- Free bookkeeping software at a glance
- Nine free bookkeeping tools to consider
- How long you must keep the books
- Cloud free plan or open-source desktop?
- Setting up your books in an afternoon
- Limits to check on free plans
- Keeping your data safe
- Free tools and Making Tax Digital
- My plain advice on free bookkeeping software
- Frequently asked questions
Free bookkeeping software lets you record income and expenses, send invoices and see where you stand without a monthly subscription. The free options split into cloud tools with free plans and open-source or desktop software you install yourself. Nine options follow in no particular order.
When you're just starting out, a spreadsheet can work for a while. But as invoices, receipts and bank transactions pile up, a real ledger saves hours and makes your accountant's life easier, and there's no need to start with a subscription.
The nine tools below are listed alphabetically and in no particular order, mixing cloud tools and open-source desktop packages. Each description comes from the tool's own site, read this week. If you outgrow free tools, my guide to the best bookkeeping software for small business covers the next step up.
Free bookkeeping software at a glance
In the free plan column, Yes means the tool's own site describes free use or a free plan, Trial only means a time-limited trial and No means neither is stated on the pages we read. Free plans often have limits on users, invoices or bank connections, so check what's included.
| Tool | Type | Good for | Free plan |
|---|---|---|---|
| Akaunting | Open source accounting | Web-based books with add-on apps | Yes |
| Express Accounts | Desktop bookkeeping | Offline desktop books | Yes |
| Frappe Books | Open source desktop | Freelancers who like open source | Yes |
| LedgerSMB | Open source ERP | Growing firms with technical help | Yes |
| Manager.io | Desktop accounting | Free desktop accounting on any system | Yes |
| Odoo | Business suite | Adding more apps later | Yes |
| TurboCASH | Open source accounting | Traditional double-entry books | Yes |
| Wave | Invoicing and accounting | Free invoicing for freelancers | Yes |
| Zoho Books | Online accounting | Micro businesses on a free plan | Yes |
Nine free bookkeeping tools to consider
Akaunting
Best for: Small businesses that want free web-based books with invoices, bills and reports, adding apps only when they need them.
Express Accounts
Best for: Very small businesses that prefer desktop software on a PC or Mac instead of keeping their books in the cloud.
Frappe Books
Best for: Freelancers and tiny businesses that want simple, open-source desktop books with invoicing and reports.
LedgerSMB
Best for: Growing firms with technical help who want open-source accounting, invoicing and inventory they can host themselves.
Manager.io
Best for: Sole traders and small firms anywhere who want free desktop accounting that runs on Windows, Mac or Linux.
Odoo
Best for: Businesses that want free invoicing and bills now with the option to add inventory, CRM and other Odoo apps later.
TurboCASH
Best for: Bookkeepers who like traditional double-entry ledgers and want an open-source desktop accounting package they can install themselves.
Wave
Best for: Freelancers and very small businesses that want free invoicing and bookkeeping with optional extras when they need them.
Zoho Books
Best for: Solopreneurs and micro businesses that want cloud books on a free plan and an easy route to more features later.
How long you must keep the books
Here's the rule that decides how long your free software needs to keep your data safe. GOV.UK says limited companies must keep records for 6 years from the end of the last company financial year they relate to, or longer in some cases.
Free software is fine for that, as long as you back it up and can still open your files years from now, so check how each tool exports your data. With desktop software, that means regular backups somewhere other than your laptop.
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Cloud free plan or open-source desktop?
Cloud tools with free plans are quick to start, work on any device and often connect to your bank. The catch is that free plans can change, and some features sit behind upgrades. Open-source and desktop tools give you full control of your data and no surprise changes, but you're responsible for installing, updating and backing them up.
If you want the least hassle, start with a cloud free plan. If you care most about owning your data and avoiding lock-in, try an open-source option.
Setting up your books in an afternoon
- Choose a tool and create your business profile.
- Set up a simple chart of accounts, or use the default.
- Add your opening bank balance and any unpaid invoices.
- Connect or import your bank transactions.
- Create rules for regular income and expenses.
- Book a monthly half hour to reconcile and tidy up.
Limits to check on free plans
- Users. Free plans often allow one or two people.
- Invoices. Some limit how many you can send each month.
- Bank connections. Automatic feeds may need an upgrade.
- Tax features. Check what's included for your country.
Keeping your data safe
If you use desktop or open-source software, set up automatic backups to a separate drive or cloud folder, and test that you can restore them. If you use a cloud tool, export a full copy of your books every few months. It's a small job that protects years of records.
Free tools and Making Tax Digital
If you're in the UK, check whether a tool supports the digital record keeping and online submissions you need for VAT or Income Tax. Not every free or open-source package does, and it's better to know before you build a year of records in it.
Do you make free bookkeeping or accounting software? Tool makers can ask to be considered for a featured place on this list.
My plain advice on free bookkeeping software
Free software is a great start, but the habit matters more than the tool. Reconcile your bank once a month, attach receipts as you go and keep business and personal spending separate. Do that and almost any tool on this list will serve you well.
Talk to your accountant before you choose. If they already work with a particular tool, using it can save you both time at year end. For more ways to keep things tidy, see my secrets to easy bookkeeping.
Frequently asked questions
Is there completely free bookkeeping software?
Yes. Several tools on this list describe free plans, and others are open source, which means the software itself is free to use.
How long should I keep business records in the UK?
GOV.UK says limited companies must keep records for 6 years from the end of the last company financial year they relate to.
What's the difference between bookkeeping and accounting software?
Bookkeeping software records day-to-day transactions, while accounting software usually adds reports, tax features and more advanced tools. Many tools do both.
Can free bookkeeping software connect to my bank?
Some cloud tools offer bank connections on free plans, while desktop tools usually import statements instead.
Will my accountant accept free software?
Usually, yes, especially if you can export reports. Ask them which tools they prefer.
When should I upgrade from free software?
Consider upgrading when you need more users, payroll, multiple currencies or features the free plan doesn't include.
