Free Accounting Software: What You Get and What You Give Up
Updated 26 March 2026
Two accounting platforms offer genuinely free plans with no time limit and no credit card required. Here is exactly what is included, what the hard limits are, and when you will hit a wall that forces you to pay.
Wave
Free ForeverWhat is included free
- ✓Unlimited invoices (no monthly or annual cap)
- ✓Double-entry accounting with full chart of accounts
- ✓Automatic bank feeds from most US and Canadian banks
- ✓Expense tracking with receipt scanning (mobile app)
- ✓Profit and loss, balance sheet, cash flow statements
- ✓Aged receivables and payables reports
- ✓Sales tax tracking and reporting
- ✓Unlimited collaborators (accountants and bookkeepers)
- ✓Customer and vendor records
- ✓Recurring invoices and automatic payment reminders
What costs extra
- —Payroll: $20/month base + $6 per employee (US only)
- —Payment processing: 2.9% + 30 cents per card transaction
- —ACH bank payments: 1% (minimum $1) per transaction
- —Credit card surcharging requires the paid plan
- —Checkouts and payment links require paid plan
- —No inventory management (would need an integration)
- —No project profitability tracking
- —No time tracking
- —No budgeting tools
- —Phone support only available on paid plans
Who Wave is genuinely sufficient for
Wave works well for freelancers, consultants, sole proprietors, and small service businesses with straightforward finances. If your main needs are: sending invoices, tracking expenses, reconciling your bank account monthly, and producing a profit and loss report for tax time, Wave covers all of that at no cost.
The bank feed quality is genuinely good. Wave connects to most major US and Canadian banks through Plaid and syncs transactions automatically. Many small businesses run on Wave for years without ever needing to upgrade.
When you will outgrow Wave
- ✗You have employees and want payroll integrated without paying $20+ per month
- ✗You need project-level cost tracking or billable hours
- ✗You run an ecommerce business and need inventory management
- ✗You need to track profitability by job or client
- ✗You operate in multiple currencies
- ✗You need purchase orders or bills with multi-step approval workflows
Zoho Books Free
Free with Revenue CapThe revenue cap is the key constraint
Zoho Books Free is only available to businesses with annual revenue under $50,000 USD (or equivalent). This is not a soft recommendation. Zoho actively monitors it and will require you to upgrade once you exceed the threshold. For a freelancer or very small service business, $50k/year is a reasonable ceiling, but it means this plan has a built-in expiry date as you grow.
The 1,000 invoice per year limit is also a real constraint for active invoicers. At 1,000 per year, you are sending roughly 83 invoices per month. Most small businesses stay well under that, but high-frequency service businesses will hit it.
What is included free
- ✓1,000 invoices per year
- ✓Bank reconciliation and feeds
- ✓Expense tracking
- ✓Profit and loss and balance sheet reports
- ✓Client and vendor records
- ✓1 user only
- ✓Mobile app (iOS and Android)
- ✓Basic quotes and estimates
What requires upgrading
- —Revenue over $50,000/year requires paid plan
- —More than 1 user requires Standard ($15/mo)
- —More than 1,000 invoices/year requires upgrade
- —Payroll not available on free plan at all
- —Automated bank rules require Standard
- —Project tracking requires Standard
- —Custom domain for client portal requires Standard
- —Recurring invoices with auto-charge require upgrade
Wave vs Zoho Books Free: Which to Choose
| Factor | Wave | Zoho Books Free |
|---|---|---|
| Revenue limit | None | $50k/year |
| Invoice limit | Unlimited | 1,000/year |
| User limit | Unlimited collaborators | 1 user |
| Bank feeds | Yes, free | Yes, free |
| Payroll available | $20+/mo add-on | Not on free plan |
| Invoice quality | Good, customizable | Good, customizable |
| Mobile app | Yes | Yes |
| Best for | Most freelancers and small businesses | Solo operators under $50k revenue |
Bottom line: start with Wave
Unless you are specifically in the Zoho ecosystem already, Wave is the stronger default free choice. No revenue cap, no invoice cap, unlimited time, and automatic bank feeds make it the most genuinely free full-featured accounting tool available. Start there and only move to a paid plan when you hit a specific feature wall.