Free Accounting Software (2026): 10 Options Compared

Accounting is one of the few areas where free software can carry a small business for years. If you have a simple set of books, a handful of clients and no stock, a free plan may be all you ever need.

Below are ten free accounting tools in no particular order, sorted alphabetically, from cloud apps to desktop and open source programs. Each description comes from the tool's own website, re-checked today. If invoicing is the main job, my checklist of what to look for in invoicing and billing software is a good companion to this list.

Free accounting software at a glance

Every tool in this table says it has a free plan or free edition. Free plans usually limit users, invoices, bank connections or support, and some are free only for certain kinds of business.

Tool	Type	Good for	Free plan
Akaunting	Open source accounting	Self-hosted books and invoices	Yes
Clear Books	UK cloud accounting	UK sole traders and MTD	Yes
ERPNext	Open source ERP	Growing firms that want everything	Yes
GnuCash	Desktop accounting	Double-entry on your own computer	Yes
Manager	Desktop accounting	Offline books for one user	Yes
Odoo	Business apps	Starting with one free app	Yes
Pandle	UK cloud bookkeeping	Small UK firms and sole traders	Yes
QuickFile	UK cloud accounting	Small ledgers with VAT filing	Yes
Wave	Cloud accounting	Solopreneurs who invoice	Yes
Zoho Books	Cloud accounting	Micro businesses ready to grow	Yes

Ten free accounting software options

Akaunting

Best for: Freelancers and small firms who want open source accounting they can self-host for free.

Clear Books

Best for: UK sole traders who want MTD-ready bookkeeping on a free plan from a UK provider.

ERPNext

Best for: Growing businesses that want accounting plus stock, sales and buying in one open source system.

GnuCash

Best for: People comfortable with double-entry bookkeeping who want free desktop software for personal or business books.

Manager

Best for: Single users who want a free desktop accounting program that works offline.

Odoo

Best for: Businesses that want to start with one free app and add sales or stock tools later.

Pandle

Best for: Small UK businesses and sole traders who want invoicing, bank feeds and VAT on a free version.

QuickFile

Best for: UK businesses with small to medium ledgers who want a free tier that handles VAT filing.

Wave

Best for: Solopreneurs and small business owners who want free invoicing and accounting on a Starter plan.

Zoho Books

Best for: Micro businesses that want a free plan with room to grow into wider Zoho apps.

The Making Tax Digital check for free accounting software

Here's what UK sole traders and landlords need to know. GOV.UK's guidance says that some sole traders and landlords must use compatible software to report their income under Making Tax Digital for Income Tax from the start of the 2026 to 2027 tax year, and that you should choose your software before you sign up. HMRC keeps a find-software tool listing compatible products.

So before you settle on a free tool, check it's on HMRC's list for the job you need, whether that's VAT, Income Tax or both. A free program that can't submit updates to HMRC may still be fine for your own records, but you'd need something else to file.

Cloud or desktop free accounting software

Cloud tools connect to your bank, let your accountant log in and work on any device. Desktop and open source programs keep your data on your machine and don't depend on a provider's free plan staying the same. The trade-off is backups and updates, which become your job.

Setting up free accounting software in an afternoon

1. Add your business details and tax settings first.
2. Connect your bank or import a statement.
3. Create your income and expense categories, keeping them few and clear.
4. Add your clients and send one test invoice to yourself.
5. Reconcile the previous month's transactions so you start with clean books.

Signs you've outgrown free accounting software

• You're employing people. Payroll usually sits on upgraded plans or separate tools.
• You sell physical stock. Inventory tracking needs more than invoices and expenses.
• You trade internationally. Handling several currencies is rarely free.
• Your accountant spends hours fixing exports. That time is worth more than the upgrade.

Month end gets easier with a little automation, too. My piece on AI automation for month-end bookkeeping shows what accountancy firms automate and what they still check by hand.

Whatever you use, back up your books regularly and keep receipts with each transaction. Good records matter more than the software.

Questions to ask before you pick free accounting software

1. Does it handle the tax returns you file, or only your records?
2. Can your accountant log in or import your data easily?
3. How many bank accounts and invoices does the free plan allow?
4. Can you export everything if the free plan changes?
5. Is there a mobile app for snapping receipts?

Write the answers down for two or three tools and the choice usually makes itself, even when the feature lists look almost identical. The best free option is the one that fits your filing, your accountant and the way you already work.

Do you make accounting or bookkeeping software? Tool makers can ask to be considered for a featured place on this list.

My plain advice on free accounting software

Ask your accountant which tool they're happy to work with before you choose, and check HMRC's list if you're in the UK. A free tool your accountant can't read will eat hours at year end.

Frequently asked questions

Is there completely free accounting software?

Yes. Several cloud tools have free plans and some desktop and open source programs are free to use.

Is free accounting software good enough for a small business?

For simple books, often yes. As you add staff, stock or several currencies, you may need more.

Does free accounting software work with Making Tax Digital?

Some does. Check HMRC's find-software tool for the specific tax you need to file.

Can my accountant use free accounting software?

Many accountants work with common cloud tools. Ask before you choose.

What do free accounting plans usually leave out?

Common limits are users, bank connections, invoices per month, payroll and phone support.

Is open source accounting software safe?

It can be, if it's kept updated and backed up. Those jobs are yours when you self-host.