Important note: “Free” usually means limited features — ideal for very small or very simple businesses. Most businesses outgrow these plans quickly and benefit from paid plans.
Below is a list of some of the most common free accounting software programs that small businesses can use.
1. Wave Accounting
Overview:
Wave is one of the most popular truly free accounting platforms for small businesses and freelancers. It includes basic bookkeeping, invoicing, and receipt tracking — all with no monthly subscription.
Key Free Features
- Income & expense tracking
- Unlimited invoicing
- Receipt scanning
- Basic financial reporting
Limitations
- No payroll unless you pay (in countries where payroll is supported)
- No time tracking
- Limited automation
- Customer support is mostly self-service
Best for:
Freelancers, solopreneurs, tiny businesses with simple finances.
2. ZipBooks (Free Starter Plan)
Overview:
ZipBooks offers a free plan with basic accounting and invoicing features, plus a clean, beginner-friendly interface.
Key Free Features
- Simple bookkeeping
- Unlimited invoicing
- Basic reports
- Vendor tracking
Limitations
- No advanced reports
- Limited automation
- Paid plans required for recurring billing, time tracking, and more
Best for:
Freelancers, consultants, and microbusinesses wanting simple invoicing + tracking.
3. Akaunting
Overview:
Akaunting is an open-source, free accounting application you can use online. It’s more flexible than many free tools because it can be self-hosted or cloud-hosted.
Key Free Features
- Income & expense tracking
- Multi-currency support
- Invoicing
- Reporting
Limitations
- Some advanced modules cost extra
- Requires setup/hosting if self-hosted
- Fewer integrations than paid platforms
Best for:
Small businesses comfortable with slightly more technical setup or wanting open-source flexibility.
4. GnuCash (Free Desktop Software)
Overview:
GnuCash is a free, desktop-based accounting application with functionality similar to traditional small-business accounting tools.
Key Free Features
- Double-entry accounting
- Invoicing
- Reports
- Scheduled transactions
Limitations
- Desktop only — no cloud access by default
- Not as intuitive as cloud tools
- Manual backups required
Best for:
Small businesses that prefer offline solutions or have reliable local storage.
5. Manager.io (Free Desktop Edition)
Overview:
Manager offers a free desktop version with basic accounting features, plus paid cloud and server editions.
Key Free Features
- Double-entry bookkeeping
- Invoicing
- Reports
- Inventory tracking (simplified)
Limitations
- The free version is desktop only
- Cloud version requires a paid subscription
- Limited mobile support
Best for:
Small businesses that prefer desktop tools and don’t need remote access.
6. Odoo Community (Open Source)
Overview:
Odoo is a full business suite with accounting included in its free Community edition.
Key Free Features
- Invoicing
- Expense tracking
- Basic accounting modules
- Integrates with other business apps
Limitations
- Requires setup/hosting
- Advanced accounting features often require paid apps
- Not turnkey for non-technical users
Best for:
Small businesses that want modular tools and technical control.
How These Free Tools Compare
| Software | Truly Free | Invoicing | Reporting | Cloud | Payroll | Notes |
|---|---|---|---|---|---|---|
| Wave | ✔ Yes | ✔ | Basic | ✔ | ✘ (Paid add-on) | Best all-around free tool |
| ZipBooks (Free) | ✔ | ✔ | Basic | ✔ | ✘ | Very beginner-friendly |
| Akaunting | ✔ | ✔ | ✔ | ✔ | ✘ | Flexible open-source option |
| GnuCash | ✔ | ✔ | ✔ | ✘ | ✘ | Desktop-only open system |
| Manager (Free) | ✔ | ✔ | ✔ | ✘ | ✘ | Desktop focus with inventory |
| Odoo Community | ✔ | ✔ | Basic | ✘/self-hosted | ✘ | Modular, more technical |
Free vs Paid: When Free Software Makes Sense
Free accounting software is good if:
- You are just starting out
- You have very few transactions
- You don’t have employees or payroll
- You are testing out bookkeeping software
Free accounting software isn’t enough when:
- You need automation
- You have payroll or employee tracking
- You work with an accountant regularly
- You want real-time insights and dashboards
- You need integrations to payment processors or e-commerce
If you hit any of the above, it usually pays to upgrade to a paid cloud accounting tool.
➡️For a smarter long-term decision, check out our guide: Best Accounting Software for Small Businesses.