If you’re anything like me, one of the first questions you’ll have when starting a business is, “How should I track my finances?!” Well, after diving into some research, I discovered a variety of accounting software options tailored to different types of businesses. I realized I could share what I learned to help fellow new business owners tackle the stuff they’d probably rather not spend much time thinking about—while picking up some great knowledge myself!

In this guide, I’ll break down some popular accounting software (the 2 two platforms I have some familiarity with) to help you find the best fit for your business.

Software Types

Choosing the right accounting software depends primarily on the features you anticipate needing and your current budget. However, it’s wise to think beyond your immediate needs and consider what you might require in the near future. Why? Because upgrading within the same platform is much easier and less time-consuming than migrating all your bookkeeping to an entirely new system.

Another key factor is familiarity. Whether it’s you or your bookkeeper, sticking with software you know can save significant time and hassle. I’ve definitely put off switching to something more suitable simply because I didn’t want to face a steep learning curve!

With that in mind, here are some popular software options and the types of businesses they best serve.

🟢 Wave Accounting

Wave Starter Plan – Free!
Ideal for: Sole proprietors, gig workers, and service-based businesses with simple finances.
I recommend this plan for businesses just starting out—those without employees, inventory, or multiple bank accounts. Think Uber drivers, content creators, or other service-based companies that value a free option as a top priority. Wave also offers a optional add-ons:

• Receipt scanning $8/month or $72/year; included with Pro plan
• Payroll starting at $20/month ($40 in some states), plus $6/employee

Wave Pro Plan – $16/month
Ideal for: Simple, small businesses with a higher volume of transactions than shown above.

This plan builds on the Starter version, offering:

• Receipt scanning, so you don’t have to manually enter paper receipts
• Discounted credit card processing rates for the first 10 transactions per month. (Bank ACH will always be more affordable that CC processing)
• Bank feeds, my personal favorite! This feature automatically imports transactions from most bank accounts, saving you from manually uploading files.

💼 QuickBooks Online (QBO) Series

Simple Start – $35/month*
Ideal for: New businesses wanting room to grow.
Functionally, this plan mirrors Wave Pro but with the added benefit of being part of the QBO ecosystem. This means you can seamlessly upgrade as your business expands while sticking with a familiar interface. You’ll also enjoy access to customer support during regular business hours—a definite plus!

Essentials – $65/month*
Ideal for: Businesses with international transactions or multiple sales channels.
In addition to Simple Start features, Essentials offers:

• Multi-currency support for paying and getting paid in foreign currencies.
• Integration with up to 3 sales channels, like Shopify or Etsy.
• Employee time tracking, with the option to add tracked hours to invoices—a must if you bill by the hour!

Plus – $99/month*
Ideal for: Businesses with project-based work or inventory.
This plan includes everything from Essentials, plus:

• Unlimited sales channels.
• Project tracking, allowing you to monitor income and expenses by project rather than just overall business performance.
• Inventory tracking, letting you manage stock by cost, units, and low-inventory alerts. If your business relies on inventory, this is likely your best bet.

Advanced – $235/month*

Ideal for: Larger, complex businesses with multiple moving parts.
Think of this as the Plus plan, but supercharged. Key upgrades include:

• Automatic asset depreciation, generating monthly journal entries for each asset and creating a depreciation schedule when an asset is added to your books
• Batch invoicing, perfect for businesses handling high-volume billing.
• Deferred revenue tracking, useful if clients prepay for services.
• Data restoration, allowing you to roll back your books if a major error occurs.
• 24/7 phone support for whenever you need help.

Choosing the right software now can save you countless hours and headaches down the road. Hopefully, this breakdown makes the decision a little easier!

*QBO offers various discounts depending on how/when you buy your plan, you can usually get a small discount directly on their home landing page. If you contact me, I can offer you an additional discount as an Accountant user of their software.

*Written February 20, 2025. Pricing and features may vary.