Free Accounting Software is based on desktop technology, allowing small business owners to manage their business books for free through their computers. 

Of course, the best free software wouldn’t be the most potent source; if you want premium features with aesthetic functionalities, you have to pay for it. 

Many accounting software are available for free, but in the end, they will ask you to pay for premium features or upgrade their services. 

We have compiled a list of the best accounting software available for free. Ultimately, they will ask you to pay money for additional features. But their basic version is completely free. 

List of Best Free Accounting Software

Here are the best accounting software options available- 

1. Wave

Wave is one of the best accounting software options that has gained significant popularity over the past few times. You can connect unlimited bank accounts and credit cards to your book. 

There are many free features, such as unlimited income tracking, expense tracking, guest collaborators, and many more. Moreover, you can also send invoices and scan receipts for free as well. 

Features

1. Invoicing: Create and send professional invoices to clients, track payments, and set up automatic reminders.
2. Expense Tracking: Monitor business expenses, categorize transactions, and import data from bank accounts.
3. Receipt Scanning: Easily upload and store receipts for expense reconciliation.
4. Financial Reports: Generate balance sheets, profit, and loss statements, and cash flow reports.
5. Bank Reconciliation: Seamlessly connect to your bank accounts for easy reconciliation.

Pros

• Zero Cost: Wave provides a robust set of accounting tools without charging any subscription or license fees.
• User-Friendly: Its intuitive interface makes navigating easy for business owners with limited accounting knowledge.
• Invoicing Capabilities: The invoicing feature allows for professional-looking invoices, helping to enhance your business image.

Cons:

• Limited Payroll: While Wave offers essential payroll management, more is needed for businesses with many employees.
• Customer Support: Free users receive limited customer support, which may pose challenges if issues arise.

2. Zipbooks

Another popular accounting software is Zipbooks, which allows users to enjoy all the features such as syncing, billing, expenses, and other management work in one account. 

You can also allow users to pay bill amounts via Paypal or Square. For all that, you need to bear the transaction fee. It comes with smooth functionalities, which is an excellent option for small business owners. 

Features

• Time Tracking: Track billable hours and manage projects efficiently.
• Team Management: Add team members with different permission levels for collaboration.
• Online Payments: Accept online payments through integrations with popular payment gateways.
• Tax Support: Automate tax calculations and file returns with ease.
• Financial Reports: Generate various financial reports, including profit and loss statements and balance sheets.

Pros

• Ease of Use: ZipBooks boasts a user-friendly interface, ideal for business owners with limited accounting expertise.
• Time Tracking: The time tracking feature benefits service-based businesses billing clients hourly.
• Online Payments: Accepting online payments simplifies the payment process for businesses and clients.

Cons:

• Limited Features in Free Version: The free version offers only basic accounting features, which may need to be improved for some businesses.
• Customer Support: Access to customer support is limited in the free version, and response times may vary.

3. Slick Pie

Slick Pie is another worth looking at accounting software for small businesses. It allows users to do unlimited automated account entries, multiple companies, and customer support. Users can also create quotes and estimates that can be converted into professional invoices. 

Moreover, Slick Pie also allows users to connect their Paypal and Stripe accounts for free. Customers can pay you directly via PayPal and Stripe; you just need to bear the transaction fee those platforms charge. 

Features

• Online Invoicing: Create professional invoices and track payments online.
• Bank Reconciliation: Connect bank accounts for easy reconciliation of transactions.
• Automated Receipt Data Entry: Utilize OCR technology to extract data from receipts.
• Financial Reports: Generate various financial reports for analysis.
• Sales Tax Tracking: Automatically calculate and track sales tax.

Pros

• Automated Receipt Entry: The OCR technology for receipt data entry saves time and reduces manual errors.
• Sales Tax Tracking: Suitable for businesses that manage sales tax compliance.
• Cloud-Based: Accessible from anywhere with an internet connection, providing flexibility for business owners.

Cons:

• Transaction Limits: The free version has transaction limitations, which may require upgrading for growing businesses.
• Customer Support: Free users may experience delays in receiving customer support.

4. NCH Express Accounts

Another popular free accounting software is NCH Express Accounts. Here, the free version of the platform supports the accounting needs of businesses with less than five employees. But you can easily access and generate 20 crucial financial reports and analyze revenues. 

Express Accounts, developed by NCH Software, is a user-friendly accounting solution that targets small businesses looking for easy financial management.

Features:

• Accounts Payable and Receivable: Track money owed to suppliers and customers.
• Sales Analysis: Gain insights into sales patterns and trends.
• Time Billing: Bill customers based on time spent on projects or tasks.
• Multiple Users: Collaborate with team members by granting access to numerous users.
• Automatic Reports: Schedule and generate recurring financial reports.

Pros:

• Time Billing: Useful for service-based businesses that bill clients based on hourly rates.
• Multiple Users: Allows collaboration among team members with different access levels.
• Customizable Reports: Users can customize reports to suit specific business needs.

Cons:

• Limited Features in Free Version: The free version has some limitations in terms of functionality.
• Customer Support: The quality of customer support in the free version might not be as comprehensive as in the paid version.

5. Akaunting

Akaunting is also an ideal choice for free accounting software. It offers all the relevant features that a small business owner needs. With this technology, you can generate invoices, sync contacts, track expenses, manage customers, and more. 

However, if you want to access all premium features, you may need to pay for them. Slowly, you will understand that to make the most out of this software; you must use an updated version to access all the features. 

Features:

• Invoicing: Create and send professional invoices to clients.
• Expense Tracking: Keep track of business expenses for accurate financial records.
• Customizable Interface: Adapt the software to suit individual business preferences.
• Multi-Company Support: Manage multiple companies within a single platform.
• User Permissions: Set different access levels for team members.

Pros:

• Customizability: Users can tailor Akaunting to suit their specific business requirements.
• Multi-Company Support: Ideal for entrepreneurs managing multiple businesses.
• Third-Party Integrations: Integration with other apps enhances the software’s capabilities.

Cons:

• Learning Curve: New users may find setting up and configuring the software challenging.
• Support: As an open-source solution, official customer support may be limited.

Conclusion

Choosing the right accounting software is crucial for small businesses to streamline financial processes and maintain accurate records. When deciding which free accounting software is best for your small business, consider the specific features that align with your needs, the limitations of the free versions, and the potential for growth and scalability. 

By leveraging the power of these free accounting solutions, small businesses can efficiently manage their finances and focus on growth and success.