Cloud-based Accounting Software's for Small Businesses

Running a small business means wearing many hats, but keeping track of your money doesn’t have to be one of the hardest parts. Thanks to cloud-based accounting software, managing your finances has become easier, faster, and more accurate. These tools help you stay on top of your income, expenses, invoices, and taxes—all from your phone or laptop. Whether you're a freelancer, an online shop owner, or a growing company, the right accounting software can save you time and reduce costly mistakes. In this blog, we’ll walk you through the 7 best cloud-based accounting tools for small businesses in 2025.

But what is cloud accounting software? Keep on reading to know more!

What is Cloud Accounting Software?

Accounting software that is hosted on remote servers, similar to the SaaS (Software as a Service) business model, is the only thing that separates cloud accounting software from conventional, on-premises, or self-install accounting software. The data is received, and processed, and the results are then sent back to the user by the "cloud". Cloud accounting software is a modern solution that revolutionizes the way businesses manage their financial data. Unlike traditional accounting software installed on a computer, cloud accounting software is hosted on remote servers, and accessible via the internet. This offers numerous advantages, including real-time access to financial information from anywhere, enhanced collaboration among team members, and automatic updates and backups. It also reduces the need for costly hardware and IT maintenance.

Cloud accounting software typically includes features such as invoicing, expense tracking, payroll processing, and financial reporting. Its scalability makes it suitable for businesses of all sizes, from small startups to large enterprises. With robust security measures in place, it ensures the safety and confidentiality of financial data. Overall, cloud accounting software streamlines financial management, improves accuracy, and provides valuable insights that help businesses make informed decisions.

1. QuickBooks Online

QuickBooks Online is one of the most popular accounting tools for small businesses. It’s made by Intuit and trusted by millions of users. It lets you send invoices, track income and expenses, manage inventory, and even run payroll. It’s great for beginners but also powerful enough for larger teams. With its mobile app, you can check your business numbers on the go.

Quick Summary:

Item	Details
Price	$30 to $200/month
Free Trial	30 days
Mobile App	Yes
Payroll	Available as add-on
Best For	All types of businesses

Key Features:

• Invoicing and billing
• Expense and income tracking
• Payroll management
• Financial reporting
• Inventory tracking

Pros:

• Very popular and trusted
• Works well with other apps
• Easy to use

Cons:

• Can get expensive
• Learning curve for advanced features

2. Xero

Xero is known for being simple, clean, and easy to use. It’s a great choice if you have a small team or need to work closely with your accountant. Xero allows multiple users to log in at the same time, so it’s perfect for businesses that need to collaborate. It connects with over 1,000 apps and handles everything from invoicing to bank reconciliations.

Quick Summary:

Item	Details
Price	$30 to $200/month
Free Trial	30 days
Mobile App	Yes
Payroll	Available as add-on
Best For	All types of businesses

Key Features:

• Bank feed and reconciliation
• Real-time financial tracking
• Invoicing
• Inventory management
• Multiple-user access

Pros:

• Simple, clean interface
• Strong app connections
• Great for teamwork

Cons:

• Limited customer support
• Some features only in higher tiers

3. Zoho Books

Zoho Books is part of the Zoho family, which includes tools for email, customer service, and more. If your business already uses Zoho apps, Zoho Books will fit right in. It offers everything from invoicing to project tracking and is especially affordable. There’s even a free version for very small businesses.

Quick Summary:

Item	Details
Price	Free to $240/month
Free Plan	For businesses making < $50K/year
Mobile App	Yes
Payroll	Yes (with Zoho Payroll)
Best For	Zoho users and small companies

Key Features:

• Invoicing and billing
• Expense tracking
• Project management
• Reports and dashboards
• Workflow automation

Pros:

• Affordable pricing
• Great for Zoho users
• Easy to automate tasks

Cons:

• Some features only in premium plans
• Limited integrations outside Zoho

4. FreshBooks

FreshBooks is a favorite for freelancers and service-based businesses. If you work with clients and bill them by the hour, FreshBooks is perfect. It offers time tracking, project management, and simple invoicing. It’s easy to learn and makes communication with clients smooth and professional.

Quick Summary:

Item	Details
Price	$19 to $60/month
Free Trial	30 days
Mobile App	Yes
Payroll	Available via Gusto
Best For	Freelancers and consultants

Key Features:

• Time tracking
• Custom invoicing
• Expense management
• Client collaboration tools
• Project tracking

Pros:

• Great for time-based billing
• Easy to learn
• Looks professional

Cons:

• Not good for inventory
• Can get pricey with more clients

5. Wave

Wave is a great choice if you’re just starting out and don’t want to spend a lot of money. It offers core features for free, including invoicing, accounting, and receipt scanning. If you need payroll or payment processing, you can pay extra for those. It’s ideal for solo business owners and freelancers.

Quick Summary:

Item	Details
Price	Free (pay for payroll & cards)
Free Plan	Yes
Mobile App	Yes
Payroll	Starts at $20/month
Best For	Freelancers, tiny startups

Key Features:

• Free accounting tools
• Invoicing and payments
• Basic financial reports
• Receipt scanning

Pros:

• Completely free
• Easy to set up
• Great for small teams

Cons:

• Few advanced features
• Limited customer support

6. Sage 50 Cloud

Sage 50 Cloud is a strong tool with advanced features. It’s best for businesses that sell products and need help with inventory, job costing, or payroll. It’s more complex than other tools, so it might take more time to learn. But it offers powerful tools once you get used to it.

Quick Summary:

Item	Details
Price	$58 to $160/month
Free Trial	30 days
Mobile App	Limited
Payroll	Available
Best For	Product-based businesses

Key Features:

• Advanced inventory tools
• Job and project costing
• Budget and cash flow tracking
• Financial reporting

Pros:

• Very powerful features
• Great for selling products
• Good for experienced users

Cons:

• Steeper learning curve
• Mobile access is limited

7. Patriot Software Accounting

Patriot is a simple and affordable accounting solution for small U.S. businesses. It offers easy tools for tracking income and expenses. While it doesn’t have a mobile app, it’s web-based and straightforward. You can also add payroll at a low cost. If you're just looking for the basics, this is a solid option.

Quick Summary:

Item	Details
Price	$20/month (accounting only)
Free Trial	30 days
Mobile App	No
Payroll	From $17/month
Best For	Budget-friendly U.S. users

Key Features:

• Income and expense tracking
• 1099 contractor payments
• W-2 employee support
• Bank imports

Pros:

• Very affordable
• Simple and clean layout
• Friendly customer support

Cons:

• No mobile app
• Fewer features than others

Comparison Table

Here’s an easy-to-read table to compare all seven:

Software	Starting Price	Free Plan	Payroll Add-On	Best For
QuickBooks	$30/month	No	Yes	All business types
Xero	$15/month	No	Yes	Teams and accountants
Zoho Books	Free–$240/mo	Yes	Yes	Zoho users, small companies
FreshBooks	$19/month	No	Yes	Freelancers and service providers
Wave	Free	Yes	Yes	Startups and solo businesses
Sage 50 Cloud	$58/month	No	Yes	Product-based businesses
Patriot	$20/month	No	Yes	U.S.-based budget-conscious users

Choose the Right Software and Get Expert Help

Cloud-based accounting software can make your financial tasks easier, but picking the right one is just the first step. To get the most out of your software, you need it set up the right way and used correctly from day one. That’s where Global FPO can help. We specialize in helping small businesses like yours choose the best tools, get them running smoothly, and keep your books clean all year long. Whether you need ongoing bookkeeping or just help getting started, our expert team is ready to support you. Reach out to Global FPO today and take the stress out of accounting.

FAQs

1. What is cloud-based accounting software?
It’s an online tool that helps you manage finances from anywhere, offering real-time data access and easy tracking of expenses, income, and taxes.

2. How do I choose the right accounting software?
Consider your business size, budget, and features. For example, QuickBooks is great for all business types, while Wave is perfect for startups on a budget.

3. Is it worth paying for cloud-based accounting software?
Yes, it saves time, reduces errors, and helps with taxes. Most software is affordable and makes financial tasks easier.

4. Can cloud-based software help with taxes?
Yes, it generates tax reports, calculates taxes, and helps ensure you meet tax deadlines.

5. Do I need a professional to set up cloud-based accounting software?
While the software is user-friendly, professionals like Global FPO can ensure it's set up properly and integrated with your business tools.