popular apps and services

❌ Cons: More expensive than others at higher tiers, Occasional bank feed syncing issues

Best For: Small businesses that need full-service accounting—including payroll and tax filing—under one roof.

Pricing: Simple Start: $30/month, Essentials: $60/month, Plus: $90/month, Advanced: $200/month, Payroll add-ons start at $45/month + $5/employee

Summary

Here’s a quick summary to help you decide:

Final Thoughts

Choosing the right accounting software depends on your business needs:

Go with FreshBooks if you’re a freelancer or solo entrepreneur who values simplicity.

Choose Xero if you need scalability and integrations.

Opt for Zoho Books if you want affordability and are already using Zoho apps.

Select QuickBooks for a comprehensive, all-in-one accounting solution with Canadian payroll.

No matter which you choose, investing in the right accounting tool can help your small business stay organized, compliant, and focused on growth.