Free Accounting Software for Small Business in India
EzNxt Accounting is free cloud accounting software for Indian small businesses. Create GST invoices, track expenses, reconcile your bank account, and generate P&L reports — all free for up to 10 users. No credit card required.
Why Indian Small Businesses Need Accounting Software
Managing accounts manually in India has become increasingly difficult since GST was introduced. Small businesses that manage accounts in Word, Excel, or notebook registers face four compounding problems:
GST compliance is mandatory — and the details matter
Every B2B invoice must include GSTIN, HSN/SAC codes, and correct CGST/SGST/IGST breakdowns. An incorrect invoice cannot be used by your customer to claim input tax credit — creating disputes and lost business relationships.
Manual invoice creation in Word or Excel is error-prone
Manually calculating GST on each invoice, maintaining sequential invoice numbers, and ensuring correct tax rates per item type is time-consuming and easy to get wrong. Errors trigger GST notices and compliance issues.
Bank reconciliation done once a year by CA reveals problems too late
When reconciliation only happens at year-end, discrepancies between your books and bank statement go unnoticed for months. Accounting software lets you reconcile monthly and catch issues before they compound.
No real-time cash flow visibility during the month
Without accounting software, business owners only know their cash position when they check their bank balance — not when they look at their books. Outstanding invoices, upcoming bills, and true profitability are invisible until month-end.
EzNxt Accounting Features for India
GST Invoicing
Create GST-compliant invoices with GSTIN, HSN/SAC codes, and automatic CGST/SGST/IGST calculations based on interstate or intrastate supply. Download as PDF or email directly to clients.
Expense Tracking
Record vendor bills and business expenses by category. Track what you owe to vendors and see your spending breakdown by category to control costs.
Bank Reconciliation
Import your bank statement and match transactions against your recorded income and expenses. Catch discrepancies early instead of discovering them at year-end.
GST Reports
Generate GSTR-1 (outward supply) and GSTR-3B (summary return) data summaries automatically. Share with your CA for filing — no manual compilation from invoices.
P&L and Cash Flow
Real-time profit and loss statement and cash flow report so you know exactly how your business is performing without waiting for your CA's quarterly visit.
Accounts Receivable
See all outstanding invoices at a glance — which are paid, which are overdue, and total amount owed to your business. Follow up on late payments with full context.
How EzNxt Compares to Other Free Accounting Software in India
Most accounting software in India charges a subscription. EzNxt is free for teams up to 10 users. Here is how the options compare:
| Software | Pricing | Notes |
|---|---|---|
| EzNxt | Free for up to 10 users, then ₹80/user/mo | Cloud, includes CRM + HRMS + Projects + Accounting in one platform |
| Vyapar | ₹1,999/year | Good for trading/inventory businesses. No HRMS or CRM. |
| Tally | ₹18,000–54,000/year | Desktop software. Accounting-focused. Advanced features but no HRMS or CRM. |
| Zoho Books | ₹749/month | Good GST accounting. No free plan. No HRMS. |
Prices sourced from respective vendor websites. Subject to change.
What EzNxt Accounting Covers and What It Does Not
Here is exactly what is available now and what is still on the roadmap.
Covered in EzNxt Accounting
- GST invoicing with GSTIN, HSN/SAC codes, CGST/SGST/IGST
- Expense tracking and vendor bill recording
- Bank reconciliation
- GSTR-1 and GSTR-3B data summaries
- Profit and Loss statement
- Cash flow report
- Balance sheet
- Accounts receivable and outstanding invoice tracking
Not Yet in EzNxt
- Direct GST portal filing (return filing done by your CA)
- Inventory management (in development)
- Payroll with PF/ESI statutory computation (in development)
- E-invoice portal (IRN) integration
For GST return filing, EzNxt generates the data your CA needs. Direct portal filing is on the roadmap.
India's GST Compliance Requirements: What Your Accounting Software Must Handle
GST introduced in July 2017 created ongoing monthly and quarterly compliance obligations for all registered businesses. Here is what each return requires — and what your accounting software needs to provide to support it:
GSTR-1: Outward Supply Statement
Filed monthly (by 11th of next month) or quarterly under QRMP scheme (by last day of next month). GSTR-1 requires invoice-wise data for every B2B sale: buyer GSTIN, invoice number, date, taxable value, and GST breakdowns. EzNxt generates this data from your invoices automatically.
GSTR-3B: Monthly Summary Return
Due by 20th/22nd/24th of next month depending on your state. Requires total taxable turnover, tax payable, and input tax credit (ITC) claimed. Your accounting software must track both your sales and eligible purchases to generate accurate GSTR-3B data.
E-Invoicing: Mandatory Above ₹5 Crore Turnover
Businesses with turnover above ₹5 crore (as of 2023) must generate an IRN (Invoice Reference Number) from the government e-invoice portal before issuing a B2B invoice. EzNxt formats invoices to be e-invoice ready — though direct IRN generation via portal API is on the development roadmap.
GSTR-9: Annual Return
Year-end reconciliation of all GST transactions filed during the year. Accurate GSTR-9 is only possible if your monthly GSTR-1 and GSTR-3B were filed correctly. Complete, consistent accounting records throughout the year are the foundation.
TDS Under Section 194: Vendor Payments
Applicable when making payments above prescribed thresholds to vendors (e.g., ₹30,000 for professional/technical services, ₹1 lakh for rent). Accounting software should flag TDS-applicable transactions so your CA can deduct and deposit TDS on time.
Note: EzNxt generates reports and data summaries. Actual GST return filing is done through the GST portal by your CA.
The Real Accounting Workflow for Indian Small Businesses (Without an In-House Accountant)
Most Indian small businesses don't have a full-time accountant. The practical workflow that works for owner-managed businesses looks like this:
Daily: Raise invoices as you bill clients
The business owner or admin raises GST invoices using accounting software as work is completed or goods are dispatched. This keeps books current and avoids end-of-month invoice backlog.
As they happen: Record expenses
Expenses entered when they occur — not reconstructed from a pile of receipts three weeks later. Vendor bills, travel costs, utilities — each recorded with category and vendor details.
Monthly: Share data with your CA
At month-end, accounting data is exported or directly shared with the CA (EzNxt supports report exports). The CA uses this to prepare GSTR-1, GSTR-3B, and TDS filings.
Quarterly: Review P&L and cash position
Review the profit and loss statement and cash flow report with your CA. Identify which cost categories are growing, which customers are taking longest to pay, and whether margins are tracking to plan.
Year-end: Audit-ready financial statements
The CA uses the full-year data for income tax return filing and, if applicable, statutory audit. Businesses with clean, consistent records through the year have significantly smoother year-end processes.
EzNxt fits this workflow directly: you manage day-to-day invoicing and expense tracking; your CA handles compliance filings using EzNxt's exported data and GSTR summaries.
Accounting Software Comparison for Indian Small Businesses (2026)
A detailed comparison of the main options available to Indian SMEs, including pricing, key features, and best-fit use cases:
| Software | Pricing | Strengths | Limitations |
|---|---|---|---|
| EzNxt | Free for 10 users, then ₹80/user/mo | GST invoicing, GSTR summaries, cloud-based, includes CRM+HRMS | No direct GST portal filing yet, no inventory |
| Zoho Books | ₹749/month | Full GST compliance, e-invoicing, bank reconciliation | No free plan, no HRMS included |
| Tally Prime | ₹18,000/year (Silver) | Deep GST, high-volume ledgers, CA favourite, desktop | Desktop only, steep learning curve, no CRM/HRMS |
| QuickBooks India | ₹550/month | Cloud, GST, inventory tracking | No free plan, limited India-specific compliance depth |
| Vyapar | ₹1,999/year (desktop) or ₹3,499/year | GST billing, offline use, simple interface | Limited accounting depth, no HRMS/CRM |
| Sleek Bill | ₹5,000+/year | Professional invoicing, multi-currency | Limited accounting beyond invoicing |
Prices sourced from respective vendor websites as of March 2026. Subject to change.
Frequently Asked Questions
Is EzNxt accounting software really free in India?
Yes. EzNxt Accounting is completely free for Indian small businesses with up to 10 users. GST invoicing, expense tracking, bank reconciliation, and financial reports are all included at no cost. For teams above 10 users, EzNxt charges ₹80/user/month.
Does EzNxt support GST accounting for Indian businesses?
Yes. EzNxt Accounting is built for Indian GST compliance. You can create GST-compliant invoices with GSTIN, HSN/SAC codes, and CGST/SGST/IGST breakdowns. EzNxt also generates GSTR-1 and GSTR-3B data summaries for your CA to use when filing GST returns.
Is EzNxt accounting software better than Tally for small business?
EzNxt and Tally serve different needs. EzNxt is cloud-based, free for 10 users, and includes CRM, HRMS, and Project Management alongside accounting — useful for businesses that want integrated business management. Tally is desktop software built for accountants, with more advanced accounting features and direct GST portal integration. Businesses with a dedicated accountant and complex accounting needs may prefer Tally.
Can I use EzNxt instead of Zoho Books?
Yes. EzNxt covers the core accounting features that small businesses use in Zoho Books — GST invoicing, expense tracking, bank reconciliation, and financial reports — at no cost for up to 10 users. Zoho Books starts at ₹749/month. EzNxt also includes CRM, HRMS, and Projects that Zoho Books doesn't offer.
Is free accounting software reliable for Indian businesses?
Yes, for most small businesses. Free accounting software like EzNxt handles the core workflows Indian SMEs need: GST invoicing, expense tracking, receivables management, and GSTR data generation. The risk of 'free' software is usually around support quality and long-term viability. EzNxt is a funded SaaS company with paid tiers after 10 users — the free plan is a genuine product offering, not a trial.
What is the difference between accounting software and billing software in India?
Billing software (like Vyapar or Sleek Bill) primarily creates invoices and tracks payments — basic, focused tools. Accounting software goes further: it manages the full chart of accounts, tracks expenses, reconciles bank statements, and generates P&L and balance sheet reports. EzNxt is accounting software — it includes both invoicing and broader financial tracking.
Can accounting software help with income tax filing in India?
Accounting software helps by maintaining accurate profit & loss records throughout the year, which your CA needs to file ITR-3, ITR-4 (for business income), or ITR-6 (for companies). EzNxt generates income and expense reports that your CA can use directly. Direct income tax filing through accounting software is not yet available in EzNxt.
What is the GST turnover threshold for mandatory registration in India?
Businesses with annual turnover above ₹40 lakh (for goods suppliers) or ₹20 lakh (for service providers) must register for GST. In special category states (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand), the threshold is ₹10 lakh. Businesses below these thresholds can voluntarily register for GST to claim input tax credit.
Start Using EzNxt Accounting Free
Free for up to 10 users. GST invoicing, expense tracking, bank reconciliation, and financial reports — all in one place. No credit card required.
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