Start with a free plan if your needs are simple: Wave Starter is free with unlimited invoices, and Zoho Books is free under $50,000 in revenue. For paid plans, Zoho Books is the best value at $20 a month for 3 users, QuickBooks Online has the most room to grow, and Patriot is cheapest with unlimited users. Choose by counting your users, invoices and payroll needs, then compare regular prices, not promos.
This guide is for small business owners and freelancers picking software to send invoices, track expenses and keep books ready for tax time. Most tools now do the basics well, so the real differences are price per user, limits on invoices or revenue, and what payroll costs.
Prices are tricky because almost every company leads with a promo. We list the regular monthly price so you can see what you will pay after the first few months.
Below you will find our picks, a comparison table, free options, a payroll price table and what to watch for.
Free accounting software to try first
Three of our picks have a free plan, but the limits differ a lot.
- Wave Starter. Free with unlimited invoices, estimates, bills and bookkeeping records. Bank imports need the $19 Pro plan.
- Zoho Books Free. Free for 1 user and 1 accountant while annual revenue stays under $50,000.
- QuickBooks Free. 1 user, 2 invoices a month and 1 bank connection, with no accountant access.
A spreadsheet also works when you are starting out. The IRS says to keep records that support your tax return for at least 3 years in most cases, and employment tax records for 4 years, so whatever you use, keep backups.
How much accounting software costs
Regular prices for entry paid plans run from $15 a month (Zoho Books Standard, billed yearly) to $38 a month (QuickBooks Simple Start), as listed October 2026. Most companies advertise a promo for the first 3 months or year, so budget for the regular price.
Watch for per-user costs. QuickBooks Simple Start and FreshBooks include one user, and FreshBooks charges $11 a month for each extra person. Patriot and Xero include unlimited users.
Payroll is usually extra: from $17 a month plus $4 per worker at Patriot (self-filing) to $40 plus $6 per person at Wave and FreshBooks.
How to choose accounting software
- Count your users. Include your bookkeeper or accountant and anyone who sends invoices.
- Count invoices and bills. Xero Early and QuickBooks Free cap them; FreshBooks caps billable clients.
- Decide on payroll. If you have employees, compare the payroll add-on, not just the accounting price.
- Ask your accountant. Using the same software they use can cut your tax prep bill.
- Check the regular price. Promos end after 3 to 12 months.
Adding payroll: what it costs
| Company |
Payroll price |
| Patriot |
$17/mo + $4 per worker (Basic); $37/mo + $5 (Full Service) |
| Zoho Payroll |
$39/mo + $6 per employee, billed monthly |
| Xero (Gusto) |
$36/mo + $6 per person |
| Wave |
$40/mo + $6 per employee or contractor |
| FreshBooks |
$40/mo + $6 per user |
| QuickBooks |
Payroll only from $50/mo + $7 per employee; bundles with accounting from $88/mo + $6.50 |
Prices as listed October 2026 at regular rates. Full-service payroll that files taxes for you is worth the extra cost for most employers.
What to watch for
- Promo pricing. Discounts of 50% to 80% end after a few months; FreshBooks Lite’s $1 offer lasts a year.
- Revenue or invoice caps. Zoho Books Free ends at $50,000 revenue; Xero Early allows 20 invoices.
- Payment processing fees. Card payments through your accounting software carry their own fees, such as 2.9% + 60¢ on Wave Starter.
- Exporting your data. Before you commit, check that you can export your books if you switch.
Terms to know
- Chart of accounts
- The list of categories your business uses to sort income, expenses, assets and liabilities.
- Bank feed
- An automatic import of transactions from your business bank account into your accounting software.
- Accounts receivable
- Money customers owe you for invoices they have not paid yet.
- Accounts payable
- Bills your business owes to vendors but has not paid yet.
- Full-service payroll
- Payroll that calculates pay and also files and deposits payroll taxes for you.
- Reconciliation
- Matching your books against bank statements to make sure every transaction is recorded.
