We tested QuickBooks Online, Xero, FreshBooks, Zoho Books, and TurboTax — features, Pros & Cons, tax workflows, integrations, and which tool is best for eCommerce sellers, freelancers, and small agencies.
Small online businesses need tools that simplify bookkeeping, automate tax-ready reports, and integrate with eCommerce and payment platforms.
Why This Review And How These 5 Were Selected
This review focuses on products that are widely used by small online businesses, offer business-focused tax workflows or integrations, and provides excellent support.
For each product we cover core features, who it’s best suited for, pricing tier highlights (where applicable), Pros & Cons, and contact support.
Key Selection Criteria: usability, eCommerce & payments integrations, tax reporting features, scalability, and support availability.
Quick Comparison Table
| Software | Best For | Key Feature | Try It Out |
|---|---|---|---|
| QuickBooks Online | Ecommerce & Small Business | Accounting + Tax Integration | QuickBooks→ |
| Xero | Growing Businesses & Bookkeepers | Bank Reconciliation & Add-ons | Xero Plans→ |
| FreshBooks | Freelancers & Agencies | Invoicing & Time Tracking | FreshBooks→ |
| Zoho Books | Cost-Conscious Businesses | Automation & Zoho Integrations | ZohoBooks→ |
| TurboTax | Sole Proprietors | Tax Filing & Guidance | TurboTax→ |
1) QuickBooks Online — Best All-round Accounting & Tax-ready Platform
Overview: QuickBooks Online is the market leader for small business accounting. It handles bookkeeping, invoicing, payroll (add-on), expense tracking, and produces tax-ready reports that make working with tax preparers or filing easier. QuickBooks offers excellent support for small online businesses.
Top Features
• Automatic bank & credit card reconciliation.
• Invoicing, estimates, recurring invoices.
• Built-in payroll (paid add-on) and contractor 1099 workflows.
• Robust reporting (profit & loss, balance sheet, tax expense categorization).
• Large app marketplace (Shopify, PayPal, Stripe, Dext/Hubdoc).
Tax Capabilities And Workflow
• Keeps year-round books so profit/loss and expense categories are tax-ready.
• Integrates with TurboTax/Intuit tax offerings and supports payroll/tax forms.
Pros
• Widely supported by accountants and bookkeepers.
• Powerful automation for reconciliation and rules.
• Extensive third-party integrations (ideal for eCommerce).
Cons
• Can be pricier than lean competitors.
• Learning curve for non-accountants on advanced features.
Who Should Choose QuickBooks
• Online retailers, service businesses, and small agencies that need scalable accounting and payroll.
2) Xero — Best For Basic Bookkeeping And App Connectivity
Overview: Xero is designed for small businesses that want clean bank reconciliations, excellent multi-currency handling (depending on plan), and a strong add-on ecosystem. Xero operates excellent online geared to publishers and service providers.
Top Features
• Fast bank reconciliation and smart matching.
• Multi-currency support and bill payments.
• Robust add-on marketplace for eCommerce, inventory, payroll.
• Collaboration for accountants/bookkeepers inside the platform.
Tax Capabilities And Workflow
• Produces clean P&L and balance sheet exports for tax prep; integrates with tax specialists and apps for sales tax or VAT filing depending on region.
Pros
• Excellent reconciliation workflows — low friction for bookkeeping.
• Strong partner network — good for agencies and accountants.
• Scales well as business grows.
Cons
• Some features (payroll, inventory) rely on add-ons or region-specific builds.
• Pricing tiers can add up with multiple add-ons.
Who Should Choose Xero
• Businesses that expect to grow, need multi-user access, or work closely with a bookkeeper/accountant.
3) FreshBooks — Best For Freelancers & Service-based Solopreneurs
Overview: FreshBooks excels at invoicing, time-tracking, simple expense capture and client billing. It’s aimed at freelancers, Consultants, and small service firms that need straightforward accounting without heavy bookkeeping features. FreshBooks has above average online support.
Top Features
• Beautiful, simple invoicing and client management.
• Time tracking and project billing.
• Expense capture and basic accounting dashboards.
• Client-facing proposals and payments integration.
Tax Capabilities And Workflow
• Tracks income and expenses neatly so filing (Schedule C / small business tax prep) is straightforward. Not aimed at complex tax scenarios but ideal for sole proprietors.
Pros
• Extremely easy to use.
• Great UX for client-facing invoices and payments.
• Useful referral credits and affiliate options.
Cons
• Not as fully-featured for inventory or complex multi-entity accounting.
• Less powerful reporting than QuickBooks/Xero for advanced tax analysis.
Who Should Choose FreshBooks
• Freelancers, consultants, photographers, and small service firms who prioritize invoices and client billing.
4) Zoho Books — Best Value And Ecosystem For Online Businesses
Overview: Zoho Books offers strong value — good accounting features, automation, and deep integration into the larger Zoho suite (CRM, Inventory, Commerce). Zoho has an excellent support program For publishers and agencies.
Top Features
• Full double-entry accounting, invoicing, expense tracking.
• Automation rules for recurring transactions.
• Integrates with Zoho CRM, Commerce, and other Zoho apps.
• Multi-currency, time tracking, and project billing in certain tiers.
Tax Capabilities And Workflow
• Produces financial reports and GST/VAT-ready reports where supported; can integrate with regional tax tools or tax preparers.
Pros
• Excellent value for money, particularly if you already use Zoho apps.
• Flexible automation and custom workflows.
• Good for teams using CRM + accounting together.
Cons
• Ecosystem is best when you commit to Zoho apps — isolated use is still good but less powerful.
• Some advanced accounting features behind higher tiers.
Who Should Choose Zoho Books
• Cost conscious businesses that want a full app ecosystem and solid accounting at a lower price point.
5) TurboTax — For Small-business Tax Filing (Schedule C & Owner Taxes)
Overview: TurboTax (Intuit) is one of the most widely used consumer and small-business tax filing solutions. For sole proprietors and single-owner LLCs, TurboTax’s guided workflows for Schedule C and business-related deductions are straightforward. TurboTax and Intuit offer above average customer support.
Top Features
• Guided interview-style tax prep for owners (Schedule C).
• Integration options with bookkeeping platforms (Intuit ecosystem).
• Live CPA/EA help add-ons available for more complex filings.
Tax Capabilities And Workflow
• Ideal for filing personal and small-business taxes together (owner’s income + Schedule C). Integrates into the Intuit ecosystem where QuickBooks data can help pre-fill information.
Pros
• Very user-friendly for owners who prepare their taxes themselves.
• Strong brand recognition and support resources.
• Affiliate program availability for publishers.
Cons
• Not a full accounting package — you still need bookkeeping software for day-to-day accounting.
• More complex business tax situations may need a tax pro.
Who Should Choose TurboTax
• Sole proprietors and independent contractors who prefer guided tax filing and occasional tax help add-ons.
Detailed Comparison: Features Integrations Tax Readiness
| Feature | QuickBooks | Xero | FreshBooks | Zoho Books | TurboTax |
|---|---|---|---|---|---|
| Bank Reconciliation | Excellent | Excellent | Basic | Good | N/A |
| Payroll | Built-in (addon) | Region add-ons | Third-party | Third-party/Zoho Payroll (region) | Tax filing only |
| Ecommerce Integrations | Shopify, Stripe, PayPal & more | Shopify & add-ons | Payments via gateways | Integrations + connectors | Import from bookkeeping |
| Best For | Growing ecommerce & small businesses | Accountant-led or growing teams | Freelancers & consultants | Cost-conscious multi-app teams | Sole proprietors & Schedule C filers |
Accounting Features: QuickBooks and Xero lead for accounting depth (reconciliation, reporting, payroll add-ons). Zoho Books is strong value; FreshBooks focuses on invoicing and time tracking. TurboTax is tax software and pairs best with any bookkeeping tool that keeps clean P&L.
Ecommerce And Payments Integrations: QuickBooks and Xero have the broadest integrations (Shopify, Stripe, PayPal). FreshBooks and Zoho also integrate with major gateways, but may rely on third-party connectors for deep ecommerce flows.
Tax Readiness: QuickBooks + TurboTax (same ecosystem) gives streamlined handoff for tax filing. Xero produces very clean reports for tax prep. FreshBooks and Zoho are tax-ready for small businesses but may require additional steps or CPA support for complex filings.
Choosing The Right Accounting Software
A Quick Decision Guide
• If you want a complete small-business accounting ecosystem and are comfortable paying for advanced features: QuickBooks Online.
• If you work with a bookkeeper/accountant or need a scalable bookkeeping foundation: Xero.
• If you’re a freelancer or service professional who needs gorgeous invoicing and simple books: FreshBooks.
• If you want strong value and use other Zoho apps: Zoho Books.
• If you need straightforward tax filing (Schedule C or personal+business filing): TurboTax (pair with one of the above for bookkeeping).
Which To Pick?
- Complete ecosystem & payroll: QuickBooks Online (pair with TurboTax at tax time)
- Accountant/bookkeeper friendly: Xero
- Freelancers who bill clients: FreshBooks
- Best value with multi-app use: Zoho Books
- DIY tax filing: TurboTax (use after bookkeeping)