Akaunting
Free, open-source online accounting software.
About Akaunting
Akaunting is a double-entry accounting platform you can run in the cloud for free or host on your own server. Day-to-day, it handles invoicing, expense tracking, bank account syncing via Plaid, and chart-of-accounts management across multiple companies from one login. The app marketplace adds payroll, inventory, and time-tracking modules — some free, some paid — so you build the feature set you actually need rather than paying for one bundled by a vendor. It fits sole traders, freelancers, and small businesses with straightforward books who want full data ownership and zero monthly software fees. Bookkeepers managing several small clients under one roof can use the multi-company setup without per-seat charges. Where it falls short: the integration library is thin compared to QuickBooks Online or Xero, so if your client stack runs on Shopify, Gusto, or HubSpot, expect manual work or Zapier workarounds. The UI is functional but unpolished, and the community forum is the primary support channel — there is no phone support and documentation gaps are common. Self-hosting shifts server maintenance and security patching onto you.
Best for
Small businesses wanting free, self-hosted cloud accounting with extension marketplace
Key Features
- Double-entry bookkeeping
- Invoice generation and management
- Bank account synchronization
- Multi-company accounting
- App marketplace for extensions
Pros & Cons
Pros
- True double-entry bookkeeping with a full chart of accounts — not the simplified single-entry ledger most free tools offer
- Self-hosting option gives complete control over client financial data, no third-party cloud dependency
- Multi-company management under one account at no extra cost, useful for bookkeepers with several small clients
- Bank sync via Plaid covers most major US banks for automated transaction import
- App marketplace lets you add payroll, inventory, or recurring billing only when you need them
- Free core plan has no invoice or transaction limits, unlike FreshBooks or Wave's restricted free tiers
- Stripe and PayPal payment links embed directly in invoices for client-facing payment collection
Cons
- Native integrations cover Stripe, PayPal, Plaid, and Zapier only — no direct connectors to Shopify, Gusto, or most CRMs
- Paid marketplace extensions add up quickly; payroll and advanced reporting modules each carry separate annual fees
- Self-hosted deployments require PHP server maintenance and manual security updates — not suitable for non-technical owners without IT support
- Support is community forum and ticket-based only; no live chat or phone line, and response times vary
- Reporting suite is basic out of the box — cash flow statements and custom reports require paid add-ons
- Smaller user base than QuickBooks or Xero means fewer third-party accountants familiar with the platform, complicating handoffs
Ledger Brief Take
This open-source alternative to QuickBooks offers genuine double-entry accounting with bank feeds — not just basic invoicing like most free tools. The self-hosted option appeals to privacy-conscious small businesses, though you'll trade the polish and integration ecosystem of commercial platforms for complete data control and customization through its app marketplace.
Frequently Asked Questions
Common questions accountants ask about Akaunting.
Is Akaunting actually free, or are there hidden costs?
The core software is free with no invoice or user limits. Costs appear when you add marketplace extensions — payroll, advanced reporting, and recurring billing modules carry separate annual fees ranging roughly from $49 to $149 per app. Cloud hosting through Akaunting's own service starts at around $9 per month if you don't self-host.
How does Akaunting compare to QuickBooks Online for a small business?
QuickBooks Online has a deeper integration library, dedicated accountant access features, and stronger customer support. Akaunting costs less — potentially nothing — and gives you data ownership through self-hosting. If your bookkeeper or accountant already works in QuickBooks, switching to Akaunting adds friction at handoff time. It makes the most sense when you manage your own books and prioritize cost and privacy over ecosystem breadth.
Is Akaunting secure for storing client financial data?
Security depends on your deployment choice. The self-hosted version puts security entirely on you — unpatched servers are a real risk if you lack technical resources. The cloud-hosted version runs on standard SSL encryption. Neither option has published SOC 2 compliance. For firms handling sensitive client data under contractual obligations, verify your specific requirements before committing.
Can Akaunting handle VAT or sales tax reporting?
Yes. Akaunting supports configurable tax rates, tax-inclusive and tax-exclusive pricing, and generates tax summary reports. It handles multi-rate VAT setups. It does not file returns directly with any tax authority — you export the report and file manually or through your accountant.
Who should not use Akaunting?
Businesses that rely on Shopify, Gusto, or Salesforce integrations, or that need payroll processing baked into their base subscription. Also avoid it if your external accountant works exclusively in Xero or QuickBooks and you need seamless file sharing — Akaunting's export formats require extra conversion steps at handoff.