Accounting software ranges from completely free to $150+/month. This guide ranks the most affordable options that handle invoicing, expense tracking, bank reconciliation, and tax preparation.
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1. Wave - $0 (Completely Free)
Wave $0 - Best Free
Wave is 100% free for accounting, invoicing, and receipt scanning with no user limits. They monetize through payment processing fees only. For businesses that want real double-entry accounting without paying anything, Wave is the answer.
- Free: Full accounting, invoicing, receipt scanning, unlimited users
- Payments: 2.9% + $0.60 per credit card transaction
2. Zoho Books - $0 (Under $50K Revenue)
Zoho Books $0 - $15/mo
Zoho Books offers a free tier for businesses with annual revenue under $50,000. Includes invoicing, expense tracking, and bank feeds. Standard plan at $15/mo adds recurring invoices, bills, and vendor management.
- Free: Under $50K revenue - invoicing, expenses, bank feeds
- Standard: $15/mo - recurring invoices, bills, projects
3. QuickBooks Self-Employed - $15/mo
QuickBooks SE $15/mo
QuickBooks Self-Employed is designed for freelancers and sole proprietors. Automatic tax categorization, mileage tracking, and TurboTax integration make tax prep simple. Not as full-featured as QuickBooks Online but much cheaper.
- Tax categories: Auto-sorts expenses for Schedule C
- Mileage tracking: GPS-based deduction tracking
4. Xero Starter - $15/mo
Xero Starter $15/mo
Xero's Starter plan at $15/mo covers 20 invoices and 5 bills per month. The Standard plan at $30/mo removes limits. Xero's interface is modern and the bank reconciliation is among the best.
- Starter: $15/mo - 20 invoices, 5 bills, bank reconciliation
- Standard: $30/mo - unlimited invoices and bills
5. FreshBooks Lite - $17/mo
FreshBooks $17/mo
FreshBooks is the best invoicing-focused accounting tool. At $17/mo for 5 billable clients, it is pricier than alternatives but the invoicing experience is worth it if you bill clients regularly.
- Lite: $17/mo - 5 clients, invoicing, expense tracking, time tracking
- Plus: $30/mo - 50 clients, proposals, recurring invoices
Pricing Comparison
| Software | Price/Month | Free Tier | Invoicing | Bank Feeds |
|---|---|---|---|---|
| Wave | $0 | Everything | Unlimited | Yes |
| Zoho Books | $0 - $15 | Under $50K | Unlimited | Yes |
| QuickBooks SE | $15 | Trial | Basic | Yes |
| Xero | $15 | Trial | 20/month | Yes |
| FreshBooks | $17 | Trial | 5 clients | Yes |
Bottom Line
Wave is the cheapest real accounting software - it costs literally nothing and includes everything a small business needs. Zoho Books is free if you are under $50K revenue. For US freelancers who want easy tax prep, QuickBooks Self-Employed at $15/mo pays for itself at tax time.
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