Overview

GNUKhata is free, open-source accounting and inventory software built around the needs of Indian SMEs, traders, startups, and NGOs. It is best for organizations that want bookkeeping, stock control, and basic GST reporting without a software fee. Its transaction and inventory coverage is substantial, but advanced GST workflows and deployment constraints make it a poor fit for some businesses.

Key features

Transactions and accounting

Sales and purchase invoices, point-of-sale entries, delivery notes, debit and credit notes, payments, and receipts cover a broad day-to-day transaction cycle. A customizable chart of accounts, journal and contra vouchers, and year-end closing and rollover support structured bookkeeping. Multiple entities and an audit trail are useful for organizations managing separate businesses or needing transaction traceability.

Stock and reporting

GNUKhata tracks stock across multiple godowns and records products and services, tax details, and HSN information. Profit & Loss, Balance Sheet, and stock-summary reports connect financial results with inventory activity. This makes the package more relevant to traders and stock-holding businesses than a bookkeeping tool focused only on accounts. It does not support multi-currency, so organizations keeping books in multiple currencies should choose another product.

GST and access controls

GSTR-1 reports can be exported as JSON for upload to the GST portal, and roles include Admin, Manager, Operator, Internal Auditor, and Godown In charge. That combination can support routine reporting and differentiated access, but GNUKhata does not handle online e-way billing or e-invoicing, GST-2A/GSTR-2B reconciliation, and other advanced GST functions. Businesses that depend on those workflows will need a more complete GST system.

Security and installation

The project says SQL injection issues have been fixed, but the code has not had a security audit and it recommends using GNUKhata in a private environment. That caveat matters for organizations considering internet-facing deployment. Version 8.0 is distributed as Docker images; Windows installation is possible but not well tested. Linux, web, and self-hosted use are supported, but teams should be comfortable with the deployment approach before choosing it.

Pricing

GNUKhata: 0.00 USD per free. The free and open-source plan includes the current v8.0 release with Docker installation. There are no paid tiers or stated usage caps; the trade-off is that organizations must accept the installation and security considerations rather than buying a hosted or audited edition.

Platforms

GNUKhata supports Linux, web, Windows, and self-hosted use. The current Docker distribution makes self-managed deployment central to the product, while Windows installation carries an explicit testing caveat. Choose it only if the organization can accommodate that setup.

Who it's for

GNUKhata is a strong candidate for Indian small and midsize businesses, traders, startups, and NGOs that need everyday accounting, stock tracking across godowns, and GSTR-1 export at no software cost. It is less suitable for organizations needing multi-currency accounting, advanced GST processing, or a security-audited deployment.

Pros and cons

Pros

No software charge: the free, open-source plan avoids subscription costs.
Accounts and stock in one system: transaction entry, financial statements, and multi-godown stock tracking serve businesses with both bookkeeping and inventory needs.
Indian GST starting point: GSTR-1 JSON export and HSN search support routine GST-related work.
Multiple entities and an audit trail: useful for organizations that need separation and transaction traceability.

Cons

Advanced GST gaps: no online e-way billing, e-invoicing, or GST-2A/GSTR-2B reconciliation.
Security caveat: the code has not been audited, and the project recommends private-environment use.
Deployment burden: v8.0 is distributed as Docker images, and Windows installation is not well tested.
No multi-currency: it does not suit organizations that need books across currencies.

Alternatives

Choose BUSY if a free billing and accounting plan with multiple companies and financial years is a better fit; its Express plan is 0.00 INR per free. Consider Frappe Books for free, open-source accounting installed on your own Frappe site, with support across mobile, desktop, web, and self-hosted platforms. Beancount is another free, open-source bookkeeping option. hledger is free software with no purchase price or monthly fees. Pick GnuCash for personal and small-business accounting as desktop software on Linux, macOS, or Windows. FrontAccounting is free accounting software for self-hosted or web use. Infor Public Sector is an alternative with custom pricing. Adagio Accounting offers Adagio for Accountants at 100.00 USD per month, billed monthly.

Browse General Ledger Software and Bookkeeping Software for more options.

Verdict

Choose GNUKhata if you are an Indian SME, trader, startup, or NGO seeking free accounting with inventory and GSTR-1 export. Its breadth across transactions, stock, and financial reporting is the main reason to adopt it. Look elsewhere if advanced GST processing, multi-currency books, audited security, or a more straightforward deployment is essential.

	GNUKhata	Sage One
Free plan	Yes
Paid from	Free
Platforms	Linux, self-hosted, Web, Windows	Web
Free plan	Yes	No
Multi-currency	No
Multi-entity support	Yes
Audit trail	Yes
Invoice creation		Yes
Inventory tracking		No
Accountant access		Yes
Mobile platforms		web only

GNUKhata vs Sage One

GNUKhata

Sage One