Verdict (TL;DR)
Verified 2026-05-07QuickBooks Online remains the SMB accounting default with 80% market share, the broadest accountant network, and the deepest integration ecosystem, but pricing has increased ~30% over three years and customer support has declined. Xero is the strongest QuickBooks alternative globally, especially in UK/AU/NZ where it leads. FreshBooks is the best for service-based freelancers and consultants. Wave is the only credible free option (free accounting + invoicing, paid payments and payroll). Zoho Books delivers the best value for businesses already on Zoho One. Sage 50cloud serves traditional desktop-loving small businesses. The category structural shift in 2026: AI-driven categorization, automated bookkeeping, and direct bank-feed automation are now table-stakes; pure data-entry accounting is dead.
Best for your specific use case
- US small business with accountant network: QuickBooks Online Broadest accountant network. Most integrations. Tightest payroll integration with QuickBooks Payroll.
- Global SMB (UK, AU, NZ, Canada strongest): Xero Cleanest UX. Strongest in Commonwealth markets. Unlimited users on most plans.
- Service-based freelancers and consultants: FreshBooks Built around invoicing and time-tracking for service businesses. Strong client portal.
- Free accounting for very small business: Wave Genuinely free for accounting + invoicing. Pay only for payments and payroll.
- Already on Zoho One bundle: Zoho Books Native integration with Zoho CRM, Inventory, Projects. Best value at $15-$240/month.
- Traditional desktop-loving small business: Sage 50cloud Hybrid desktop + cloud. Strong for inventory-heavy small business.
- Growing SMB approaching ERP territory: NetSuite Small Business Cloud ERP for small business approaching $5M+ revenue with multi-entity needs.
- Cheapest payroll-anchored SMB: Patriot Accounting Lowest pricing in category. Native Patriot Payroll integration.
- Multi-currency small business: Kashoo Strong multi-currency support. Simple UX for non-accountants.
- Mac-anchored small business: AccountEdge Strongest Mac native accounting. Long-standing brand for Mac small business.
Small business accounting software is the foundational financial layer for every business under $10M revenue. The right platform handles invoicing, expense tracking, bank reconciliation, and tax-ready reporting. The wrong one creates 5+ years of cleanup work when you eventually switch. We synthesized 51,000+ reviews across G2, Capterra, Reddit, and Trustpilot.
This ranking is a companion to our Top 10 Payroll Software ranking, many small business buyers make payroll and accounting decisions together (especially QuickBooks-anchored shops where QBO + QuickBooks Payroll integration is a major reason to pick both).
Quick comparison
| Product | Best for | Starts at | 10-emp/mo* | Pricing | G2 | Geo |
|---|---|---|---|---|---|---|
| 1 QuickBooks Online | US small business | $35 | $35 | 4.0 | US, Canada, UK, AU; weaker in EU | |
| 2 Xero | Global SMBs (UK, AU, NZ, Canada strongest) | $15 | $15 | 4.3 | Global; market leader in UK, AU, NZ; strong in Canada, US | |
| 3 FreshBooks | Service-based freelancers, consultants, agencies | $21 | $21 | 4.5 | US, Canada, UK, AU; weaker globally | |
| 4 Wave Accounting | Solopreneurs and very small businesses | $0 + $0/emp | $0 | 4.3 | US, Canada | |
| 5 Zoho Books | SMBs on Zoho ecosystem | $0 + $0/emp | $0 | 4.5 | Global; strong in India, EU, growing US | |
| 6 Sage 50cloud | Traditional inventory-heavy small business | $65 | $65 | 3.9 | US, UK, Canada | |
| 7 NetSuite Small Business | Growing SMBs approaching enterprise | Quote | - | 4.0 | Global | |
| 8 Patriot Accounting | Cost-conscious very small US business | $20 | $20 | 4.5 | US | |
| 9 Kashoo | Multi-currency very small business | $20 | $20 | 4.3 | Global; strong in Canada, US, UK, AU | |
| 10 AccountEdge | Mac-anchored small business | $0 | $0 | 4.0 | US, Canada |
*10-employee monthly cost = base fee + (per-employee × 10) using the lowest published tier. For opaque-pricing vendors, no value is shown.
What will it actually cost you?
Enter your team size below. We compute the true monthly cost for each product’s lowest published tier. Opaque-pricing vendors are excluded, get a quote.
Estimated monthly cost (cheapest first)
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Switching cost is the lock-in tax. Read row → column: “If I'm on X today, how painful is moving to Y?” Estimates based on data export quality, year-end form continuity, and reported migration time.
| From ↓ / To → | QuickBooks Online | Xero | FreshBooks | Wave Accounting | Zoho Books | Sage 50cloud | NetSuite Small Business | Patriot Accounting | Kashoo | AccountEdge |
|---|---|---|---|---|---|---|---|---|---|---|
| QuickBooks Online | - | OK 4 | OK 4 | OK 4 | Medium 5 | OK 4 | Medium 6 | OK 4 | OK 4 | OK 4 |
| Xero | OK 4 | - | OK 4 | OK 4 | Medium 5 | OK 4 | Medium 6 | OK 4 | OK 4 | OK 4 |
| FreshBooks | OK 4 | OK 4 | - | OK 4 | Medium 5 | OK 4 | Medium 6 | OK 4 | OK 4 | OK 4 |
| Wave Accounting | OK 4 | OK 4 | OK 4 | - | Medium 5 | OK 4 | Medium 6 | OK 4 | OK 4 | OK 4 |
| Zoho Books | Medium 5 | Medium 5 | Medium 5 | Medium 5 | - | Medium 5 | Hard 7 | Medium 5 | Medium 5 | Medium 5 |
| Sage 50cloud | OK 4 | OK 4 | OK 4 | OK 4 | Medium 5 | - | Medium 6 | OK 4 | OK 4 | OK 4 |
| NetSuite Small Business | Medium 6 | Medium 6 | Medium 6 | Medium 6 | Hard 7 | Medium 6 | - | Medium 6 | Medium 6 | Medium 6 |
| Patriot Accounting | OK 4 | OK 4 | OK 4 | OK 4 | Medium 5 | OK 4 | Medium 6 | - | OK 4 | OK 4 |
| Kashoo | OK 4 | OK 4 | OK 4 | OK 4 | Medium 5 | OK 4 | Medium 6 | OK 4 | - | OK 4 |
| AccountEdge | OK 4 | OK 4 | OK 4 | OK 4 | Medium 5 | OK 4 | Medium 6 | OK 4 | OK 4 | - |
All 10, ranked and reviewed
Each product gets the same scrutiny: who it’s actually best for, where it falls short, what it really costs, and how it scores across six dimensions.
QuickBooks Online
US small business accounting default with 80% market share.
QuickBooks Online (QBO) is the US small business accounting default with ~80% market share. The product's primary advantages: broadest accountant network (most accountants are already QBO-trained), deepest integration ecosystem (650+ apps), and tight integration with QuickBooks Payroll (covered in our Top 10 Payroll ranking). Trade-offs: pricing increased ~30% over three years, customer support quality has declined consistently, and standalone (without QuickBooks ecosystem) value is meaningfully lower.
US small businesses (1-50 employees) wanting the broadest accountant network and tight QuickBooks Payroll integration.
Global SMBs (Xero better in UK/AU/NZ), service-based freelancers (FreshBooks better), or anyone considering a non-Intuit ecosystem.
Strengths
- Broadest accountant network, most accountants already QBO-trained
- Deepest integration ecosystem (650+ apps)
- Native QuickBooks Payroll integration
- Auto-categorization and bank feed automation
- Mobile apps with receipt capture
- Public company financial transparency
Weaknesses
- Pricing increased ~30% over three years
- Customer support quality has declined consistently
- Standalone (without QB ecosystem) value lower
- Limited feature differentiation between Plus and Advanced tiers
- Promotional pricing reverts automatically
Pricing tiers
public- Simple StartSingle user; basic features$35 /mo
- EssentialsUp to 3 users; bill management$65 /mo
- PlusUp to 5 users; project profitability$99 /mo
- AdvancedUp to 25 users; advanced reporting, batch invoicing$235 /mo
- · QuickBooks Payroll separate subscription
- · QuickBooks Time (formerly TSheets) separate
- · Promotional pricing reverts automatically
- · Annual billing for published rates
Key features
- +Invoicing and payments
- +Expense tracking
- +Bank reconciliation
- +Auto-categorization
- +Tax-ready reporting
- +Project profitability (Plus+)
- +Inventory management (Plus+)
- +650+ integrations
Xero
Strongest QuickBooks alternative globally.
Xero is the strongest QuickBooks alternative for global SMBs. Founded in New Zealand 2006, Xero leads in the UK (~50% market share), Australia (~40%), and New Zealand (60%+). The product's strengths are unlimited users on all plans (vs QuickBooks per-user limits), cleaner modern UX, and strong multi-currency support. Trade-offs: smaller US accountant network than QuickBooks, recent pricing increases (~25% over 2023-2024).
Global SMBs (especially UK, AU, NZ, Canada), service businesses with international clients, or US SMBs willing to use Xero ecosystem.
US-only SMBs requiring tight payroll integration (QuickBooks wins), or companies tied to US-specific accountant relationships.
Strengths
- Unlimited users on all plans (vs QuickBooks limits)
- Cleanest UX in category
- Strongest in UK, AU, NZ markets
- Multi-currency support strong
- Public company financial transparency
- 1,000+ integrations
Weaknesses
- Smaller US accountant network than QuickBooks
- Recent pricing increases (~25% over 2023-2024)
- US payroll less mature than QuickBooks Payroll
- Support depends on tier
- Inventory features less robust than QuickBooks
Pricing tiers
public- Early20 invoices/month, 5 bills/month, entry only$15 /mo
- GrowingUnlimited invoices, bills, transactions$42 /mo
- EstablishedAdds multi-currency, project tracking, expense claims$78 /mo
- · Xero Payroll separate (US only via Gusto integration)
- · Annual billing for published rates
Key features
- +Unlimited users
- +Invoicing and payments
- +Bank reconciliation
- +Multi-currency
- +Project tracking (Established+)
- +Expense claims
- +Mobile apps
- +1,000+ integrations
FreshBooks
Service-based freelancers and consultants.
FreshBooks built its business around invoicing for service-based freelancers and consultants. The product's strengths are clean invoicing UX, native time-tracking, and the strongest client portal in the category. Best-fit for solopreneurs, agencies, and small consultancies. Trade-offs: limited inventory features, weaker accountant network than QuickBooks, US payroll only via Gusto integration.
Service-based freelancers, consultants, agencies, and small consultancies (1-50 employees) prioritizing invoicing and client portals.
Product-based businesses with inventory needs, larger SMBs above 50 employees, or anyone needing tight payroll integration.
Strengths
- Best invoicing UX for service businesses
- Native time-tracking
- Strongest client portal in category
- Mobile apps for invoicing on the go
- Good fit for solopreneurs and small agencies
Weaknesses
- Limited inventory features (not for product-based business)
- Smaller accountant network than QuickBooks
- US payroll only via Gusto integration
- Support inconsistency reported
- Best-fit ceiling around 50 employees
Pricing tiers
public- Lite5 billable clients; basic invoicing$21 /mo
- Plus50 billable clients; recurring invoicing, late fees$38 /mo
- PremiumUnlimited clients; team management$65 /mo
- SelectDedicated CSM, custom reportingQuote
- · Team members billed extra at $11/user/month
- · Gusto Payroll separate
- · Annual billing for published rates
Key features
- +Invoicing with online payments
- +Time tracking
- +Client portal
- +Project management
- +Expense tracking
- +Mileage tracking
- +Mobile apps
- +Reports
Wave Accounting
Free accounting + invoicing for very small business.
Wave Accounting is the only credible free option in this category. Acquired by H&R Block in 2019. The product is genuinely free for accounting and invoicing, Wave makes money on payment processing fees and Wave Payroll add-on. Best-fit for solopreneurs, freelancers, and very small businesses on tight budgets. Trade-offs: feature depth limited, weaker accountant network, Support response times vary.
Solopreneurs, freelancers, and very small businesses (1-10 employees) on tight budgets needing free accounting + invoicing.
Growing SMBs above 10 employees (FreshBooks/QuickBooks better), product-based business with inventory, or anyone needing accountant network.
Strengths
- Genuinely free accounting + invoicing
- Pay-as-you-go for payments and payroll
- Clean UX for non-accountants
- Made for solopreneurs and freelancers
- Mobile apps
Weaknesses
- Feature depth limited; not for growing SMBs
- Smaller accountant network than QuickBooks
- Support is hit-or-miss
- Wave Payroll only in US and Canada
- No advanced inventory or projects
Pricing tiers
public- FreeAccounting + invoicing forever free$0+$0 /mo +/emp
- ProAdds bank connections, advanced reporting$16 /mo
- Wave PayrollUS/Canada only; $20/mo + $6/employee$20 /mo
- · Payment processing fees: 2.9% + $0.60
- · Wave Payroll separate
Key features
- +Accounting + invoicing
- +Bank reconciliation
- +Receipt capture
- +Wave Payments
- +Wave Payroll (separate)
- +Mobile apps
Zoho Books
Best value for businesses already on Zoho One.
Zoho Books extends Zoho's value proposition (deep features, transparent pricing, founder-led, no PE pressure) into accounting. Right call for businesses already using Zoho CRM, Inventory, or Projects who want unified data. The Zoho One bundle ($45/user/month) covers Zoho Books + 50+ other Zoho apps. Trade-offs: smaller US accountant network than QuickBooks, brand recognition lower in North America.
Small businesses (1-100 employees) already using Zoho CRM, Inventory, or Projects, or considering Zoho One bundle.
US SMBs needing accountant-network recommendations, or non-Zoho ecosystem buyers.
Strengths
- Best transparent value at $15-$240/month
- Free tier (revenue under $50K)
- Native Zoho ecosystem integration (CRM, Inventory, Projects)
- Zoho One bundle ($45/user) is unmatched value
- Founder-led, no PE pressure
- Multi-currency, multi-language support
Weaknesses
- Smaller US accountant network
- Brand recognition lower in North America
- Uneven support quality
- Outside Zoho ecosystem, less appealing
- AI features less mature
Pricing tiers
public- FreeRevenue under $50K; 1 user$0+$0 /mo +/emp
- Standard3 users; basic features$15 /mo
- Professional5 users; project profitability, vendor portal$40 /mo
- Premium10 users; advanced reporting, custom permissions$60 /mo
- Elite15 users; advanced analytics, custom domains$120 /mo
- Ultimate20 users; advanced multi-currency, advanced security$240 /mo
- Zoho One BundlePer user; covers 50+ Zoho apps$45 /mo
- · Per-user pricing scales beyond included users
- · Annual billing for discount
Key features
- +Invoicing and payments
- +Bank reconciliation
- +Multi-currency
- +Project profitability (Professional+)
- +Vendor portal (Professional+)
- +Inventory tracking
- +Mobile apps
- +Native Zoho ecosystem
Sage 50cloud
Hybrid desktop + cloud for traditional small business.
Sage 50cloud (formerly Peachtree) is the long-standing desktop accounting product for traditional small businesses that prefer desktop software over cloud-only. The hybrid version syncs to cloud for backup and remote access while keeping local desktop performance. Best-fit for inventory-heavy, manufacturing, or distribution small businesses. Trade-offs: dated UI, smaller accountant network than QuickBooks, customer support has been flagged.
Traditional small businesses with inventory-heavy operations (manufacturing, distribution, retail) who prefer desktop performance with cloud backup.
Modern cloud-native businesses (QuickBooks/Xero better), service-based freelancers (FreshBooks better), or anyone wanting modern UX.
Strengths
- Hybrid desktop + cloud architecture
- Fits inventory-heavy small business
- Long-standing brand (founded 1981)
- Mature manufacturing/distribution features
- Public company financial transparency
Weaknesses
- Dated UI compared to QuickBooks/Xero
- Smaller accountant network than QuickBooks
- Customer support quality flagged
- Cloud migration creates customer confusion (Sage 50cloud vs Sage Business Cloud Accounting)
- Best-fit narrowed to traditional desktop-loving customers
Pricing tiers
public- ProSingle user; basic features$65 /mo
- PremiumUp to 5 users; analytics, advanced budgeting$105 /mo
- QuantumUp to 40 users; industry-specific features$180 /mo
- · Annual subscription model
- · Implementation services for complex deployments
Key features
- +Hybrid desktop + cloud
- +Inventory management
- +Manufacturing modules (Quantum)
- +Bank reconciliation
- +Tax-ready reporting
- +Audit trail
- +Multi-user
- +Mobile apps
NetSuite Small Business
Cloud ERP for SMB approaching enterprise.
NetSuite is technically more than small business accounting, it's a full cloud ERP. We include it here for SMBs approaching $5M+ revenue with multi-entity, multi-currency needs that have outgrown QuickBooks. Acquired by Oracle 2016 for $9.3B. Trade-offs: pricing significantly higher than other entries here ($1,000-$10,000+/month), implementation 8-32 weeks, multi-year contracts.
Growing SMBs ($2M-$50M revenue) approaching enterprise complexity with multi-entity, multi-currency, or multi-subsidiary needs.
True small business under $1M revenue (massively overbuilt), or anyone wanting transparent pricing.
Strengths
- Cloud ERP platform (not just accounting)
- Multi-entity, multi-currency, multi-subsidiary
- Works for SMBs approaching $5M+ revenue
- Industry-specific accelerators
- Mature financial reporting
Weaknesses
- Pricing significantly higher than category
- Implementation 8-32 weeks via certified partners
- Multi-year contracts standard
- UI complexity high
- Best-fit only above ~$2M revenue
Pricing tiers
opaque- NetSuite Limited EditionIndustry estimate $1,000-$2,000/month for SMBQuote
- NetSuite StandardIndustry estimate $2,000-$10,000+/monthQuote
- · Implementation $25K-$200K via certified partners
- · Multi-year contracts standard
- · Per-user pricing on top of base subscription
Key features
- +Cloud ERP
- +Multi-entity, multi-currency
- +Inventory management
- +Order management
- +Financial planning
- +Industry accelerators
- +Mobile apps
- +API and customization
Patriot Accounting
Cheapest payroll-anchored SMB accounting.
Patriot Software offers the lowest pricing in the SMB accounting category at $20-$30/month with strong native integration to Patriot Payroll. Founder-led, privately held, US-only. Best-fit for very small US businesses prioritizing low cost. Trade-offs: feature depth limited, smaller accountant network, brand recognition limited outside payroll.
Cost-conscious US small businesses (1-25 employees) already using or considering Patriot Payroll.
Anyone above 25 employees (QuickBooks better), global businesses, or anyone needing feature depth.
Strengths
- Lowest pricing in category ($20-$30/month)
- Native Patriot Payroll integration
- Founder-led, US-only privately held
- Built for cost-conscious very small business
- US-based phone support
Weaknesses
- Feature depth limited
- Smaller accountant network
- Brand recognition limited outside payroll
- Best-fit ceiling around 25 employees
- Customer support gated to higher tier
Pricing tiers
public- Accounting BasicBasic accounting$20 /mo
- Accounting PremiumAdds vendor checks, departments, customer payments$30 /mo
- · Patriot Payroll separate ($17/mo + $4/employee Basic)
- · Annual billing optional
Key features
- +Invoicing
- +Bank reconciliation
- +Vendor checks (Premium)
- +Departmental tracking (Premium)
- +Reports
- +Mobile apps
- +Patriot Payroll integration
Kashoo
Multi-currency simple accounting for non-accountants.
Kashoo is the simple accounting platform for non-accountants, particularly small businesses with international clients needing multi-currency. Made for solopreneurs and very small businesses. Trade-offs: feature depth limited, Support inconsistency reported, brand recognition low.
Solopreneurs and very small businesses (1-25 employees) with international clients needing simple multi-currency accounting.
Anyone above 25 employees, US-only operations (QuickBooks/Xero better), or buyers needing strong accountant network.
Strengths
- Strong multi-currency support
- Simple UX for non-accountants
- Privately held, founder-led
- Mobile apps
- Best for very small business with international clients
Weaknesses
- Feature depth limited
- Support response times vary
- Brand recognition low
- Best-fit ceiling around 25 employees
- Smaller accountant network
Pricing tiers
public- TrulysmallSimple invoicing + bookkeeping$20 /mo
- KashooFull accounting features$30 /mo
- · Annual billing for published rates
Key features
- +Multi-currency invoicing
- +Bank reconciliation
- +Reports
- +Mobile apps
- +Stripe integration
AccountEdge
Strongest Mac native accounting.
AccountEdge is the long-standing Mac native accounting platform for Mac-anchored small businesses. Founded as MYOB in 1989; the Mac product split off and rebranded as AccountEdge. Best-fit for Mac-loving small businesses where cloud-only options feel constraining. Trade-offs: not pure cloud, smaller integration ecosystem, brand momentum has slowed.
Mac-loving small businesses (1-50 employees) preferring desktop-first accounting with cloud sync.
Cloud-native businesses (QuickBooks/Xero better), PC-anchored businesses, or anyone wanting modern UX.
Strengths
- Strongest Mac native accounting
- Hybrid desktop + cloud
- Long-standing brand for Mac small business
- Strong invoicing and inventory
- Privately held
Weaknesses
- Not pure cloud (desktop-first)
- Smaller integration ecosystem
- Brand momentum has slowed
- Uneven support quality
- Best-fit narrowed to Mac-anchored small business
Pricing tiers
public- AccountEdge Pro$179/year for desktop license$0 /mo
- AccountEdge Network Edition$249/year for multi-user$0 /mo
- AccountEdge HostedCloud-hosted version with web access$75 /mo
- · Multi-user license fees
- · Cloud hosting fee separate from desktop license
Key features
- +Mac-native accounting
- +Hybrid desktop + cloud
- +Invoicing and quotes
- +Inventory management
- +Bank reconciliation
- +Reports
- +Mobile apps (limited)
7 steps to pick the right small business accounting software
- 1 1. Define your business type
Service-based freelancer/agency? → FreshBooks. Product-based with inventory? → QuickBooks or Sage 50cloud. International clients? → Xero or Kashoo. Mac-anchored? → AccountEdge. Free tier needed? → Wave.
- 2 2. Audit your accountant relationship
Talk to your accountant first. They're trained on what they're trained on. QuickBooks dominates US accountant networks. Xero leads UK/AU/NZ. Zoho Books has growing accountant network in India and emerging markets.
- 3 3. Plan for payroll integration
On QuickBooks Online? QuickBooks Payroll natural pair. On Xero? Gusto integration. On Zoho Books? Zoho Payroll (US/India only). On FreshBooks? Gusto integration. See our [Top 10 Payroll Software](/top-10-payroll-software) ranking.
- 4 4. Match team size to budget
Solopreneur: Wave free or Patriot $20. 1-10 employees: $30-$80/mo. 10-50: $80-$250/mo. 50-100: $250-$1,000/mo. 100+ approaching ERP: NetSuite at $1K-$10K+/mo.
- 5 5. Test in a free trial
Set up sample chart of accounts, run 10 sample transactions, generate P&L, check that bank feed connects to your bank. The 4 hours you spend testing is the best diligence available.
- 6 6. Plan for year-end migration
Switching mid-year creates audit complexity. Plan to switch at year-end. Run prior platform for 60-90 days post-migration to validate data integrity.
- 7 7. Get your accountant's sign-off
Even if you do the evaluation yourself, your accountant needs to be comfortable with the platform. Their training and recommendations dramatically affect your tax-time experience.
Frequently asked questions
The questions buyers actually ask before they sign a small business accounting software contract.
QuickBooks vs Xero, which one?
How much should I budget for accounting software?
How long does accounting implementation take?
Should I pick standalone accounting or integrated suite?
What about AI features in 2026?
How long does it take to switch accounting?
Can I evaluate via free trial?
How does this overlap with the Payroll Software ranking?
Glossary
- GL
- General Ledger. The main accounting record where all transactions are recorded.
- COA
- Chart of Accounts. The list of accounts (assets, liabilities, equity, revenue, expenses) used for categorization.
- Bank reconciliation
- Matching transactions in your accounting system to your bank statement; key SMB workflow.
- AR / AP
- Accounts Receivable / Payable. Money owed to / by your business.
- P&L / Income Statement
- Profit & Loss report showing revenue, expenses, and net income over a period.
- Balance Sheet
- Snapshot of assets, liabilities, and equity at a point in time.
- Cash basis vs Accrual
- Cash records when money moves; Accrual records when revenue is earned/expense incurred. Most SMBs start with cash, switch to accrual at scale.
- 1099 / W-9
- US tax forms for contractor payments. Most SMB accounting platforms generate 1099s automatically.
Final word
See the full intelligence profile for any product on this page, including verified pricing, vendor trust scores, and review patterns. Browse the Small Business Accounting Software category page →
Last updated 2026-05-07. Pricing data is reverified quarterly. Found something inaccurate? Tell us.