Small Business Field

Core operating stack · Accounting

Accounting software for small business: what fits one person, a small team or fifty staff

Researched and written by SmallBusinessField Editorial · T1 · sources checked

Short answer. If it is just you, Wave’s free Starter plan or FreshBooks (if you bill time) is enough. Once two to ten people touch the books, Xero’s plans carry no per-user fees and QuickBooks Online is what most accountants know. Between 11 and 50 staff, user limits start to matter: QuickBooks Online Advanced allows 25 users, and Zoho Books is the lower-cost route if you already use Zoho apps.

Pick by the size of your business

Just you

Owner does the books, few transactions

Wave

Wave’s Starter plan costs nothing and covers invoices, bills and bookkeeping records.

Just you

Freelancer or consultant billing time

FreshBooks

FreshBooks turns tracked time and expenses into invoices, with accounting underneath.

2–10 people

Owner plus staff or an outside bookkeeper

Xero

Xero has no per-user licence fees, so adding a bookkeeper or manager does not add cost.

11–50 people

Several people approving, reporting by location or class

QuickBooks Online

QuickBooks Online Plus allows 5 users and Advanced 25, with classes and locations for reporting.

The options, and what each one costs you in effort

Just you, lowest cost

Wave

Light setupFree planJust you · 2–10 people

Free Starter plan with unlimited invoices and bills; Pro adds bank imports, receipt capture and user roles.

You give up: Bank import and receipt capture need Pro, and it is not built for teams with approvals.

When you grow: Starter (free) → Pro; payroll and advisers are add-ons.

Just you, billing for time

FreshBooks

Light setupFree trialJust you · 2–10 people

Invoices are built from tracked time and expenses; projects and proposals sit alongside accounting.

You give up: Lite caps billable clients, and it is weaker for product businesses with stock.

When you grow: Lite → Plus → Premium → Select as clients and team grow.

Small team sharing the books

Xero

Some setupFree trial2–10 people · 11–50 people

No per-user licence fees, bank feeds, bills with payments, projects and expense claims.

You give up: The entry plan caps invoices and bills each month.

When you grow: Growing and Established plans remove the entry plan’s invoice and bill caps.

The default most accountants know

QuickBooks Online

Some setupFree plan + trialJust you · 2–10 people · 11–50 people

Plans from a single user up to 25 users with classes and locations, and the largest pool of accountants and apps.

You give up: User caps per plan push growing teams up the tiers.

When you grow: Plan tiers add users, inventory and classes/locations; Advanced is the ceiling before an ERP.

Lower cost, especially inside Zoho

Zoho Books

Some setupFree plan + trialJust you · 2–10 people · 11–50 people

Free plan for micro businesses and tiers that add inventory and automation, with free migration from QuickBooks advertised.

You give up: Fewer accountants work in it day to day.

When you grow: Free plan for micro businesses, then tiers up to inventory, projects and automation.

Worksheet

ProductSmallest practical teamSetupUsersLocationsTry firstPricing modelData out
Wave1 personLight setup: Starter is free; bank import and receipt capture come with Pro.Multiple user roles on Pro—Free planFree coreStandard exports
FreshBooks1 personLight setup: Built around invoices, time and expenses; accounting reports sit underneath.Team members on higher plans; Lite limits billable clients—Free trialPlan tiersReport exports; “Easy Switch” transfer help
Xero2+ people sharing the booksSome setup: Bank feeds and invoicing first; apps from the Xero App Store fill gaps.No per-user licence fees on plansNot statedFree trialPlan tiersStandard report and list exports
QuickBooks Online1 personSome setup: Bank connections, chart of accounts and sales tax; most accountants already know it.1 user on Simple Start, 5 on Plus, 25 on AdvancedHigher plansFree plan + trialPlan tiersStandard report and list exports
Zoho Books1 personSome setup: Straightforward alone; most value when paired with other Zoho apps.Users increase by tierNot statedFree plan + trialPlan tiersImport/export; QuickBooks migration offered

“Not stated” means the vendor pages we checked do not say, not that the feature is missing. Check current prices on each vendor’s pricing page.

Signs you are outgrowing your current setup

  • You run several legal entities and consolidate them in spreadsheets.
  • Month-end close takes days and depends on one person’s workbook.
  • You need approvals, purchase orders or inventory costing that plans do not cover.

How size changes the decision

For one person, accounting software mostly needs to send invoices, record expenses and produce numbers your tax preparer can use. With staff, the questions become who can see and change what, and whether adding people costs more. Past twenty or so staff, reporting by department or location and an accountant-friendly audit trail matter more than the price of the plan.

Before you choose

  • Ask your accountant or bookkeeper which system they prefer; their time is usually your biggest accounting cost.
  • Check that your bank, payment processor and payroll connect.
  • Start at a month or quarter end so your opening balances are clean.

Exact plan prices change often; check each vendor’s pricing page. For replacing a system you already use, see a dedicated alternatives guide; for software chosen by profession, see a profession-specific guide.

Sources

SourceUsed forChecked
WaveWave: Starter and Pro
FreshBooksFreshBooks: plans, audience, features
XeroXero: plans, no per-user fees, entry-plan caps
IntuitQuickBooks Online: plans, users, features
ZohoZoho Books: free plan, tiers, migration

More size guides