Attorney-reviewed analysis of accounting software agreements. Understand data ownership, liability limitations, and what happens to your financial records.
Your accounting software contains your complete financial history - invoices, expenses, payroll, tax records. These terms govern who owns that data, what happens if the service ends, and the company's liability if errors cause you financial harm. For businesses, getting this wrong can be catastrophic.
All four accounting platforms reviewed disclaim liability for calculation errors, tax filing mistakes, and data loss. While you "own" your data, exporting it in a usable format often requires significant effort and some data may not be portable.
| Service | Score | Grade | Key Concern |
|---|---|---|---|
| Wave | 78 | B+ | Free tier funded by payment processing, data used for ads |
| Xero | 72 | B | Complex multi-tier pricing, limited liability |
| FreshBooks | 65 | B- | Client limits per tier, aggressive upselling |
| QuickBooks | 55 | C+ | Intuit data practices, frequent price increases |
Free accounting funded by payment processing
Cloud accounting with strong integrations
Invoicing-focused with accounting features
Market leader with concerning practices
While all platforms let you export data, the formats often aren't compatible with competitors. Moving to a new system typically requires manual recreation of charts of accounts, recurring transactions, and integrations.
Every accounting platform disclaims liability for calculation errors, even when caused by software bugs. If bad math leads to tax penalties or financial losses, you have no recourse against the software provider.
Terms allow providers to discontinue products with minimal notice. Historical transaction data may become inaccessible, creating compliance and audit risks for businesses.
Promotional pricing rarely lasts, and most platforms reserve the right to increase prices with just 30 days notice. Year-over-year cost increases of 20-40% are common.
If you're facing data access issues, unexpected price increases, or disputes with your accounting software provider, our legal team can help.
Schedule a ConsultationEach accounting software is evaluated by a licensed attorney on a 100-point scale, examining: