How to Choose Accounting Software in 2026

Start With Your Business Size

Solopreneur / freelancer: Wave (free) or FreshBooks ($19/mo). You need invoicing, expense tracking, and basic financial reports. You don't need inventory, multi-entity, or payroll integration.

Small business (2-20 employees): QuickBooks Online ($30-$90/mo), Xero ($15-$78/mo), or Zoho Books ($0-$60/mo). Core accounting with bank feeds, invoicing, and bill management. Consider whether you need payroll integration (QBO + Gusto, Xero + Gusto).

Mid-market (20-500 employees): Sage Intacct, NetSuite, or QuickBooks Online Advanced ($200/mo). You need multi-entity, dimensional reporting, audit trails, and robust permissions.

The Non-Negotiable Features

Every accounting tool you evaluate should have:

• Double-entry accounting — if it doesn't have this, it's not accounting software
• Bank feeds / reconciliation — manual entry is not acceptable in 2026
• Financial statements — P&L, Balance Sheet, Cash Flow at minimum
• Audit trail — you need to know who changed what and when
• Accountant access — your accountant/bookkeeper needs their own login

The Accountant Factor

Here's what nobody tells you: your accountant's preference matters more than feature comparisons. If your accountant is fluent in QuickBooks and you choose Zoho Books, you'll pay for their learning curve in billable hours. Ask your accountant what they prefer before evaluating software.

Hidden Costs to Watch For

• Introductory pricing that doubles after 3-6 months (QBO does this)
• Per-user fees that scale with your team (Bill.com, Expensify)
• Payroll as a premium add-on rather than integrated (QBO, Xero)
• Data export fees or migration costs when you want to leave
• Payment processing markups on integrated payments