Choosing the right bookkeeping software can feel overwhelming—especially when you’re juggling everything else in your business. You need a tool that’s powerful, easy to use, and fits your budget.
At Your Bookkeeper On Call, we help entrepreneurs and small business owners take control of their finances—whether you’re DIY-ing or ready to hand things off. One of the most common questions we hear is:
“Which bookkeeping software is best for my business?”
To help you decide, we’ve put together a head-to-head comparison of three of the most popular platforms: QuickBooks Online, Xero, and Wave.
Let’s break it down.
👑 QuickBooks Online: The Industry Standard
Best for: Growing businesses that need robust features and integrations
QuickBooks Online is one of the most widely used bookkeeping tools for small businesses—and for good reason. It’s powerful, scalable, and integrates with just about everything.
✅ Pros:
- Bank syncing and automation: Automatically pulls in transactions from your bank, credit cards, and PayPal
- Customizable invoicing & payment tracking
- Robust reporting for P&L, cash flow, taxes, and more
- Wide range of third-party integrations (CRMs, POS systems, Shopify, etc.)
- Multiple user access with role-based permissions
❌ Cons:
- Pricey for solo entrepreneurs and small startups
- Can feel overwhelming for beginners
- Some features (like inventory or time tracking) only available on higher-tier plans
💵 Pricing (as of 2025):
- Starts at $30/month (Simple Start)
- Popular plans range from $60–$90/month
- No free plan, but free trials are available
🌐 Xero: Clean, Cloud-Based, and Scalable
Best for: Service-based businesses and teams who want a streamlined experience
Xero has a sleek interface and offers many of the same features as QuickBooks, with a modern, user-friendly feel.
✅ Pros:
- Unlimited users on all plans
- Clean dashboard with intuitive navigation
- Strong international support (multi-currency and VAT-ready)
- Great for collaboration with your bookkeeper or accountant
- Includes inventory and project tracking (on higher tiers)
❌ Cons:
- Slight learning curve for U.S.-based users unfamiliar with UK/AU-style terminology
- Payroll is not built-in (U.S. customers must use Gusto integration)
- Some automation features are less advanced than QuickBooks
💵 Pricing (as of 2025):
- Starts at $15/month (Early Plan – limited invoices & bills)
- Most small businesses will need the $42/month Growing Plan
- 30-day free trial available
💸 Wave: The Best Free Option
Best for: Freelancers, solopreneurs, and startups with basic bookkeeping needs
Wave is a solid, free alternative that provides essential bookkeeping tools with zero upfront cost. It’s ideal if you’re just getting started or operating on a tight budget.
✅ Pros:
- Completely free for core accounting and invoicing
- User-friendly dashboard and interface
- Accepts online payments (with transaction fees)
- Great for freelancers and very small businesses
- Includes basic reporting and expense tracking
❌ Cons:
- No inventory or time tracking
- Limited integrations with third-party tools
- No phone support (email-based only)
- Not ideal for scaling or growing teams
💵 Pricing (as of 2025):
- Core accounting: Free
- Payments: Transaction fees apply (approx. 2.9% + $0.60 per transaction)
- Optional payroll: Starts at $20/month + $6/employee
📊 Feature Comparison At a Glance
| Feature | QuickBooks Online | Xero | Wave |
|---|---|---|---|
| Price | From $30/month | From $15/month | Free |
| Free Trial | ✔️ | ✔️ | N/A |
| Invoicing | ✔️ | ✔️ | ✔️ |
| Bank Integration | ✔️ | ✔️ | ✔️ |
| Reporting | ✔️ Advanced | ✔️ Solid | ✔️ Basic |
| Inventory Tracking | Higher-tier plans only | Higher-tier plans only | ❌ |
| Multi-User Access | Limited by plan | Unlimited | Limited |
| Payroll | Add-on | Gusto integration | Add-on |
| Mobile App | ✔️ | ✔️ | ✔️ |
| Best for… | Scaling businesses | Collaborative teams | Solo entrepreneurs |
🔍 So, Which One Is Right for You?
Here’s a simple breakdown:
- 💼 Just starting out or solo?
→ Wave is perfect. It covers the basics, and it’s free. - 📈 Growing quickly or selling products?
→ QuickBooks Online gives you scalability, reporting, and integrations. - 👥 Working with a team or accountant?
→ Xero shines for collaboration and unlimited users.
💬 Final Thoughts from Your Bookkeeper On Call
The best bookkeeping software is the one you’ll actually use. Whether you’re managing your books solo or working with a coach (like us), having the right system in place will save you hours of stress and set you up for success.
Still unsure which one fits your business best?
We offer DIY coaching and setup sessions to walk you through choosing and setting up the right system—plus ongoing support if you ever need a pro to jump in.
👋 Let’s Talk
Ready to choose your bookkeeping software or need help getting started?
👉 Book a free consult with Your Bookkeeper On Call and get expert, personalized advice—on-demand, live, and judgment-free.h Your Bookkeeper On Call and get clarity on your next best step—DIY or done-for-you.
