QuickBooks is a popular choice for many Small and Medium-sized Business (SMB) owners and their accounting teams.

But it is not always the best option. 

As a small business with limited time and resources, you might have specific requirements and may not be ready to work with a tool that is as overwhelming as QuickBooks.

Most small business owners today want to go in and access their financial records in a jiffy, whip up a budget quickly, or close their books without any stress. 

If you, like many small businesses out there, are looking for a tool that is easy to use with simple and intuitive dashboards—we’ve got just what you need! We have shortlisted 5 of the best QuickBooks alternatives for you to consider. 

But first, let’s take a closer look at what QuickBooks has to offer.

QuickBooks: Pros, cons, and more

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QuickBooks is used by businesses of all sizes. It helps manage finances, invoices, payroll, expenses, and tax filing. It provides features that streamline bookkeeping and accounting tasks. Both the desktop and online versions of QuickBooks offer a range of plans suited for different needs.

‍Key features of QuickBooks

• Offers cloud-based and desktop versions for flexibility in use
• Supports invoicing, expense tracking, and sales tax management
• Allows integration with third-party apps for enhanced functionality
• Provides robust reporting features to gain insights into business finances
• Includes payroll management and payment processing options

Pros of QuickBooks

• Comprehensive features: Covers a wide range of accounting needs like invoicing, payroll, and tax calculations
• Strong community support: Extensive online resources, including tutorials and a helpful user community

Cons of QuickBooks

• Steep learning curve: QuickBooks is geared towards accountants. Many features may be hard to grasp for business owners without proper training
• Complicated set-up: Getting set up in QuickBooks often takes hours, as users must create a chart of accounts from scratch
• Subpar ecommerce integrations: As a generalist platform, QuickBooks’ ecommerce integrations into Shopify and Amazon lack the detail needed for accurate reporting, leading to manual work and reconciliation for those selling on these platforms
• Manual transaction tagging: QuickBooks necessitates that users manually tag and approve each transaction, leading to hours of manual work to achieve financial statements
• Customer support limitations: Users often report slow or unhelpful responses from customer service
• Data file size issues: Large data files can cause the software to slow down or crash
• Limited customization: Customizing reports or templates can be challenging

Why should you consider QuickBooks alternatives?

QuickBooks is often the go-to platform for SMBs and ecommerce accounting. It offers a broad set of features that cover most financial tasks. 

These include tracking income and expenses, managing invoices, handling payroll, and preparing taxes. For many, it has become the default choice due to its name recognition and integration with various financial tools and services. This makes it a convenient option for businesses looking for an all-in-one accounting solution.

However, small businesses and those in specific niches may find that QuickBooks doesn’t fully meet their needs. 

QuickBooks is designed to serve a wide audience, but it may lack features for specific sectors like ecommerce, nonprofits, or project-based businesses. For example, an ecommerce business might need inventory management or multi-currency support that QuickBooks doesn’t offer in a simple way. 

Similarly, nonprofits may need specialized tracking for donations and grants, which could require extra add-ons or workarounds in QuickBooks.

Complexity is another concern for many small businesses. The platform can be challenging to use for those without an accounting background. 

While the basic functions are easy to grasp, more advanced tools and features have a learning curve that could require additional training or support. Setup often takes hours, and the process of receiving and updating financial information is incredibly manual.

Small businesses and those operating in niche markets may find QuickBooks lacking in three critical areas, which are:

• Niche features: QuickBooks caters to a broad audience, but it may miss specific functionalities needed by niche industries. Ecommerce businesses, for example, might need stronger inventory management or multi-currency features. Nonprofits could require tools for donation and grant tracking. In these cases, specialized software may be a better match.
• Not the best fit for small businesses and solopreneurs: QuickBooks includes a range of features, such as detailed transaction tracking and advanced reporting. While these are useful for larger businesses, they can be overwhelming for solopreneurs or freelancers who need simpler tools.
• Manual workflows: QuickBooks processes are manual, and financial information does not update automatically. Therefore, business owners are often left in the dark about their financial position, unless they put a lot of time and effort into updating their QuickBooks.

Looking into alternatives might reveal more tailored, automated, and simpler tools. These could better fit a small business's specific requirements, whether for ease of use or specialized functions.

Top five alternatives to QuickBooks

Here’s a look at the top five QuickBooks alternatives. We outline their key features, pros and cons, pricing, and user feedback to help you choose the best tool for your business. 

1. DayZero

DayZero is a modern accounting software solution designed to meet the needs of small and medium-sized businesses. It focuses on delivering an easy-to-use platform with powerful accounting tools that streamline financial management tasks. 

DayZero offers features like expense tracking, invoicing, and reporting, with a strong emphasis on automation to reduce manual work as well as simplicity. DayZero focuses on giving you the financial information you need without any added complexity. 

Setup is easy—using their preformatted charts of accounts, a business can receive their financial information in minutes. Moreover, the software is cloud-based, allowing businesses to manage their finances from anywhere, making it ideal for teams that work remotely or across multiple locations.

Top features to watch out for

• Automated expense categorization: Automatically categorizes and tracks expenses by syncing with bank accounts, credit cards, and other financial sources. This reduces hours of manual work that would otherwise be required when using a tool like QuickBooks. 
• Customizable invoicing: Offers a range of templates and customization options to create professional invoices quickly.
• Easy reporting: Provides a variety of reports such as profit and loss, balance sheets, and cash flow, giving a clear picture of financial health and offering businesses everything they need to file for loans or taxes. 
• Collaborative tools: Allows multiple users with different permission levels, making it easy for teams to collaborate on financial tasks.
• Niche features: DayZero provides detailed ecommerce integrations for sellers selling on Shopify and Amazon. It also provides specific features for freelancers, including tagging expenses by project/client and multi-location businesses. 

Pros

• An intuitive and simple-to-use interface 
• Strong automation features reduce manual data entry and errors
• Flexible reporting tools help with financial analysis and decision-making
• A reliable support team that is accessible through both chat and email

Cons

• Lacks advanced inventory management features
• Customization options can be limited for more complex businesses

User review

2. FreshBooks

FreshBooks offers cloud-based accounting software, ideal for small businesses, freelancers, and those in the service industry. Known for its intuitive interface and strong invoicing capabilities, FreshBooks simplifies financial management by automating tasks like expense tracking and client and time management. 

Top features to watch out for

• Invoicing and payment processing: Offers customizable invoicing, recurring invoices, and automatic payment reminders.
• Time tracking and project management: Tracks time spent on projects, making it easier to bill clients accurately.
• Client portal: Allows clients to view and pay invoices, improving the client experience and speeding up payments.

Pros

• Strong invoicing features with customizable templates and automated billing options
• Smooth integration with popular tools like Stripe, PayPal, and G Suite

‍Cons

• Limited ecommerce integrations and inventory management capabilities
• Manual transaction tagging creates hours of manual data entry
• It might not meet the needs of larger companies with more detailed requirements

3. Xero

Xero is a cloud-based accounting software that serves small and medium-sized businesses. The tool is popular for its ease of integration with a wide range of third-party apps, making it a versatile choice for businesses that require a flexible accounting solution. Xero’s mobile app also enables users to manage finances on the go.

‍Top features to watch out for

• Multi-currency support: Handles transactions in different currencies, suitable for businesses with global operations.
• Payroll integration: Offers integrated payroll solutions, making it easy to manage employee salaries and taxes.

Pros

• Easy integration with over 1,000 third-party apps
• Multi-currency support included in higher-tier plans

Cons

• Clunky interface
• Some users find the learning curve steep
• Lacks ecommerce integrations
• Support is offered mostly through digital channels, which can sometimes be slow
• Higher tiers are needed for more advanced features

4. Zoho Books

Zoho Books is an affordable, cloud-based accounting software that fits small and medium-sized businesses. Part of the larger Zoho suite of applications, it integrates seamlessly with other Zoho apps, providing a comprehensive business management solution. Zoho Books offers features like invoicing, expense tracking, project management, and tax compliance, making it a strong alternative for businesses on a budget.

Top features to watch out for

• Invoicing and estimates: Create, customize, and send professional invoices and estimates.
• User portal: Allows clients to view and approve estimates and pay invoices.
• Bank reconciliation: Automates bank reconciliation by syncing with bank accounts.
• Project management: Tracks time and expenses for projects and invoices clients accordingly.
• Tax compliance: Manages and automates tax calculations and filing.

Pros

• Affordable pricing plans with comprehensive features
• Easily integrates with Zoho’s suite of apps and various third-party services
• Strong project management capabilities
• Reliable customer support services via email, live chat, and phone

Cons

• Lacks niche ecommerce features
• A few advanced features are available only on higher-tier plans
• Functionalities can be overwhelming for new users
• Limited inventory management capabilities compared to competitors

5. Wave Accounting

Wave Accounting is a free accounting software solution tailored for small businesses, freelancers, and startups. It provides essential accounting tools, such as invoicing, expense tracking, and financial reporting. Wave’s user-friendly interface makes it an attractive choice for those who need a simple yet effective accounting solution. The platform also offers paid services like payroll and payment processing.

Top features to watch out for

• Free invoicing and billing: Create, customize, and send unlimited invoices without any cost.
• Expense tracking and receipts: Track expenses by linking bank accounts and uploading receipts.
• Accounting reports: Generates essential financial reports like profit and loss statements, balance sheets, and cash flow.
• Payroll services: Offers optional paid payroll services with tax filing features.
• Multi-currency support: Supports transactions in different currencies, ideal for businesses with international clients.

Pros

• Simple and easy-to-use interface for non-accountants
• Unlimited invoicing and receipt scanning
• Integration with third-party payment processors like Stripe and PayPal

Cons

• Lacks preformatted charts of accounts and automatic expense tracking
• No ecommerce features
• Limited features compared to paid competitors
• Paid add-ons are required for payroll and payment processing
• Customer support is mostly online, with limited availability

Switch to smarter accounting today

With these QuickBooks alternatives, you have solid options to consider for your business. Now, think about what matters most—whether it’s integration, simplicity, or specific features. The right choice depends on your business size, budget, and specific accounting needs. 

Research and test the alternatives to see which one aligns best with your needs. Investing time now in finding the right software can lead to long-term benefits, like smoother workflows and better decision-making. Don’t just settle for a one-size-fits-all solution when there are options that can be tailored to how you work.

With its range of powerful features and a focus on simplicity, DayZero can help you keep your finances in check and give you more time to focus on growing your business. Sign up for free with DayZero and put your accounting on autopilot.