The Best Accounting Software For Charities 2025

Keeping your charity’s finances in check is essential for maximising the impact of your work and maintaining transparency with your supporters. Out of the best accountancy software we evaluated, Zoho Books emerged as the top choice for charities overall. It delivers the strongest core accounting features for daily tasks like invoicing and quote creation as part of an incredibly intuitive interface, even for those with little accountancy experience.

It has a competitive price point too, though you may want to consider your options all the same – we know every charity’s needs are different. On this page, we’ve ranked and compared seven of the best accountancy software for charities so they’ll be something for both small charities with limited resources and larger organisations with complex financial needs.

1. Zoho Books: Best Accountancy Software For Charities Overall

Zoho Books earned the highest assessment score of all accountancy software for charities. Namely, it stood out with its robust core accountancy features, superior financial planning & visibility tools, and highly efficient and user-friendly workflows.

While its search function can be overly sensitive and customer support is limited outside regular hours, its competitive pricing and extensive features make it the best overall option.

Why Zoho Books is a good choice for charities

As you might expect of our top selection, there are several reasons why Zoho Books could be a good choice for your charity operations.

✅ Superior core accounting

We found Zoho Books to have a strong handling of daily financial tasks like invoicing, tax calculations, and bank reconciliations. For instance, it far outperformed Sage, and to a lesser extent FreshBooks, in areas such as journal entry by allowing the import of a wider variety of data formats and time-saving features like remembering used account codes.

✅ Intuitive, modern interface

Zoho Books’ clean, email-inspired layout and well-signposted sidebar should make it easy for even small charity teams, often with limited accounting expertise, to navigate daily tasks. Volunteers or non-accounting staff should be able to quickly learn the system, especially since it has efficient features, such as time tracking and expense management, that minimise the need for manual data entry (an advantage for charities often operating with lean staffing).

✅ Clear dashboard with fast forecasting

Another boon for charities without much experience in accounting is Zoho Book’s streamlined dashboard. It provides key insights (like cash flows, budget plans and payments) at a glance, providing immediate financial overviews which could be particularly helpful to teams managing limited resources (as charities tend to).

That provides an edge over competitors like Xero and Sage, which scored slightly lower in this area due to lacking features such as alerts for potential cash shortfalls or surpluses.

✅ Robust invoicing and automation features

With features such as automatic mileage calculation and clear invoice reminders, Zoho Books simplifies tasks like tracking donations and managing recurring expenses.

✅ Seamless integration with Zoho’s ecosystem

Charities using other Zoho products (such as CRM or donor management tools) will benefit from consistent design and cross-functional prompts that help prevent errors.

✅ Competitive pricing

All of these features, combined with its reasonable price tag, make Zoho Books a cost-effective solution that doesn’t compromise on key features.

Are there any drawbacks to Zoho Books?

Despite these upsides, Zoho Books isn’t the perfect tool, and we noticed a few areas for improvement during our testing.

❌ Navigation and search sensitivity

We found the software’s search function to be overly sensitive, requiring exact matches for relevant sections to appear. Meanwhile, customer data is placed under ‘Sales’, which we thought wasn’t particularly intuitive. These quirks can lead to inefficiencies for busy charity teams trying to quickly access information, albeit you may get used to this over time.

❌ Minor email editor issues

Editing invoice emails and payment reminder emails felt outdated to our user testers, largely because of the fact images had to be added via an attachment was no preview to see if everything looked correct. You can’t manipulate the images or positioning of them any further, which doesn’t allow users to know how an email would appear when sent beyond the template image.

❌ Limited help & support

Zoho Books received our second-lowest score for its customer support, too. Namely, we found the available guidance and troubleshooting resources to be less comprehensive compared to the likes of Quick Books, Fresh Books and Sage. Granted, its ease of use may mean you don’t need these tools. But when and if you do, you’ll have fewer resources available.

2. QuickBooks: Best for Comprehensive Financial Oversight

QuickBooks offers a clear, actionable dashboard that highlights key financial indicators, providing charities with in-depth oversight of their cash flow and expenses.

The platform’s streamlined workflow, pre-populated fields, and effective onboarding guide users through complex tasks with ease. Some users may find the tax and expense setup process challenging and certain interface areas a bit cluttered, but we think that is a minor drawback given its overall capabilities.

Why Quickbooks is a good choice for charities

✅ Clear, actionable dashboard

QuickBooks features a well-organized dashboard that highlights key financial indicators like overdue payments and cash flow insights. This clear presentation should allow charity managers to monitor finances at a glance. That’s a practical edge over providers like ClearBooks, whose interfaces can sometimes feel cluttered.

✅ Streamlined workflow features

With pre-populated fields, intuitive email previews, and easy invoice conversion, QuickBooks is a strong choice to optimise your day-to-day charitable tasks. These features are particularly valuable for charities operating with limited staff, as they reduce manual data entry and minimise errors – workflow efficiencies that often surpass that of FreshBooks, which lacks several automation and customization tools.

✅ Effective onboarding with in-app guidance

Its beginner-friendly setup guide and helpful tooltips simplify the process of navigating complex accounting functions. For instance, QuickBooks’ in-app cues help users convert estimates to invoices and set up reminders. By contrast, we found there to be a steeper initial learning curve with Xero and a less guided experience with FreshBooks.

✅ Strong help & support infrastructure

If its guide wasn’t clear enough, unlike Zoho Books, QuickBooks provides varied and detailed guidance and customizable menus that allow charities to tailor the system to their unique needs. This level of support is especially useful when compared to providers with lower support scores, ensuring timely assistance for critical financial tasks.

Are there any drawbacks to Quickbooks?

❌ Complex tax and expense setup

QuickBooks can be challenging to use when configuring tax settings and entering expenses. A few of our testers noted that the tax setup process is time-consuming and less intuitive compared to platforms like Zoho Books, which streamline these processes through clearer workflows and automated prompts. In other words, charities without dedicated accounting expertise might feel overwhelmed and require an alternative to QuickBooks.

❌ Cluttered interface in certain areas

Similarly, while the dashboard is clear, other sections of QuickBooks can feel cluttered. Some testers reported issues with poor typography and unclear navigation menus that make it hard to locate specific functions (an issue that was also not found with the simple, intuitive design of Zoho Books).

Learn how much QuickBooks could cost your charity on our dedicated costs page.

3. Xero: Best for Charities with Complex Accounting Needs

For charities managing intricate financial operations, Xero is one of the top choices. It has strengths in key areas such as expense tracking, seamless bank syncing, and strong financial planning tools, as well as customisable communication features to help streamline invoicing and donor engagement.

Despite its advanced functionality, Xero’s interface and somewhat convoluted navigation can pose a learning curve for less experienced users, making it better suited for those with dedicated accounting expertise.

Why Xero is a good choice for charities

✅ Leading operational efficiency

Xero streamlines processes such as bank syncing and reconciliation to earn the highest score in this area of all the software we assessed. Its effective integration of multiple bank accounts means that all transactions are accurately reflected, a benefit that puts it ahead of some alternatives like QuickBooks, which can sometimes present a cluttered interface.

✅ Strong financial planning & visibility

Xero also performed well with its financial planning tools. It provides effective cash flow forecasting and budgeting features that should empower charity managers to plan for future expenses and manage cash surpluses or shortfalls better than many competitors.

✅ Robust expense management

Xero’s expense tracking is also top-notch, with features like seamless receipt uploads, clear mileage input (45p per mile), and an easy-to-use bills function that simplifies client creation and description entry. This is a notable strength when compared to FreshBooks, which can feel clunky in similar areas.

✅ Customisable communication

The platform allows users to customise pre-populated emails helping your communication around invoices and payment reminders. This flexibility supports charities in keeping donors and stakeholders informed and engaged, and betters the email picture placement issues we found with Zoho Books.

Are there any drawbacks to Xero?

❌ Outdated interface with convoluted navigation

The overarching critique we had of Xero had to do with its interface. Testers frequently described Xero’s dashboard as overwhelming with generic headings and an outdated design. To make matters more frustrating, simple tasks such as importing clients or setting up payment reminders were complicated by confusing navigation.

❌ Complex invoicing process

In a similar vein, testers also took issue with Xero’s invoicing function, stating that it includes unnecessary fields and offers limited visual feedback when actions are incomplete. This can result in a frustrating user experience, particularly when compared to the smoother, more guided invoicing processes in QuickBooks or Zoho Books.

❌ Steeper learning curve

Overall then, Xero is generally better suited for experienced accountants. Its complexity and less intuitive setup can be a barrier for charity teams that lack dedicated financial expertise, unlike platforms like Zoho Books, which offer a gentler learning curve.

4. Sage: Best for Larger Charities Needing Advanced Reporting

Our assessment of Sage has led us to consider it a good choice for larger charities that require detailed financial oversight. It has comprehensive planning tools and highly customisable reporting features, as part of its well-structured workflows, to facilitate multi-department budget management and regulatory compliance.

The platform’s core accounting functions, however, can feel less intuitive according to our platform testing and, like Xero, come with a steeper learning curve, which may be overwhelming for smaller teams.

Why Sage is a good choice for charities

✅ Robust financial planning and compliance

Sage shines in financial planning and regulatory support, with detailed reporting and compliance features that are well-suited to charities producing audited financial statements and managing complex donor funds. This level of financial oversight is more advanced compared to platforms like FreshBooks.

✅ Operational efficiency and support

Sage provides dependable performance in handling large volumes of transactions. For example, its structured workflow helps larger charities with multi-department budgets accurately record every fund allocation. This contrasts with Zoho Books, which, although user-friendly, may not offer the same depth of customization in reporting (depending on the reports you need).

✅ Balanced pricing for advanced needs

Sage delivers powerful functionality without an exorbitant cost. For charities that require advanced features or need to make detailed financial analyses, even if it means a bit more complexity in setup compared to QuickBooks’ more streamlined interface.

Are there any drawbacks to Sage?

❌ Lower core accounting ease

Sage’s core accounting functionality earned it the lowest score of all providers on this page. That’s significantly lower than competitors like Zoho Books or QuickBooks. Basic tasks such as journal entries and invoicing can feel less streamlined, which can pose challenges for smaller charities in particular with less staff.

❌ Less intuitive usability

Sage’s interface can be less intuitive and more complex, with a middling overall score from our testers. While its depth of features is a strength for larger organisations, smaller charities may find it has a steeper learning curve compared to the more accessible designs of platforms like FreshBooks or Zoho Books.

❌ Potentially overkill

The advanced reporting, compliance, and customization options of Sage are designed for detailed financial oversight. However, for some charities, this may be adding unnecessary complexity where a more straightforward solution might be preferable.

5. FreeAgent: Best for Efficient Payment Processing

FreeAgent is a strong choice for charities looking for software that can manage payments and bank reconciliation, recurring billing and transaction tracking without a hitch.

Its limited journal entry functionality and less advanced reporting features are slight drawbacks, but overall, its focused approach to transaction management remains its main strong point.

Why FreeAgent is a good choice for charities

✅ Robust payment and bank reconciliation

FreeAgent earned a perfect score for its handling of financial transactions and payments. Its ability to sync with multiple bank accounts and generate reliable payment links should mean that donations and payments are processed seamlessly. This streamlined functionality is particularly beneficial for charities that need quick, accurate reconciliation, rivalling the strong performance seen in Zoho Books, but with a more focused approach.

✅ Effective invoicing and recurring billing

FreeAgent delivers dependable invoice management that supports recurring billing and automated reminders. This helps charity teams efficiently track donor contributions and manage regular expenses, similar to what QuickBooks and Xero offer, but with a simplified user experience tailored to smaller teams.

✅ User-friendly interface for smaller organisations

In that vein, FreeAgent’s platform is straightforward and intuitive, making it easier for charity volunteers or staff without extensive accounting expertise to manage finances. Its simplicity stands out compared to more complex systems like Sage or Xero to keep the focus on managing funds rather than wrestling software.

Are there any drawbacks to FreeAgent?

❌ Limited journal entry functionality

FreeAgent lacks detailed transaction documentation and versatile import/export options found in Zoho Books or QuickBooks which scored perfectly in this assessment area. This limitation could be a challenge for charities that require meticulous financial record-keeping for audits or grant reporting.

❌ Less advanced reporting and customisation

While FreeAgent covers the basics well, its advanced reporting features and customisation options are more limited. Charities with complex financial operations or those needing detailed, tailor-made reports might find the tools less comprehensive compared to platforms like Xero or Sage, which offer deeper forecasting and budgeting capabilities.

❌ Narrower financial planning scope

Although FreeAgent provides sufficient financial visibility for everyday tasks, its forecasting and budgeting tools don’t offer the same level of depth as Zoho Books. For larger charities or those with more complex funding structures, this could mean fewer insights into future cash flows and less flexibility in strategic financial planning.

6. FreshBooks: Best for Ease and Simplicity

FreshBooks is an accounting software that we think is specifically well suited to small businesses. While it lacks the advanced smarts of other accountancy platforms and has a few other annoyances we found from our testing, Freshbooks’ emphasis on ease of use means that even charities with minimal accounting resources can manage daily transactions efficiently and allocate more time to their mission rather than grappling with complex software setups. In other words, it’s one of the top choices for a more basic accounting software that has all the essential features covered.

Why FreshBooks is a good choice for charities?

✅ Intuitive, minimalist design

Our testing of FreshBooks saw us particularly impressed with its clean and user-friendly interface that minimises complexity. Its straightforward design is perfect for small charities and sole traders with limited accounting experience to navigate invoicing and expense tracking. That’s a clear advantage over more intricate platforms like Xero, which can overwhelm users with cluttered dashboards.

✅ Effortless invoicing and integrated time tracking

The software provides simple yet effective invoicing tools alongside integrated time tracking. This combination allows charity teams to quickly generate invoices and log billable hours without additional hassle. Although we had some issues with its time recording, as we’ll detail below, the streamlined approach helps maintain focus on core financial tasks which we found could be a more accessible alternative to QuickBooks’ detailed but sometimes complicated invoicing system.

Are there any drawbacks to FreshBooks?

❌ Inefficient messaging functionality

Our user testing highlights that the messaging system within FreshBooks is not as intuitive as some options, leading to confusion — especially when trying to send follow-up emails or chase overdue invoices. QuickBooks, on the other hand, offers clearer messaging prompts and guidance, making client communication more straightforward.

❌ Currency switching issues

FreshBooks has challenges with currency management; for example, even after setting a different default currency, invoices may revert to USD according to our testing. This limitation can be particularly problematic for charities operating internationally, making platforms like Zoho Books more appealing with their reliable multi-currency support.

❌ Dashboard distractions from time tracking

Although the overall interface is simple, the integration of the time recording feature sometimes clutters the dashboard. We found that minimising the time tracker still obscured some dropdown menus, disrupting our workflow. This can detract from the overall user experience, especially when compared to platforms like Xero, where dashboard elements are more thoughtfully segregated.

❌ Advanced accounting capabilities

While FreshBooks is excellent for basic invoicing and expense management, its core accounting functionality scores lower than competitors such as Zoho Books and Sage. Charities that require detailed journal entry documentation or more advanced reporting might find FreshBooks less comprehensive, prompting them to consider alternatives for complex financial oversight.

7. Clear Books: Best for Budget-Friendly Accounting

ClearBooks offers an affordable solution that covers essential accounting needs, such as handling various tax types and supporting VAT returns, without overwhelming users with extra features.

Its streamlined search and project creation functions simplify basic financial management for charities on a tight budget. However, its unintuitive navigation and limited customisation options may not suit those who require more advanced functionality.

Why ClearBooks is a good choice for charities

✅ Streamlined search and project creation

ClearBooks stands out with its user-friendly search functionality and innovative pop-up project creation feature. This design enables charity staff to quickly locate donor details or expense records and initiate new projects without navigating through multiple screens. That’s welcome simplicity when you compare it to the more layered interfaces of platforms like QuickBooks.

✅ Intuitive interface for essential tasks

Similarly, its logically organised navigation—grouping contacts, sales, and purchases in clear sections—makes it easier for small charities to track income and expenditures. This straightforward layout helps make sure that basic accounting functions, such as filling out quotes or managing supplier bills, are accessible even for users without extensive accounting expertise.

✅ Cost-effective core functions

ClearBooks’ emphasis on core accounting – it was only beaten by Zoho Books for its extent of core functionalities, matching Xero – at a competitive price point makes it a strong contender for charities that need essential financial management without the extra complexity of advanced features. This focus on affordability and simplicity can be an advantage over platforms like Zoho Books or QuickBooks, which, while feature-rich, may introduce unnecessary complications for smaller organizations.

Are there any drawbacks to ClearBooks?

❌ Challenging navigation and categorisation

Despite its intuitive search, our testing team criticised ClearBooks for having an unintuitive navigation system with poorly categorised sections. Users may struggle to find key tools as a result — namely, customer imports or payment reminders — that are more logically organised and clearly signposted on platforms like QuickBooks or Zoho Books.

❌ Limited customization options

Our testers also highlighted concerns about customisation limitations, with participants specifically mentioning restricted options for modifying invoice logos. This shortfall means that charities seeking to tailor their financial documents to reflect their branding may find ClearBooks less flexible than competitors like Zoho Books or QuickBooks, which offer broader customization capabilities.

❌ Steeper learning curve for advanced tasks

While it performs well in basic functions, ClearBooks can be less accommodating when it comes to more complex operations. Tasks like setting up detailed late payment reminders or handling nuanced expense claims may require extra effort compared to the streamlined processes offered by platforms such as FreshBooks, potentially slowing down workflow for teams with limited accounting support.

Buying Guide for Charity Accountancy Software

If you are looking for some guidance before choosing an accountancy software for your charity, then you’re in luck. Let’s dive into what you need to consider.

Understanding your charity’s needs

Before selecting a software solution, you need to understand what your charity needs. That starts with assessing your charity’s size, operational complexity, and in-house expertise.

Smaller charities or startups might benefit from platforms with an intuitive design and minimal learning curve, whereas larger charities with multiple departments (including those with vast experience with accountancy) could require advanced features like detailed reporting and regulatory compliance but be less fazed by a lack of customer support or more complicated setup.

Remember that UK-based charities must also consider software that complies with HMRC requirements and supports BACS payments for domestic transactions. You can learn how to do accounting on our dedicated UK business guide if you want any additional details, too.

Key accountancy software features to look for

While considering your general operational size and structure can help guide you towards certain accountancy systems, it’s worth dwelling on the specific tools that you might consider.

Common pain points and how to address them

Steep learning curves and navigation issues: Some systems, particularly those with more complicated interfaces, as we detail above about Xero or Sage in the above reviews, may be challenging for teams without specialised accounting knowledge.

• Solution ➡️ Prioritise software with clear dashboards and guided setup processes (for example, QuickBooks or FreshBooks) that reduce the burden on your staff.

Manual processes in key areas: Manual input requirements—such as those seen with certain timer features or project creation processes—can slow down workflow. This is especially critical for charities that rely on volunteers or have limited administrative support.

• Solution ➡️ Look for platforms that automate as many tasks as possible (or at least the ones you are set to use the most).

Currency and Payment Integration Challenges: For charities receiving international donations, multi-currency functionality is essential.

• Solution ➡️ Make sure that the software can reliably switch currencies without reverting to default settings (a problem we noted in some systems like FreshBooks, for instance). Additionally, verify that payment integrations (such as with Stripe or GoCardless) work seamlessly, particularly for domestic UK payments.

Making the right choice for your charity

At the end of your deliberations on what features, functionality and form of software suit your charity best, you’ll need to decide on the accountancy software that balances operational needs with budget. Here are four areas to help you make that final call:

1. Ease of use: A user-friendly interface will minimise training time and prevent operational delays, which is a major benefit for small charities.
2. Compliance and local requirements: The chosen solution must support HMRC reporting and BACS integration to meet UK regulatory standards.
3. Cost-effectiveness: With limited budgets, it’s important to choose a platform that offers robust functionality without unnecessary extras. Focus on core features that provide value and improve efficiency.
4. Support infrastructure: Reliable customer support and comprehensive training resources can significantly ease the software implementation process, especially during busy fundraising periods.

Our Methodology: How Did We Rank the Best Accounting Software?