How To Choose a QuickBooks Alternative

For many, QuickBooks is the default accounting software for small business owners and growing enterprises. However, the accounting landscape is filled with QuickBooks alternatives catering to specific business needs with precision, a different user experience, or lower prices.

Explore a range of the best QuickBooks alternatives, so you can consider options beyond QuickBooks Online and QuickBooks Desktop. Here’s what you need to know before deciding on the ideal accounting software to manage your business finances.

What to look for in accounting software

Before diving into specific QuickBooks alternatives, it’s important to understand the key accounting features any accounting software should offer. These are core functionalities QuickBooks has. Any tool you choose should include these, in order to handle your basic financial reporting and daily accounting tasks.

A solid accounting platform will include:

• Bookkeeping. The foundation of good financial health relies on double-entry bookkeeping, maintaining a general ledger, and a structured chart of accounts. Most accounting software adheres to this, but the ease of use and setting it up can vary.

• Income and expense tracking. The ability to accurately track expenses and revenue is crucial. Accounting software should automatically import transactions from bank accounts and allow easy categorization of every credit-card transaction and bank transfers for tax time. 

• Invoicing and payments. Look for invoicing features that support recurring invoices, the creation of unlimited invoices. It should have the ability to accept payments through methods like online payments, ACH payments, and integrate payment processing via a payment gateway. Payment reminders and the ability to manage invoices effectively are also key.

• Financial reporting. Access to clear and concise financial statements is a must. This includes standard reports like profit and loss (P&L) statements, balance sheets, and cash flow statements.

• Bank reconciliation. Streamlined bank reconciliation processes are important for ensuring your records match your bank accounts, helping to identify discrepancies quickly. 

• User interface. A user-friendly interface and intuitive accounting software are crucial for ease of use, reducing the learning curve and making daily accounting tasks less cumbersome.

• Accessibility and integrations. QuickBooks Online is a cloud-based solution accessible via an internet connection, which offers flexibility. Many alternatives also have app integrations to connect with your broader tech stack. While QuickBooks remains the market leader, some alternatives offer deeper, more seamless integrations with other tools.

8 QuickBooks alternatives

1. Xero
2. FreshBooks
3. Wave
4. Zoho Books
5. QuickBooks Solopreneur
6. Sage 50
7. ZipBooks
8. GnuCash

When choosing an alternative to QuickBooks, the goal is to find an accounting solution aligned with your specific workflow and business needs. Here’s a look at the best QuickBooks alternatives, highlighting what makes each unique. The selection is based on comprehensive research, evaluating factors such as user reviews, key features, pricing models, ease of use, and overall value for various business types. 

1. Xero

Xero stands out for its emphasis on collaboration and user-friendly interface, often described by users as a modern and intuitive accounting software experience. Unlike QuickBooks, this software offers unlimited users in all plans. This is a helpful feature for growing businesses needing access for multiple team members or accountants, without the extra fees. Xero’s project accounting features let you track and compare costs, assign income and expenses to projects, and create project estimates.

Xero is known for its extensive app integrations, which are offered through the Xero App Store. Shopify users can automatically sync store data with Xero using apps like Xero & QuickBooks Smart Sync, A2X Sync, and Xero Bridge.

Although it handles core accounting tasks like invoicing clients and expense tracking, specific features like inventory tracking and advanced payroll require add-ons at additional cost. Xero offers a dedicated fixed-asset manager, which helps you manage valuable items like equipment and vehicles, and automates their depreciation.

Pricing: Xero is more affordable than QuickBooks Online with three paid plans, starting at $20 per month. All plans include one free month. 

2. FreshBooks

FreshBooks positions itself as an accounting solution built specifically for service-based small business owners, freelancers, and those who primarily charge based on billable hours. Its features include customizable invoicing and streamlined project tracking with the ability to compare estimates versus actuals. It stands out for exporting tracked time (with a built-in time tracker) and expenses directly into invoices, making it efficient for professionals who charge by the hour or project.

Unlike QuickBooks Online, FreshBooks provides a portal where clients can view and accept payments for invoices directly, simplifying payment processing. With its focus on income, it lacks inventory tracking features. Its more complex double-entry bookkeeping features are limited compared to some other accounting software options.

Pricing: FreshBooks offers a choice of four paid plans, starting at $21 per month for five billable clients. 

3. Wave

Wave is a QuickBooks alternative for small business owners and freelancers seeking a free plan for their core accounting tasks, although it only accommodates one user. Its main selling proposition is its suite of free accounting features, including unlimited invoices, expense tracking, and basic financial reporting. This makes it a simple solution for many businesses with straightforward bookkeeping needs and a tight budget. Wave also offers paid plans with more advanced features.

As paid add-ons, Wave provides integrated payment processing for credit card and ACH payments (for a fee per transaction) and payroll services. However, its free platform offers less in terms of in-depth reporting, inventory tracking, or purchase orders compared to paid solutions. Its customer support is mainly community-based for free users. An additional limitation is that free users don’t have access to bank account connections.

Pricing: Wave offers a choice between its Starter (free) and Pro plan, which is $16 for unlimited users.

4. Zoho Books

Zoho Books is part of a larger ecosystem of business applications. It offers an accounting solution for growing businesses that might need a broader tech stack. It is an option for those looking to integrate their accounting software with customer relationship management (CRM), human resources, or other business software tools. Its accounting features include automation capabilities for workflows like recurring invoices and payment reminders. Zoho Books provides a free mobile app with more functionality than QuickBooks’, and lets you invoice clients, receive payments, track time, scan receipts, and view reports. Shopify users can automatically sync store and sales data with Zoho Books using an app like Bookkeep.

Unique to Zoho Books are its project management capabilities, including project tracking with time tracking and detailed profitability analysis. It also offers a dedicated client portal for secure collaboration and payment. Zoho Books provides a balance of features, scalability, and affordability for businesses looking for more than basic bookkeeping. It also offers a free version for users with less than $50,000 in annual revenue, which covers invoicing features and expense tracking.

Pricing: In addition to its free plan, Zoho Books offers five paid plans, starting at $20 per month.

5. QuickBooks Solopreneur

Also developed by Intuit, QuickBooks Solopreneur is intended for freelancers, independent contractors, and solopreneurs who file a Schedule C with their tax returns. QuickBooks Solopreneur (formerly QuickBooks Self-Employed) is a simpler version of QuickBooks Online. Its primary focus is to ease expense tracking, income categorization, and tax preparation. This makes it a simple solution for individuals focused on self-employment taxes rather than full double-entry bookkeeping.

Unlike QuickBooks Online, Solopreneur doesn’t offer a balance sheet, full accounts payable, or vendor management. This means it’s less suitable for businesses with employees or complex financial structures. However, features like mileage tracking and automatically separating business and personal transactions are tailored to the solo entrepreneur’s tax time needs. It provides a more intuitive experience for this niche than a full QuickBooks Online subscription. It also includes invoicing features and lets customers create client estimates for projects or services.

Pricing: QuickBooks Solopreneur is priced at $20 per month for a single user.

6. Sage 50

Sage 50 is a QuickBooks alternative for small business owners who appreciate the control and stability of desktop software. It offers inventory tracking and job costing, providing more granular control over these areas than basic QuickBooks Online plans. It’s often favored by businesses with more complex inventory needs or those in construction and manufacturing. Sage 50 also lets you choose between first-in, first-out (FIFO) and last-in, first-out (LIFO) inventory accounting methods.

While its interface may feel less modern than QuickBooks Online to some, Sage 50’s comprehensive reporting and audit trails provide a depth of financial control often sought by growing businesses. It offers accounting features like automated bank reconciliation, purchase orders, and customizable reports. Unlike QuickBooks Online, Sage 50 lets you generate consolidated financial statements for multiple companies. It also offers advanced budgeting tools letting you set and track financial goals. Shopify users can automatically sync store and sales data with Sage50 using an app like Bookkeep.

Pricing: Sage 50 offers three paid plans starting at $62 per month for one user.

7. ZipBooks

ZipBooks is a user-friendly QuickBooks alternative emphasizing intelligent insights and streamlined invoicing features for service-based small business owners. Although QuickBooks provides comprehensive features, ZipBooks aims for simplicity and speed, offering a clean interface and quick onboarding for core accounting tasks. Its feature set includes a “Business Health Score” metrics to analyze your finances and provide actionable insights, which go beyond the standard reporting found in QuickBooks.

ZipBooks also integrates payment processing directly, making it easy to accept payments from clients through online payments. Although it offers expense tracking and bank reconciliation, it doesn’t provide the same level of inventory tracking or accounts payable as QuickBooks Online. This makes it better suited for businesses focused on basic financial management.

Pricing: ZipBooks offers a free plan that includes unlimited invoices and basic financial reporting for one user. Paid plans, which include bank integrations, more in-depth reporting, and additional users, range from $15 per month for the Smarter plan (as many as five users) to $35 per month for the Sophisticated plan (unlimited users).

8. GnuCash

GnuCash is a free, open-source accounting software serving as a QuickBooks alternative for small business owners who prioritize cost savings and control of their data. Unlike the subscription-based models of QuickBooks Online, GnuCash has no recurring fees. It implements double-entry bookkeeping, making it appropriate for those with a strong understanding of accounting principles or a willingness to learn. It supports multiple users (concurrent multiuser access requires a shared database setup) and offers multicurrency support, a feature also available in higher-tier QuickBooks plans.

GnuCash is a desktop application, lacking the cloud-based solution and automatic syncing of bank accounts of QuickBooks Online. Its interface is less polished and intuitive than most modern commercial accounting apps, and it requires a more hands-on approach to set up and maintain. It lacks direct payment processing integrations and advanced payroll, focusing on core financial record-keeping. It’s designed mainly for users who value functionality over extensive built-in add-ons.

Pricing: GnuCash is a free, open-source software. There are no paid plans, though users may incur costs for community support or third-party integrations.