Running a small business in India is not just about selling products or delivering services. Behind the scenes, you deal with invoices, GST returns, expenses, cash flow, payroll, and bank reconciliation. When these things are handled manually in Excel or notebooks, mistakes are almost guaranteed.
Thank you for reading this post, don't forget to subscribe!That is why choosing the right accounting software is one of the most important decisions for any small business owner today.
In this detailed guide, we compare the best accounting software for small businesses in India and help you choose the right tool based on your business type, budget, and growth plans.
Why Small Businesses in India Need Accounting Software
Most small business owners start with spreadsheets or manual bookkeeping. It works for a few months, then things become messy.
Here is what usually happens:
- GST returns get delayed
- Invoices are forgotten
- Expenses are not tracked properly
- Profit is unclear
- Cash flow problems start
Accounting software solves these problems by automating your finance process.
Key Benefits
Bank Reconciliation
Match bank transactions automatically and avoid errors.
GST Compliance Made Easy
Generate GST invoices, calculate tax automatically, and file returns without stress.
Professional Invoicing
Send branded invoices and get paid faster.
Expense Tracking
Know exactly where your money is going.
Real Time Financial Reports
Profit & Loss, Balance Sheet, Cash Flow, and tax summary at one click.
Quick Comparison: Best Accounting Software in India
| Software | Best For | Price | GST Ready | Cloud / Desktop |
|---|---|---|---|---|
| Zoho Books | All-in-one small business | ₹0 – ₹1,499 / month | Yes | Cloud |
| TallyPrime | Traditional accounting | ₹12,000 / year | Yes | Desktop |
| QuickBooks | Freelancers & SMEs | ₹1,500 – ₹3,000 / month | Yes | Cloud |
| Marg ERP | Retail & Distribution | ₹7,000 / year+ | Yes | Desktop |
| Busy Accounting | Growing SMEs | ₹8,000 / year+ | Yes | Desktop |
1. Zoho Books – Best Overall Accounting Software for Small Business in India
Zoho Books is the most balanced accounting software for Indian small businesses today. It is cloud-based, easy to use, and fully GST compliant.
Why Zoho Books Stands Out
Zoho Books combines everything a business needs:
- Invoicing
- Expense tracking
- Bank sync
- GST returns
- Inventory
- Financial reports
All in one dashboard.
Key Features
- GST ready invoicing and filing
- Automatic bank feeds
- Expense tracking
- Profit & Loss and Balance Sheet
- Inventory management
- Mobile app
Pricing
- Free plan for small businesses
- Paid plans from ₹1,499/month
Best For
Service businesses, product sellers, startups, and consultants.
2. TallyPrime – Best for Traditional Desktop Accounting
TallyPrime is the most trusted accounting software in India for over two decades.
Why Businesses Still Use Tally
- Works offline
- Deep inventory control
- Strong GST and compliance
Key Features
- Accounting and inventory
- Payroll
- GST returns
- Multi-currency
Pricing
Around ₹12,000 per year
Best For
Retail stores, distributors, and CA firms.
3. QuickBooks – Best for Freelancers and Consultants
QuickBooks is popular globally and well suited for Indian freelancers.
Key Features
- GST invoices
- Bank reconciliation
- Expense tracking
- Cash flow dashboard
Pricing
₹1,500 – ₹3,000/month
Best For
Freelancers, consultants, and small service businesses.
4. Marg ERP – Best for Retail and Distribution
Marg ERP is ideal for inventory heavy businesses.
Key Features
- Retail billing
- Inventory management
- GST compliance
- Multi-user access
Pricing
From ₹7,000/year
Best For
Kirana stores, wholesalers, distributors.
5. Busy Accounting – Best for Growing SMEs
Busy Accounting combines accounting and inventory in one system.
Key Features
- Accounting and inventory
- GST and tax reports
- Multi-user access
Pricing
From ₹8,000/year
Best For
Manufacturing and trading businesses.
Must-Have Features in Accounting Software
When choosing the best accounting software for small business in India, look for:
- GST compliance
- Invoicing
- Expense tracking
- Bank reconciliation
- Financial reports
- Inventory management
- Mobile access
How to Choose the Right Accounting Software
Ask yourself:
- Do I need cloud or desktop software?
- Do I manage inventory?
- What is my budget?
- How many users will use the system?
If you want easy and modern → Zoho Books
If you want offline and inventory heavy → TallyPrime or Marg ERP
Cloud vs Desktop Accounting Software
Cloud Accounting
Pros:
- Access anywhere
- Automatic backups
- Easy updates
Cons:
- Internet required
Desktop Accounting
Pros:
- Works offline
- Full control
Cons:
- Manual backups
- Limited remote access
Common Mistakes to Avoid
- Choosing software without GST support
- Ignoring mobile app
- Overpaying for unused features
- Not planning for future growth
Final Recommendation
For most small businesses in India, Zoho Books is the best accounting software because it is easy, affordable, and powerful.
If you prefer traditional offline software, TallyPrime remains a solid choice.
Frequently Asked Questions (FAQ)
1. What is the best accounting software for small business in India?
For most small businesses, Zoho Books is the best accounting software in India because it is easy to use, affordable, and fully GST compliant.
If you prefer offline software, TallyPrime is a strong alternative.
2. Is accounting software mandatory for small businesses in India?
Accounting software is not legally mandatory, but it is highly recommended.
With GST and income tax compliance, using accounting software makes billing, tax filing, and reporting much easier and reduces mistakes.
3. Which accounting software is best for GST filing?
Zoho Books, TallyPrime, Marg ERP, Busy Accounting, and QuickBooks all support GST filing.
Zoho Books is the easiest for beginners and small businesses.
4. Can I use free accounting software in India?
Yes. Zoho Books offers a free plan for small businesses with limited turnover.
However, paid plans are better for growing businesses because they include automation, inventory, and advanced reports.
5. What is the difference between cloud and desktop accounting software?
Cloud software works online and can be accessed from anywhere.
Desktop software works offline and is installed on your computer.
Cloud is better for modern businesses.
Desktop is better for traditional retail and inventory heavy businesses.
6. Which accounting software is best for freelancers in India?
QuickBooks and Zoho Books are the best choices for freelancers because they offer simple invoicing, expense tracking, and GST support.
7. How much does accounting software cost in India?
Pricing starts from free and goes up to around ₹3,000 per month depending on features.
Desktop software usually costs ₹7,000 to ₹12,000 per year.
8. Is accounting software safe for my business data?
Yes, if you choose a trusted provider like Zoho, QuickBooks, or Tally.
Cloud software uses encryption and secure servers to protect your data.