The best QuickBooks alternatives for small business accounting are cloud-based software such as AccountingSuite and Xero, free options like Wave, and desktop solutions you can purchase outright, like TallyPrime.
There are plenty of reasons for seeking QuickBooks alternatives: QuickBooks Online has drawn criticism for its complexity, lack of strong customer support, and notable price hikes. Additionally, Intuit is shifting away from perpetual licenses for QuickBooks Desktop towards a subscription-based model. It dropped support for all QuickBooks Desktop versions before 2021 on June 1, 2024.
We used our review methodology to rank the best accounting software to help you find alternatives so you can drop QuickBooks and boost your bottom line.
- AccountingSuite: Best Overall
- Xero: Affordable Cloud-Based Option
- TallyPrime: Best Perpetual License Option
- Striven: Best CRM Tools
- Wave: Best Free Option
- FreshBooks: Best Time Tracking Tools
- AccountEdge: Subscription-Based Desktop Option
- Denali Business: Best for Offline Access
- Connected Accounting: Best for Manufacturing and Distribution
- FastFund: Best for Nonprofits
- LedgerLite: Best Desktop-Based Option
- MoneyWorks: Best for International Corporations
1 AccountingSuite - Best Overall
Why We Chose It: After personally testing AccountingSuite, it quickly became clear it was a compelling alternative to QuickBooks Online. Developed as a direct competitor, AccountingSuite offers an intuitive UI akin to QuickBooks Desktop, avoiding the complexity and usability concerns often raised about QuickBooks Online. We gave it a 9.1 for its affordability, ease of use, and customizability.
AccountingSuite provides various subscription options tailored for startups, businesses, professionals, and eCommerce ventures. It even has a discounted version for accountants and CPAs. While not desktop-based, AccountingSuite’s subscription plans are low-cost, starting at just $99 for data migration from QuickBooks.
We found creating invoices in AccountingSuite fairly intuitive; you can personalize them with custom product fields, dropship specifications, and promise dates. The platform also handles banking integration, financial reporting, budgeting, and accounts receivables and payables. While it doesn’t have a dedicated mobile app, we found AccountingSuite overall more user-friendly than QuickBooks Online.
2 Xero - Affordable Cloud-Based Option
Why We Chose It: We demoed Xero’s free trial and found it a cost-effective, cloud-based alternative to QuickBooks Online. Starting at $15/month, Xero’s entry-level plan supports 20 invoices and quotes along with 5 bills, offering a competitive pricing structure compared to QuickBooks. Additionally, its payroll integration with Gusto starts at $40/month month plus $6/employee, cheaper than QuickBooks Payroll at $76/month plus $6/employee.
We gave Xero an 8.6 for its automated invoicing and overdue payment management, addressing a common frustration with QuickBooks. With over 40 payment app integrations, including Stripe and PayPal, it offers flexibility, albeit with associated transaction fees. We also found Xero’s reporting functionalities strong, with over 40 financial reports available and the option to add custom formulas.
While ideal for project-based businesses, Xero may not suit manufacturing or distribution sectors. Additionally, there’s no customer service phone number. While Xero still allows you to reach out via email or create a support ticket, Intuit provides phone support. However, reaching a live agent can be challenging.
3 TallyPrime - Best Perpetual License Option
Why We Chose It: TallyPrime offers a desktop solution that you can buy outright, a stark contrast to QuickBooks Online’s subscription-based model. While TallyPrime may not have all the bells and whistles of QuickBooks Online, it offers a simple setup and lets you customize features to fit your needs. These include tailored reports, invoices, sales orders, and purchase orders, earning the platform an 8.5.
We like that TallyPrime makes personalizing, printing, and emailing invoices with your logo easy. It also generates various reports covering profit and loss, balance sheets, general ledger, and more. Additionally, it supports various billing formats and multiple currencies, useful for businesses with diverse products and global operations.
Compared to QuickBooks, TallyPrime is simple and affordable. Its interface isn’t as flashy as cloud-based systems’, but we found it reliable and affordable. It’s worth noting that while support is available, it’s based in India, which may not be ideal for all users.
4 Striven - Best CRM Tools
Why We Chose It: Striven emerged as a strong web-based alternative to QuickBooks Online during our demo. We demoed Striven and found it quite versatile, with tailored versions for manufacturing, distribution, construction, field services, and professional services. Unlike QuickBooks Online, it integrates an HR suite alongside CRM tools.
This built-in CRM enhances contact management, sales tracking, and customer segmentation. It also handles employee time and attendance tracking, features not commonly found in QuickBooks. Additionally, its built-in accounting capabilities cover income tracking, expense management, and custom PnL reporting, invoicing, and billing.
Real-time inventory tracking and mobile payments further enhance Striven’s accounting tools. However, Striven does not provide a mobile app or native payroll system; both of these features are readily available in QuickBooks Online.
5 Wave - Best Free Option
Why We Chose It: Having tested Wave’s free plan, we found it refreshingly transparent in its pricing and functionality, making it an ideal choice for freelancers and startups. Its unlimited income and expense tracking, along with multi-company support, also put it near the top of our list. Unlike QuickBooks, Wave offers basic accounting, invoicing, and receipt scanning for free, though with slightly higher transaction fees.
Wave Payments charges 2.9% plus sixty cents per credit card transaction, while Wave Payroll starts at $40/month, with additional costs per active employee. Despite its 14 included reports, Wave may not offer enough depth for larger businesses compared to QuickBooks.
We found that Wave’s limited invoice customization and basic inventory management may not suit complex business needs. Additionally, there’s no phone support number, and the platform is less scalable, with fewer integration options than QuickBooks Online.
6 FreshBooks - Best Time Tracking Tools
Why We Chose It: We took FreshBooks’s free trial for a test run and found it adept at basic invoicing and time tracking, ideal for service-based businesses. It provides a comprehensive “Lite” package with unlimited features like expenses, estimating, and invoicing for up to five clients.
FreshBooks offers a user-friendly interface ideal for non-accountants, contrasting with QuickBooks’ need for training. While it has fewer integrations than QuickBooks, its well-documented API ensures compatibility with third-party tools. It also supports credit card and ACH payments and automated bank imports.
However, unlike QuickBooks Online, FreshBooks lacks inventory features like purchase orders and forecasting. And while we found it well-suited for time tracking, it may not suit project-based companies.
7 AccountEdge - Subscription-Based Desktop Option
Why We Chose It: We found AccountEdge a straightforward, dependable option for those preferring desktop-based software. AccountEdge recently transitioned to a subscription-based model, requiring monthly or annual payments. Despite this change, it maintains a user-centric interface and long-standing presence in the market, albeit with basic features.
One aspect of AccountEdge we wanted to highlight was its handling of the chart of accounts. The software has strong functionality in managing general ledger and budgets and supports multi-currency transactions, progress billing, and job tracking. In terms of invoicing, AccountEdge offers customizable templates with easy payment tracking.
However, our research showed that AccountEdge’s Mac version is a Windows emulator. While most QuickBooks users are likely running Windows-based operating systems, it’s still worth noting that many AccountEdge clients find the Mac rendition slow and outdated. However, a native version is in the works.
8 Denali Business - Best for Offline Access
Why We Chose It: Denali Business made our list because it’s a desktop software tailored for SMBs needing offline accessibility. Despite a higher price point than some alternatives, Denali can be deployed in an on-premise configuration, allowing businesses to access their accounting data without an internet connection.
With three available bundles – Basecamp, Ascent, and Summit – all plans include a general ledger, audit trails, bank reconciliation, global reports, and accounts payables and receivables. The Ascent plan provides functionalities like inventory management, order entry, and Crystal Reports. The Summit plan delivers an unlimited payroll module, multi-location inventory, and local, state, and federal Aatrix Tax Forms.
While its interface may appear dated, Denali Business caters to general businesses and nonprofits with a tamper-proof audit trail. Unlike QuickBooks Desktop, which supports over 200 third-party apps, we also found Denali Business’s integration options somewhat limited.
9 Connected Accounting - Best for Manufacturing and Distribution
Why We Chose It: We picked Connected Accounting and ERP because it offers both desktop and cloud-based versions, presenting an affordable alternative to QuickBooks Online and Desktop. The platform provides modules tailored for distribution, light manufacturing, and retail operations. These include capabilities like MRP reporting, multi-level BOMs, FIFO costing, and detailed stock tracking.
We found Connected Accounting’s core financial tools comprehensive. These include flexible account numbering with department segments, five years of detailed financial history, and budgeting by period and account. It also enables customer and vendor management with multiple addresses, advanced email templates for statements and invoices, and support for various payment methods like ACH. Additionally, it provides an optional consolidation plug-in for managing multiple entities.
Unlike QuickBooks, Connected Accounting doesn’t include native payroll features. However, it offers partnerships with payroll service providers in the US and Canada, or users can continue using their existing payroll systems.
10 FastFund - Best for Nonprofits
Why We Chose It: We chose FastFund because it’s a cloud or on-premises software catering to nonprofits. FastFund offers true fund accounting, unlike QuickBooks, which merely renames divisions as funds. During our firsthand demo, we found it proficient at tracking fund origins and allocations down to the cent.
We like that FastFund provides a user-defined, customized chart of accounts. You can tailor the structure with six account segments to reflect your organization’s setup. We also found managing and creating budgets for grants, departments, programs, and funds quick and simple. Additionally, FastFund provides automatic roll-up, strict internal controls, and compliance with NPO fiscal requirements like FASB 116 and 117.
With unlimited report sets for consolidation and access control, FastFund allows users to personalize financial statements and budget reports. However, the software requires a basic understanding of fund accounting. And unlike QuickBooks Online, no mobile app is available.
11 LedgerLite - Best Desktop-Based Option
Why We Chose It: We added LedgerLite because it’s a desktop-based accounting software priced at $149 with full ownership rights. LedgerLite is relatively basic compared to QuickBooks, but it’s an attractive option for those seeking affordability and autonomy. We also found its setup process simple, requiring no intricate installations or database configurations; simply download the EXE file to begin.
Like QuickBooks Desktop, the software adheres to double-entry bookkeeping principles. LedgerLite offers a customizable chart of accounts and cashbooks, complemented by simple bank statement reconciliations. We also found its reporting capabilities useful for SMBs, generating anything from account statements to balance sheets.
The software’s scalability allows for expanding client/server functionality and creating subentities for project or division tracking. However, it lacks features like extensive inventory management and advanced reporting. LedgerLite also has a limited transaction description field and requires users to have basic accounting expertise.
12 MoneyWorks - Best for International Corporations
Why We Chose It: MoneyWorks can be sold as desktop or cloud-based software, compatible with Mac and PC platforms. Unlike QuickBooks, it includes fixed asset management and flexible multi-currency capabilities, making it ideal for international businesses.
We like that MoneyWorks provides versatile options for creating business forms like invoices, purchase orders, and statements. It supports multi-page and multi-section layouts, allowing direct email or integrations with Mail and Outlook. At its core, MoneyWorks manages cashbooks, general ledgers, and accounts receivables and payables. Additionally, it features a built-in report writer and provides standard templates like profit and loss, balance sheet, cash flow, sales and purchasing, and stock and inventory reports.
MoneyWorks simplifies tax tracking and reporting for different countries, including the US, Canada, NZ, UK, Singapore, and Australia. It even offers online filing capabilities in select regions. While we found its appearance slightly dated, MoneyWorks offers perpetual licenses starting at $274 and subscriptions starting at $19.80/month.
QuickBooks Desktop vs. Online
The accounting software landscape is rapidly shifting, with QuickBooks Desktop transitioning to subscription-based pricing and the discontinuation of QuickBooks POS. The only real options are to switch to QuickBooks Online or explore alternatives.
However, QuickBooks Online Payroll has a considerable price hike, a deterrent for many users accustomed to Desktop’s pricing. Additionally, QuickBooks Desktop is known for its ease of use. We’ve received many complaints from reviewers that QuickBooks Online is not user-friendly and takes ample training to use properly. You can see the difference in the screenshots below:
That’s why so many are opting to explore both desktop and cloud-based alternatives instead.
Why Choose an Alternative to QuickBooks?
Companies choose QuickBooks alternatives because of cost increases, usability issues, and customer support challenges.
- Complexity and Usability Issues: Users find QuickBooks Online significantly more difficult to use than QuickBooks Desktop. It requires a deeper understanding of accounting, which was not necessary with the Desktop version. Additionally, QuickBooks Online’s UI is not always user-friendly, making it challenging for small business owners to perform basic tasks without frequent support calls.
- Support Challenges: Support quality is a concern, with remote interactions sometimes leading to additional issues rather than resolving the original problem. Support is provided by overseas teams, which might affect the understanding and resolution of issues.
- Data Accessibility and Security: There are reports of users being unable to access their own financial data until they settle payments, which some customers perceive as being held “hostage” for their data.
- Cost Increases: There is a significant cost increase when moving from QuickBooks Desktop to Online. Users have experienced a shift from an annual fee to a much higher monthly fee, with some reporting doubling costs without any perceived improvements in the software.
- Accounting and Reporting Errors: Users have faced serious issues with bookkeeping accuracy, such as incorrect coding of line items and difficulties generating accurate end-of-year reports. These errors have even led professionals like CPAs to advise businesses to discontinue using the software.
Understanding QuickBooks and Its Limitations
While QuickBooks offers a wide range of functionalities, it has its limitations too. Selecting an alternative accounting system may be more suitable for your company’s individual requirements, such as cash management and other financial aspects.
QuickBooks Online Limitations
- Pricing and Add-on Costs: While QuickBooks Online is accessible and user-friendly, it can become expensive if you need more advanced features. For instance, adding many users or leveraging extensive customization and report features requires subscribing to the most expensive plans.
- Limited Historical Data Restoration: Users cannot revert to previous versions of their data unless they subscribe to the highest plan, which offers consistent backups. This limitation can be restrictive for businesses needing historical transaction data.
- Internet Dependency: Being a cloud-based solution, QuickBooks Online requires a stable internet connection to access data, which could be limiting in areas with poor connectivity.
- Limited Mobile App Functionality: The mobile app primarily supports basic functions like receipt capture and mileage tracking, which may not suffice for users needing full mobile management tools.
QuickBooks Desktop Limitations
- Integration and Accessibility: QuickBooks Desktop has limited integration capabilities with third-party apps compared to its online counterpart. It also requires remote desktop software for access outside the main installation site, which could complicate remote work scenarios.
- Manual Updates and Backups: Unlike QuickBooks Online, Desktop versions need manual intervention for updates and data backups, which can be cumbersome and time-consuming for users.
- Scalability and Customization: Though highly customizable and suitable for a broad range of industries, QuickBooks Desktop might be overkill for very small businesses or those that don’t require advanced features.
- Subscription-based Pricing: QuickBooks Desktop has transitioned to a subscription-based pricing model. This change means users pay an annual or monthly fee to use the software instead of a one-time purchase.
By understanding QuickBooks’s limitations, you can make an informed decision when choosing an accounting solution that better aligns with your business needs. The best QuickBooks alternatives will be user-friendly and allow for the core bookkeeping capabilities. They will also fill a need QuickBooks may fall short in, such as industry preference, hosting preference, or even the size of your business.
You can weigh the pros and cons of QuickBooks Online in our review:
Key Factors to Consider When Choosing a QuickBooks Alternative
When selecting a QuickBooks alternative, it is essential to consider industry and business requirements, and budgetary constraints. Different industries have varying requirements and needs, and different businesses have distinct needs and objectives, making selecting an accounting system that can fulfill those needs and objectives imperative.
For former QuickBooks users looking to switch to new accounting software, there are specific considerations to ensure a smooth transition and continued functionality:
- Pricing Structure: Examine the pricing plans carefully. Software like Wave offers free core services with pay-as-you-go features for additional services like payroll and credit card processing.
- Data Migration: Assess the ease with which you can transfer data from QuickBooks to the new system. This includes historical financial data, customer information, and past transactions. Ensure the new software supports a straightforward migration process or offers tools and services to assist with the transition.
- Familiarity and Learning Curve: Consider the user interface and operational similarities to QuickBooks. Choosing software with a similar interface can reduce the learning curve for you and your team, allowing for a smoother transition.
- Feature Compatibility: Check that the key features you regularly use in QuickBooks are available and function similarly in the new software. This includes capabilities like payroll processing, inventory management, and tax preparation. For instance, if you heavily utilize QuickBooks for payroll, ensure the new software offers payroll solutions or integrates well with third-party payroll providers.
- Customer Support for Transitioning Users: Some software providers may offer specialized support for businesses transitioning from popular platforms like QuickBooks. This can be beneficial for addressing specific concerns that arise during the migration process.
- Customization and Add-ons: If your business used numerous customizations or add-ons in QuickBooks, check the availability and compatibility of similar customizations in the new software. This is particularly important for maintaining continuity in business processes and reporting.
However, different accounting systems have varying price points, and additional costs may be necessary for customization or optional features. By considering these key factors, you can ensure that you choose the right accounting solution that best suits your business requirements and budget.
Is QuickBooks Desktop Being Discontinued?
Yes and no. QuickBooks Desktop is undergoing changes but is not completely being phased out. The Desktop Pro and Premiere versions have shifted to subscription-based models instead of one-time purchase licenses. Although perpetual licenses for the standalone desktop version are still available through official resellers, this option may be temporary.
Non-subscription versions of QuickBooks Desktop will receive support for about 3-4 years; for instance, the 2020 version was supported until May 2023, and the 2021 version until May 2024. Users looking to switch to online platforms can migrate from QuickBooks Desktop to QuickBooks Online or choose an alternative software.
Summary
In conclusion, selecting the right accounting system will optimize your business processes and let you achieve success in your industry.
QuickBooks has long been one of the most popular accounting software options. Products such as QuickBooks Online or Desktop have been a preferred bookkeeping choice for small business owners since Intuit’s inception in 1998. Today, the program has over 3 million subscribers.
However, there is an observable trend of customers moving away from QuickBooks to other accounting solutions. By considering the key factors discussed, such as industry and business requirements, budget, and scalability, you can make an informed decision in choosing the perfect accounting solution for your business.
Frequently Asked Questions
What is the best alternative for QuickBooks?
The “best” alternative depends on specific business needs. AccountingSuite is our top cloud-based choice, but those desiring desktop-based options should go with TallyPrime or LedgerLite.
Why are people leaving QuickBooks?
While QuickBooks is widely popular, it has limitations. Some businesses find alternative software that better meets their individual needs, such as cash management, hosting preference, industry-specific features, or scalability requirements.
How to get QuickBooks cheaper?
One way to get QuickBooks cheaper is to look for promotions, discounts, or bundle offers. Some businesses might also consider using the basic versions if they meet their needs, thus reducing costs.
Is there something free like QuickBooks?
Yes, Wave is a free accounting solution. It offers accounting, invoicing, and receipt scanning entirely for free. However, additional services like online payments or payroll come with fees.
