7 Best Accounting Tools for Firms That Can’t Afford Downtime

Choosing accounting software in 2025 isn’t just about features. It’s about control, compliance, and peace of mind.

Small businesses, especially accounting and tax firms need more than invoicing and bank feeds. You need tools that won’t crash mid-Sep. That won’t leave you exposed during a client data audit. That won’t lock your data in when it’s time to scale.

Most “best of” lists overlook this.

Instead, they compare surface-level features and ignore what matters to security-conscious firms.

Think:

• Is your client data isolated or shared across tenants?
• Can you meet FTC Safeguards and IRS 4557 obligations?
• What happens when support is down and it’s your busiest week of the year?

This guide is different.

We’ve reviewed the top 7 accounting software platforms for 2025 with one focus: “what works for firms like yours, who need security, uptime, and control as much as usability and accounting automation.”

Let’s get into it.

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What Matters Most in Accounting Software for Small Business

The best accounting software in 2025 is the one that balances efficiency with security, support, and control. For solo CPAs and 50-person firms alike, features like invoicing and reporting are table stakes. What separates tools that look good from those that actually work well is how they handle the unseen: risk, reliability, and readiness for audit and growth.

Key Criteria for Firms vs Freelancers

Freelancers / Solopreneurs	Accounting Firms (2–50 employees)
Easy UX, quick setup	Multi-user access with granular controls
Low monthly cost	Role-based permissions, audit logs, backups
Basic reporting and invoicing	Client data isolation, workflow integrations
Rarely audited or regulated	Must meet FTC Safeguards + IRS Publication 4557
One-device, minimal support dependency	Need 24×7 US-based support + tax season uptime SLAs

While tools like Wave or FreshBooks might work for solo consultants, they fall short for firms with multiple clients, staff, or compliance needs. Firms should interpret this as a call to prioritize infrastructure compatibility and compliance over just price or branding.

Why Security, Support, and Control Matter More in 2025

• Cyber threats have evolved: Ransomware and phishing attacks now target even small firms with alarming frequency. In 2023, 48% of SMBs experienced at least one cyber incident (Verizon DBIR 2023).
• FTC Safeguards compliance is now mandatory: Firms handling client financial data must prove security policies, employee training, access control, and data encryption (FTC.gov, 2023).
• IRS Publication 4557 audits are rising: Expect stricter enforcement and real consequences for non-compliant setups.
• Support gaps cost real revenue: When software fails and help is unavailable, tax season productivity grinds to a halt.

This suggests that firms need more than “accounting software”, they need a stable, secure, compliant platform they control. Take this as a push to assess not just the software, but where and how it runs.

See how VeritComplete simplifies accounting software, compliance, and IT in one secure bundle.

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Top 7 Accounting Software for Your Business

Here are the top 7 accounting software tools for businesses in 2025, evaluated for functionality, control, support, and compliance-readiness.

1. QuickBooks

QuickBooks dominates for a reason, it covers everything from invoicing and bank reconciliation to payroll, inventory, and 1099 filing. It’s flexible, widely supported, and familiar to most accounting professionals. However, it’s important to understand that QuickBooks Online runs entirely on a public cloud, giving you limited visibility into uptime, backups, or access control.

Strengths:

• Deep integrations, scalable plans, reliable core features
• Built-in audit trail, tax-ready reporting, and real-time bank feeds

Risks:

• Shared cloud environment; limited data isolation
• Support delays during peak filing periods

Pricing: Starts at $30/month

Ideal for: Small accounting teams managing multiple clients

Our Take: QuickBooks Accounting Software works but without a dedicated hosting, it limits your control and compliance posture. Hosting it in VeritSpace adds isolation, backup assurance, and uptime reliability, especially during tax season.

Don’t Miss: QuickBooks Error Codes & Fixes | Full Guide for 2025

2. Xero

Xero has built a loyal following for its clean UX, excellent collaboration tools, and ease of setup. It’s particularly popular among bookkeeping-first firms and those with remote, distributed teams. While Xero lacks options for SOC 2-level hosting and gives little infrastructure control, the user experience is consistently rated among the best.

Strengths:

• Intuitive interface, real-time collaboration, mobile-ready
• Reliable bank reconciliation and app integrations

Risks:

• No private hosting or infrastructure transparency
• Support limited to chat/email across time zones

Pricing: Starts at $15/month

Ideal for: Firms with remote teams and light compliance requirements

Our Take: Xero is an excellent choice for firms prioritizing ease and mobility. But if you’re handling sensitive client data or face audit exposure, you’ll need to pair it with external hosting and compliance support like what VeritSpace delivers.

3. Verito + Your Accounting Software

Verito isn’t accounting software, it’s the platform that makes your software secure, high-performing, and compliant. Whether you use QuickBooks Desktop, Drake, Lacerte, or UltraTax, Verito gives you a dedicated private server, SOC 2 infrastructure, 24×7 US support, and full audit readiness out of the box.

Strengths:

• SOC 2 Type II hosting with data isolation
• 99.99% uptime + US-based support
• Automated backups, MFA, and FTC/IRS compliance alignment

Risks:

• Not a standalone accounting tool as you need your own licensed apps

Pricing: Custom, based on app mix and user count

Ideal for: Firms that want to keep their favorite software but run it in a secure, managed environment

Our Take: Verito doesn’t replace your tools, it makes them bulletproof. For firms serious about uptime, compliance, and control, this is the missing piece of your tech stack.

For the protection of your firm, Verito’s Cloud Security Guide also comes in handy.

4. FreshBooks

FreshBooks is purpose-built for simplicity. It’s especially useful for freelancers and small agencies that bill by the hour or by project. The mobile app is strong, and client-facing features are clean and polished. But its simplified structure isn’t a fit for firms managing dozens of clients or complex ledgers.

Strengths:

• Excellent invoicing, time tracking, and client portal UX
• Strong mobile experience

Risks:

• Not full double-entry accounting
• Lacks deep compliance or backup controls

Pricing: Starts at $19/month

Ideal for: Freelancers and service providers with lightweight needs

Our Take: FreshBooks is a solid client-billing system. But if you’re an accounting firm, it likely can’t carry your core workflows. Consider using it as a front-end companion to more robust, hosted accounting infrastructure.

5. Wave Accounting

Wave is a favorite among solo entrepreneurs and early-stage businesses because of one word: free. It covers basic invoicing, expense tracking, and reporting without monthly fees. That said, its limits show up fast, especially in support, scalability, and data security.

Strengths:

• Free for core accounting
• User-friendly for first-time business owners

Risks:

• No guaranteed uptime or SOC 2-level protections
• Support is limited or paid-only

Pricing: Free for basic use

Ideal for: Solo users with minimal compliance needs

Our Take: Wave is good for starting out, but not for scaling or securing sensitive data. It’s a great entry point, but most firms will outgrow it quickly or need to pair it with external security and support layers.

6. Sage Business Cloud Accounting

Sage offers depth. Its core accounting engine, reporting customization, and compliance controls are enterprise-grade which also means a steeper learning curve and slower UX. It shines when paired with an IT team or a hosting partner who can manage performance and system updates.

Strengths:

• Advanced ledger, role-based permissions, deep reporting
• Scalable to multiple entities and currencies

Risks:

• Cloud version can be sluggish
• Requires more hands-on setup and admin

Pricing: Starts at $10/month

Ideal for: Established firms with in-house IT or outsourced tech support

Our Take: Sage Accounting Software is powerful but not plug-and-play. With VeritSpace hosting and managed IT, it becomes a high-performance solution. Without that, many small firms may find it overbuilt or hard to maintain.

7. Zoho Books

Zoho Books brings automation and flexibility to smaller firms that want to streamline workflows without breaking the bank. It’s part of Zoho’s larger ecosystem, which can be a big win if you’re using Zoho CRM or Zoho Projects. However, data hosting is mostly outside the US, and compliance controls are limited for firms under regulatory scrutiny.

Strengths:

• Affordable with powerful automation and customization
• Seamless integration with Zoho’s ecosystem

Risks:

• Data centers outside the US; limited control over security posture
• Not designed for FTC Safeguards or IRS audit readiness

Pricing: Starts at $20/month

Ideal for: Solo CPAs or internal-use bookkeeping teams

Our Take: Zoho is impressive for automation-heavy workflows and early-stage firms. But if your client data must meet US compliance standards, you’ll want to combine it with a compliant hosting partner or look for a different tool.

#	Software	Uptime Guarantee	Hosting Control	Compliance-Ready (FTC/IRS)	Support Quality	Ideal For
1	QuickBooks	✅ Moderate	❌ No	⚠️ Partial	⚠️ Slow during tax season	Small firms needing broad functionality
2	Xero	✅ Moderate	❌ No	❌ No	⚠️ Chat/email only	Remote teams, light bookkeeping
3	Verito + Software	✅✅ 99.99%	✅ Yes	✅ Fully Compliant	✅ 24×7 US-based	Firms that want secure, compliant hosting
4	FreshBooks	✅ Good	❌ No	❌ No	⚠️ Limited real-time	Freelancers, solo service providers
5	Wave Accounting	⚠️ Unreliable	❌ No	❌ No	❌ Paid-only/lacking	Solo entrepreneurs, early-stage use
6	Sage	✅ High (Desktop)	⚠️ Needs setup	✅ With hosting	⚠️ IT expertise needed	Mid-to-large firms with IT support
7	Zoho Books	✅ Moderate	❌ No (Non-US)	❌ No	⚠️ Limited	Internal bookkeeping, Zoho ecosystem users

How to Choose the Right Software for Your Firm

The right accounting software depends on five core needs: control, compliance, support, scale, and cost.

Too many small firms choose software based on name-brand recognition like QuickBooks, Xero, or Sage or fall for slick dashboards and “easy setup” promises. Then scramble when the platform breaks mid-season, fails a security review, or can’t scale with their workflow.

A smarter path starts with asking better questions.

We Recommend the 5C Decision Filter:

Use this framework to evaluate whether a software tool will hold up under real-world firm pressure, not just demo-day conditions.

1. Control
   • Can you decide where your data lives?
   • Are you in a shared cloud or a private, isolated server?
2. Compliance
   • Does the software support FTC Safeguards and IRS 4557 requirements?
   • Is there logging, MFA, encryption, and access control?
3. Customer Support
   • Is there 24×7, US-based, real-time support or just email tickets and chatbots?
   • Can you reach someone during tax season crunch hours?
   • Will there be an allocated Customer Success Manager assigned?
4. Capacity to Scale
   • Can the platform support your firm as you add clients and staff?
   • Does it integrate with your ecosystem (CRM, document storage, eSign, tax apps)?
5. Cost (Real Total)
   • What’s the true cost including backups, upgrades, downtime, lost billables, and IT labor?

Hidden Risks to Watch For

Most software marketing hides these risks and firms only uncover them when it’s already painful.

• Vendor lock-in: Many SaaS tools make it hard (or impossible) to export your full client data. You’re stuck if they raise prices, remove features, or go down.
• Compliance blind spots: Just because a tool has “encryption” doesn’t mean it meets FTC or IRS standards. Most lack MFA enforcement, audit logs, or documented controls putting your firm at risk during reviews.
• SaaS-only outages: Tools like QuickBooks Online or Wave can go down at the worst possible time with no fallback. Without private hosting, you have zero control.
• Weak support when it matters most: Many platforms only offer email/chat support in non-US time zones. During tax season, that’s not just inconvenient, it’s a revenue risk.

Learning about these risks helps you understand that evaluating only “features” is a surface-level strategy. Security, infrastructure, and responsive support determine whether your software protects your firm or exposes it.

Treat software choice like you’d treat client data access, strategically. What matters isn’t just how a tool looks, but where it lives, how it’s secured, and who you can call when things go sideways. If your software doesn’t come with infrastructure and compliance muscle, it’s a liability not an asset.

Hosted or SaaS? Security, Control & Compliance Considerations

If your firm handles sensitive client data, running accounting software on a secure hosted server gives you more control, uptime, and compliance than relying solely on SaaS.

SaaS tools like QuickBooks Online and Xero are convenient but they come with trade-offs that many firms don’t discover until it’s too late. On the surface, they promise “anywhere access” and zero setup. But under the hood, you’re locked into a shared, vendor-managed environment where you have little to no control over where your data lives, how it’s backed up, who can access it, or how fast support responds during tax season. That becomes a real problem under today’s compliance climate.

The FTC Safeguards Rule now requires accounting firms to prove that client financial data is secured with encryption, access control, documented policies, and disaster recovery procedures. The IRS 4557 guidelines reinforce this. Most SaaS tools don’t let you verify or control these measures.

Hosting your apps in a dedicated, professionally managed private server like VeritSpace means you own the environment. You can enforce access policies, control backup cadence, set up MFA, and isolate client data. This isn’t just about “IT.” It’s what allows you to pass audits, avoid breaches, and stay operational during your busiest weeks.

That’s the difference between confidence and chaos.

Why More Firms Are Hosting QuickBooks, Drake, and Lacerte in VeritSpace

Modern accounting software like QuickBooks Desktop, Drake, and Lacerte perform best and stay compliant when hosted in a dedicated environment designed for accounting workflows. That’s why hundreds of firms now run them inside VeritSpace instead of relying on desktop installs or public SaaS platforms.

Here’s why it works:

• Data isolation VeritSpace gives each firm its own dedicated server, client files, logins, and software instances are never shared with other firms. This drastically reduces data exposure risk and helps meet FTC and IRS isolation requirements.
• Local-like performance from anywhere Even resource-heavy apps like Lacerte and Drake run fast. VeritSpace uses SSD-backed infrastructure, data center routing optimization, and smart caching to deliver desktop-level speed from the cloud.
• Backup control and disaster recovery Nightly snapshots, point-in-time recovery, and 30-day retention policies ensure you’re never left scrambling for a restore. All backups are encrypted and stored in US-based SOC 2 certified facilities.
• No SaaS lock-in You own your license keys and software. Want to upgrade or switch? You’re in control, not stuck in a vendor’s roadmap or pricing structure.
• Verito-managed hosting and support Our team handles OS patching, server health, antivirus updates, and 24×7 support, so you don’t have to. You get expert help from people who know accounting software, not just generic hosting.

Hosting with Verito doesn’t just “move your apps to the cloud”, it creates an infrastructure that protects your data, ensures uptime, and supports compliance. If you’re leading a growing firm, take this as a strategic upgrade from ad-hoc IT to purpose-built hosting for accounting operations.

What “Secure Software” Really Means Under FTC and IRS Rules

It’s not enough to say your software is “secure.” Regulators now require documentation, verification, and repeatable controls. “We use QuickBooks” is not a compliant answer during an audit.

FTC Safeguards Rule (2023 updates) require firms to:

• Encrypt client data in transit and at rest
• Implement access controls and role-based permissions
• Maintain written policies and training logs
• Conduct annual risk assessments and system reviews

IRS Publication 4557 mandates:

• Firewalls and anti-malware in place
• Data backups with secure off-site storage
• Strict access control and strong passwords
• Multi-factor authentication (MFA)

Also read: IRS Compliance Check: Definition, Rules, Penalties, and More

SaaS vendors don’t always provide visibility into these controls or let you enforce them. So relying solely on a third-party cloud may leave blind spots in your compliance posture making it a need to either self-manage controls or partner with a host who does.

Why VeritSpace Is a Safer, Smarter Bet

VeritSpace is built for accounting and tax pros who need performance without compromise.

• SOC 2 Type II certified private hosting
• 99.99% uptime SLA, built for tax season traffic
• Full app support for QuickBooks, Drake, Lacerte, and more
• 24×7 US-based support with live troubleshooting
• Built-in FTC + IRS 4557 readiness with logs, MFA, isolation, and backups

If you want your accounting software to work as hard as you do, especially during peak season, how and where it runs matters as much as what you choose – Schedule a VeritSpace Demo to see your apps in a secure private server environment.

Final Word: Pick Software That Works For You, Not Against You

In 2025, your accounting software can either accelerate your firm or become your weakest link. The wrong software forces workarounds, risks compliance, and buckles under pressure. The right one works how you work, secure, stable, and ready to scale.

Here’s the bottom line:

• QuickBooks or Xero might cover your basic needs but not your compliance.
• Wave or FreshBooks may feel easy until you grow or get audited.
• Sage and Zoho are powerful but not purpose-built for IRS/FTC standards.

The real question isn’t “Which software has the best dashboard?”

It’s: Can I trust this tool when deadlines hit, audits loom, and clients demand answers?

If you’re a security-conscious firm handling sensitive client data, don’t just look at software features. Look at where your software lives. How it’s supported. Whether it’s giving you control or taking it away. That’s why selecting the “best” accounting software is only half the battle. Ensuring it runs in a compliant, high-uptime environment is what turns tools into advantage.

Firm leaders should interpret this as a strategic shift and software selection should be tied to hosting, support, and security strategy.

Conclusion: Trust Your Software And Your Setup

Choosing the best accounting software for your firm is no longer just a software decision. It’s an infrastructure one. Tools like QuickBooks, Xero, or Zoho may offer the features you need but are scalable only when paired with a secure, high-uptime, compliance-ready environment do they become reliable assets.

That’s where VeritSpace comes in.

• Dedicated private servers = control
• 99.99% uptime = trust during tax season
• SOC 2 + FTC + IRS 4557 alignment = peace of mind
• 24×7 US-based support = no more guesswork

Don’t just buy software. Own your setup.