Managing finances is one of the most critical — and often most stressful — parts of running a small business. Manual spreadsheets, desktop-based software, and inconsistent records can lead to costly errors and tax-time headaches.
That’s why more small businesses in 2025 are switching to cloud accounting software — tools that allow you to manage your business finances online, in real-time, from any device.
In this guide, we explore the best cloud accounting platforms for small businesses based on ease of use, automation, integrations, and cost.
Why Cloud Accounting?
Traditional accounting software often requires installation, manual backups, and limited access across devices or users.
Cloud-based accounting, on the other hand, provides:
24/7 access to your books from anywhere
Real-time collaboration with your accountant or team
Automatic backups and software updates
Bank feeds and transaction syncing
Invoicing, reporting, and tax tools built-in
Whether you’re a solo freelancer or managing a growing company, cloud solutions save time and improve accuracy.
1. QuickBooks Online
QuickBooks is the most recognized name in small business accounting — and its cloud version remains a powerful choice in 2025.
Best for: Small to mid-sized businesses needing robust features
Key features:
Bank syncing and rule-based categorization
Invoicing and payment tracking
Payroll integration
Inventory and sales tax support
Mobile app for receipts and mileage
Pricing: Starts at $30/month
Bonus: Widely supported by accountants and 3rd-party apps
Ideal for: Businesses with growth in mind and complex needs.
2. Xero
Xero is a favorite among startups and international users, offering a clean interface and strong third-party integrations.
Best for: Service-based businesses and remote teams
Key features:
Unlimited users in all plans
Expense tracking and receipt scanning
Reconciliation with over 800 bank feeds
Built-in project tracking and quotes
24/7 customer support
Pricing: Starts at $15/month
Strength: Seamless integrations with payroll, CRM, and inventory tools
Perfect for: Tech-savvy entrepreneurs looking for modern, scalable accounting.
3. FreshBooks
FreshBooks is designed with freelancers, consultants, and small service businesses in mind, with a focus on simplicity.
Best for: Self-employed professionals and creatives
Key features:
Time tracking and client billing
Customizable invoices and payment reminders
Expense logging and mileage tracking
Estimates and proposals
Financial reports and tax summaries
Pricing: Starts at $19/month
Unique: Extremely user-friendly with strong mobile tools
Great for: Solo professionals who bill by the hour or project.
4. Wave Accounting
Wave offers a suite of accounting tools for free, making it ideal for businesses on a tight budget.
Best for: Microbusinesses and startups
Key features:
Income and expense tracking
Unlimited invoicing and receipt scanning
Bank account connections
Basic financial reports
Optional paid payroll and payment processing
Pricing: Free core tools; optional add-ons for payroll and payments
Bonus: No hidden fees
Recommended for: New businesses or side hustles that need core accounting features without the cost.
5. Zoho Books
Zoho Books is part of the larger Zoho suite, offering deep features and automation for growing companies.
Best for: Businesses already using Zoho or needing advanced automation
Key features:
Automated workflows and reminders
Multilingual, multi-currency support
Recurring invoices and subscription billing
Customer portals and role-based access
GST and VAT support
Pricing: Free for revenue under $50K/year; paid plans from $20/month
Bonus: Great value for global and SaaS businesses
Top pick for: Businesses scaling internationally or handling complex tax environments.