Best Accounting Software: QuickBooks, Xero, Wave Accounting, FreshBooks and More Compared
QuickBooks is the safest default, Xero wins for teams, Wave is the best free option, and FreshBooks suits freelancers. Prices compared side by side.
By Galactic News Editorial · Published 2026-11-08T07:22:12+00:00 · Updated 2026-11-08T07:22:12+00:00
Best Accounting Software: QuickBooks, Xero, Wave Accounting, FreshBooks and More Compared
QuickBooks Online is the safest default for most US small businesses. Xero wins for teams that need unlimited users and strong multi-currency support. Wave is the best free option, with real double-entry accounting at $0. FreshBooks suits freelancers who live in invoices. This comparison uses current list prices from each vendor's official pricing page, so you can judge the real cost before the introductory discounts expire.
Best accounting software at a glance
The table below shows entry-level list prices and the limits that shape each plan. Prices are US monthly list rates. Promotional discounts are excluded, because they expire and your books do not.
| Software | Entry price | Mid tier | Top listed tier | Free plan | Best for |
|---|---|---|---|---|---|
| QuickBooks Online | $38 Simple Start | $85 Essentials | $140 Plus, $340 Advanced | No | US small businesses with a QuickBooks accountant |
| Xero | $27 Early | $59 Growing | $97 Established | No | Growing teams, multi-currency, unlimited users |
| FreshBooks | $23 Lite | $43 Plus | $70 Premium | No | Freelancers and service businesses that invoice |
| Wave | $0 Starter | $19 Pro | $19 Pro | Yes | Sole traders who want free bookkeeping |
All four offer a free trial except Wave, which skips trials because its Starter plan is already free. Payroll is a paid add-on everywhere. Card processing fees sit on top of every subscription.
QuickBooks Online: the safe default
QuickBooks Online starts at $38 a month for Simple Start. Essentials costs $85, Plus costs $140, and Advanced costs $340. New subscribers usually see 50% off for the first three months. Budget on the list price, not the discount.
Simple Start covers one user plus accountant access. Essentials adds three users, bill management, multi-currency, and time tracking. Plus adds five users, inventory tracking, project profitability, and budgets. Advanced adds 25 users, workflow automation, and custom reporting. Payroll is a separate add-on.
QuickBooks is the most widely used small business accounting platform in the United States. That matters at tax time. Most accountants already know it. Its reports, bank feeds, and tax categories are built around US rules. The trade-off is price. It costs more than Xero at every comparable tier, and its per-user caps push growing teams up a plan. Prices also rose sharply in 2026, with renewal increases for Essentials, Plus, and Advanced.
Xero: the best for teams and multi-currency
Xero charges $27 a month for Early, $59 for Growing, and $97 for Established. New customers get 80% off for the first three months. Every plan includes unlimited users at no extra cost. That is Xero's biggest edge over QuickBooks. Your accountant, bookkeeper, and team can all work in it without adding to the bill.
Early caps you at 20 invoices and 5 bills a month, with bank reconciliation included. Growing removes those caps and adds unlimited invoices and bills. Established adds multi-currency, expense claims, project tracking, and advanced analytics. Payroll runs through Gusto as a paid add-on in the US.
Xero suits businesses with international clients. Multi-currency support is stronger than QuickBooks at the same price. Its interface is cleaner, and its app marketplace is large. The weak spot is the Early plan's invoice cap. A business sending more than 20 invoices a month needs Growing at $59. That narrows the price gap with QuickBooks fast.
FreshBooks: the best for freelancers who invoice
FreshBooks charges $23 a month for Lite, $43 for Plus, and $70 for Premium. A custom Select tier sits above those. Lite covers up to 5 billable clients. Plus covers 50. Premium covers unlimited clients. Each plan starts with one user. Extra team members cost $11 a month each.
FreshBooks is built around invoicing. It sends polished invoices, tracks time, chases late payments, and records expenses. Its interface is the simplest of the four. That is why freelancers and small service businesses like it. The trade-off is depth. FreshBooks is not a full double-entry accounting system in the way QuickBooks and Xero are. It lacks bank reconciliation on lower plans and has no inventory tracking. A growing business with stock or complex books will outgrow it.
Payroll is available as an add-on at $40 a month plus $6 per employee. Card payments cost 2.9% plus $0.30 per transaction. A 30-day free trial comes with every plan.
Wave: the best free accounting software
Wave's Starter plan costs $0 and includes unlimited estimates, invoices, bills, and bookkeeping records. It is real double-entry accounting, not a stripped-down demo. That makes it the best free option for sole traders and freelancers with simple books.
Pro costs $19 a month, or $190 a year. It adds automatic bank imports, auto-categorization, unlimited receipt capture, late payment reminders, and extra user roles. The Pro fee is charged per business, not per user. Card payments cost 2.9% plus $0.60 per transaction on Starter. Pro drops the fixed fee to $0 for the first 10 card transactions each month. Bank payments cost 1% per transaction, with a $1 minimum.
Wave's costs hide in the add-ons. Payroll costs $40 a month plus $6 per active employee and $6 per contractor paid. Receipt capture on its own costs $11 a month on Starter, or $8 on Pro. Wave Advisors bookkeeping starts at $149 a month. A business taking many card payments pays more in processing fees than it would on a paid plan elsewhere. Still, for a freelancer who invoices a few clients a month, Wave at $0 is hard to beat.
How to choose the best accounting software for your business
Start with how you work, not with price. A freelancer who sends a few invoices a month needs FreshBooks or Wave. A business with employees, stock, or an accountant needs QuickBooks or Xero. A team that shares the books needs Xero's unlimited users. A business with US tax complexity needs QuickBooks.
Check these points before you commit:
- Count your monthly invoices. Xero Early caps at 20. FreshBooks Lite caps at 5 clients.
- Count your users. QuickBooks charges by tier. Xero includes unlimited users.
- Price the add-ons. Payroll and card fees can double the monthly bill.
- Ask your accountant what they use. Switching later costs time and money.
- Use the free trial. Enter a month of real transactions before you pay.
Zoho Books is also worth a look. It offers a free plan and low-cost paid tiers, and it fits businesses already using Zoho's other tools. It was not priced in this comparison because its US list prices change often. Check its pricing page before deciding.
Bottom line
There is no single best accounting software for every business. QuickBooks Online is the best all-round choice for US small businesses, starting at $38 a month. Xero is the best pick for teams and multi-currency work, starting at $27 a month with unlimited users. FreshBooks is the best invoicing tool for freelancers, starting at $23 a month. Wave is the best free option, with real accounting at $0 and Pro at $19 a month. Match the tool to your invoice volume, your team size, and your accountant. Then trial it with real data before you commit.