Here's What Founders Actually Use
Most small business owners use QuickBooks Online or Xero. Freelancers often start with free tools like Wave. The best choice depends on your business size, needs, and whether you're managing inventory, contractors, or scaling fast.
When you're starting a business, choosing the right accounting software is one of the first decisions that can either make your life easier or create serious financial headaches.
So we turned to Reddit to see what real entrepreneurs are saying. A recent thread asked:"Need best accounting software for small business"and the replies were full of firsthand advice.
We decided to break down the top tools founders swear by and when it makes sense to ditch the software and hire a real accountant instead.
Are you looking for an accountant, bookkeeper, or fractional CFO for your small business? Check outSam's Listto find individuals and boutique firms specialized in your industry, stage of growth, and needs.
What Small Business Owners Are Actually Using
Based on Reddit feedback and conversations with accountants on Sam’s List, here are the top platforms most commonly recommended:
1. QuickBooks Online
Best for: All-around small business accounting
Why people use it: It's the industry standard, widely used by CPAs, and integrates with tons of tools.
Drawbacks: Can get expensive as you grow, and the UX isn’t always beginner-friendly.
2. Xero
Best for: Tech-savvy founders and international businesses
Why people use it: Clean interface, great reporting, easy bank reconciliation.
Drawbacks: Fewer U.S.-based accountants are familiar with it compared to QuickBooks.
3. Wave
Best for: Solo founders or freelancers on a budget
Why people use it: It's free.
Drawbacks: Limited features for scaling businesses, customer support isn’t great.
4. Zoho Books
Best for: Businesses already using other Zoho tools
Why people use it: Integrated ecosystem, affordable.
Drawbacks: Learning curve, especially if you're not using other Zoho apps.
5. FreshBooks
Best for: Service-based businesses
Why people use it: Easy to invoice and track time.
Drawbacks: Not as powerful for inventory or complex accounting.
When Software Isn’t Enough
If you’re:
Managing inventory
Hiring contractors
Scaling past $250K in revenue
Dealing with complex tax issues
...you probably need more than software.
That’s where abookkeeper or accountant on Sam’s Listcan step in and save you time, money, and headaches.
FAQ
What is the easiest accounting software for small businesses?
Most founders say Wave is the easiest to get started with. It’s free and simple, but lacks scalability. If you're planning to grow, QuickBooks Online is more robust.
Is QuickBooks worth it for a small business?
Yes, especially if you're working with a CPA. It’s widely used and integrates with your bank, payroll, and tax tools.
What do most small businesses use for accounting?
Most use either QuickBooks Online or Xero. Some solo founders also use Wave or Excel before upgrading.
Do I need accounting software or a bookkeeper?
If you’re just starting out, software may be enough. But once you hit $250K+ in revenue or hire contractors, having a bookkeeper ensures accuracy, compliance, and more confident decisions.
Should You Hire a Bookkeeper Instead?
When you're just getting started, DIY software works. But here’s when small business owners typically bring in professional help:
If you're under $100K in revenue: DIY software like Wave or FreshBooks is fine.
Once you're between $100K–$500K: Consider monthly check-ins with abookkeeper.
At $500K+ or if you're managing payroll, inventory, or multiple accounts: A professional accountant or bookkeeper becomes essential.
If that’s where you are, check out theaccountants for small businesseson Sam’s List who specialize in working with companies just like yours.
Final Thoughts: Choose What Matches Your Growth Stage
The "best" software depends on where you are:
Just getting started? Try Wave or FreshBooks.
Growing quickly? Move to QuickBooks or Xero.
Overwhelmed? Hire aspecialized accountantwho works with small businesses every day.
Choosing the right tool (or partner) early on can save you thousands down the line.
Need help finding the right accountant for your business?
Browse small business accountants onSam’s List.
You might also like:
- Top Accounting Mistakes Startups Make
- Typesof Bookkeeping: Which is Right for Your Business?
- Do I Need an Accountant for My Small Business
Author:Kimi, Co-founder of Sam’s List
Kimi writes about what she's learning while building Sam’s List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.
