7 Best Free Accounting Software Options for India GST

A few free accounting software programs have already been introduced by the GSTN Organization for Mirco Small and Medium Enterprises in India.

These accounting systems are free only for businesses that hold a GST Registration number and have a turnover of fewer than 1.5 crores.

It consists of both offline and online accounting software and vendors those of whom were empanelled by GSTN India.

So it is no-nonsense that solo entrepreneurs and micro-enterprises can take full benefits of this accounting software for free.

You are free to pick any of the listed accounting solutions from within the GSTN portal.

Free Accounting software is available under two operating modes i.e. offline and online.

And, here we will talk about free accounting software online, also known as cloud accounting software.

Cloud-based accounting or cloud accounting simply means accounting on the cloud derives from the concept of SaaS i.e. Software as a Service.

Unlike traditional accounting where you have the software installed on your computer, cloud accounting does not.

So there is no software that you own; it’s only the services that you own based on a subscription model purchase from any software vendor.

Cloud Accounting, Online Accounting, or Web-Based Accounting gives you 100% freedom against all software odds such as maintenance, backup, recovery, and upgrades.

And your data is confidential and private because data security is always a top-notch concern when it comes to the cloud.

So as long as you have a subscription, the sole responsibility of services depends completely on service providers.

Why Free Accounting Software?

Free accounting software is great if you are just starting your business or you want to experience it.

The Internet is very cheap today and it is within the reach of almost every common man.

Therefore in recent times software firms have made a huge transformation by launching various cloud-based applications for businesses.

A recent survey shows that 30% of enterprises have already adopted cloud-based Accounting in India.

It is also predicted that by 2025 more than 50% of businesses will be shifting their data and business to the cloud.

Thus, it is changing the entire scenario of how accounting software was used before and how it is used today.

If you are a business owner and you are still operating your business using legacy accounting applications, it’s time for a change.

Today cloud is the only option for you to stay up-to-date in your business.

So if you are unable to change your mindset get a free consultation with us.

Often it is seen that finance systems are dominated by accountants and CAs and they never try to update systems.

Remember it’s your business and if you want to grow your business you need to change your perception.

Therefore redefine your enterprise with free accounting software and embrace cloud technology.

Also, you can take advantage of mobile accounting apps that come in handy with online accounting software for free.

7 Best Free Accounting Software Options Online for 2024

If you are new to cloud accounting, here are some of the free cloud accounting software options that you would love to experiment with for yourself or your business.

However, the free versions restrict some basic accounting capabilities such as Invoicing, tracking expenses, and purchases.

These accounting options are not a trial so have access to one of them today, and upgrade your business as you grow.

Once you become familiar with the environment and like the user interface you can shift to a paid subscription without losing any data.

Let us take a look at the Top 7 Free Cloud Accounting Software Options in India for Businesses and Enterprises.

1. ZohoBooks: Free Accounting Software

ZohoBooks is a free accounting software online that helps you craft professional invoices, manage your finances and inventory, import bank feeds automatically, and easily create e-Way bills for the transfer of goods.

Zoho Books offers comprehensive accounting software that is perfect for small businesses.

The software has many features that make it easy to manage your finances and records.

It has a user-friendly interface that is simple to navigate.

Additionally, the software can automatically create reports and graphs that make it easy to understand your finances.

It helps you work collectively across departments to take care of all your recurring billing process, bills and expenses send payment reminders, and get paid faster online.

ZohoBooks also integrates with several third-party applications.

Take invoicing and Accounting to a whole new level with ZohoBooks which features a huge array of payment gateways, add-ons, integrations, and APIs for Zoho Books.

ZohoBooks is a fully GST-compliant software for Indian businesses.

Generate GST returns and reports including GSTR-1, GSTR-3B, GSTR-4, and GSTR-9, reconcile GSTR-2A, and file your returns directly from ZohoBooks.

ZohoBooks also ensures businesses with a turnover of 5 Crores stay fully compliant with the government’s latest e-invoicing starting January 2024.

2. RealBooks

As per RealBooks, this software is not free accounting software but it provides free 500 accounting voucher entries a year.

RealBooks is an online accounting software for India capable of delivering world-class accounting software services for small to large enterprises including the manufacturing sector.

However, there is a limited period free plan available for this software and it may change from time to time.

With the free plan, you will get access to all basic accounting features including billing and invoicing.

But the free plan doesn’t give you access to advanced features such as branch accounting, price lists, and access to order to cash and procure to pay life cycle.

RealBooks has a free signup option without asking for any credit cards. So you can immediately start your billing, accounting, and invoicing after you configure the system.

So if you are looking for accounting software that is good for scale and initially free to use, Realbooks may be a very good option.

Some of the advanced features of this accounting software include an order to cash and procure to pay life cycle management along with advanced inventory, and production capabilities

There are 4 pricing plans in RealBooks the FREE version, professional, business, and enterprise plans for large businesses and industries.

Note: RealBooks provides a single user free for a limited period. Check their website, the free plan may not exist anymore. But what is unique about RealBooks is you can still sign up for free and start real-time invoicing and accounting.

3. GenieBooks

If you are a registered company with GSTN, you can get GenieBooks for free provided you accept that your turnover is less than 1.5 crores.

Login to your GSTN portal and go to Downloads -> Accounting & Billing Software -> Accept Yes as shown below

And you will be displayed with the list of software that is empanelled by the GSTN and you can easily register for GenieBooks free accounting software.

With invoicing being the cornerstone in the GST regime, GenieBooks’ automation of all invoicing features and complete sales and purchase cycle ensures 100% compliance at all times.

GenieBooks is the leading online accounting software that offers a wide range of features to help businesses manage their finances.

GenieBooks has been designed with simplicity in mind, making it easy for business owners to get started and track their finances.

The software also offers powerful reporting tools that allow business owners to see how their money is being spent and make informed decisions about their finances.

Discover more features of GeniBooks accounting from GenieBook’s official website.

4: myBooks: Accounting Software Free

mybooks is one of the best-suited accounting applications for small to mid-size businesses.

According to the official website, mybooks are being used by businesses across 16 countries worldwide.

Since it holds a free version of the cloud accounting software, small businesses can utilize MyBooks to make their business effective and efficient.

mybooks can be used by iOS, Android, and Web users and has industry-specific features for retail, textile, logistics, manufacturing, technology, service-based, construction, freelancers, wholesalers, shopkeepers, electronic/hardware stores, and more.

This accounting software has a simple UI design to make the application user-friendly.

And even a newbie can access the software like an expert, as it doesn’t need any computerized knowledge. 

Features of MyBooks include one-click invoicing, inventory management, multi-business management, multi-user access, multi-currency, and MIS reports

myBooks is also best for shoppers, retailers, and similar businesses as it includes a barcode billing feature, so your retail billing process moves faster.

5. UdyogBooks

UBooks or UdyogBooks is an online accounting software by Udyog Software and runs in both offline and online enable mode

UdyogBooks is the perfect software for small businesses that need an accounting solution that is fast, easy to use, and affordable.

With UdyogBooks, you can easily keep track of your finances and create invoices in minutes.

Plus, the intuitive user interface makes accounting fun and easy.

Whether you are a small business owner or just starting, UdyogBooks is the perfect choice for your accounting needs!

The solution is comprehensive and GST compliant empanelled by GSTN which provides free accounting software services for a single user with a turnover of fewer than 1.5 crores.

It includes Accounting, Invoicing, Order Management, Inventory Management, Import Sales, and Purchases.

uPOS assists Mobile app users in entering sales orders, sales invoices, and POS billing and supports mobile app e-invoices.

It also provides you with comprehensive business-level reports to improve your business metrics and insights on sales, purchases, inventory, and GST returns.

So you can get detailed insights into your finances.

Basic features of UdyogBooks include online account management, powerful budgeting tools, convenient payment processing, and offline and online billing options.

6. ProfitBooks: Free Accounting Software

ProfitBooks is another, top free accounting software platform on the cloud.

It is one of the most popular and widely used free accounting software. It is easy to use, yet comprehensive and powerful.

The program offers a variety of features to make your accounting process easier and more efficient.

These features include customizable templates, automated invoicing, advanced reporting capabilities, and more.

It is one of the fastest-growing & amazingly simple-to-use online accounting software.

It lets you create beautiful invoices, track expenses, and manage inventory without any accounting knowledge.

You can easily share the transaction data with your accountant.

Know what’s going on with your business with just a few clicks & make better decisions.

ProfitBooks provides users with a user-friendly platform to manage their business finances.

Overall, ProfitBooks is an excellent choice for anyone looking for reliable and comprehensive accounting software.

7: Odoo Accounting Apps

Odoo is known for its open-source ERP and CRM software applications that provide a whole lot of modules and business apps for enterprises.

Odoo is also a popular small business accounting software for small and medium enterprises.

With around 5 million active users around the world, Odoo is a go-getter accounting software for small to large businesses.

However, the company has recently launched a free accounting software option online to support micro small, and medium enterprises to grow their business.

Popular features of this free accounting software include bank synchronization, invoicing, controlling supplier invoices, and automated reconciliation.

This free accounting software is AI-powered for Invoice automation so it is prone to make fewer mistakes than any human accountant.

Some of the AI-powered automation features include unmatched accuracy, simplified workflow, no manual billing processing, and an OCR engine.

Odoo is scalable enterprise software so you can grow with Odoo as your company grows over time just by adding modules.

It is also easy to scale with Odoo because it is based on the SaaS model so you can pay as you use additional apps.

The Modern Approach to Free Accounting Software Online

Today 90% of all modern business applications are built for people and small businesses on the web.

ERP, CRM, and Accounting applications come along with mobile-based apps and access is available on the cloud.

These are 100% error-free systems as the instance is used globally online by a large number of concurrent users at the same time.

However, customization is hard because companies hardly provide customization on the standard packs.

And it all depends on the roadmap of the company as to how upcoming features and upgrades they provide in the future.

Hence customization is not easy on cloud accounting software packages.

For Example, if a company wants to take every small to small customization for every client either the company will fail or the product will fail.

So you have to use the software as it is and if it doesn’t suit you there is no way out for customization. But it does not mean that customization won’t be provided.

If your requirements are genuine and can benefit others as well, software vendors may accept your request and you may receive the customization on upcoming releases.

Mostly all online accounting software avoids customization, yet some companies take customization for your benefit for a price.

a) What does Accounting Software Free mean for Businesses?

Currently, most enterprises that know about free accounting software have already started exploring accounting online.

However, knowing its full potential is yet to come across micro small, and medium enterprises.

Most cloud accounting software follows full-fledged business process lifecycles such as

• Order to cash
• Procure to pay

Hence cloud accounting is beneficial for Small Businesses from the ease of using financial data to planning advanced accounting, inventory, and payroll.

And with free accounting software online any business can achieve its business operations.

For Example, online accounting software such as Realbooks provides solid consolidation of multi-branches.

So an owner sitting in one branch can have a seamless flow of information in his pocket for his entire branch.

Online accounting systems are smarter with GUI-based dashboards, KPIs, and Reports that make UX much better than any traditional accounting application.

So it is much easier for you to instantly access your sales and purchase history and all accounting data including Sale Orders and Purchase Orders

Startups and small businesses can now gain access to consolidation reports for their multiple branches and multiple businesses easily.

Consolidation was a huge issue in traditional accounting software and systems.

On the other hand, apps that come today as free accounting software online simply solve these problems.

b) Available Support & Services

Cloud Accounting can be hard to define in terms of customization or custom development.

However, these accounting software applications are there and made online for a specific and common purpose.

So it does not mean, that you cannot upgrade a free accounting software simply because it comes under the free banner tag.

Also, as your business grows you may hire any accounting outsourcing company and upgrade the free accounting app with a premium subscription.

Therefore, there is a different approach to free accounting software and services online.

Commonly known as cloud consulting services, a cloud consultant is ready to help you set up your accounting needs.

Cloud consultants are easily available for every standard accounting software application on the market today.

Most of the companies even train CA’s and Accountants on their products before launching the apps on the market.

Therefore you will be able to find various professionals who can easily provide consulting services for using the software as a service for your business.

You may also find a partner consultant under a company’s list of partners so you can also use their services to understand the product.

Partner consultants are trained for product implementation and most of the partner consultants are certified by the vendors.

These partners can help you to implement software for your concern.

Therefore, whatever requirements come along the way you can discuss your needs with your consultant to know what is in scope.

Intuit has a vast network of consulting service providers around the world for its QuickBooks cloud accounting platform.

Similarly, you can find a lot of other online accounting software firms that are spreading their businesses globally through partner dealer networks.

c) High-End Safety & Security of Data

Thanks to the web and internet technology it has given us the power to access information today across devices.

But the freedom to access data Anytime and Anywhere has also made security a major concern issue for most businesses.

So security is not just a concern for customers, it is equally a matter of concern for vendors and hosting operators.

Free accounting software online does not necessarily mean security is fairly low because you have access to the same instance of a database.

Cloud accounting vendors invest a handful of money every year to provide the best infrastructure for cloud security.

The only difference between paid and free accounting software online is the availability of features.

Today cloud accounting comes in handy with business apps and can be accessed at any location.

So, business owners can use devices such as Android or iOS to plan, manage, and analyze business and finances from anywhere.

Another important feature of cloud accounting software is the use of static IP to restrict information access outside of the office.

Therefore free accounting software is highly secure as it uses the same cloud infrastructure to provide a subscription to free as well as paid users.

However, each cloud accounting solution has its security policy outlining how it protects sensitive data.

Most solutions use state-of-the-art measures such as multi-factor authentication and encryption.

This ensures sensitive data will remain secure.

d) Backed By Premium Cloud Hosting Providers

Whether we talk about free accounting software or premium accounting software on the cloud, these are all backed by premium cloud hosting providers.

Look at hosting service providers such as Amazon Web Services, Google Cloud, and Microsoft Azure to name a few.

These are some of the giant cloud computing corporations that spend billions of dollars to manage their cloud infrastructure.

They hold billions of data on their server and provide a world-class hosting environment to application developers.

Thus using any trusted cloud platform both small and large corporate software firms can host any applications on these clouds.

Cloud computing has multiplied over the past several years as businesses are increasingly transitioning to different cloud services.

Cloud computing allows a business to cut their operational and fixed monthly costs of hardware, databases, servers, and software licenses.

Eventually, it reduces the need for IT resources, including people.

Here is a list of some of the most preferred Cloud Service Providers for 2024.

Online Advantages & Disadvantages of Accounting Software Free

There are several advantages and disadvantages of accounting software while working with the free version.

The limitations can be in terms of scalability and the number of bills and vouchers may be restricted beyond a certain quota.

Therefore knowing these limitations may be helpful for your business before you go for it.

Let’s take a look at some of the important advantages and disadvantages described below.

Advantages of Free Accounting Software

• You have access to your business intelligence anytime, anywhere to make informed business decisions
• Cloud accounting software runs on all devices, all it needs is an internet connection and Apps
• For the most important workflows on approvals, you can approve documents on the go.
• Dashboards are available for critical information through bars and charts on desktops and apps.
• Data is kept fully secured using the encrypted system
• Your software may use the world-class infrastructure provided by Amazon/Google to secure your financial data.
• There is no need for backup. Vendors are taking continuous backups of your data and archiving them on the cloud.
• If you wish to retain a copy of your data in Excel you can always download it from the system.
• Manage multiple businesses under one roof and branch accounting at the heart of the software
• Get your Profit/Loss reports for each branch independently and roll up the data at the company level
• Get access to all the financial reporting capabilities and bills designed for your needs.

Disadvantages of Accounting Software Free

• One of the major drawbacks of most free versions might be there is no customization at all.
• Some do provide the customization of simple invoice design formats only and can be highly charged.
• Unlike traditional DOS-based accounting software, it is important to understand that the cloud accounting option is a completely different approach.
• Online Software firms follow standard practices to develop a cloud software package.
• The cloud applications are fully furnished with configurations for accounting and inventory setup. So a business you have to use the software as it is a standard finished product.
• If you need special features out of the box, vendors may accept the enhancements
• No customization of reports is accepted and the requests are up to the company’s decision-makers whether they will accept it or simply reject it.
• Depending on the standard practices you will only get default functionalities until new updates have been rolled out.
• The online software package is usually a ready-made configured business solution and the free version is very much limited for small business owners

Vendors that provide a free version of their accounting subscription or software may fit well for those businesses that are just starting.

However free accounting software may become a concern for small and medium enterprises as the number of invoices and voucher counts increases.

Therefore understand your needs and go for the free version to check if it works best for you and your business.

Over to you in conclusion:

Almost all firms have accountants and CA’s to manage their books of accounts and most of them are still using the traditional systems.

To rise above, we need to save time and work smartly. Therefore a transition to online accounting can be more powerful.

Most small business owners don’t care about it because the accounts department is left with accountants.

So this is where accountants and CAs need to advise their owners to build a better and more transparent atmosphere for business.

That is how a business owner can visualize his financial statement every single day.

If business owners realize the value of cloud accounting and keep it handy, most business decisions can be quick.

Decision-making is all about the interpretation of data and data manipulation.

So when data are handy in pockets every time, a business can get access to information more quickly.

You can freely take as many trials as you can as there are several accounting systems available online today.

Here are some of the registered vendors empanelled by GSTN India that provide free accounting software.

Login to your GSTN portal and download the software or sign up for free using your GSTN number.