Ava AbbottQuickBooks is accounting software for small businesses based in Mountain View, California. It was developed in 1983 by the founders of Intuit Inc. – Scott Cook and Tom Proulx. The company offers QuickBooks Online, QuickBooks Self-Employed, and QuickBooks Capital.
QuickBooks Online caters to freelancers and SMBs. It has over 3.2 million subscribers in the US and 1.3 million internationally. QuickBooks Self-Employed is an on-premises accounting application with more than 1 million subscribers.
QuickBooks Capital offers loans to SMBs and has funded $683 million in cumulative loans since launch. Businesses can use QuickBooks Online Essentials for $50, Plus for $80, and Advanced for $150. [1]
In 2020, QuickBooks’ parent company Intuit made $7.7 billion in annual revenue, up 13% year-over-year. Revenue from QuickBooks Online increased by 38%, driven by customer growth. The company saw a 21% rise in online services revenue from online payments, loans, payroll, and tax services.
QuickBooks dominates the accounting software market, thanks to its robust platform, easy-to-use features, and straightforward pricing. But the company is facing stiff competition from top alternatives like Sage Group, NetSuite, FreshBooks, and many more. [2]
Here are the top QuickBooks competitors and alternatives:
1. Sage Group
Year founded: 1981
Headquarter: Newcastle, UK
Sage Group is a British multinational enterprise software company. With over 6.1 million customers, Sage is one of the world’s largest suppliers of enterprise resources worldwide. The company has offices in 24 countries and offers Sage Intacct for cloud accounting, Sage 50cloud for growing businesses, and Sage Business Cloud for freelancers and SMBs.
All three applications provide sales invoicing, tracking, bank connections, and inventory management. Sage competes with QuickBooks across multiple target market segments.
Sage 50cloud Accounting has three plans, ranging from $340 annually for single users to $842 annually for up to 40 users. Sage Business Cloud Accounting’s entry-level plan costs only $10 per month, making it affordable for freelancers and SMBs.
Sage Group has 12,000 employees, and its recurring revenue increased by 8.2% to $2.32 billion in 2020. The company sold its businesses in Poland, Australia, Switzerland, and Asia to streamline its business model. Sage Group is a worthy top QuickBooks competitor. [3]
2. NetSuite
Year founded: 1998
Headquarter: San Mateo, California
NetSuite is a cloud ERP solution that provides a suite, including accounting and financial planning and inventory management. In 2016, Oracle Corp acquired NetSuite for $9.3 billion. The platform offers end-to-end business solutions optimized for quick response. In 2021, NetSuite released several updates to enhance its financial, inventory, and operational capabilities. The new features allow users to collaborate seamlessly across verticals.
As one of the world’s leading ERP solutions, NetSuite’s accounting offering is enticing for many businesses. Its integrated platform allows users to manage everything on a single platform, which increases its competitive edge over QuickBooks. In 2020, Oracle made $39.1 billion. Revenue from NetSuite ERP was up 26%. NetSuite is one of QuickBooks’ top competitors. [4]
3. FreshBooks
Year founded: 2003
Headquarter: Toronto, Canada
FreshBooks is an accounting application that allows users to track their business activities. The app automates invoicing, expense management, and time tracking. Users can pay $15/month for Lite, $25/month for Plus, or $50/month for Premium.
This accounting software generates $55 in revenues annually and caters to more than 24 million customers in 160 countries. It has around 484 employees and operates under 2ndSite Inc.Though both QuickBooks and FreshBooks offer live support options, FreshBooks does not push self-help resources on its customers.
It recently added double-entry accounting capability to its app, which can entice any SMB. FreshBooks’ beginner-friendly features and accounting tools make it the best QuickBooks alternative for tech novices, freelancers, and sole proprietors. [5]
4. Xero
Year founded: 2006
Headquarter: New Zealand
Xero is a cloud-based accounting platform designed for small businesses. The application stands out due to its flexible accounting functionality and integration with over 700 apps.
Xero saw significant growth in 2020, increasing its subscribers in the UK by 17% to 720,000, New Zealand grew by 14% to 446,000, and North American added 18% to 285,000. The “rest of world” subscribers grew by 40% to 175,000.
Globally, Xero subscribers increased from 2.45 million in March 2020 to 2.74 million in March 2021. For FY 2021, Xero made $593 million in revenue, up 18% year-on-year. Xero’s surging subscribers and revenues make it a worthy top competitor for QuickBooks. [6]
5. Microsoft Dynamics 365
Year founded: 1984
Headquarter: Redmond, Washington
Microsoft Dynamics delivers comprehensive out-of-the-box business management functionality. It runs on the robust Azure cloud-based infrastructure and offers an all-in-one solution.
In 2021, Microsoft released new updates for Dynamics 365. Now, users can engage with their teams via Microsoft Teams within Dynamics 365 as they crunch their numbers. The ability to collaborate is enticing for businesses with regional or global operations. [7]
In the 2020 fiscal year, Microsoft Dynamics’ revenue exceeded $3 billion. It surged more than 60%, increasing total revenue by around $1.8 billion. Microsoft’s financial capability and end-to-end business solution increase Dynamics’ competitive edge over QuickBooks. Dynamics 365 is a formidable QuickBooks competitor. [8]
6. Wave Accounting
Year founded: 2009
Headquarter: Toronto, Canada
Wave Accounting is a cloud-based application that offers double-entry accounting capability. It is an online-based accounting app with robust features for small businesses, including sales, purchases, banking, and reporting. Wave Accounting also offers customer management capability and invoice customization.
The app is suitable for service providers rather than traders in physical products. As of March 2021, its parent company Wave Financial had 302 employees. The main competitive advantage for Wave Accounting is that it’s free. Users only pay when they subscribe to the online payment application.
They can pay 2.9% plus $.30 for each transaction, a base fee of $35 for full-service payroll, or a $20 monthly fee for the self-service payroll option. Wave Accounting is the best free QuickBooks Online alternative. [9]
7. AccountingSuite
Year founded: 2012
Headquarter: San Francisco, California
AccountingSuite is a cloud-based software that provides accounting, order management, bank reconciliation, inventory, time tracking, and eCommerce functionality. It is flexible and supports businesses, from start-up to enterprise level.
This cloud-based application allows users to access their finances anywhere globally. AccountingSuite competes with QuickBooks Online in order management, inventory control, and accounting. The main competitive advantage for AccountingSuite is its sales functionality. This feature gives businesses flexibility in the sales workflow.
The company has around 20 employees and generates $4 million annually. AccountingSuite’s all-in-one business application can poach some customers from QuickBooks. [10]
8. Kashoo
Year founded: 2008
Headquarter: Vancouver, BC, Canada
Kashoo is a cloud-based accounting application for small businesses. It has subscribers in over 180 countries who are enticed by its affordability. The app comes with double-entry accounting capability, bill payment, contacts, and accounts, taxes.
Users only pay $19.95 per month or $199 per year to access all these functionalities. In 2020, Kashoo’s revenue run rate hit $809,100 in revenue.
The latest Kashoo 2.0 comes with a user-friendly interface for navigation and intuitive features. Kashoo offers all essential accounting features and supports an unlimited number of users, which increases its competitive edge over QuickBooks. It is one of the best QuickBooks alternatives for sole proprietors. [11]
9. Zoho Books
Year founded: 1996
Headquarter: Chennai, Tamil Nadu, India
Zoho Books is an accounting software application. In the past few years, Zoho Books has expanded its app with new features to match QuickBooks Online. It offers invoicing, bills, vendor credits, and purchase approvals. The app integrates seamlessly with most e-commerce platforms, which can entice online stores from QuickBooks. In 2020, Zoho Corporation generated $610 million in revenue.
Previously, Zoho Books’ Basic plan was $9/month, the Standard plan at $19/month, and the Professional plan at $29/month. After adding new features, Zoho Books increased its Professional plan to $50/month and introduced a Premium plan for $70/month.
It now offers the Basic plan for free and reduced the price for a Standard plan to $15. These pricing changes make Zoho Books ideal for small business owners. Zoho Books is one of the top ten QuickBooks alternatives. [12]
10. Hello Bonsai
Year founded: 2016
Headquarter: San Francisco, California
Hello Bonsai is an all-in-one CRM solution and the best QuickBooks alternative for freelancers. In the last five years, this popular app has helped over 250,000 freelancers manage their businesses. It offers contracts, proposals, tracking tasks, invoicing, and online payments.
In March 2020, Bonsai launched an accounting and tax assistant. Bonsai’s Freelance Tax Hub estimates freelancers’ taxes based on their state, income, expenses, tax filing status, and more.
It automatically tracks expenses and answers over 40 frequently asked tax questions. Now, freelancers can manage all their business operations in one platform. Bonsai is 100% free, which increases its competitive advantage over QuickBooks. [13]
References & more information
- Future Team (2021, Jun 1). Accountant Discounts and QuickBooks Online Pricing. Firm of the Future
- Arrowsmith, R. (2020, Aug 28). Intuit 13% annual growth driven by strong TurboTax performance. Accounting Today
- Jeans, R. (2021, May 10). Sage Group to report interims on Friday. Proactive Investors
- Templeman, V. (2021, Jun 1). NetSuite Founder Says Sync All Parts Of The Business To Deliver ERP Success. Which50
- Yoder, T. (2021, Jun 8). FreshBooks Review: Pricing & Features for 2021. Fit Small Business
- Barbaschow, A. (2021, May 13). Xero adds 450,000 subscribers and posts nearly NZ$20m in profit for 2021. ZDNet
- Sleep, V. (2021, Apr 20). Top new features in 2021 release wave 1 for Microsoft Dynamics 365. WIPFLI
- Novet, J. (2020, Oct 20). Microsoft sales changes could help it challenge Salesforce in cloud software. CNBC
- Holdaway, D. (2021, Feb 11). Wave Accounting software review. Get Divvy
- Murphy, W. (2021, Jan 15). First Look Friday: AccountingSuite. Insightful Accountant
- Girsch-Bock, M. (2021). Kashoo Online Accounting Review. The Motley Fool
- Krause, C. (2021, Jun 11). Zoho Books Review. Merchant Maverick
- Bonsai (2020, Dec 02). Bonsai’s Freelance Tax Hub is free and public for Everyone Now. PR Newswire
- Featured Image by Kelly Sikkema
Kevin Johnson
Brianna Parker
S.K. Gupta
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