The Qualified Business Income (QBI) deduction, also known as the Section 199A deduction, is one of the most valuable tax breaks available to small business owners and self-employed individuals. Introduced under the Tax Cuts and Jobs Act of 2017, it allows eligible taxpayers to deduct up to 20% of their QBI component, reducing taxable income and potentially saving thousands each tax year.<a href="https://1800accountant.com/blog/how-much-can-a-small-business-make-before-paying-taxes">But calculating QBI is not always simple</a>. Rules vary depending on income level, entity type, and whether you’re in a specified service trade or business. Mistakes can lead to missed savings—or worse, penalties and IRS scrutiny.This guide breaks down how to calculate your deduction, explains key thresholds, and shares strategies to <a href="https://1800accountant.com/blog/missed-deductions-freelancers" target="_self">maximize this deduction</a> while maintaining compliance.<h2>Key Highlights</h2><ul><li>Eligible businesses can deduct up to 20% of qualified business income, but exclusions apply.</li><li>Income thresholds determine whether your calculation is straightforward or subject to complex limits.</li><li>Higher earners face <a href="https://1800accountant.com/blog/1099-vs-w2">W-2, Wage and Tax Statement</a> wage and property tests, plus stricter rules for service businesses.</li><li>Strategic planning—like entity choice, payroll setup, and aggregation—can increase your deduction.</li><li>Professional bookkeeping and tax advisory help ensure accurate calculations and audit protection.</li></ul><h2>Understanding the Fundamentals of the QBI Calculation</h2><h3>Defining Qualified Business Income (QBI)</h3>QBI is generally the net income from a qualified trade or business, including gains, deductions, and losses. However, some items do not count, such as:<ul><li>Wages earned as an employee</li><li>Reasonable compensation paid to S corp owners</li><li>Guaranteed payments to partners</li><li>Certain investment income (capital gains, dividends, interest not related to business operations)</li></ul>Accurate bookkeeping is an essential part of claiming the full deduction amount. If income and expenses aren’t properly categorized, your QBI base will be inaccurate, which can lead to several issues. <a href="https://1800accountant.com/services/bookkeeping" target="_self">1-800Accountant’s full-service bookkeeping solution</a> ensures your records are clean and audit-ready throughout the year.&nbsp;<h3>The Overall Deduction Limitation</h3>Even with accurate QBI, the <a href="https://www.irs.gov/newsroom/qualified-business-income-deduction" target="_blank">deduction cannot exceed 20%</a> of your taxable income (minus net capital gains). For taxpayers with large capital gains, this limitation can reduce the overall deduction.<h2>How to Navigate Income Thresholds</h2>Income thresholds determine whether your calculation is simple or requires additional steps. For 2025, the thresholds are:<ul><li>Single filers: $197,300</li><li>Married filing jointly: $394,600</li></ul><h3>Calculation for taxpayers below the threshold</h3>If your income is under the limit, the calculation is simple:QBI deduction = QBI × 20%No further restrictions apply.<h3>Calculation for taxpayers above the threshold</h3>For those exceeding the threshold, two sets of limitations apply:<ol><li><a href="https://www.irs.gov/pub/irs-drop/rp-19-11.pdf" target="_blank">W-2 wage and qualified property limits</a></li><li>Specified Service Trade or Business (SSTB) restrictions</li></ol>Expert tax planning becomes crucial at this stage in your QBI calculation. Services, like 1-800Accountant's year-round <a href="https://1800accountant.com/services/business-tax-advisory" target="_self">business tax advisory</a>, ensure you meet IRS requirements while maximizing savings.<h2>A Deep Dive into the W-2 Wage and Qualified Property Limitation</h2>For higher earners, the QBI deduction is limited to the greater of the results of the following tests.&nbsp;<h3>Test 1: 50% of W-2 Wages</h3>Test 1 includes wages paid by the business to employees, including the owner’s reasonable salary in an S corp.<h3>Test 2: 25% of W-2 wages plus 2.5% of unadjusted basis immediately after acquisition (UBIA) of qualified property</h3>Qualified property includes depreciable assets like equipment and real estate. The unadjusted basis immediately after acquisition (UBIA) is used for test 2.<h3>The Critical Role of Payroll and Asset Management</h3><a href="https://1800accountant.com/blog/what-are-payroll-deductions">Accurate payroll reporting is vital</a>, especially if wages are the limiting factor in your QBI deduction. <a href="https://1800accountant.com/services/small-business-taxes" target="_self">1-800Accountant’s payroll service</a> ensures W-2 wages are properly managed and reported, preserving your eligibility.Similarly, asset tracking systems and bookkeeping are needed to generate correct UBIA calculations.<h2>The Specified Service Trade or Business (SSTB) Challenge</h2>SSTBs face the most stringent limitations, which are designed to restrict the deduction for certain professional services.<h3>Identifying an SSTB</h3>These fields face SSTB restrictions:&nbsp;<ul><li>Health</li><li>Law</li><li>Accounting</li><li>Consulting</li><li>Financial services</li></ul>The "reputation or skill" clause is an important concept that often requires professional interpretation. This clause applies to businesses where the principal asset is the reputation or skill of one or more of its employees or owners.<h3>How the SSTB limitation works</h3>Above the income threshold, SSTB owners see their deduction phase-out and elimination at higher levels.Professional tax advisory can help SSTB owners manage income strategically, potentially preserving some deduction eligibility.<h2>Advanced Planning: Moving from Calculation to Strategy</h2><h3>Optimizing Your Business Structure for QBI</h3>Entity choice has a direct impact on many aspects of your business, including the QBI deduction. For example, electing S corporation status allows owners working in the business to pay themselves a reasonable salary, which then contributes to W-2 wages.1-800Accountant's <a href="https://1800accountant.com/services/entity-formation" target="_self">entity formation service</a> ensures your structure is set up for maximum efficiency from the start.<h3>Strategic Aggregation for Multiple Businesses</h3>Taxpayers with multiple businesses may be able to aggregate them for a more favorable outcome. The rules are strict, requiring professional analysis. An experienced accounting team can determine if aggregation is beneficial for your operations.<h2>The Future of QBI and Why Staying Informed Matters</h2><a href="https://1800accountant.com/blog/topics/bookkeeping">Originally set to expire after 2025</a>, the QBI deduction has been made permanent by the passage of the recent <a href="https://1800accountant.com/blog/big-beautiful-bill-for-small-business-taxes" target="_self">One Big Beautiful Bill legislation</a>.&nbsp;Many tax laws and rules impacting your business change periodically, making partnering with a knowledgeable CPA essential, as it ensures you can maximize and never miss opportunities as the rules evolve.<h2>Maintain Accurate, Audit-Ready Books to Maximize Savings with Professional Support</h2>QBI rules are intricate and complex, and can impact your business positively if you get them right, and negatively if mistakes are made. The IRS often reviews large tax deductions, which emphasizes the need for accurate bookkeeping. Poor recordkeeping practices can put your business at risk.It's beneficial to work with a CPA or accounting team that understands the nuances of your specific region and industry, and can apply QBI rules effectively. The goal is not just to file a return, but to build a year-round strategy that minimizes your business tax liability.And with <a href="https://1800accountant.com/services/audit-defense" target="_self">audit defense</a>, you gain peace of mind and ensure an expert is ready to guide your business if questions arise.<h2>Unlock Your QBI Deduction Potential with 1-800Accountant</h2><a href="https://1800accountant.com/blog/qbi-deduction">The QBI deduction is a powerful opportunity</a>, but only if calculated correctly. From payroll to bookkeeping, entity selection to tax strategy, every detail matters.Adjusting depreciation, timing income and expenses, managing owner compensation, and other proven strategies can influence the final total QBI deduction calculation. This is where the tax professionals at 1-800Accountant, America's leading virtual accounting firm, can make a difference. A key advantage of working with us is the year-round support from your designated accountant or team, who understands your business's unique needs and challenges..<a href="https://1800accountant.com/services/small-business-taxes">Schedule a free 30-minute business consultation</a> to see how our dedicated team can ensure you claim the maximum deduction while building a smarter long-term tax plan.<h2>Qualified Business Income Deduction FAQs</h2><h3>Who is eligible for the QBI deduction?</h3>Most <a href="https://fitsmallbusiness.com/what-is-20-percent-pass-through-deduction/" target="_blank">pass-through entities</a>, also called pass-through businesses, including sole proprietorships, partnerships, and S corps, may qualify for the QBI deduction. C corporations do not.<h3>What happens if you calculate QBI deduction incorrectly?</h3>QBI calculation errors can result in underclaimed savings—or IRS federal tax penalties if the net amount is overstated.<h3>Can you claim this deduction retroactively after filing?</h3>Amended returns may allow for retroactive QBI deduction claims if you were eligible but didn’t initially claim this deduction.<h3>How can you identify if you’re classified as part of SSTB?</h3>Fields like law, health, consulting, and financial services are considered SSTBs. If you're unsure of your business's SSTB status, seek professional guidance.<h3>On which forms do you report QBI?</h3><a href="https://1800accountant.com/blog/common-business-tax-forms">You would typically report QBI</a> via <a href="https://www.irs.gov/pub/irs-pdf/i8995a.pdf" target="_blank">IRS Form 8995, Qualified Business Income Deduction Simplified Computation</a>, or IRS Form 8995-A, Qualified Business Income Deduction, and attach it to your IRS Form 1040, U.S. Individual Income Tax Return.What are common errors to avoid?Misclassifying income, failing to track UBIA, and overlooking wage reporting are common mistakes you should avoid.<h3>Should married people file together or separately to maximize savings?</h3>In many cases, joint filing maximizes savings by doubling thresholds.<h3>Would hiring employees instead of independent contractors increase savings?</h3>Yes, employees generate W-2 wages that can help raise your deduction under the wage income limitation tests.

Introduced under the Tax Cuts and Jobs Act of 2017, it allows eligible taxpayers to deduct up to 20% of their QBI component, reducing taxable income and potentially saving thousands each tax year. But calculating QBI is not always simple. Rules vary depending on income level, entity type, and whether you’re in a specified service trade or business.&nbsp;

Blog Thumbnail_How to Calculate QBI_ Claim Your Maximum Deduction_1200x630_1.png

How to Calculate QBI: Claim Your 20% Deduction

Bench has been a go-to bookkeeping solution for many first-time entrepreneurs. Its software and monthly reconciliation services simplify finances for newer small business owners, particularly those who wear many hats. However, as businesses grow and mature, their needs also evolve, exposing Bench's limitations. Bench doesn’t include payroll, tax filing, or year-round advisory support, which can leave significant gaps that cause problems during tax season and throughout the year when faced with making critical long-term financial decisions.The good news for Bench clients? In 2025, several strong alternatives to Bench offer comprehensive features that help manage bookkeeping, generate actionable insights with real-time data, and power tax preparation, payroll, compliance, and long-term planning —features that Bench clients and other entrepreneurs are looking for.&nbsp;Use this guide for a list of the top Bench accounting alternatives in 2025, along with our picks, ensuring your business is set up for long-term success.&nbsp;<h2>Key Highlights</h2><ul><li>Bench excels in basic bookkeeping but lacks tax filing, payroll, and comprehensive advisory support.</li><li>Businesses seeking all-in-one accounting services will benefit from switching to a more comprehensive provider, especially as they mature and grow.&nbsp;</li><li>1-800Accountant stands out as the top alternative to Bench in 2025, offering a comprehensive suite of bookkeeping, tax, payroll, and advisory services in a single, affordable package. Services may also be used individually.&nbsp;</li><li>Other alternatives, such as QuickBooks Live, Pilot, and Xendoo, offer unique strengths but vary in terms of pricing, services, and scalability.</li><li>Selecting the best alternative for your operations depends on several factors, including business size, industry, budget, and compliance needs.</li></ul><h2>Why Look for Bench Alternatives?</h2>Bench bookkeeping has gained popularity due to its affordability and simplicity. However, as your business needs become more varied and complex, its limitations become more apparent.<ul><li>No tax filing: You’ll need a separate CPA, EA, or tax professional to handle business tax preparation and filing, adding cost and complexity.</li><li>No payroll services: Employers and businesses planning to hire in the future must still manage payroll independently while meeting strict <a href="https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates" target="_blank">IRS payroll tax deadlines</a>.</li><li>Limited advisory: Bench provides the numbers, but you'll have to look elsewhere for strategic financial guidance.</li><li>Ongoing changes: Bench is rebranding as Mainstreet, which may cause uncertainty for some business owners.</li></ul>Small business owners increasingly want integrated solutions from providers they won't inevitably outgrow. Instead of juggling multiple providers for bookkeeping, payroll, and taxes, it’s more efficient to work with a single trusted partner who can efficiently address compliance, proactive tax planning, and ongoing advisory.<h2>Criteria for Choosing a Bench Alternative</h2>Before engaging with Bench competitors, it's essential to understand the criteria and other features necessary for your growing business. When evaluating Bench bookkeeping alternatives, consider these key factors:<ul><li>Comprehensive services: Look for providers that combine bookkeeping, tax preparation, payroll, and advisory.</li><li>Pricing transparency: Flat-rate packages are easier to budget for than unpredictable hourly billing.</li><li>Industry expertise: Professionals familiar with your industry and the nuances of your region can provide more accurate insights and guidance.</li><li>Ease of use: User-friendly platforms and automation save time while reducing errors and frustration.</li><li>Scalability: Select a service that can support your business's growth goals at every stage.</li></ul><h2>Top Bench Accounting Alternatives in 2025</h2>Review the following bookkeeping services for small businesses in 2025. Bench alternatives with tax filing and online accounting for small businesses are featured, allowing for an in-depth comparison of Bench vs. competitors.&nbsp;&nbsp;<h3>1. 1-800Accountant – Best All-in-One Solution (Editor’s Pick)</h3><a href="https://1800accountant.com/">1-800Accountant</a>, America's leading virtual accounting firm, provides comprehensive virtual accounting services for small businesses, encompassing bookkeeping, tax preparation and planning, payroll, entity formation, and audit defense. Clients are assigned dedicated professional CPAs, EAs, bookkeepers, or a team, ensuring error-free work and year-round support. Full-service bookkeeping is powered by a real bookkeeper and ClientBooks, a proprietary platform that centralizes financial records and communication.Key stats: On average, 1-800Accountant clients save more than $12,000 per year in taxes and reclaim more than 25 hours during tax season alone.<ul><li>Pricing: Flat-rate packages start around $179/month.</li><li>Best suited for: Small businesses, freelancers, and startups seeking a single partner for all their accounting needs.&nbsp;</li><li>Standout feature: Affordable, flat-rate pricing with unlimited access to your designated team.</li></ul>👉 Explore <a href="https://1800accountant.com/" target="_self">virtual accounting for small businesses</a> with 1-800Accountant.<h3>2. QuickBooks Live</h3><a href="https://quickbooks.intuit.com/live/" target="_blank">QuickBooks Live</a> is Intuit’s bookkeeping offering that pairs directly with its well-known QuickBooks software. For business owners already using QuickBooks for accounting, this add-on offers a seamless way to integrate professional bookkeepers.<ul><li>Strengths: Seamlessly integrates with QuickBooks software, making it a natural choice for users already invested in the QuickBooks ecosystem.</li><li>Limitations: Focuses only on bookkeeping—no tax filing or payroll included.</li><li>Best for: Business owners already committed to QuickBooks for accounting software.</li></ul><h3>3. Bookkeeper360</h3><a href="https://bookkeeper360.com/" target="_blank">Bookkeeper360</a> markets itself as a tech-enabled accounting partner with a range of financial tools. It integrates with both QuickBooks and Xero, providing businesses with access to advisory services in addition to core bookkeeping support.<ul><li>Strengths: Offers bookkeeping, payroll, and CFO advisory, with integration to QuickBooks and Xero.</li><li>Limitations: No built-in tax prep; requires working with an external CPA, EA, or tax preparation partner.</li><li>Best for: Small to mid-sized businesses needing more financial reporting insight.</li></ul><h3>4. Pilot</h3><a href="https://pilot.com/" target="_blank">Pilot</a> is a startup-focused accounting service that emphasizes automation and scalability. It’s particularly popular with venture-backed companies thanks to integrations with growth and investor reporting tools.<ul><li>Strengths: Tech-forward, designed for startups, and integrates with venture capital tools.</li><li>Limitations: High pricing and limited scope. Pilot primarily offers bookkeeping and CFO services.</li><li>Best for: High-growth startups with complex reporting needs.</li></ul><h3>5. Wave Advisors</h3><a href="https://www.waveapps.com/wave-advisors" target="_blank">Wave Advisors</a> builds on the free Wave accounting software by offering access to bookkeeping professionals. It’s designed to help freelancers and microbusinesses get affordable support without committing to expensive accounting packages.<ul><li>Strengths: Affordable bookkeeping linked to Wave’s free accounting software.</li><li>Limitations: Lacks full tax preparation and payroll services.</li><li>Best for: Freelancers or solopreneurs with straightforward bookkeeping needs.</li></ul><h3>6. Xendoo</h3><a href="https://xendoo.com/" target="_blank">Xendoo</a> positions itself as a modern bookkeeping service with bundled tax support. It integrates with major accounting platforms, such as QuickBooks and Xero, while keeping costs more accessible for small businesses.<ul><li>Strengths: Includes bookkeeping and tax filing in bundled packages.</li><li>Limitations: Less personalized support than full-service firms that provide year-round guidance.</li><li>Best for: Small businesses that need basic bundled bookkeeping and tax services at a lower cost.</li></ul><h3>7. Merritt Bookkeeping</h3><a href="https://merrittbookkeeping.com/" target="_blank">Merritt Bookkeeping</a> focuses on simplicity and affordability. By offering a single, flat monthly fee for bookkeeping, it appeals to very small businesses seeking straightforward service without unnecessary extras.<ul><li>Strengths: Simple, affordable bookkeeping service at around $190/month.</li><li>Limitations: No payroll, tax filing, or advisory support.</li><li>Best for: Very small businesses with the most basic bookkeeping needs.</li></ul><h2>Final Thoughts – Which Bench Alternative is Best for You?</h2>Bench is useful for simple bookkeeping tasks in the short term, but many modern business owners and entrepreneurs demand more. As tax laws continue to evolve and <a href="https://1800accountant.com/blog/llc-tax-deadlines" target="_self">key 2025 tax deadlines</a> approach, compliance and strategic financial planning become increasingly critical considerations.For small businesses seeking a trusted partner with bookkeeping, payroll, tax, and advisory capabilities for an affordable, tax-deductible fee, the choice is clear: 1-800Accountant is the top alternative to Bench in 2025. Its flat-rate pricing, expert CPAs, EAs, bookkeepers, and tax professionals, along with its comprehensive and scalable service model, provide peace of mind and significant, long-term savings, supporting your business from launch.&nbsp;Ready to simplify your finances? <a href="https://1800accountant.com/" target="_self">Schedule a free 30-minute consultation</a> today to preview your potential time and tax savings.&nbsp;

Bench doesn’t include payroll, tax filing, or year-round advisory support, which can leave significant gaps that cause problems during tax season and throughout the year when faced with making critical long-term financial decisions.

Blog Thumbnail_Best Bench Accounting Alternatives in 2025_51200x630_1.png

Best Bench Accounting Alternatives in 2025

Because the IRS closely monitors this area, failing to pay a reasonable salary is one of the most common triggers for an audit of S corporations. This guide breaks down everything you need to know, including how to calculate a defensible salary, the IRS factors to consider, and how to build airtight documentation that protects your business in an era of AI-powered tax enforcement.

Blog Thumbnail_Guide to Calculating Reasonable Compensation for S Corps_1200x630_1.png

Guide to Calculating Reasonable Compensation for S Corps

The answer is yes, but the path to maximizing this deduction requires careful planning, strict compliance with IRS rules, and a long-term strategy. This guide walks through the deduction methods, depreciation strategies, and compliance requirements you need to know in 2025.&nbsp;

Blog Thumbnail_Can an LLC Write Off a Car Purchase_ The 2025 Guide_1200x630_2.png

Can an LLC Write Off a Car Purchase? The 2025 Guide

Electing S corporation tax status can unlock meaningful savings and signal a new stage of professionalism in your business. It also introduces stricter compliance requirements, payroll responsibilities, and a key challenge: determining a “reasonable salary.”

Blog Thumbnail_Can a Single-Member LLC Be Taxed as an S Corp_ _1200x630_1.png

Single-Member LLC Taxed as S Corp: Pros, Cons & How To

Selecting the optimal entity has numerous benefits and can make a positive impact immediately. For example, small business owners can cut their tax burden in half in their first year of operation, potentially turning a loss into a profit, with proper entity selection.

Blog Thumbnail_Form 2553_ Guide to S Corp Election & Requirements_1200x630_2.png

Form 2553: Guide to S Corp Election & Requirements

QuickBooks is the most recognized accounting software in the U.S., holding roughly 62% of the overall market share. Despite its popularity, many entrepreneurs, freelancers, and small business owners find QuickBooks features to be overwhelming, pricing too expensive, or simply not the right fit for their needs.Fortunately, the accounting software space offers alternatives that are a better fit for modern small business owners, offering affordability, ease of use, and scalability. At the top of the list is ClientBooks, a solution built specifically for small business owners and integrated with real human accounting and bookkeeping expertise from&nbsp;<a href="https://1800accountant.com" target="_self">1-800Accountant</a>, America's leading virtual accounting firm. &nbsp;This guide will walk through the best QuickBooks alternatives in 2025, highlighting their unique capabilities and helping you choose software that's the best fit for your small business needs.<h2>Key Highlights</h2><ul><li>QuickBooks and QuickBooks Online dominate the market, but many small businesses find them to be too costly and complex.</li><li>ClientBooks&nbsp;leads as the best overall QuickBooks alternative, offering do-it-yourself (DIY) bookkeeping, compatibility with common platforms, and the option to add&nbsp;<a href="https://1800accountant.com/services/bookkeeping" target="_self">full-service bookkeeping</a>&nbsp;powered by your designated bookkeeper for an affordable, tax-deductible fee.</li><li>Other strong QuickBooks competitors to consider include FreshBooks, Xero, Wave, Zoho Books, Sage, and Kashoo—each catering to different business needs.</li><li>Choosing the right solution depends on factors like budget, features, integrations, and overall support.</li><li>The right accounting platform saves time, reduces stress, and helps your small business grow with confidence.</li></ul><h2>Why Look for QuickBooks Alternatives in 2025?</h2>While QuickBooks has long been the default choice for accounting software, it’s not without drawbacks:<ul><li>High costs: Subscription pricing can add up, especially for small or seasonal businesses.</li><li>Complexity: Many entrepreneurs don’t need the advanced features designed primarily for accounting professionals.</li><li>Steep learning curve: Business owners often spend more time trying to figure out QuickBooks than actually using it to help their businesses grow.</li></ul>The rise of new technologies and user-friendly design has paved the way for affordable, intuitive small business bookkeeping software options that better align with the needs of small businesses. In 2025, trends shaping these alternatives to QuickBooks and the overall accounting software market include:<ul><li>Automation: From recurring invoices to automated reminders, reducing manual entry.</li><li>Integrated solutions: Platforms that combine bookkeeping with&nbsp;<a href="https://1800accountant.com/services/small-business-taxes/online-filing">tax filing support for small businesses</a>.</li><li>Accessible support: Increasingly, entrepreneurs are demanding software backed by real human expertise, not just self-service tools.</li></ul><h2>The Best QuickBooks Alternatives in 2025</h2><h3>1. ClientBooks (Best Overall for Small Businesses)</h3>ClientBooks is built with the over 100,000 small businesses we've served in mind—not accountants. When it comes to ClientBooks vs. QuickBooks, ClientBooks combines simple DIY bookkeeping software with the option to upgrade to&nbsp;full-service support, including a dedicated bookkeeper, through 1-800Accountant.Key strengths:<ul><li>DIY software with optional professional bookkeeping.</li><li>Flat-rate, affordable pricing—no hidden fees.</li><li>Tax-ready reports with seamless integration into 1-800Accountant services for maximum efficiency.&nbsp;</li><li>Real human professional support available.</li><li>Scales with your business, whether you’re a freelancer or a growing startup.</li></ul>Best suited for: Freelancers, startups, and small businesses seeking flexibility and peace of mind.👉 Start your journey with&nbsp;<a href="https://clientbooks.com" target="_self">ClientBooks bookkeeping software</a>&nbsp;today.<h3>2. FreshBooks (Best for Freelancers and Service Businesses)</h3>FreshBooks is well-known for its easy invoicing (some plans support unlimited invoices) and expense tracking. It’s a cloud-based solution and integrates with popular payment processors, making it a favorite for freelancers and service-oriented businesses.<ul><li>Excellent for billing clients and tracking expenses.</li><li>Strong reputation for customer support.</li><li>Best suited for small service businesses and independent professionals.</li></ul><a href="https://www.freshbooks.com" target="_blank">Learn more at FreshBooks</a>.<h3>3. Xero (Best for Growing Startups)</h3>Xero has gained global popularity, especially with startups. It integrates with over 1,000 apps, from payment processors to customer relationship management (CRM) tools.<ul><li>Feature-rich and scalable.</li><li>Affordable entry-level pricing.</li><li>Best suited for businesses planning to grow quickly and requiring robust integration options.</li></ul>Visit&nbsp;<a href="https://www.xero.com" target="_blank">Xero</a>.<h3>4. Wave Accounting (Best Free Alternative)</h3>For entrepreneurs just starting, Wave is hard to beat—it’s entirely free for bookkeeping and accounting tasks.<ul><li>Ideal accounting system for side hustlers or very small businesses.</li><li>Downsides: charges for payroll and payment processing, and customer support is limited.</li><li>Still, the free, full-featured accounting software makes it a great entry point.</li></ul>Explore&nbsp;<a href="https://www.waveapps.com" target="_blank">Wave Accounting</a>&nbsp;and its free plan.<h3>5. Zoho Books (Best for Automation &amp; Ecosystem)</h3>Zoho Books is part of the broader Zoho suite, making it a great choice if you already use Zoho apps, rather than a separate system.<ul><li>Budget-friendly and packed with automation (recurring professional invoices, reminders).</li><li>A strong fit for businesses seeking CRM integration, email, and a financial management solution.</li></ul>Check out&nbsp;<a href="https://www.zoho.com/books" target="_blank">Zoho Books</a>.<h3>6. Sage Accounting (Best for Established Businesses)</h3>Sage is one of the most established accounting platforms worldwide due to its intuitive accounting software features.<ul><li>Substantial compliance and reporting features.</li><li>Trusted by more established small to mid-sized businesses.</li><li>Known for its reliability and global recognition.</li></ul>Discover&nbsp;<a href="https://www.sage.com" target="_blank">Sage Accounting</a>.<h3>7. Kashoo (Best for Simplicity)</h3>Kashoo is designed for solopreneurs and freelancers who value simplicity above more advanced accounting features.<ul><li>Straightforward interface, minimal learning curve.</li><li>Affordable pricing.</li><li>Great for self-employed professionals managing their own books.</li></ul>Learn more about&nbsp;<a href="https://www.kashoo.com" target="_blank">Kashoo</a>.<h2>How to Choose the Right QuickBooks Alternative</h2>Selecting the best QuickBooks replacement comes down to your business’s specific needs:<ul><li>Budget: How much can you invest in software each month?</li><li>Business size: Freelancers may need fewer robust features than a growing startup.</li><li>Integrations: Do you need software that connects with your existing tools?</li><li>Support: Is access to real CPAs, bookkeepers, and accounting professionals vital to your operations?</li></ul>While many of the tools highlighted offer affordable accounting software,&nbsp;ClientBooks has innovated in the space by combining DIY bookkeeping with the option to upgrade to professional, full-service help when you need it most. This flexibility ensures your software can scale with your business, with consistency at every stage.<h2>Choosing Your Accounting Software</h2>QuickBooks may be the biggest name in accounting software, but it’s not the only option—and it’s not always the best bookkeeping software for small businesses. In 2025, entrepreneurs have a wealth of choices, from free platforms like Wave, with its intuitive interface, to automation-friendly Zoho Books and the globally trusted Sage.For most small businesses, however,&nbsp;ClientBooks stands out as the best overall QuickBooks alternative. With its affordable flat-rate pricing, seamless tax integration, and access to real accountants and bookkeepers through 1-800Accountant, it offers the perfect balance of simplicity and support.👉 Ready to simplify your bookkeeping? Try&nbsp;<a href="https://clientbooks.com" target="_self">ClientBooks bookkeeping software</a>&nbsp;today and spend more time growing your business, not managing spreadsheets.

Despite its popularity, many entrepreneurs, freelancers, and small business owners find QuickBooks features to be overwhelming, pricing too expensive, or simply not the right fit for their needs. Fortunately, the accounting software space offers alternatives that are a better fit for modern small business owners, offering affordability, ease of use, and scalability.

Blog Thumbnail_Best QuickBooks Alternatives in 2025_51200x630_1.png

Best QuickBooks Alternatives for Small Businesses (2025)

Understanding how to take money out of your LLC without triggering unexpected tax liabilities can be complex. This excellent guide demystifies LLC distributions taxes, explaining their taxation based on your LLC's classification and providing actionable insights for tax-smart planning throughout the year.

Blog Thumbnail_How Are LLC Distributions Taxed_ A Complete Guide_1200x630_2.png

How Are LLC Distributions Taxed? 2025 Guide

This guide breaks down what assets, liabilities, and equity really mean for your business, how they shape your balance sheet, and how to use them as a decision-making tool for long-term success.

Blog Thumbnail_Assets, Liabilities & Equity_ A Complete Guide_1200x630_1.png

Assets, Liabilities & Equity: A Complete Guide

Excepteur sint occaecat cupidatat

JOIN NOW!

Your small business resource for accounting, bookkeeping, and taxes from our experts.

Accounting, Bookkeeping, & Tax Blog

Screenshot_2023-08-14_at_1.36_1.png

CLP_JoinUs_Testimonial_WomanBlueBackground_3.png

Huong T
“Excellent first call, very informative. This is my third business … this time  I will ease the burden and use 1-800Accountant [for accounting]”

By clicking "Confirm My Appointment" you agree to our <a href="https://1800accountant.com/terms-of-services" target="_blank">Terms of Service</a>. This includes permission to communicate with you about your appointments via phone, email, or SMS. If you prefer to opt-out of SMS communications you may uncheck this box