Top 10 Accounting Software in India for 2025 (With Free Options)

Whether you are a freelancer, digital marketer, small business owner, or someone helping clients manage their invoices, keeping your accounts in order is essential. Gone are the days when businesses used thick ledgers or complex Excel sheets. Today, accounting software makes it simple to track income, expenses, invoices, and taxes in one place.

But with so many tools available, you might be confused — Which accounting software is actually best for me?

This article helps you decide easily.

What Is Accounting Software and Why Do You Need It?

Accounting software is a digital tool that helps record financial transactions, generate invoices, calculate taxes, and prepare financial reports. In simple words, it is your digital accountant.

Here’s what it helps you do:

• Record daily income and expenses
• Prepare invoices and bills instantly
• Manage inventory and stock
• Calculate GST and other taxes automatically
• Generate balance sheets and profit & loss reports
• Reconcile bank accounts without manual entry

If you’re working as a freelancer or running a small digital agency, accounting software can save you hours every week and help you stay organised.

What Features Should You Look For in Accounting Software?

Before jumping into the list, it’s important to know what makes software good or bad for your needs. Not all software is built the same — some focus on large enterprises, others on freelancers or small shops.

1. Ease of Use

Choose software that doesn’t require accounting knowledge. If the interface is complicated, you’ll waste time instead of saving it.

2. GST and Indian Tax Compliance

Since you’re in India, look for GST billing, TDS, and Indian tax formats. This will make filing easier.

3. Cloud Access

Cloud-based software lets you log in from anywhere — laptop or mobile — and sync data in real-time.

4. Invoicing and Reporting

You must be able to create invoices, track payments, and view financial reports like profit and loss, cash flow, etc.

5. Integration with Banking and Other Tools

A good tool connects with your bank account or UPI to automatically record transactions.

6. Cost and Scalability

Always check pricing. Some are free for individuals but charge more for teams. Choose one that grows with your needs.

Which Are the Best Accounting Software in India?

Now let’s look at some of the most popular accounting software in India, what they offer, and who they’re best for.

1. TallyPrime

Tally (now TallyPrime) is one of India’s oldest and most trusted accounting software. Every second accountant in India knows it, and most CAs prefer it.

Key Features:

• Complete GST support
• Advanced inventory management
• Payroll and multi-company support
• Offline and desktop use

Best For: Small to medium businesses, traders, manufacturing firms
Price Range: Around ₹18,000 one-time licence

Tally is powerful, but it’s not cloud-based by default, which can be a limitation for remote users.

2. Zoho Books

Zoho Books is a modern, cloud-based accounting platform made in India and loved globally. It’s part of the Zoho family of business tools.

Key Features:

• Cloud-based access from desktop and mobile
• Automatic GST calculation
• Custom invoices and recurring billing
• Easy integration with Zoho CRM and Zoho Payroll

Best For: Freelancers, startups, service-based businesses
Price Range: Free for businesses with turnover under ₹25 lakh

If you work in digital marketing or run a small agency, Zoho Books is one of the easiest and smartest tools to use.

3. QuickBooks Online

QuickBooks is known for its simple design and international reliability. The India version supports GST and small business accounting.

Key Features:

• Cloud-based interface
• Expense tracking and invoice automation
• Multi-user access
• Financial reports and dashboards

Best For: Freelancers, consultants, small agencies
Price Range: Around ₹500–₹1800 per month

If you work with international clients and need dollar or pound-based invoicing, QuickBooks is a solid choice.

4. Busy Accounting Software

Busy is an Indian alternative to Tally, popular among small business owners who want powerful features at a lower cost.

Key Features:

• GST-ready
• Inventory management
• Multi-branch support
• Financial analysis reports

Best For: SMEs, wholesalers, and distributors
Price Range: Around ₹9,000–₹18,000 per licence

Busy gives excellent value for money but may look a bit old-school compared to Zoho or QuickBooks.

5. Marg ERP

Marg ERP is another Indian-made software widely used by retailers, distributors, and manufacturers.

Key Features:

• Inventory and billing for retail shops
• GST, barcode, and batch management
• Payroll and HR modules
• Multi-location support

Best For: Retailers, distributors, and traders
Price Range: ₹12,000–₹18,000 depending on modules

Marg ERP can handle both accounting and inventory, making it good for physical businesses.

6. Vyapar App

Vyapar is one of the easiest accounting tools made for Indian shopkeepers and small business owners. It works well even for people who are not tech-savvy.

Key Features:

• Simple billing and GST invoices
• Expense and payment tracking
• Inventory management
• Mobile and desktop versions

Best For: Small shops, freelancers, and small agencies
Price Range: Free basic version; paid plans from ₹99/month

Vyapar is perfect if you just want to manage your daily billing and don’t need complex reports.

7. Giddh

Giddh is a growing cloud-based Indian accounting software focusing on automation and simplicity.

Key Features:

• Bank integration
• Invoice automation
• Real-time financial tracking
• Cloud-based multi-user access

Best For: Small to medium businesses, startups
Price Range: Around ₹800 per month

It’s modern, mobile-friendly, and ideal for businesses that want to grow without moving to complex tools.

8. ProfitBooks

ProfitBooks is another Indian software designed for small businesses and startups. It’s fully cloud-based and offers accounting, inventory, and payroll.

Key Features:

• GST billing and filing
• Easy expense management
• Inventory and stock management
• Online invoice creation

Best For: Startups, freelancers, digital marketers
Price Range: ₹500–₹1200 per month

It’s light, simple, and offers a free trial, so you can test it easily.

9. ERPNext

ERPNext is an open-source ERP solution that includes accounting, HR, CRM, and project management modules.

Key Features:

• Full ERP + accounting system
• Customisable reports
• Supports multi-company, multi-currency
• Cloud or self-hosted option

Best For: Growing businesses with technical teams
Price Range: Free (self-hosted) or paid cloud plans

If you’re tech-friendly or work with an IT team, ERPNext gives you enterprise-level control.

10. GNUKhata

GNUKhata is a free, open-source accounting software built in India. It’s best for small organisations and non-profits.

Key Features:

• Basic bookkeeping
• GST-ready
• Free and open-source
• Offline use possible

Best For: NGOs, students, and beginners
Price Range: Free

It’s not fancy, but it’s perfect if you’re learning or running a small setup on a tight budget.

How Do You Choose the Right Accounting Software?

Selecting the right tool depends on your goals, size, and comfort level with technology. Here’s how you can decide.

Step 1: Identify Your Needs

Ask yourself these:

• Do you sell products or services?
• Do you need inventory management?
• Do you want cloud access?

Step 2: Set Your Budget

Many software start free or under ₹1000/month. But look at future costs like user additions or extra features.

Step 3: Try Free Trials

Zoho Books, QuickBooks, and ProfitBooks offer trial periods. Test and see what feels easiest for you.

Step 4: Consult Your CA

If your CA uses Tally or Busy, it’s easier to stay compatible with their system.

Step 5: Check Data Portability

Make sure your software lets you export data in Excel or CSV. It’s helpful if you ever switch tools.

Comparison Table of Top 5 Accounting Software in India

Common Mistakes to Avoid

• Don’t choose only based on low price — it might lack vital features.
• Don’t ignore Indian GST and tax support.
• Avoid tools that don’t offer data backup or export.
• Don’t pick complex software if you only need simple invoicing.

Which Software Is Best for You?

If you’re a freelancer or digital marketer, Zoho Books or QuickBooks are great choices.
If you run a small retail business, Vyapar or Busy will work better.
If you handle large operations or manufacturing, TallyPrime or Marg ERP is ideal.

For those who want something free, GNUKhata is a simple start.

Final Thoughts

The right accounting software saves time, reduces mistakes, and keeps your business financially healthy. Whether you’re managing multiple clients or just starting out, using the right tool helps you focus on growth rather than paperwork.

Start small — pick one, try it for a month, and see how it fits your work style. Once you find the right one, stick with it and build your financial discipline around it.