The Best Free Accounting Software of 2024
If you’re looking for the best free accounting software, consider the following options:
- NCH for financial analysis
- Zoho Books for Zoho users
- ZipBooks for invoicing
- GnuCash for Linux users
- TrulySmall Invoices for freelancers
- Wave Accounting for ease of use
Each software has its own unique strengths, so choose the one that best fits your needs.
Best for Financial Analysis
NCH
If you are a small business with less than five employees, NCH’s free accounting software is a great choice for generating various financial reports. The software is compatible with both Mac and PC. Although the free version lacks some of the bigger features suitable for larger enterprises, it still includes more than 20 financial reports such as income statements, balance sheets, profit and loss (P&L) statements, and sales analysis by item, customer, and salesperson.
Who Should Use It
NCH’s free accounting software is best for small businesses that want to generate various financial reports.
Pros & Cons
- Free for companies with less than five employees
- Easy-to-use software
- Includes more than 20 financial reports
- No bank connection
- Paid users receive priority support
Best for Zoho Users
Zoho Books
Zoho Books is the accounting component of Zoho’s suite of business software. It offers a free version that includes all the necessary features for organizing your finances, such as expense and mileage tracking, reconciliation, invoices, and email support. One of its standout features is its ability to integrate with other Zoho products, including Zoho CRM, which makes it an ideal choice for small businesses that are already using other Zoho software.
Paid plans for Zoho Books start at $15 per month, billed annually, and offer additional features such as multiple users, bulk updates, timesheets, and sales tax tracking. To learn more about Zoho Books, check out our Zoho Books review.
Who should use it:
Zoho Books is best for small businesses that are already using other Zoho products and want to integrate their accounting software for a seamless experience.
Pros:
- Track mileage
- Integrates with other Zoho products
- Customized invoices
Cons:
- Invoice limits
- No phone or chat support
In summary, Zoho Books is an excellent choice for small businesses that are already using other Zoho products and want to streamline their accounting process. Its integration with other Zoho products and customizable invoices make it stand out, while its invoice limits and lack of phone or chat support may be drawbacks to some users.
Best for Invoicing
ZipBooks
If your business relies heavily on invoicing for revenue, ZipBooks free accounting software might be a good choice for you. Unlike some of its competition, ZipBooks has unlimited invoicing, making it a great option for service-based businesses that need to send a lot of invoices. In addition to invoicing, ZipBooks also offers basic reports, vendor and customer management, and digital payments through Square or PayPal.
While the free plan is great for small businesses, paid plans start at $15 per month and come with additional features such as auto-billing, reminders, time tracking, and the ability to save invoice line items. Keep in mind that you will need a paid plan to auto-bill customers.
Pros:
- Unlimited invoicing
- Accepts Square and PayPal payments
- Unlimited vendors and customers
Cons:
- No chat support
- Need a paid plan to auto-bill customers
Overall, ZipBooks is a solid choice for businesses that need to send a lot of invoices, with the added benefit of digital payments and customer management.
Best for Linux
GnuCash
If you are a Linux user, finding free accounting software can be a challenge. However, GnuCash is a great option that is compatible with Linux, as well as Windows, BSD, Solaris, and Mac. It offers several features such as bank account tracking, expense tracking, financial calculations, and reports. Although its small business features may lack many extras, GnuCash makes up for it in flexibility as it allows you to track stocks, commodities, and other investments.
Who should use it?
GnuCash free accounting software is an excellent option for businesses that need to track investments and require software that is compatible with Linux.
Pros & Cons
- Compatible with multiple operating systems
- Translated into many languages
- Transaction matching
- Has a steeper learning curve
- User interface (UI) isn’t as clean as its competition
GnuCash’s compatibility with multiple operating systems and transaction matching feature make it a great option for tracking investments. However, it has a steeper learning curve and its user interface (UI) is not as clean as its competitors. Despite these drawbacks, GnuCash is still a reliable option for Linux users who require free accounting software.
Best for Freelancers
TrulySmall Invoices
If you’re a freelancer who only needs basic accounting features, then TrulySmall Invoicing is a great option. With this software, you can store data, track invoice statuses, set up automatic payment reminders, and use professional templates.
For $20 per month (or $18 per month with annual billing), you can access TrulySmall’s accounting plan, which allows you to send invoices, track income, generate reports, track sales and sales tax, accept payments, and track expenses.
TrulySmall free accounting software is ideal for small businesses and freelancers who only need the basics. However, keep in mind that the free plan has very limited accounting features. If you need phone and email support, you’ll need to upgrade to the paid TrulySmall Accounting plan.
One of the benefits of TrulySmall Invoicing is that it works with multiple currencies, which is great if you work with clients from around the world. Additionally, there is chat support available if you have any questions or issues.
Overall, TrulySmall Invoicing is a solid choice for freelancers who need simple accounting features and don’t want to pay for unnecessary extras.
Pros:
- Ideal for small businesses and freelancers
- Chat support
- Works with multiple currencies
Cons:
- Very limited accounting features with a free plan
- Need its paid TrulySmall Accounting plan for phone and email support
Best for Ease of Use
Wave Accounting
Wave Accounting is a free cloud-based accounting software that is perfect for businesses looking for an easy-to-use accounting software. Its interface is similar to Mint, making it easy to navigate and use. With Wave, you can easily track income and expenses, send invoices, track sales tax, and create reports. Additionally, you can run multiple businesses from the same account and collaborate with unlimited partners and accountants.
Paid plans start at $20 per month and include features such as invoicing, receipts, payment tracking, and double-entry bookkeeping. Wave Payroll, a feature that allows you to pay employees, is also available.
Pros:
- Clean UI
- Cloud-based
- Includes an invoicing app for iOS and Android
Cons:
- No support (only through a knowledge base or its bot)
- American Express credit card processing fee isn’t as competitive
Overall, Wave Accounting is an excellent choice for businesses that are looking for a simple and easy-to-use accounting software. Its clean UI and cloud-based system make it a great option for those who want to streamline their accounting processes. However, the lack of support and higher American Express credit card processing fee may be a drawback for some businesses.
Methodology
To identify the best free accounting software for your small business, several factors were considered. These factors include features, customer reviews, and value. Each feature was assigned a weighted score, and the companies were ranked based on these scores.
The prioritized features for small businesses were invoicing, time tracking, and expense tracking. The ease of use of the software was also considered, including its availability on multiple platforms and user-friendly interface.
Customer reviews were analyzed to determine whether the software lived up to its marketing promises. This was done to ensure that the software is reliable and effective in its functionality.
Finally, the value of the service was evaluated. Although the software is free, it requires an investment of time to learn and use. Therefore, it was essential to determine whether the software is worth the time investment.
Based on these factors, the best free accounting software for your small business was identified. The software that ranked the highest based on these factors will provide you with the most value and help streamline your accounting processes.
How To Choose Free Accounting Software
When selecting free accounting software, it’s essential to consider your business needs. Determine the features that are important to you, such as time tracking, invoicing, and customer support, and then search for software that offers those features.
Ease of use is another crucial factor to consider. Accounting software can be complicated, so you’ll want to find software that is easy to use and install. Cloud-based software is often the most user-friendly and accessible on multiple platforms.
Customer reviews are also essential to consider. Pay attention to both positive and negative reviews to get a balanced picture of each software. Look for software that offers customer support to rectify any issues.
To help you make an informed decision, we’ve compiled a table of some popular free accounting software options, their features, and customer ratings:
| Software | Features | Customer Ratings |
|---|---|---|
| Wave | Invoicing, expense tracking, receipt scanning | 4.5/5 |
| ZipBooks | Invoicing, time tracking, project management | 4.7/5 |
| GnuCash | Double-entry accounting, budgeting, investment tracking | 4.4/5 |
| Manager | Invoicing, expense tracking, bank reconciliation | 4.6/5 |
Consider your business needs and the features offered by each software when selecting the best free accounting software for your business.
Frequently Asked Questions (FAQs)
What is accounting software?
Accounting software is a tool designed to help businesses manage their finances. It allows you to track your income and expenses, generate invoices, and create financial reports. Some accounting software even offers additional features like payroll management and mileage tracking.
Is free accounting software really free?
Yes, free accounting software is completely free to use. However, some companies may offer premium plans that include additional features for a fee. Be sure to read the fine print before signing up for any paid plans.
What features are important in free accounting software?
When looking for free accounting software, it’s important to consider features that are essential for small businesses. Invoicing, time tracking, and expense tracking are all important features to look for. Additionally, you’ll want to find software that is easy to use and available on multiple platforms.
Do I need accounting software for my small business?
If you want to save time and money, then yes, you should consider using accounting software for your small business. It can automate many of the tedious tasks associated with bookkeeping, such as invoicing, tracking payments, and preparing reports. This frees up your time so you can focus on running your business. Additionally, software can help keep your books in compliance.
Is accounting software secure?
Leading accounting platforms offer standard security features like data encryption and secure credential tokenization. While no system is 100% foolproof, you can be confident that your information is safe with reputable accounting software providers. Always be sure to follow best practices for keeping your login credentials and other sensitive information secure.
What are the top free accounting software options for small businesses?
As a small business owner, you may be looking for free accounting software that can help you manage your finances without breaking the bank. Some of the top options available include Wave, ZipBooks, and GnuCash. All of these software options offer basic accounting features such as invoicing, expense tracking, and financial reporting.
Is there a free accounting software that is open-source and customizable?
If you’re looking for a free accounting software that is open-source and customizable, then GnuCash is a great option. It is a free, open-source accounting software that can be customized to meet your specific business needs. GnuCash is available for Windows, Mac, and Linux operating systems.
Can I manage my personal finances with a free accounting tool?
Yes, there are several free accounting tools available that can help you manage your personal finances. Some of the top options include Mint, Personal Capital, and GnuCash. These software options offer features such as budgeting, expense tracking, and investment tracking.
Are there any free accounting solutions that offer lifetime access without fees?
While most free accounting software options offer lifetime access, some may come with hidden fees or limitations. It’s important to read the terms and conditions carefully before signing up for any software. Some of the top free accounting software options that offer lifetime access without fees include Wave and GnuCash.
What is the simplest free accounting software for non-accountants?
If you’re not an accountant and are looking for a simple free accounting software option, then Wave is a great choice. It offers a user-friendly interface and features such as invoicing, expense tracking, and financial reporting. ZipBooks is another option that is easy to use and offers basic accounting features.
Does any free accounting software support offline functionality?
Yes, some free accounting software options do support offline functionality. GnuCash is one such option that allows you to work offline and sync your data later. It’s important to note that not all free accounting software options offer offline functionality, so be sure to check the software’s features before choosing one.
Next Up In Accounting
As the world of finance continues to evolve, so does the field of accounting. Here are some of the latest trends and developments to keep an eye on:
- Increased use of automation and artificial intelligence in accounting processes, including bookkeeping, auditing, and data analysis.
- Growing importance of sustainability and environmental, social, and governance (ESG) reporting, as more companies prioritize responsible business practices.
- Expansion of cloud-based accounting software, allowing for remote access and collaboration.
- Emphasis on data security and privacy, with the implementation of stricter regulations such as the General Data Protection Regulation (GDPR) in the European Union.
- Continued shift towards real-time financial reporting, providing more accurate and up-to-date information for decision-making.
Staying up-to-date with these trends can help you stay ahead in the field of accounting and better serve your clients or organization.
