best accounting software for small business

Here are some of the best accounting software options for small businesses—especially for Indian MSMEs—along with pros/cons and what to pick depending on your needs. If you tell me your exact situation (turnover, number of invoices, offline/online preference, etc.), I can narrow it further for you.

What to Consider Before Choosing

To pick the right accounting software, ask:

Question Why It Matters
Do you need GST compliance / local taxes? Software must support local laws, returns, etc.
Cloud‑based vs. desktop/offline If internet is unstable, or you want field access, cloud helps. If reliable offline is needed, desktop is better.
Inventory / POS / multi‑branch If you have stock, multiple locations, or need billing/POS, choose software that supports that.
Number of users, number of transactions More users or many invoices = need better plans or more robust software.
Budget (monthly / annual / one‑time) Some are free/basic, others cost heavily as features/user count increases.
Support, training, ease of use Especially important if you don’t have a dedicated accountant or technical staff.
Top Options in India for Small Business

Here are software solutions that many small businesses in India are using. I’ve grouped them by category so you can match your needs.

Software Key Features / Strengths Weaknesses / When It Might Not Fit
Zoho Books Cloud‑based; strong GST/invoicing; bank feeds; good mobile app; scalable. Many features even in mid‑tier plans.
Accounting24
+3
Forbes
+3
virvabook.com
+3
Requires good internet; some advanced modules cost extra; desktop/offline work limited. May feel complex if you only need very basic invoicing.
Vyapar Very affordable; mobile + desktop versions; good for GST billing, inventory basics; offline support.
Accounting24
+1
Less powerful for advanced reporting, large inventory, multiple branches. May lack features needed as business grows.
TallyPrime Very well known in India; strong offline/desktop option; advanced inventory; multi‑location; many accountants know it.
billandlog.com
+1
Steeper learning curve; upfront cost is higher; less cloud flexibility; not as mobile‑friendly.
Busy Accounting Software Good for businesses with inventory, multi‑branch, stock/godown, robust accounting modules.
Accounting24
+1
More expensive; may be overkill for very small or simple businesses. Desktop version predominant, cloud features may be limited.
Marg ERP Strong inventory/supply‑chain modules; industry‑specific features (e.g. pharmaceuticals, distribution).
Accounting24
+1
Modules add to cost; user training required; may be more than what a micro business needs.
Saral Accounts Simpler modules; TDS, GST, inventory; good for businesses that want to pick what they need.
Accounting24
+1
Not as modern interface; less flexibility with integration; advanced/large‑scale features may be missing.
Khatabook / Simple Ledger Apps Very simple; low‑cost or free; good for micro business, freelancers; minimal setup.
Accounting24
+2
Software Floor
+2
Not fully featured (limited reporting, limited inventory, few automation features). May need to shift later.
Best Picks Based on Scenarios

Here are what I’d recommend for different kinds of small business scenarios:

Scenario What I’d Use / Recommend
Very small business / freelancer with few invoices, low turnover, pretty simple needs Vyapar (for basic) or Khatabook if cost needs to be minimal; possibly Zoho Books Free Plan if eligible.
Small shop / retailer with inventory, occasional offline usage, limited number of branches TallyPrime or Vyapar + maybe Zoho Books for remote visibility.
Service‑based small business, wanting cloud, clients scattered, want mobility and easy billing/reporting Zoho Books (cloud), with maybe a cheaper desktop for backup if internet is intermittent.
Retail / trading with large inventory, POS needs, multiple godowns or branches Busy Accounting or Marg ERP or TallyPrime (if comfortable with its learning curve). Saral if you want simpler modular control.
Recent Issues / What to Be Careful About

QuickBooks has exited the Indian market as of 2023. This means no new local support or updates. So, it's no longer a viable option for Indian‑registered businesses for core GST/compliance.
aroundtally.com
+2
Accounting24
+2

Always check whether the version you plan to buy supports all statutory compliance (GST, TDS, audit trails, etc.).

Cost can escalate: features, number of users, support, custom modules tend to add up.

Ensure good backup / data export options, especially with cloud software, in case you want to migrate later.