Top Low-Cost Bookkeeping Software Options for Small Businesses in 2025

For any small business owner, keeping track of money coming in and going out is a big deal. But let's be real, who wants to spend hours on spreadsheets or pay a ton for an accountant? Luckily, in 2025, there are plenty of low cost bookkeeping software options out there that can make managing your finances way easier. We've looked at some of the best budget-friendly choices to help you find the perfect fit for your business without breaking the bank.

Key Takeaways

• Many bookkeeping software options are available for small businesses, even if you're on a tight budget.
• Some software is free, while others have low monthly fees, making professional financial tracking accessible.
• Look for features like invoicing, expense tracking, and basic reporting to cover your main needs.
• The best choice depends on your business size and how complex your financial tasks are.
• Choosing the right low cost bookkeeping software can save you time and stress, letting you focus on growing your business.

1. QuickBooks Online

QuickBooks Online is a big name in the bookkeeping world, and for good reason. It's been around for a while, and lots of small businesses use it. It's got a ton of features, but that can also make it a bit overwhelming at first. Still, it's a solid choice if you need something that can handle a lot. QuickBooks Online is often praised for its easy-to-use design, making it simple to manage your finances, even if you don't know much about accounting.

One thing to keep in mind is that QuickBooks Online can get pricey as you add more features or users. So, while it might seem affordable at first, the costs can add up. Make sure you compare QuickBooks plans to see what fits your budget and business needs.

I remember when I first started using QuickBooks Online. It took me a bit to get used to all the different sections, but once I figured it out, it made things so much easier. I could track my income, expenses, and even create invoices all in one place. It definitely saved me a lot of time and headaches.

Here are some of the things that make QuickBooks Online stand out:

• Comprehensive Features: It offers a wide range of tools, from basic bookkeeping to advanced reporting.
• Scalability: It can grow with your business, allowing you to add more users and features as needed.
• Integration: It integrates with many other popular business apps, making it easy to connect your financial data with other systems.

2. FreshBooks

FreshBooks is a popular choice, especially for freelancers and service-based businesses. It's known for its user-friendly interface and focus on invoicing and time tracking. I remember when my cousin started her freelance writing business; she was drowning in spreadsheets until she switched to FreshBooks. It really simplified things for her.

FreshBooks excels at making financial management less intimidating for those who aren't accounting experts.

Here's a quick look at some of its strengths:

• Easy invoicing: Creating and sending professional invoices is a breeze.
• Time tracking: Accurately track your time spent on projects.
• Expense management: Keep tabs on your business expenses.
• Project management: Organize projects and collaborate with clients.

FreshBooks is a solid option if you need something straightforward and easy to learn. It might not have all the bells and whistles of some of the more complex accounting software, but it covers the essentials well.

However, it's worth noting that some users find the reporting features a bit limited compared to other platforms. Also, the cost can increase as you add more features or users. It's always a good idea to compare accounting software trends to see what fits your specific needs and budget.

3. Xero

Xero is another popular choice for small business owners looking for cloud-based software. It's known for its user-friendly interface and comprehensive features, making it a strong contender in the accounting software market.

It's not the cheapest option out there, but it offers a good balance of features and affordability, especially if you're looking for something that can scale with your business. Xero's also got a pretty robust app marketplace, so you can integrate it with a bunch of other tools you might already be using.

Xero's interface is pretty clean and easy to get used to, which is a big plus if you're not an accountant by trade. It handles all the basics like invoicing, bank reconciliation, and reporting, and it does it all pretty well. Plus, their customer support is generally pretty responsive, which is always a good thing when you're dealing with financial stuff.

Here's a quick rundown of some of the things Xero does well:

• Invoicing: Create and send professional invoices easily.
• Bank Reconciliation: Connect your bank accounts for automatic reconciliation.
• Reporting: Generate financial reports to track your business performance.
• Inventory Management: Keep track of your stock levels (available in some plans).

While Xero is a solid choice, it's worth comparing its pricing and features with other options to see what fits your specific needs. Some users find the pricing a bit confusing, so make sure you understand what you're getting before you commit.

4. Wave

Wave is often the first name that comes up when people talk about free accounting software. And for good reason! It's designed specifically for small businesses and freelancers, making it pretty user-friendly. I remember when my cousin started her freelance writing business, she was super stressed about bookkeeping. I told her to check out Wave, and it really helped her get organized without spending a dime.

The core accounting features are free, which is a huge plus if you're just starting out and trying to keep costs down. You can track income and expenses, create invoices, and manage your chart of accounts without paying a monthly fee. They do charge for payment processing and payroll, but the basic accounting stuff is totally free. It's a solid option if free accounting software is what you're after.

Wave's free plan is great for very small businesses, but it might not scale as your business grows. You might eventually need to upgrade to a paid plan or switch to a different software with more advanced features.

Here's a quick rundown of what Wave offers:

• Free accounting, invoicing, and banking
• Payment processing (fees apply)
• Payroll services (fees apply)
• User-friendly interface

5. Zoho Books

Zoho Books is another solid option for small business owners looking to keep costs down. It's part of the larger Zoho ecosystem, which can be a real plus if you already use other Zoho products like their CRM. The integration between Zoho apps is generally pretty smooth, which can save you time and hassle. Zoho Books is known for its affordability and ease of setup.

Here's a quick rundown of some things to consider:

• It's cloud-based, so you can access it from anywhere.
• It offers features like invoicing, expense tracking, and project management.
• It integrates with over 45 Zoho applications.

One thing to keep in mind is that while Zoho Books is a great tool, it might require some extra setup if you're in Canada, specifically for taxes. Since Zoho isn't a Canadian company, you might need to customize it a bit to make sure you're handling GST/HST correctly. But overall, it's a pretty user-friendly system.

Zoho Books offers plans with access for up to three users, allowing 5,000 invoices and expenses annually. Users can also remove Zoho branding from invoices. If you're looking for a business accounting tool that plays well with others, Zoho Books is worth checking out.

6. Sage

Sage is a pretty well-known name in the accounting world, and for good reason. They've been around for a while, and they have a range of products aimed at different business sizes. It's not always the flashiest option, but it's generally reliable.

Sage can be a solid choice if you're looking for something with a bit more depth than the super basic options. It's often used by larger small businesses that need more robust reporting and inventory management. I know a few people who swear by it, but it can have a steeper learning curve than something like Wave or ZipBooks.

One thing I've heard is that Sage's customer support is pretty good, which is a big plus if you're not an accounting whiz. They also have a decent community forum where you can find answers to common questions. It's worth checking out if you're on the fence.

Here's a quick rundown of some things to consider:

• Sage offers different plans, so you can scale as your business grows.
• It integrates with a bunch of other business tools, which is always helpful.
• Sage 50 Accounting Review is available if you want to learn more.

7. Kashoo

Kashoo is another option worth considering, especially if you're after something straightforward. It's designed to be easy to use, focusing on the essentials without overwhelming you with features you might not need. It's like that reliable car that always gets you from point A to point B not flashy, but dependable.

Kashoo might be a good fit if you're just starting out and want to keep things simple. It handles the basics well, and the pricing is pretty competitive. However, if your business grows and you need more advanced features, you might find yourself needing to switch to something else down the road.

Here's a quick rundown of what Kashoo brings to the table:

• Simple invoicing
• Basic expense tracking
• Bank reconciliation
• Financial reporting

While it's not packed with all the bells and whistles of some of the bigger players, Kashoo can be a solid choice for small businesses that need budget-friendly accounting software.

8. TrulySmall

TrulySmall is an interesting option, especially if you're a Canadian small business owner. It's designed with Canadian regulations in mind, which can be a big plus. I remember when my cousin started her bakery; she struggled to find software that properly handled Canadian taxes. Something like TrulySmall could have saved her a lot of headaches.

Here's a quick rundown of what makes TrulySmall stand out:

• Built specifically for Canadian small businesses, which means it handles GST/HST and other Canadian-specific tax requirements.
• Offers different plans to fit various business sizes and needs. You can start with a basic plan and upgrade as you grow.
• Allows you to add team members, making collaboration easier.

I think the biggest advantage of TrulySmall is its focus. It's not trying to be everything to everyone. It's laser-focused on the Canadian market, and that shows in its features and support.

It's worth checking out if you're looking for affordable accounting software tailored to your specific needs as a Canadian business.

9. ZipBooks

ZipBooks is another option that's worth considering, especially if you're just starting out and want something simple. It's designed to be user-friendly, and they do offer a free plan, which is always a plus. However, keep in mind that the free plan has limitations, so you might need to upgrade as your business grows. I remember when I first started my side hustle, I was all about finding free accounting software, and ZipBooks was definitely on my radar.

Here's a quick rundown:

• Free Plan: Offers basic features like invoicing and expense tracking.
• User Interface: Clean and intuitive, making it easy to navigate.
• Paid Plans: Unlock more advanced features as needed.

One thing to consider is that some users have mentioned that ZipBooks' customer support isn't always the most responsive. So, if you anticipate needing a lot of help, this might be something to keep in mind. Also, while the interface is clean, it might feel a bit too basic for businesses with more complex accounting needs.

Overall, ZipBooks is a solid choice for very small businesses or freelancers who need a simple and affordable bookkeeping solution.

10. OneUp

OneUp is interesting because it tries to be more than just accounting software. It aims to be a central dashboard for many business operations. It's got a decent rating on G2Crowd review site, so people seem to like it. Let's take a closer look.

One thing that stands out is its focus on integrating different aspects of your business into one platform. Instead of using separate tools for CRM, inventory, and accounting, OneUp tries to bring it all together. This could be a big time-saver if it works well for your business.

Here are a few things to consider about OneUp:

• It might be a good fit if you're looking for an all-in-one solution.
• The pricing can vary, so check their website for the most up-to-date information.
• It's worth reading reviews to see if it integrates well with the other business operations you use.

OneUp is trying to be a one-stop shop for small businesses. It's worth checking out if you're tired of juggling multiple software programs. The idea of having everything in one place is appealing, but make sure it actually simplifies things for you and doesn't just add more complexity.

Picking the Right Bookkeeping Software for Your Business

So, there you have it. Finding the right low-cost bookkeeping software for your small business in 2025 doesn't have to be a headache. It's all about figuring out what your business really needs. Do you send a lot of invoices? Need to track inventory? Or maybe you just want something super simple to keep tabs on your spending? The good news is, there are plenty of solid options out there that won't break the bank. Take some time to look at a few, maybe even try out a free trial if they offer one. You'll find the one that fits just right, helping you keep your finances in order without all the stress.

Frequently Asked Questions

Which bookkeeping software is best for a small business?

The right accounting software depends on your business. For service-based businesses or freelancers, FreshBooks is a great choice. If you have more complex accounting needs, like managing inventory, QuickBooks Online is usually better. Wave is a good free option for very small businesses.

How much does good bookkeeping software cost?

Many top accounting software options offer different price plans. Some, like Wave, even have free versions that cover basic needs. Others, such as Zoho Books, start at very affordable rates, like $15 a month. The cost usually goes up if you need more advanced features or support for more users.

Are there any free bookkeeping software options for small businesses?

Yes, there are free choices! Wave is a popular one that offers basic accounting features without a monthly fee. It's especially good for freelancers and very small businesses just starting out.

What does bookkeeping software actually do?

Bookkeeping software helps you keep track of all your money. It lets you send bills to customers, record what you spend, and see how much money you have. This makes it easier to understand if your business is making a profit and helps with preparing taxes.

How do I choose the best bookkeeping software for my business?

When picking software, think about what your business needs. Do you sell products or offer services? How many people will use the software? Look for features like easy billing, tracking expenses, and if it can connect with other tools you use. Also, check if it's simple to use and if they offer good help if you get stuck.

Why should I use bookkeeping software instead of spreadsheets?

Using bookkeeping software saves you a lot of time and helps you avoid mistakes. It keeps all your financial information organized in one place, so you always know where your money is going. This can also make tax time much less stressful because everything is already tracked.