The Best Cloud Accounting Software
We researched and tested the best online accounting software for small businesses and mid-sized companies. Read our results below.
- Customizable payment terms
- No setup costs
- Recurring invoicing
- Hundreds of third-party add-ons available
- Feature sets for multiple industries
- Highly customizable
- Customizable invoicing
- Extensive pre-built and custom reports
- Automatic exchange rates
Web-based accounting software helps small businesses and medium-sized companies complete financial tasks from any device with an internet connection.
We used our advanced review methodology to test the most popular online accounting software for features like invoicing, reporting, and payment processing.
- FreshBooks: Best Overall
- NetSuite: Best ERP System
- QuickBooks Online: Best for Small Businesses
1 FreshBooks - Best Overall
Why We Chose It: After a test run of FreshBooks, we found it best overall due to its strong invoicing features. These allow users to easily create, customize, and send invoices, set up recurring schedules, and accept online payments. We like that the platform supports online payments via FreshBooks Payments, accepting major credit cards and Apple Pay at a rate of 2.9% + $0.30 per transaction.
In 2024, FreshBooks introduced several enhancements, including a partnership with Gusto for FreshBooks Payroll. This allows U.S. businesses to handle payroll, tax filings, and labor compliance within the platform. Additionally, FreshBooks integrates with over 100 third-party apps, though point-of-sale integration options are limited.
Pricing starts at $19 per month for five billable clients. While this might be an attractive entry point for many, our free trial of FreshBooks revealed limited inventory management and report customizations. We also wish there was an option for bulk invoicing.
2 NetSuite - Best ERP System
Why We Chose It: Our research into NetSuite has shown it’s a solid ERP system with strong accounting capabilities. In terms of general ledger management, NetSuite offers customizable charts of accounts, financial period close flexibility, multi-currency support, and automated bank reconciliation.
Cash management in NetSuite is another feature that caught our attention. The platform offers clear visibility into bank and credit card data to help forecast cash flow. Additionally, it consolidates financials for multi-company environments and generates graphical dashboards for revenue trends, profit margins, and accounts receivable and payable.
While we found NetSuite offers advanced tools and capabilities beyond many cheaper alternatives, the UI can be quite busy and might require some time to navigate effectively. Additionally, business owners may need to engage a consultant to leverage NetSuite’s extensive features fully.
3 QuickBooks Online - Best for Small Businesses
Why We Chose It: Our test run of QuickBooks Online showed efficient invoicing capabilities, helping small businesses get paid quicker and maintain healthy cash flows. We like that the platform provides pre-designed invoice templates, allowing small companies to reinforce their brand identity through varying layouts, logos, colors, and fonts.
QuickBooks Online also has many features to simplify billing, including mobile optimization, payment buttons, recurring invoices, and reminders. We also like that it syncs with popular payment gateways like Stripe, Square, and PayPal, with varying transaction fees. Users can also integrate QuickBooks Payments, with a variable fee of 1-3.5% per transaction.
However, our research also revealed some considerations for potential users. QuickBooks’ pricing, which ranges from $30 to $90 per month, can be cost-prohibitive for very small teams and freelancers. Like most cloud-based accounting software, it operates on a subscription-based pricing model. These expenses can add up over time, especially as businesses scale and require additional features.
4 Odoo
Why We Chose It: During our test run of Odoo Accounting, we explored an extensive feature set covering accounts payable and receivable, bank synchronization, and reporting. We also like Odoo’s tax report module, which extends the accounting app’s functionality. It allows for easy pre-configuration of taxes and reports based on your fiscal localization package.
In terms of accounting capabilities, Odoo includes features like easy cost tracking, recurring invoice management, and auto-synchronization of bank feeds. It supports multiple currencies and payment methods like credit cards, digital wallets, and online banking. Odoo connects with over 15,000 banks worldwide, making transaction management simpler.
When we created an invoice in Odoo, we found the form layout counterintuitive, especially on a mobile device. We also thought the bank reconciliation layout was confusing – line items aren’t presented in a direct one-to-one comparison.
5 Xero
Why We Chose It: We tested Xero’s free trial and found it user-friendly. It presents outstanding invoices and upcoming bills in a clear, tabular format. It also provides in-app guidance for accounting beginners, along with extensive videos and guides on best practices. Xero doesn’t have a built-in payment gateway, but it does integrate with over 1,000 apps, including Square, PayPal, Venmo, Apply Pay, and Google Pay.
We like that Xero has over 50 pre-built report templates, covering financial statements like profit and loss, balance sheet, aged receivables/payables, and cash flow. It also enables users to edit report layouts, filters, and parameters. Invoice customization is slightly limited compared to QuickBooks Online or FreshBooks – you can only make content changes and minor tweaks to page margins, fonts, logos, columns, and fields.
Unlike competitors, Xero has no user cap, allowing unlimited users per subscription. However, the basic plan lacks multi-currency support and bulk reconciliation features, which can inconvenience businesses with high transaction volumes. Additionally, the basic plan imposes limits on invoices and bills.
6 Sage Intacct
Why We Chose It: Sage Intacct’s AI-powered accounting and ERP capabilities impressed us with their ability to support growth from the get-go and scale alongside a business. This adaptability is useful for businesses at different stages of growth, offering automated accounts payable and a general ledger equipped with anomaly detection.
We appreciated Intacct’s sophisticated general ledger, which includes a multidimensional chart of accounts. This feature helps manage intricate financial operations across multiple entities, best for international organizations. The real game changer is the ability to merge data, manage currency conversions, and generate consolidated reports without waiting for month-end closings.
Intacct provides editable invoice templates in Microsoft Word format and integrates with payment processors like Paya and EBizCharge to accept credit card, debit card, and eCheck payments. However, you’ll need the help of a value-added reseller or VAR for implementation, support, and customizations. VARs offer industry knowledge and local expertise, but their quality and costs can vary.
7 Zoho Books
Why We Chose It: When testing Zoho Books, we were drawn to its automated report generation feature. It schedules and emails reports at predetermined intervals, with over 50 financial reports like aging summaries, balance sheets, and profit and loss statements. We also like that Zoho Books offers 16 customizable invoice templates – it even has the option to create custom HTML templates and schedule recurring invoices for repeat clients.
Unlike Xero, FreshBooks, or QuickBooks Online, Zoho Books offers a free plan for one user and one accountant. However, it doesn’t have a built-in payment gateway, so you’ll need to integrate with third-party services. We also found Zoho apps quite interdependent; if you need more than just Zoho Books and Zoho Inventory, you’re better off getting the Zoho One bundle for full functionality.
8 AccountingSuite
Why We Chose It: During our demo of AccountingSuite, we found it well-equipped to handle cloud banking. It syncs with over 15,000 banks and credit card institutions and automatically downloads transactions. Additionally, we found bank reconciliations easy, and we liked that you can manage transfers and payments directly from within the software. This includes transferring funds between accounts and making payments to vendors.
AccountingSuite offers a seamless billing process, automatically updating inventory records and making adjustments during invoicing. You can personalize your invoices to fit your business’s branding and style. These templates also support custom product fields, promise dates, and dropship specifications.
However, we noticed some areas for improvement. The UI could be streamlined by reducing dropdowns and extra windows, making navigation smoother. There’s also no mobile app. When we accessed the demo version of the site on a smartphone, font sizes were small and some links were unresponsive.
9 Striven
Why We Chose It: Our live demo of Striven showed a well-integrated ERP system with solid accounting tools. It includes features like AP/AR, revenue tracking, online banking, and general ledger. We found Striven useful for global operations with support for multi-currency transactions inherent in its system.
Striven can generate a wide span of financial reports, including cash flow, balance sheets, and profit and loss statements. It can also generate custom reports, automate invoicing, send reminders, and manage vendor bills electronically. However, Striven might not be the best fit if your company needs complex tax calculations or advanced budgeting and forecasting support.
10 Multiview ERP
Why We Chose It: After reviewing Multiview ERP, we found it to be a full ERP system ideal for medium to large businesses. It offers customizable invoice templates and includes essential elements like item descriptions, payment terms, costs, and deadlines.
Multiview’s general ledger module enables users to generate tailored reports for in-depth analysis across various dimensions such as time, cost, and product performance.
However, we found a few drawbacks during our research. For example, some users have reported the implementation process is time-consuming and challenging, even with support from Multiview. Additionally, you’ll need to consult Multiview Corporation directly for specific pricing details.
What Is Online Accounting Software?
Online accounting software is a type of application hosted on remote servers providing financial tools like billing, invoicing, and reporting.
Unlike offline, on-premises solutions, cloud accounting tools are not installed or maintained on individual desktop computers. They operate under a Software as a Service (SaaS) model, meaning users can access and use the software via the internet, often through a web browser.
Key Features
| Feature | Description |
|---|---|
| Online Invoicing and Billing | Automates the billing process, allowing for creating, sending, and managing invoices online. |
| Financial Reporting and Analysis | Generates detailed financial reports such as profit and loss, balance sheets, and cash flow statements, offering insights into financial performance. |
| Expense Tracking | Enables tracking and categorizing business expenses, making monitoring spending and managing finances easier. |
| Bank Reconciliation | Automatically syncs with bank accounts and credit cards to match transactions for accurate financial records. |
| Tax Preparation and Compliance | Helps prepare tax returns and ensures compliance with laws by keeping up-to-date with the latest tax rates and regulations. |
| Multi-user Access | Allows multiple users to access financial data simultaneously, with customizable permission levels to maintain security and control. |
| Data Security and Backup | Provides security measures, including encryption and backups, to protect financial data from unauthorized access and loss. |
| Integration with Other Tools | Offers integration with various business tools and systems such as payroll, CRM, and eCommerce platforms. |
| Mobile Access | Includes mobile apps or mobile-friendly web interfaces to manage finances on the go. |
| Payment Processing | Facilitates the acceptance and processing of online payments directly within the software, supporting various methods such as credit cards, bank transfers, and digital wallets. |
Benefits
- Accessibility: Being cloud-based, accounting software allows users to access financial data and tools from anywhere with an internet connection, facilitating remote work and business management on the go.
- Cost Efficiency: Typically reduces upfront costs associated with traditional software, such as installation and maintenance fees, since the cloud provider manages these aspects.
- Scalability: Easily scales with the growth of a business, offering flexible plans and features that can be adjusted as business needs change.
- Real-Time Data: Offers live financial information, allowing for timely decision-making.
- Data Security: Often provides high levels of security and regular backups, safeguarding against data loss and unauthorized access, although the level of security can vary between providers.
- Automatic Updates: Software updates are automatic and managed by the service provider, ensuring access to the latest features and security enhancements without additional effort or cost.
Drawbacks
- Dependence on Internet Connectivity: Requires a stable and reliable internet connection for access, which can be a significant limitation in areas with poor connectivity.
- Ongoing Subscription Costs: While initial costs may be lower, the subscription-based pricing model can become a recurring expense that adds up over time.
- Data Security Concerns: Despite high-security standards, storing sensitive financial data on external servers can raise concerns about data privacy and control, especially given varying regional regulations.
- Limited Customization: Some cloud accounting solutions may offer less flexibility for customization compared to traditional, on-premises solutions, potentially not meeting specific business needs.
- Learning Curve: Transitioning from traditional accounting practices to cloud-based systems may require staff training and an initial adjustment period.
- Potential for Service Outages: Relies on the service provider’s ability to maintain uptime; any outages or disruptions in the service can temporarily halt access to financial data and tools.
Offline vs. Cloud-based Accounting Software
Offline accounting software differs from cloud-based solutions in many ways:
| Feature | Offline Accounting Software | Cloud-Based Accounting Software |
|---|---|---|
| Accessibility | Limited to devices with the software installed, requiring physical presence or a local network. | Accessible from any device with an internet connection, offering flexibility to work from anywhere. |
| Data Storage | Data is stored locally on the user’s device or an on-site server. | Data is stored on remote servers managed by the software provider. |
| Cost | Often involves a one-time purchase price, with potential additional costs for updates, maintenance, and hardware. | Typically uses a subscription-based model with ongoing fees that cover software updates, maintenance, and storage. |
| Data Backup and Recovery | User’s responsibility, requiring manual setups for backup and recovery processes. | Automatic backups and data recovery services are usually provided, reducing the risk of data loss. |
| Updates and Upgrades | Requires manual downloading and installation of updates; significant upgrades might require additional purchases. | Automatic updates and new features covered by the service provider without additional costs. |
| Collaboration and Sharing | Can be cumbersome, often requiring a local network or physical data transfer for sharing. | Designed for easy collaboration, allowing multiple users to access and work on the same data simultaneously from different locations. |
| Security | Depends largely on local security measures, which might be less robust than those of cloud-based solutions. | High-level security features are typically provided, though there are concerns about data privacy and reliance on the provider’s security measures. |
| Scalability | Scaling up may require hardware upgrades or additional software licenses. | Easily adjusts to business growth, with flexible subscription plans to accommodate more users, storage, or features. |
Pricing
Online accounting software pricing can vary widely based on several factors, reflected in the monthly subscription rates that range from as low as $9 to upwards of $375 per user. This is influenced by various elements like user count, required functionality and features, and the scale of business operations.
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For smaller setups, typically involving 1 to 4 users, the monthly cost can be anywhere between $10 and $999. Cloud-based accounting software for small businesses covers features from simple bookkeeping to cash flow forecasting.
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Mid-range options, which accommodate 5 to 9 users, see a further increase in pricing, starting from $15 up to $1,646 per month. This tier introduces more advanced features like financial reporting and greater support for customization.
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For larger enterprises with 10 or more users, costs begin at $24 and can potentially exceed $1,795 monthly. These solutions prioritize scalability, advanced features, specialized support, and integration with other enterprise systems.
FAQs
What is the easiest online accounting software?
Xero and FreshBooks are frequently highlighted for their user-centric design and intuitive functionalities. Xero has a fairly comprehensive feature set, which provides expense management, bank reconciliation, and multi-currency accounting.
FreshBooks, on the other hand, is often praised for its simplicity and focus on small businesses and freelancers. It offers straightforward invoicing, expense tracking, and time management tools.
What is the most-used cloud accounting software?
QuickBooks Online is the most popular cloud accounting software solution, particularly among small to medium-sized businesses and accounting professionals. It offers a suite of features like invoicing, expense tracking, payroll, and reporting.
Its popularity is attributed to its extensive ecosystem of integrations and mobile app. QuickBooks Online’s widespread adoption is also supported by strong brand recognition and a reputation for reliability in the accounting software market.
What web-based accounting software options are free?
Wave Accounting is a free cloud-based accounting app that handles unlimited transactions, multi-currency invoicing, and bank and credit card connections. Another option is ZipBooks, which offers a free starter plan that includes basic invoicing, bookkeeping, and the ability to manage unlimited vendors and customers.
Which online accounting software is best for small businesses?
Small businesses favor QuickBooks Online for its ease of use, cloud-based access, and ability to integrate with over 750 apps like Gusto, Shopify, Expensify, and Salesforce. It makes it easy to share data with accountants, as many are already familiar with the platform. Automatic updates, data backups, and over 100 customizable reports further streamline accounting tasks for small teams.
