Top 10+ Accounting Software of 2021 (Ratings & Reviews)

Say goodbye to the burdens of the age-old three-ring binder bookkeeping files with accounting software, an efficient and systematic solution to business organizations of all sizes. Beyond the basic core accounting functionalities of general ledgers and bank reconciliation statements, the software also has powerful invoicing features like automatic invoice generation meant to speed up revenue collection for your enterprise. Accounting software offers in-built payroll services including calculating employee hours, processing payroll taxes, reimbursing expenses, direct account deposits. The software enables forecasting and budgeting modules that estimate future expenses, analyses current year financial performance, and predicts the upcoming year’s budget, in the form of dynamic reporting features that ensure real-time accuracy of data. It offers simple tax solutions to save you from irrelevant complexities. No special training is required to use the software as it can be easily operated by users with or without accounting knowledge, all thanks to its user-friendly UI. Therefore, get ready to streamline your financial process with the advanced end-to-end solutions and interesting third-party integrations that the below-mentioned accounting software have to offer you. Please take a look...

Accounting Software

Our Score98/100
  • FreshBooks
  • Canada
  • $7.50 /month
  • Yes

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Our Score98/100
  • Intuit
  • United States
  • $12.00/month
  • Yes

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Our Score98/100
  • Xero
  • United States
  • $9.00/month
  • Yes

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» What is the meaning of Accounting?

In the simplest meaning, accounting is the process of recording and managing financial transactions with regard to your business. Accountancy also includes summarization, analysis, and reporting of your financial transactions in order to keep your business books accurate at all times. It also involves processes to comply with the standard accounting regulations and tax rules.

» What is Accounting Software?

A business account software helps in keeping a track on the entire cash inflow and outflow of an organization. There are different kind of modules present through which the software works such as General Ledger, Account Receivables, Account Payable, etc. The software also manages the payroll system and takes care of reporting management. These individual modules are basic and can be customized to match the functionalities of any particular industry. For instance, the fund accounting system of a non-profit organization will vary from that of a government organization. As account management is one of the essential systems of a business, it often comes under the Enterprise Resource Planning System (ERP).

» Our score is based on user satisfaction (reviews & ratings), social media buzz, online presence, and other relevant information. If your software is part of this list, use this badge on your website and social media to let your readers know about your success.

List of Best Accounting Software of 2021

1. FreshBooks

FreshBooks-best-accounting-software

» Why You Should Buy This:

FreshBooks has all it takes to make invoicing and accounting a breeze for your business. Regarded as one of the best accounting solutions, it can suit your distinct business accounting needs through its impressive and relatively simpler customization functions. Whether you work on your own, with contractual employees or a full-time workforce, it cannot just track but also handle your books and transactions both online and offline.

In addition to that, FreshBooks simplifies cash flow management and supports a double-entry accounting system, taking the hassles out of your everyday bookkeeping. And since it includes time tracking as well, you can easily turn the hours you’ve worked into an actionable invoice!

» Who Is It For:

FreshBooks has been designed to suit the accounting needs of businesses owners and entrepreneurs. It particularly fits in the ideal accounting software for small businesses’ definition, irrespective of their industry. Whether you are a self-employed professional, freelancer, or a business with employees and contract workers, it makes managing every penny coming in and going out more effectively. In other words, you can track your supplies and pay for them as swiftly as you can manage projects using the software.

It is a perfect choice for businesses that need to monitor time, income and expenses consistently.

» Why We Picked It:

We picked FreshBooks as #1 on our list since it is an established accounting software solution provider with a user base of over 24 million globally. The system is rich in features, and at the same time, easy to use for a novice. It comes in with an active support team, ready to assist you whenever you need them.

The system is also available as a mobile application, letting you seamlessly take your accounts wherever you go. The fact that FreshBooks provides hassle-free integrations with more than 100 other tools, such as Slack, MailChimp, Stripe and Gmail, also made us shortlist it.

» Pricing Details:

You can choose one out of FreshBooks’ four pricing plans to get started:

Lite costs about $7.50 a month
Plus costs around $12.50 per month
Premium costs about $25 a month
Select plan is available at custom pricing

All the plans are also available for an annual package. You can also opt for a free 30-day trial of your preferred package, containing full features.

» Pros and Cons:

Pros:

Comprehensive accounting and invoicing software for business owners
Sleek, professional invoicing that merely takes seconds to generate
Efficient organization of income and expenses, making you ready for the tax season
Ability to track time and automatically put those working hours into the invoice
A single place that holds every communication, feedback and file, enabling prompt collaboration
Smart reporting functions
Accurate books complying with all the regulations, fostering informed business decisions
Anytime, anywhere access
Integrations with 100+ third-party tools

Cons:

With add-ons, it can stretch your budge.
The Lite plan allows only five billable clients.

» Reviews & Ratings:

FreshBooks is one of the very few popular small businesses accounting software with excellent functions, an easy-to-move-around interface, and proactive support. It has garnered an impressive rating of 4.5 on GetApp, speaking volumes about its efficacy. Here’s what its users are saying from across the world:


» Capterra: 4.5/5                             » G2crowd: 4.5/5                                » GetApp: 4.5/5


» Conclusion:

To conclude, we’d like to highlight that FreshBooks offers a wholesome package to make accounting simpler for non-accountants out there. At the same time, though, it packs in enviable advanced functions to appeal to the seasoned accountants to keep using this system.

“Freshbooks is a simple and straight-forward accounting solution. The biggest benefit we receive is how easy it is to send invoices and get paid online. Freshbooks makes this a lot easier than some of the other solutions we've tried over the years. Customer service - it's amazing.”
- Richard I.

2. QuickBooks Online

quickbooks-best-accounting-software

» Why You Should Buy This:

As an entrepreneur, you need a reliable, stable software system to handle your accounts, and QuickBooks Online fits this definition perfectly. It is one of the few accounting software for small businesses that have been around for years. It is loaded with premium accounting functions with an easy to use interface, encouraging you to take the reigns in your hands. And if you hire a seasoned accountant, QuickBooks Online makes the process all the more simpler.

Wondering what if you get stuck in the middle? There is a proactive team of experts to resolve your doubts and problems. In fact, you can also watch from its plenty of demo videos on YouTube to navigate smoothly.

» Who Is It For:

QuickBooks Online is an ideal choice for new businesses, nonprofits and small businesses that require a premium business accounting system. It also works well for online sellers, in-store sellers, wholesalers and independent professionals, such as architects and wedding planners. Besides, this accounting software is a boon for businesses requiring anytime, anywhere access with multi-device compatibility. If you want an effective on-the-go version, it is available as an app on both the Play Store and App Store.

If you have previously used its desktop version, moving to the online one is a great option.

» Why We Picked It:

We ranked QuickBooks Online on the top of our “Best Accounting Software for Small Businesses List” due to its trustworthy market position and efficient functionality.

The features this solution packs in, right from income and expense tracking to tax deductions to cash flow management to report generation, takes the hassles out of the otherwise complex accounting process. Also, QuickBooks Online offers uncomplicated integrations with many renowned business software and apps that you may be using already. Thus, in a way, the system only streamlines operations for you, empowering you to run your business more competently.

» Pricing Details:

QuickBooks Online is available in four pricing plans for small businesses:

Simple Start plan at $25 per month
Essentials plan at $50 per month
Plus plan at $80 per month
Advanced plan at $180 per month

If you are unsure of making an instant investment, you can try the software for free for 30 days and then decide to upgrade to a premium plan.

» Pros and Cons:

Pros:

Offers accurate books with its elaborate set of features
Integrates with a plethora of leading business solutions
Provides on-the-go, anytime, anywhere access across devices through its cloud accounting software and mobile apps
Offers ease and familiarity to those already using its desktop version
Includes expert support in all of its plans
Caters to an extensive clientele of about 7 million small businesses

Cons:

The add-on features it offers can be expensive, shooting up your overall budget a bit.

» Reviews & Ratings:

Reading a few reviews about QuickBooks Online would give you an idea of its popularity and efficiency. It scores praises for its ease of use, flexibility, accessibility, and accountant-friendly functions the most.

To help you make an unbiased judgement, here’s a collation of reviews and ratings about this solution from diverse, known sources.


» Capterra: 4.2/5                             » G2crowd: 4.0/5                                » GetApp: 4.2/5


» Reviews & ratings:

QuickBooks Online has enhanced its accounting platform over the years as per the changing market dynamics and user demands. It serves a variety of user brackets with its precise accounting capabilities in the most hassle-free way possible. The best part is, the improvement efforts never stop to surpass user expectations to live up to its full-service bookkeeping solution reputation.

“I personally like the functions of QuickBooks Online and the advanced accounting nature for solving all the financial reporting issues. The automation of all the accounting operations makes this product unique and the best. It is not a complicated item to use. I see it as the best accounting tool.””
- John C.

3. Xero

xero-best-accounting-software

» Why You Should Buy This:

Xero is all-inclusive online accounting software with an uncomplicated and robust set of features. The software brings together every critical aspect of your business in one place, be it accounts, contacts or invoices, letting you be in control all the time. That way, it becomes an ideal option to go with when it comes to handling your books of accounts in the most effortless yet accurate manner.

And that’s not all. Xero easily syncs with your bank accounts and provides a clear picture of your financial standings whenever you need it. It also automates repetitive tasks, such as reporting and invoicing, to accelerate things further.

» Who Is It For:

As a cloud accounting software solution, Xero fits perfectly well with the accounting needs of small businesses, bookkeepers and accountants. It also streamlines operations for self-employed individuals and start-ups that have less complex accounting requirements. If you are someone who is just starting out to take hold of your books, this can be your go-to system. In other words, it can simplify things for, let’s say, a local cafe and a fashion retailer with as much accuracy and efficacy.

» Why We Picked It:

Xero grabs the second spot on our list of the best accounting software for small businesses due to its all-in-one features packed into a simple-to-navigate interface. It enables you to do every vital task you would expect out of it - from tracking and paying bills to claiming expenses to monitoring projects to bank reconciliations.

Moreover, the solution includes built-in, easy pay runs for employees, along with the functionality to integrate with a third-party payroll app. Its real-time collaborations are smooth, and so are its reporting functions. We particularly liked the seamless way in which it offers anytime, anywhere access across devices.

» Pricing Details:

Xero is available in three different plans:

Starter - $20 per month
Standard - $30 per month
Premium - $40 per month

All plans come in with 24/7 support online. You could also opt for its 30-day free trial.

» Pros and Cons:

Pros:

A comprehensive accounting system for small businesses & individual professionals
Offers hassle-free integrations with a variety of tools & solutions
Provides easy customization to suit your workflow
Real-time collaboration helps teams to work together without hindrance
Powerful reporting presents an accurate picture of your finances as & when you need
Remote access & dedicated mobile app ensures work doesn’t halt
Inventory management facilitates smoother business operations

Cons:

For an established entity with complex bookkeeping needs, it offers limited features.

» Reviews & Ratings:

Xero greatly impresses users with its easy to use functionality, precision and customer service. Here’s a quick lowdown on how the system fares on top-rated software review sites:


» Capterra: 4.3/5                             » G2crowd: 4.3/5                                » GetApp: 4.3/5


» Conclusion:

Xero packs in everything to handle the basic accounting needs of a start-up, accountants, small businesses and self-employed professionals. Having been in the business for years; it is offering continuous improvements on its platform to go above & beyond user expectations.

“Fantastic! I finally have the tools from Xero to drive my company to its greatest potential. It's so easy to share the reports with people at all levels in the company, and I feel a fantastic sense of control with the numbers because of Xero.”
- Kristen B.

4. Sage

sage-best-accounting-software

» Why You Should Buy This:

With Sage Online Accounting Software, you can automate your invoicing and billing without any fuss. The software is designed to seamlessly sync with your bank accounts, streamlining all your financial operations. That empowers you to always be on top of each transaction, enhancing the decisions you make as a business owner.

What’s more? Sage offers fast set-up functions so that your accounting duties don’t have to wait long. The solution is simple enough to use by a newcomer and a pro accountant. You should go for it if tax and compliance is something that bothers you a lot since this software handles it both for you.

» Who Is It For:

Sage Accounting system is ideal for small businesses as well as sole traders, irrespective of whether they have a workforce. You can belong to any industry - from retail to professional services - and still make the most out of this cloud-based accounting system.

The software also fits well with the needs of individuals who need to collaborate with others, accountants or teammates, for example. You can grant access to them (multiple users at a time) without breaking the system. And the best part? It doesn’t matter at all even if none of them, or even you, have any experience working with any such system before.

» Why We Picked It:

Accounting software by Sage provides an easy to use, all-in-one system that can organize your business accounts while centralizing your operations. From creating and tracking invoices to monitoring cash flow to recording transactions, it offers impeccable features and accuracy. Should you get stuck while using the software, there is an expert support team available 24/7 for assistance.

Another reason why we chose Sage is because of its interesting forecasting feature that helps project business cash flow. Moreover, there is an insightful dashboard that fills you in with a real-time view of your financial state.

» Pricing Details:

Sage Accounting is available in two pricing packages:

Sage Accounting Start: Priced at $10 per month
Sage Accounting: Priced at $25 a month

» Pros and Cons:

Pros:

An award-winning software system that makes you tax ready, adhering to all the standards
Includes powerful security mechanism with regular backups and updates to be aligned with the latest laws in VAT, GDPR, and more
Its easy to use design saves your time
No need to undergo any courses or hire professional accountants to use it
Support is available round-the-clock
Remote access to encouraging seamless collaboration between teams
Scalable enough to meet your future accounting needs
On-the-go access from any device
Dedicated Android & iOS apps

Cons:

Offers a limited set of integrations.

» Reviews & Ratings:

Sage Accounting registers significant positive reviews from its users for its automated bookkeeping, uninterrupted remote access, and invoicing functions. The one-on-one sessions with its expert team seem to be a hit for problem-solving by both existing and potential customers. Before you make an opinion, here is the compiled list of the ratings:


» Capterra: 4.1/5                             » G2crowd: 4.2/5                                » GetApp: 4.2/5


» Conclusion:

Sage Accounting turns out to be a great choice for its simple to use design, workflow automation, quick implementation and regular maintenance. Loved by users across the borders, this system is regularly evolving to serve its growing clientele’s bookkeeping needs effectively.

“I would absolutely recommend Sage Business Cloud Accounting to other small business owners. It provides a low-cost way to manage invoices and expenses, and it helps you keep track of clients efficiently and neatly.”
- Everarde Calk

5. Patriot Accounting

Patriot Accounting-best-accounting-software

» Why You Should Buy This:

With Patriot’s Affordable Accounting Software, you cannot just save your precious time but also a lot of money. The software allows uncomplicated imports of your trial balance, customer and vendor data while making it super easy for you to generate invoices and pay bills. The system is easy enough to comprehend and use by individuals who are not tech-savvy. However, it is also competent to handle the complex accounting needs of businesses.

With Patriot Accounting, you can accept payments via credit cards and set rules for transactions. To give you a precise stature of your financial standings, the system offers reports that are simple to understand.

» Who Is It For:

Patriot Accounting Software is perfect to use by both startups and established entities. Whether it is monthly accounts processing or invoice tracking, the software caters to even the smallest of accounting requirements of small business owners tactfully. It also suits well for those who are keen to take their accounts into their own hands. Since it is easy to use, there is no extensive training needed to get up and running.

» Why We Picked It:

We included Patriot’s product in our list due to its robust features packed in the environment of simplicity. The solution turns out to be a breather for every business owner who is worked up about tracking their finances, tax and compliance. Since it smoothly imports bank transactions, automatically, and creates smart reports, you always know where your business stands in terms of finances. It never lets you miss a payment and organizes everything in one place. Plus, there are no restrictions on the number of users or invoicing - something which is great for small businesses looking for value at lesser costs.

» Pricing Details:

Patriot’s Accounting Premium can cost you $25 per month. You can try its fully-featured free trial for 30 days before making an actual purchase.

» Pros and Cons:

Pros:

An easy-to-use system that doesn’t require you to undergo mandatory training to use
Automatic imports of bank transactions, customer and vendor details, saving your time and resources
Unlimited bill payments and invoice generation
Free support from its expert team whenever you need help
Invoice payment reminders
No limitations on the number of users
Works for businesses across industries
Tax-compliant functions, relieving your tax stress
Reporting to offer accurate financial health of your business

Cons:

Does not offer third-party integrations

» Reviews & Ratings:

Patriot Accounting is becoming a favorite among businesses worldwide for its effortless functionality and ease of use. Read the thousands of reviews to get to know what its users are saying about the system:


» Capterra: 4.7/5                             » G2crowd: 5/5                                » GetApp: 4.7/5


» Conclusion:

Patriot offers an affordable accounting system that caters to the growing needs of a business’s bookkeeping expectations. It is a good software that is continuously improving on the basis of the inputs provided by its users - accountants and business owners - alike.

“The software is simple. The reports are sufficient and easily exported. For a staff of 1-25 or so, you cannot beat the value. I had great experience with their service team. Patriot took us from our first employee up until we had a major expansion and went to 40 employees.”
- Kevin - Riff Cold Brewed Coffee

6. Wave Accounting

Wave-best-accounting-software

» Why You Should Buy This:

Wave Accounting provides you with complete control of your finances, leaving no gaps for powerful business decisions. The system is designed in such a way that it easily connects with your bank accounts, brings a balance to your books, syncs all your expenses, and much more. It is also compatible with tax and compliance laws, saving you the usual hustles of the tax season.

Getting started with Wave Accounting is utterly simple and secure. You get instant updates on your payments, invoices and payroll data, along with invoicing reminders. Things get even smoother as you can manage all your books belonging to multiple businesses through its single account.

» Who Is It For:

Wave Accounting ideally falls into the bracket of free accounting software for small businesses, regardless of the industry. In other words, you can be a retailer with a store-front or a self-employed individual offering professional services, and still rely on this solution as your go-to accounting tool. If you are looking for a bookkeeping system that also makes you tax-ready, this one fits the bill perfectly.

It also works well with the complex needs of professional accountants keen to manage cash flow and balance the books for their clients.

» Why We Picked It:

We selected Wave into our top small business accounting software list because of its reliability, all-inclusive features and ease of operation. Since it uses a double-entry accounting system, it becomes a boon for your accounts team. We particularly like the smart dashboard Wave offers. It not only organizes your payments, expenses, incomes and invoices but also provides a quick overview of where your business stands financially at a click of a button.

Furthermore, the software possesses PCI Level-1 certification, ensuring the thorough security of your sensitive bank and credit card details. That is an incredible feature to have when the product is free for use by everyone.

» Pricing Details:

Wave Accounting Software costs you $0. It is difficult to digest, but the feature-rich software is completely free for all its users, whether you’re a freelancer or a small business. All you got to do is create an account, follow the instructions and get started. There are no fees for setting up the system nor any hidden charges once you start using it.

» Pros and Cons:

Pros:

Available as a free accounting software solution for small businesses
Double-entry based accounting
Accurate income & expenses tracking, facilitating the right status of your funds at any given time
No limits to customizable invoicing as well as receipt uploads
Instant updates & reminders
Search through transaction description
Smooth handling of multiple businesses from one account
Smart dashboard
Accurate reports that are exportable
Bulk transaction alerts for rapid bookkeeping
Ability to personalize sales tax and income/expense categories
Quick set-up since it is a completely web-based software
Easy to use, thus no training is needed
Access to expert support team

Cons:

No integrations to third-party tools
Needs work on its free dedicated apps

» Reviews & Ratings:

As a free accounting system for small businesses, Wave is garnering accolades from its users. The primary reason is its simple UI, efficient functions and security. Let’s go through the user reviews from popular software sites to help you make a decision:


» Capterra: 4.4/5                             » G2crowd: 4.4/5                                » GetApp: 4.4/5


» Conclusion:

If you are only starting out or an established small business, Wave is a great choice to go with. The software is free, have adequate features for your accounting needs, is reliable and offers robust performance at the same time. It is hard to find such a good combination in a competitive market.

“Thank you @WaveHQ for taking the pain out of accounting & invoicing. Simplicity of use meets perfect design - kudos to your UX team ! Saving me from Quickbooks and Xero.”
- Chas Sweeting - CEO, Entrée AI

7. FreeAgent

FreeAgent-best-accounting-software

» Why You Should Buy This:

FreeAgent, the online accounting software, can centralize your entire accounting process. From expense management to invoices to sales tax to project management, everything gets streamlined, enabling your business to reach greater heights. With a user base of over 100,000 customers, FreeAgent makes for a reliable system that is simple to operate by even a first-time accounting software user.

The software is meant to easily connect to your bank accounts so that you can get automatic imports of all your transactions every single day. It also consists of a real-time view of your cash flow, taking the haste out of your money management and decisions. If that wasn’t all, it prepares you for the tax season with its crystal clear books of accounts.

» Who Is It For:

FreeAgent’s cloud accounting solution is designed keeping in mind the accounting requirements of small businesses. No matter which industry you are in, you can take advantage of this system’s impeccable accounting functions without any technical background.

Apart from that, the software also helps freelancers and self-employed professionals to align their books without running from pillar to post. If you have hired professional accountants to do the job for you, this software helps them glide through every process without the worries of accuracy.

» Why We Picked It:

We provided a spot to FreeAgent in our list after carefully going through its exhaustive yet user-friendly features. With this software, you will receive automatic updates from your bank accounts, letting you stay on top of every transaction at any given time. It also offers account status in real-time, along with live insights on cash flow.

One of the most striking features of this system is the ease with which you can handle invoices. It offers the set up of recurring invoices in addition to sending them automatically. There are automated reminders too, saving a lot of your energy. Its expense tracking can be customized as per your needs. Besides, you can have a quick overview of your project activities - from estimates and expenses to invoices and tasks - in a single place.

» Pricing Details:

FreeAgent is an affordable accounting software system for small businesses, available at $24 a month. The plan offers support assistance and access to all the features with zero set-up fees. You can also choose to try the software for free for 30 days and upgrade later.

» Pros and Cons:

Pros:

Saves time with automated accounting functions
Allows creating estimates quickly with its ready templates
Simplifies tracking all your projects in terms of expenses, income, and profitability
Provides the complete picture of your finances in an instant through its dynamic dashboard
Takes the hassles out of the invoicing process
Keeps your books clean for the tax time
Facilitates better financial decisions

Cons:

Not an ideal choice for a mid-size firm with complex accounting needs

» Reviews & Ratings:

The users of FreeAgent has a lot of good things to say about the solution. Whether it is simplified invoicing or tax compliance, it tends to relieve the stress that accompanies accounting operations. Check out the ratings this system has garnered on trusted platforms for software reviews:


» Capterra: 4.4/5                             » G2crowd: 4.2/5                                » GetApp: 4.4/5


» Conclusion:

FreeAgent is loved by freelancers and small businesses alike for its ease of use and thoughtful functions. Moreover, the solution is cloud-based, allowing remote access from wherever you are. That helps stay on the top of your accounting process, opening up opportunities for business growth.

“Really great accounting software. My use of the system isn't huge but it has made my life so much easier. Finance is my background and so I understand numbers however, even if that wasn't the case I know this system would make it easy to understand. What I also love is the great customer service. Always get a quick response to my query and always resolved.”
- Joanne Dufty

8. Deskera Books

Deskera-Books-best-accounting-software

» Why You Should Buy This:

Deskera Books is an all-in-one solution that can change the way you operate your business, making it more organized. It is not only an online accounting system but also doubles up as your go-to invoicing and inventory software. It includes every possible feature that you may need to streamline your accounts as a business owner.

With Deskera Books, you can manage your orders and sales, as well as monitor the inventory levels in real-time. The software makes it easy to create quotations, invoices, manage receipts and payments, and still adhere to all the compliance needs. You may rely on its accurate reporting functions to refrain from making any decision that does not seem viable financially.

» Who Is It For:

Deskera Books serves a variety of users with its robust features and different plans. It suits the distinct needs of start-ups, small to medium-sized and growing businesses, as well as established professionals. Thus, no matter if your accounting needs are limited or complex, the system has a piece to offer to every kind of user bracket.

The software is especially helpful for businesses that are just starting out or are small businesses. It automates and systematizes your books without you having to hire an accountant.

» Why We Picked It:

We chose Deskera Books for the abundance of features it packs into its single solution. Right from tracking and managing inventory to seamless bank reconciliation to sales and order management, you get everything at the tip of your fingers. What’s more, the system offers multiple currencies, making it even simpler for businesses to carry out accounting for foreign currency transactions.

Plus, it automates your journal entries and makes it swifter to move funds between accounts. Since it is based on the traditional double-entry accounting system, it becomes easy to get the hang of things. You can issue credit notes, track expenses and deposits, and leverage the dashboard to gain an overall idea of your current financial state. A dedicated mobile app for both iOS and Android acts as a cherry on the cake.

» Pricing Details:

Deskera’s accounting software is available in four varying plans as follows:

The Startup plan costs around 14.65 USD per user/month
The Essential plan costs around $33.31/user/month
The Professional plan costs around $53.31/user/month
The Enterprise plan comes in at a custom pricing
You can also go for the 15-day trial for your preferred plan before making a purchase.

» Pros and Cons:

Pros:

Easy to set up and get started
Simplified data imports
Compliance with standard financial and tax laws
Support to multiple currencies
Unparalleled accuracy in business books and financial reporting
Integration with more than 2000 apps
End-to-end handling of purchase and sales transactions, along with inventory management
Quick & easy to sync with bank accounts
Anywhere access and a dedicated mobile app
Saves time, money and resources with automation

Cons:

Quite expensive as its pricing increases with the number of users

» Reviews & Ratings:

It has garnered a lot of amazing reviews from its varying set of users for the powerful features it offers. Reading only a few of them will paint the right picture for you. So, here it is:


» Capterra: 4.5/5                             » G2crowd: 4.5/5                                » GetApp: 4.5/5


» Conclusion:

Deskera Books is a promising online accounting software for small businesses. It empowers entrepreneurs and professionals to better handle their books of accounts without having to compromise with accuracy, efficiency or regulations.

“My company, Conceptia, is a Management Consultancy based in Houston, Texas. I offer change management consulting and coaching services to oil and gas companies. I'm a long time Quickbooks user that has been wanting to leave them but could not find anything even remotely comparable to them until now! I think Deskera has a lot of promise and potential and checks a lot of the boxes I'm looking for: Accounting, Invoicing and a CRM! Anyways, I just wanted to say hello to everyone. Looking forward to learning and sharing with this ambitious group.”
- Steve Pinckney

9. Synder

synder-best-accounting-software

» Why You Should Buy This:

At a time when organizations are moving their operations online, Synder makes accounting simpler for businesses that have one or more online payment systems in place. From automating sales reconciliations with accounting from e-commerce systems to making you ready for tax-filing and reporting, it is not wrong to term Synder as your all-in-one ecommerce business accounting software.

It makes payments and receipts super smooth with its intuitive, flexible interface. At the same time, it monitors your inventory, shipping, locations, multi-currency transactions and discounts, bringing everything together in one place. With its robust security mechanisms in place, you no longer need to worry about the protection of your sensitive information.

» Who Is It For:

Synder is ideal for those businesses that categorize themselves as an e-commerce business. For business owners with multiple online payment systems, who need a detailed record of their transactions and reports and sync those with accounting systems.

Even if you are a professional who relies on online transactions for your services, this accounting software can simplify things for you to a great extent.

» Why We Picked It:

We included Synder in our best accounting software list because of its effortless functions to handle books for e-commerce businesses. It provides seamless synchronization with several payment processors, making your life a bit easier. Once you start using it, you won’t have to go back to manual entries again.

The software also facilitates hassle-free receipts of online credit card payments as well as sending invoices. You can import all your previous data and real-time transactions automatically, without any limitations. Plus, you can leverage its actionable sales and tax reports to always make informed business decisions.

» Pricing Details:

Synder has three primary plans to offer its users:

Medium costs $39 per month
Scale costs $89 per month
Large costs $199 per month
However, you can opt for a free trial before making a purchase.

» Pros and Cons:

Pros:

Brings automation, saving your time and money
Streamlines your business accounting operations
Accurate reporting helps make beneficial decisions
Offers smooth tax-filing
Integrates with multiple payment processors
Supports transactions in multiple currencies
Instant live support
Easy onboarding
Intuitive interface

Cons:

Designed only for businesses operating online

» Reviews & Ratings:

It has garnered a lot of amazing reviews from its varying set of users for the powerful features it offers. Reading only a few of them will paint the right picture for you. So, here it is:


» Capterra: 4.8/5                             » G2crowd: 4.7/5                                » GetApp: 4.8/5


» Conclusion:

Synder is perfect for you if you are an online business or even a sole online seller on e-commerce platforms. It automates your regular accounting tasks while maintaining accuracy and all the necessary compliance.

“I was struggling to get all my Stripe payments in QB without errors. I tried different solutions, but payments were never transferred correctly, so I had to redo it every time manually anyway. Imagine the money and the time spent in vain! I was so happy when I connected Synder and just found out that the sync works perfectly. Just the way it should. And the support is amazing! By far the best software I used. Highly recommend!”
- Diana

10. AlignBooks

AlignBooks-best-accounting-software

» Why You Should Buy This:

AlignBooks provides you with a simple user experience to let you handle your accounting, as well as billing needs, without any fuss. It is a carefully designed online accounting software that packs in advanced accounting, reporting, and inventory management functions. You can also depend on it for its intelligent, super-accurate MIS reports.

Apart from that, AlignBooks offers tax compliance so that you neither miss any of your tax deadlines nor make any errors in the filing process. The best part is, you get the option to choose between its cloud-based solution or an on-premise one based on your individual requirements and workflow. Both the options offer thorough security to protect your precious data.

» Who Is It For:

The ideal customers for AlignBooks are MSMEs to help them tackle their business accounting operations without a bit of stress. It is also a perfect solution for any sole entrepreneur or a start-up that needs to handle its accounts on the go. Even freelancers can rely on this software to be in control of their finances.

» Why We Picked It:

We selected AlignBooks in our list of top bookkeeping software owing to its rich set of features suitable for small-to-mid-sized businesses across industries. The system includes a range of modules to handle various aspects of your business with unparalleled efficacy - from bookkeeping to CRM to invoicing and sales to inventory and asset tracking to payroll integration. It supports multiple currencies and provides instant SMS and email alerts.

Interestingly enough, you can define user roles and privileges to restrict access to only those who need to see the crucial financial data. It has a neat dashboard that gives an overview of everything you need to see at a glance. The highlight for us is the way this software simplifies the entire invoicing process. Besides, you get to switch to the offline mode whenever you prefer and still have your data backed up safely after going online.

» Pricing Details:

AlignBooks offers the following plans & packages:

Basic at INR 2,500 a year
Premium at INR 6,000 a year
Ultima at INR 9,000 a year
ERP at INR 30,000 a year

» Pros and Cons:

Pros:

Uninterrupted access from wherever you are through web or mobile app
Advanced accounting functions for error-free books
Easy imports from excel sheets
Multi-currency support
Restriction to data access through user privileges and access rules
User-friendly dashboard to navigate the operations smoothly
Intelligent reporting boosting strategic business decisions
High-level security system to assure information protection
Real-time backup of transactions and data
Regular version upgrades without causing any halt to the live systems

Cons:

The product is meant for Indian users

» Reviews & Ratings:

AlignBooks has made a name for itself among its diverse set of users who seem to love its impeccable functionality wrapped in a simple-to-use form. Let’s explore the ratings it has managed to obtain from consumers on different software review platforms:


» Capterra: 4.1/5                             » G2crowd: 4.9/5                                » GetApp: 4.1/5


» Conclusion:

AlignBooks seems to fit in with the accounting requirements of small, micro and mid-size businesses effortlessly. Its tax-compliant functions and diverse modules streamline not just the accounting process but the entire business operations, opening up opportunities for growth.

“Thank you for a great training session on AlignBooks accounting software. Great software presentation style with lots of opportunities to ask questions and with realistic examples - which made it really enjoyable and informative session for our accounting team. The software has more than met my expectations- both personally and professionally.”
- Parvinder S.

11. ZarMoney

ZarMoney-best-accounting-software

» Why You Should Buy This:

ZarMoney is a robust, extensive cloud accounting solution that not only helps you manage your books and bills but also offers complete transparency in the management of your entire global inventory. The software comes in with a set of invoicing templates that are sleek, subtle and look thoroughly professional. By using this accounting system, you can easily accept online payments as well as take full control of your cash flow.

And that’s not it. ZarMoney contains functions that make way for the automatic imports of your banking transactions, simplifying everything to manage from a single place. Moreover, its bank reconciliation and automated calculation of sales tax, along with on-point reporting, make it a great accounting partner.

» Who Is It For:

ZarMoney is meant to be used by businesses across industries. You can be a small business, an ever-growing, established enterprise or a sole entrepreneur, and depend on this online accounting software to keep your books up-to-date all the time. It is ideal for those who are looking for a system that is fuss-free to use but offers supreme efficacy at the same time.

Besides, if you want a software solution that is customizable as per your needs, then this might be the one for you.

» Why We Picked It:

We added ZarMoney into our well-curated list of the top business accounting software after studying the system’s exhaustive list of features. It includes everything you may need to keep your bookkeeping operations error-free and smooth. Whether it is account receivable and customers or account payables and vendors, the system covers everything from billing to order management to notifications. We specifically loved the way one can personalize its dashboard.

Also, it has robust functions for reporting, fund transfers and sales tax in place, sparing you the last-minute hassles. If you are a bigger organization with more employees, you will even be able to define user roles, controlling who can access what on the software.

» Pricing Details:

There are three different plans to buy ZarMoney accounting software:

Entrepreneur - It is priced at $15 a month with a single user plan.
Small Business - It costs $20 a month with a maximum of two users.
Enterprise - It is available for $350 a month and allows 30+ users.
You can go for free trials or a demo before going ahead with your purchase.

» Pros and Cons:

Pros:

100% cloud-based software, thus, no need to install any software
Anytime, anywhere access from any device; all you need is a good internet connection
Solid security measures to protect your sensitive data
Insightful reports to help enhance your business decisions
Automated calculation and filing of your taxes
Multiple users with role-based access
Bank reconciliation & transaction imports, saving you time
Quick creation, printing & sending of quotations
Inventory, purchase & sales order management
Professional invoicing & secure receipts of online payments
Prompt customer support

Cons:

The pricing goes up with an increase in the number of users

» Reviews & Ratings:

ZarMoney has struck a chord with its users as the software enjoys higher ratings on major software review sites. Ease of use, good customer service and efficient functionality seem to be the heroes driving in the praises. See it for yourself:


» Capterra: 4.7/5                             » G2crowd: 4.8/5                                » GetApp: 4.7/5


» Conclusion:

With its easy-to-use interface and simplified accounting functions, ZarMoney is becoming a popular choice among business owners for their accounting needs. It seems promising in the future too with its ever-evolving functions.

“Great accounting software. I switched from other software to Zar due to the full functions it offered. Some things that it has that other don't . Just to name one. Generate PO for product purchase plus all the packing and receiving that goes with it.”
- Tim G.

12. myBooks

myBooks-best-accounting-software

» Why You Should Buy This:

As a small business accounting software, myBooks is affordable yet loaded with features you need to keep your books of accounts spot-free. It easily syncs in your bank accounts and imports bank transactions automatically, freeing you from having to handle those separately on another app.

Designed intuitively, the software is easy to use, regardless of how tech-savvy you are or if you have used any such software before. Its sleek dashboard provides you with an overview of all your financial activities - from invoice reminders to file status to transaction alerts. That quickly fills you in all the important happenings, facilitating prompt actions & swift decisions.

» Who Is It For:

myBooks online accounting software solution fits perfectly well with the accounting requirements of small businesses. You could be a store-front, a home-based entrepreneur, a self-employed individual or even a construction business and trust myBooks for its accurate accounting functionality. If you are looking for a bookkeeping system that is cloud-based as well as simple to adapt to your business, then this one may work for you.

» Why We Picked It:

We placed myBooks in our top-rated accounting software for small businesses’ list given its all-inclusive features and affordability. It offers real-time updates on your financial status so that the key decision-makers can leverage those to grow the business. Its dashboard provides analytics in all the key accounting areas, whether it is income, expenses, invoices, or tax summaries. You can easily make your way around the solution due to its intuitive design. Moreover, it makes it simple to monitor and control the cash flow in the organization.

The primary feature for us, however, is the way you can define user roles to let them access only the aspects you have given permission for. That provides tremendous security and data privacy without driving your bookkeeping to a halt.

» Pricing Details:

You choose from the three plans of myBooks to get started with its software:

Basic at 0 costs
Premium at around $33.34 for an annual billing
Standard at around $13.33 for an annual billing

» Pros and Cons:

Pros:

Affordable to suit the budget of a small business
All-inclusive features, from income & expenses to invoicing to tax assistance to reports, saving the day for you
Flexible enough to adapt to your unique business accounting needs
Supports transactions in multiple currencies, boosting your business growth
Capability to handle multiple business accounts from a single user ID
Automated imports of bank transactions, saving you precious time & efforts
Bank-level security measures to ensure data protection
Easy access from any device, wherever you are

Cons:

Limited features for lower-priced plans

» Reviews & Ratings:

myBooks has obtained praises from its diverse set of users for its efficient handling of business bookkeeping needs. The ease of use and simple user experience are prime factors that make it a popular choice among small business owners. Here is the lowdown of the ratings users have given the system on the popular software reviewing platforms:


» Capterra: 4.4/5                             » G2crowd: 4.4/5                                » GetApp: 4.3/5


» Conclusion:

As a cloud accounting system, it offers all the prime features to keep business accounting books on track. And since it also helps you with your tax needs, it proves to be a good choice.

“myBooks helped me get paid on time from my customer and appear more professional to my customers ,Excellent features, excellent value, excellent support. Thanks for myBooks team.”
- Richard Taylor

13. ART

skystem-art-best-accounting-software

» Why You Should Buy This:

ART by SkyStem is a fully-equipped accounting solution that provides precise insights into your balance sheet while letting you track the overall progress. The system is designed in such a way that it is capable of the effortless electronic management of your documents as well as account reconciliation.

With ART, you get to assign tasks to your team members and link the documents and task activities to the balance sheet. That means no more chaos at the end of every financial quarter to ascertain who is handling what, speeding up reconciliation even further. Furthermore, the archiving of close documents, including journal entry support & analysis, are a big plus in keeping the books up-to-date.

» Who Is It For:

SkyStem’s ART accounting system meets the bookkeeping requirements of small to medium-sized businesses efficiently. That’s because, more often than not, such small organizations tend to lack the right resources to boost their accounting operations which, in turn, affects them financially. ART solves this primary problem by offering micro, smaller businesses and sole entrepreneurs the means to systematize and streamline their entire accounting process.

» Why We Picked It:

We picked this software to include in our list because of its diverse set of powerful features. It simplifies account reconciliation so that you or your employees can get things done without wasting your precious time. Its Task Master provides an organized way to handle the otherwise hectic month-end closing process. It enables you to automate the checklist for the Close, making the reporting phase smoother than ever.

To prevent anyone from missing any updates, the system comes in with prompt email alerts for assignment, approvals and completion of tasks. It also facilitates flux analysis as often as you need. What’s more? You can compare fluctuations in your P&L against the predetermined budget or threshold and leverage real-time reporting functions. The certification, plus the validation of the balance sheet, elevate the integrity of the business accounts.

» Pricing Details:

The pricing of ART by SkyStem is available on request. You have to fill in the form on their website with your details to request a demo or quote.

» Pros and Cons:

Pros:

Balances and status views in real-time through the dashboard, offering the most recent, accurate information on your finances
Insightful and easy-to-create reports, fostering better decisions
Instant account analysis
Effective tracking of the whole financial-close operation & its progress
Process automation to save time to a great extent
Reminders, alerts and rule defining to never miss a task or deadline
Quick implementation as it is web-based

Cons:

No integrations with the leading third-party software

» Reviews & Ratings:

ART is doing fairly well given its targeted accounting features that appeal to small-scale businesses. Find out what its users have to say about the solution through the ratings it has garnered on the reliable software review platforms.


» Capterra: 4.4/5                             » G2crowd:                               » GetApp: 4.3/5


» Conclusion:

ART is a good choice as a small business accounting software as it simplifies and automates your reconciliation process. Its smart dashboard, along with analytics, helps keep the bookkeeping stress at bay.

“The software is straightforward and easy to use both from an admin and user perspective. Set up and monthly maintenance is simple. What I like the most about using ART is the customer service. The response time is quick no matter what time I reach out to them for help.”
- Joel

14. Accounting Seed

accountingseed-best-accounting-software

» Why You Should Buy This:

With Accounting Seed, you can turn your accounting process more flexible and collaborative. It is a robust accounting solution for businesses that helps you not only control but also strategize your finances. Despite its comprehensive set of features, you can personalize the software in a hassle-free way. As a result, the system ends up enhancing your workflow instead of changing them in any way.

The software is best when it comes to offering an honest state of your financial position to all the stakeholders, doing away with possible errors and misjudgements in the crucial decision-making process. And since the software is entirely based on the cloud, you can easily access it anytime regardless of where you are.

» Who Is It For:

Whether you are a small business, an established company or an individual self-employed professional, you can rely on Accounting Seed to manage your bookkeeping needs. The software is developed to effectively solve the accounting woes of different industries, right from construction to insurance to manufacturing to nonprofits to field service providers. It is not a one-size-fits-all kind of system which works in its favour, attracting consumers from all strata of the business world.

» Why We Picked It:

We carved a place for Accounting Seed in this list due to its ease of use and all-inclusive functions. The interface breathes simplicity and efficiency for even a novice person to easily move around. Whether it is billing your consumers, managing project accounting, tax accounting or paying your vendors, this solution offers it all so that all your accounting operations are streamlined and accessible from a single place.

The software also empowers you to manage your orders and inventory better, turning it into a time-saving & cost-effective investment. We particularly loved how smoothly its dynamic dashboard works to offer real-time data insights with unparalleled accuracy. That fosters a full picture of your financial condition in merely an instance.

» Pricing Details:

To know the pricing plan of Accounting Seed, you have to get in touch with their team.

» Pros and Cons:

Pros:

Automation in accounting tasks, such as general ledger, accounts payable and receivable, saves your time and resources
Real-time insights and reporting boost decisions which, in turn, contributes to business growth
Provides on-the-go access from anywhere since it is a cloud-based business accounting solution
Flexible and customizable to suit your distinct accounting needs
Stringent security measures in place for data protection
Tax-compliance
User-friendly interface
Transparent visibility to all stakeholders

Cons:

There is no round-the-clock customer support

» Reviews & Ratings:

From the many software systems out there for business accounting, Accounting Seed has become a preferred one for many business owners. This may have to do with its diverse, user-friendly features. Check the ratings the system has gained across the trusted software review websites.


» Capterra: 3.8/5                             » G2crowd: 4/4                                » GetApp: 3.8/5


» Conclusion:

Although Accounting Seed includes all the necessary accounting features, it is still growing. And thus, it is only going to tackle the evolving requirements of businesses more tactfully in the near future.

“We spent a lot of time looking for an accounting solution, and Accounting Seed met all of our expectations. The app is very easy to customize, and we were able to get exactly what we wanted.”
- Emily Tam

15. FlexiFinancials

FlexiFinancials-best-accounting-software

» Why You Should Buy This:

FlexiFinancials has been around for a long while, for about 30 years, fulfilling the bookkeeping requirements of businesses with ease. It is a flexible, full-service accounting solution that not only automates your accounting tasks but also makes them more reliable and organized. The software is available on-premise, as well as on-cloud, allowing you to choose whichever version best suits your individual needs. In fact, you can also opt for a hybrid version scaling at your own pace.

Moreover, you can customize the software to suit your workflow without compromising on efficacy at all. If you have multiple businesses, you can easily bring the account books of all the entities you own under its single interface to manage things without hassles.

» Who Is It For:

Ideally, FlexiFinancials is meant for businesses of all sizes and statures. However, it fits well with organizations having complex accounting requirements in the likes of inter-organizational accounts and multi-book accounting. It also works well for enterprises requiring support for multiple currency accounting and compatibility with multiple databases.

» Why We Picked It:

We placed FlexiFinancials in our top accounting software list owing to its powerful accounting functions that have stood the test of time over the years. From accounts payable and receivable to workflow automation to real-time reporting to multi-entity consolidations to effective auditing, it covers everything necessary to keep your business accounts error-free, keeping uncertainties at bay.

With this solution, it also becomes easier to integrate new acquisitions smoothly without harming the current flow of operations. The ability to choose from your preferred mode of deployment is also a big plus, providing companies to be as flexible as they can be. Plus, this software stresses on superior security measures, ensuring your financial data is protected at every step of the way.

» Pricing Details:

You need to get in touch with the FlexiFinancials team to request the pricing details of the system.

» Pros and Cons:

Pros:

Flexibility to adapt to your business workflow with ease
Multi-currency support, ensuring uninterrupted operations
Multiple deployment options
Reliability thanks to solid performance and security mechanism
Uncomplicated customization
Proactive support team
Easy maintenance
Real-time reporting
Continuous close
Built-in capabilities for compliance and audit

Cons:

Integration with other third-party systems not offered

» Reviews & Ratings:

FlexiFinancials, with its robust accounting features, is a preferred choice among users for almost 3 decades now. You can trust on its reliability, efficiency and security. Want to know how many ratings it has obtained so far on top-rated software review platforms? Have a look here:


» Capterra: 4.4/5                             » G2crowd: 3.8/4                                » GetApp: 4.4/5


» Conclusion:

FlexiFinancials is dependable accounting software for small as well as large corporations. It has been serving consumers for 30 years, providing fruitful functions to keep their accounts up to the minute, always. Its real-time and easy-to-generate reports greatly contribute towards achieving business expansion.

“We can easily track thousands of fixed asset items – from purchase all the way back to the ledger. The integration between all of the systems that these transactions touch is really seamless and saves us a lot of time.”
- Alan Canivel

Accounting Software Buyer's Guide

With a vast array of account management software and tools available, it has now become easy to manage an organization of any size with ease. However, type of accounting procedures may differ from one industry to another depending upon projects, functionalities, and assets. Thus the need for account management software required may also vary depending upon compliance requirements and technology platforms. Therefore, selecting the right enterprise account management software may get tricky. In this regard, this Buyers guide will help you choose the right software for your organization.

» What are the different types of accounting software?

Accounting software is a type of application software that is used to keep track of all the transactions that are made to or from your business to an individual or another business. To run a successful and profitable business, one has to keep records of all the profits and losses that the business is going through at any given time. In old times ledger books were maintained to keep track of all the transactions, but with modern times this workload has been reduced using the help of technology.

There are many different types of accounting software available, and all types of businesses use them. Accounting system can be classified in various categories, and depending on the circumstances, anyone of them can be used to digitize the records. These are classified as follows:

› Spreadsheets

A spreadsheet is an important business accounting tool. In simple words, a spreadsheet boils down to this, and it is a document consisting of grids of rows and columns, which makes it easy to store different types of relevant data together. Many small businesses rely entirely on spreadsheets for maintaining and accessing their financial data. Spreadsheets can be used for almost every accounting needs, including but not limited to, creating budges, calculating profits, and visualizing this data using graphs and charts. Microsoft Excel is one of the best and most widely used spreadsheet software around the globe. If you are running a small business, then make sure to check it out.

› Commercial Accounting Software

From managing, income, and expenses to keeping track of the financial health of a business, commercial accounting software are more than capable of fulfilling every requirement of a small to mid-size business’s accounting needs. These software are totally customizable, which means businesses can configure them to fit their specific needs.

Software such as QuickBooks accounting can be used to invoice customers, pay bills, generate reports, and come in handy while preparing for taxes.

Other popular choices for commercial accounting systems are FreshBooks accounting and Xero. Some of the commercial software may require consulting the vendor to install and configure them accordingly and have lengthy installation processes.

› Enterprise Accounting Software

Enterprise accounting software allows a business to maintain its financial transactions and data. However, its functions go beyond the scope of just accounting processes. Enterprise software has different modules to deal with different areas such as billing and payrolls, maintaining the ledger, budgeting and forecasting, and more.

Enterprise resource planning software also referred to as ERP software, is programmed in such a way that it can handle complex operations for larger companies. Enterprise software combines other services such as project planning and workflow management with accounting, meaning the software integrates information from different parts of a business into a single database. This ensures better data flow between independent parts of a business which depends on a specific piece of software that does not have utilities like information sharing, which is very important. However, the installation process is quite lengthy, which means it can take up to a year to set it up, and it is also highly expensive.

This is the reason this software is used by more important and more complex businesses and organizations.

› Custom accounting software

These are the applications, which are developed according to the particular needs of a business or an organization, meaning they are custom made for a specific purpose. Generally, businesses only decide to go for this software if their requirements are so specific that they cannot be fulfilled by a commercial or enterprise accounting system. But businesses rarely tend to go with custom made software as they are buggy and take more time and resources to manage and maintain as compared to custom or enterprise software.

Nowadays, as the applications are being developed cloud-based so that users can access their data from anywhere in the world, so is the case with accounting software. Businesses can log in to their vendor’s site to access the software from anywhere in the globe, and this approach proves to be more productive and beneficial as compared to the primitive approach of installing in on a particular system and copying the files whenever they are required by other users on different systems.

Related: Top 10 Accounting Software in Australia 2021

» Is it worth investing money in Accounting Software?

Manual Accounting process not only takes your valuable time but also costs you a lot of resources. Besides the lumpy racks of old files and complicated financial paper works, it’s almost become impossible to avoid errors. In the era of cloud computing where the need for paper is completely gone, it's crucial for all companies to adopt the paperless world.

Accounting software not only fulfills all the accounting elements of an organization, but it also eliminates the complicacy and errors associated with manual accounting. So yes, online accounting software is the future, and it’s better for any organization to adopt it as soon as possible.

» How does Accounting Software work?

An account software application can perform multiple tasks at the same time. There are various modules present inside the package. The basic ones are as follows,

› Core accounting:

This module helps in managing the functions towards balancing a business book. The module is capable enough to maintain general ledger functionality and to keep a track on account payables and receivables. Core accounting module also handles fixed assets and bank reconciliation. In this way, it controls all the necessary accounting parts.

› Project Accounting:

This solution system assists with tracking detail project cost required to maximize job profitability and efficiency of project-oriented organizations. It helps in selecting jobs that will guarantee better ROI by comparing job costs of available projects with past projects. To be able to better assist in decision making, it takes into consideration many factors such as labor costs, material and other such auxiliary inputs of project management.

› Fund Accounting:

This type of support system helps mid-level and government organizations to track developmental expenditures. It also assists nonprofit organizations to monitor their donations to stand tall on the requirements of donors. The module makes sure everything run as per standard board regulations.

› Inventory Management:

This section of an Account Management application handles inventory tasks including maximizing profits, minimizing depreciation costs, and avoiding overspending to keep the level intact as per requirement. Ideal software applications have functionalities that update inventory information on a real-time basis. To do so, it tracks products, orders, deliverables as well as sales. As per Generally Accepted Accounting Policies (GAAP), there are specific ways to stipulate proper value for inventory. Account Management Software having inventory application takes care of the same with ease.

› Billing and Invoicing:

This tool takes care of payment collections. It automates the entire process thereby ensuring minimum chances of human error. It implements timely and consistent payment collection strategies to cater to any billing and collection method. It can handle all kind of business models and operational scales.

› Budgeting and Forecasting:

Budgeting and forecasting are required to map the financial Outlook of any company. Account Management Software can do it by self-analyzing historical data and estimating future conditions. This feature comes handy for organizations where multiple variables account for the forecast.

› Fixed Asset Accounting:

It creates a central database for fixed asset account management. The central database contains asset information, including location check-in and check-out. It also holds information on the due date of return and scheduled maintenance. The tool takes into account audit history, cost and depreciation as well.

› Payroll Management:

It automates the payroll system by tracking and processing employee payrolls. The primary functions include generating paychecks, automating tax clearances, formatting legal and tax reports, etc. It can also create reminders to pay taxes in time thereby helping business farms avoiding legal penalties.

» Before choosing any Accounting Software

Though you will find many Account Management Software applications over the internet, there are very few those will be of real use to your business niche. Therefore, you must decide what type of buyer you are. Usually, most of the business fall into one of the following three categories:

› Small Buyers:

These buyers run a small business and are on the verge of upgrading their basic systems towards creating a robust accounting system. They need more sophisticated functions than before such as demand forecasting, increased data storage, intercompany accounts, etc. to meet their growing needs. If you are such a company, then you will require your industry-specific functionalities in the software to upgrade your account systems.

› Enterprise Buyers:

If you need full enterprise resource planning (ERP) suite, then you come under this type of buyer’s category. The requirements are more than that of small buyers. For instance, in this case, buyers will demand functionality for multi-company consolidation that is often required by large entities. Also, the seamless integration of features involving international operations and foreign currency also becomes bare essential.

› High-Class Buyers:

Buyers of this category look for specific customizable functions designed for them to meet their target requirements. For instance, Non-profit organizations looking for specific functionality such as fund accounting will belong to this group. They need software that can track the payment of donors and can let them know about is an expense. Similarly, education institutes seek for software which can track disbursement of financial aid. On the other hand construction companies look for software which can break down the cost as per projects.

Thus, you have to figure out to which group you belong, and you have to choose the software accordingly.

Realted: Top 10 Accounting Software in India 2021

» How to choose the best Accounting Software?

Without a doubt, online accounting software comes with a comprehensive financial solution package for multi-faceted businesses. As a business, all you need is software that keeps allows you to efficiently handle your billings, invoicing, financial reporting, expenses management, etc.

Apart from that, it’s also crucial to check for some features which make the software standout from others.

› Phone support:

There comes a time when you might get stuck in some complicated features of the software or face any application error. When the time is money, you can take the chance to wait for hours to get a response to your mail. A phone support feature is all you need while selecting the best accounting software for small business.

› Online support options:

While some issues are too intense to wait around, some small problems are easily manageable manually. All you need is online support from the software provider, where you can get an instant response for your queries.

› Training:

You cannot install a brand new software and expect your employees to start working on it instantly regardless of how technologically equipped they are. All new learnings take times, and so does a cloud accounting software. Some software allows live or online training to the employees regarding the usage of the app at a simple subscription fee.

» Questions to ask a vendor when buying best Accounting Software?

1. What would be the level of training needed at our end pre and post-installation?
2. How much experience do you have in catering to clients in my industry?
3. What kind of services would I need after implementation? Is it included in my subscription?
4. How often would you update the software?
5. Does your software work on the double-entry accounting principle?
6. What type of accounting reports would the system generate? Can I personalize the reports?
7. Is the product customizable to suit my individual business needs?
8. Can I integrate this software with the ones I already use?
9. Do you offer add-ons?
10. Would I be able to restrict data access?
11. Does the system support multiple languages and currencies?
12. Is the product accessible from anywhere on any device?
13. Does the software offer tax compliance?
14. How does it simplify budgeting, invoicing, and creating quotations?
15. Does the solution support direct deposits?
16. How would it support bank reconciliation?
17. How do you handle data security since the software will hold the sensitive financial data of my business?
18. What are your customer support policies? Is the support included in the product cost?
19. How often does the software get updates and releases?
20. Would it be easy to scale the software in the future?

» What are the features of Accounting Software?

› Online Generation of Bills and Invoices:

The billing and invoicing feature of an Accounting Software let you create and send bills in an attempt of a few clicks. This feature comes with extensive sub-features as well. Some apps let you create customized billing template allowing you to personalize your bills and enhance your Brand’s appearance. It also helps in efficient tax handling by capturing all the tax information and let you share the tax break down with the client. The 'reminder feature' keep you and your client’s alert for all due payments. Pay and get paid in time.

Some apps come with an online payment gateway, enabling your clients with the hassle-free payment process. If you deal with international trade, then a multi-currency billing support system can cut your critical time consumption in half. The payment is due and gets paid without delay.

› Financial reporting:

Accounting software helps you keep your expenditure and income in check and display the results in the dashboard. The dashboard mostly features your sales, expenses, receivables and some other financial elements. The feature lets you instantly generate your cash flow statement, balance sheet, profit & loss statements in a single click. Besides, you can securely share them with your team without letting anyone accesses it. The app will let you share your financial reports through secure features, let you export the document into a pdf file. You can also print the report in hard copies and share them with your team.

Some advance financial reporting feature let you schedule weekly, monthly or quarterly reports and automatically send it to specified email addresses.

› Comprehensive Accounting Processes:

The core accounting feature of an ideal accounting tool lets you create invoices, bills, financial reporting and share them with others. A comprehensive core accounting featured app includes all financial features like GST treatment for items and contacts, GST in transactions, create e waybills for consignment and file your tax returns. All the problematic works are done without going through any complicated process.

› Regular flow of salary:

This feature allows you to calculate your employee’s salary in a few clicks. The app by default breakdown the taxes, allowances and deduction and enables you to generate payslips online. With multiple templates and salary structures, you can create a different pay slab for each employee. With the payroll feature, you can keep your employees satisfied by crediting salary to their bank accounts without any delay and keep them motivated.

Although before going for accounting software, make sure it handles statutory compliance including IT, LWF, ESI, PT, PF, etc., allowing you to file tax returns without any complications.

› Expense management:

This feature allows you to create and add your reports automatically. Some apps let you auto-scan receipts and automatically feeds them in the system. It also allows you to reconcile financial transactions by fetching feeds from corporate cards automatically. You can create a step by step approval flow list which enables you to examine the expenses and get it approved automatically. You can also set up your spending limits, restricting the T&E expenditure of your employees. The feature also includes an audit trail report, allowing you to audit your expenses and leave no suspicious costs behind.

› Inventory management:

The best online accounting software always includes the inventory management feature which enables you to increase your sales by expanding your business in an online inventory management system. It let you integrate your inventory with online selling platforms like Amazon, Etsy, Shopify, etc. It facilitates you features like creating purchase orders, managing online & offline orders, shipments, etc all in one application. Some applications also come with inventory tracking features, letting you track your shipment’s movement efficiently.

» What are the benefits of Accounting Software?

There are many advantages of owning an account management software by your side such as;

› Better visibility of cost and expenditure:

One can analyze the outgoing and incoming cash flow. It will lead to better decision making. The system can produce a wide range of reports that will summarize the information.

› Saving of time:

As it will take care of many account systems automatically, the organization can have more productive time to address other specific business areas.

› Helps maintain trust:

As it will keep a track on every single expense, it would be easy for a non-profit organization to remain accountable to their investor.

› Ensure compliance with standards:

It synchronizes everything as per reporting standards and Federal requirements thereby enabling companies to avoid legal penalties in the long run.

› Saving of workforce:

As it can take care of multiple tasks. Under a single time frame, the organization can save resources in terms of workforce and related expenses.

» How much does an Accounting Software cost?

Fetching the cost of Accounting software is easy just by requesting a price quote to your vendor. However, there are other costs associated with the software those need to be taken into consideration as well such as implementation, training, customization, process redesign, maintenance, upgrades, and support.

» Conclusion

To take care of accounting hassles, this software is a must-have add-on for every firm. However, it is equally imperative to investigate the pros and cons before paying in full thoroughly. If possible go for a free trial and ask the vendor to clear the post handling charges in detail so that you wouldn't repent your decision later and can get the best out of your Account Management Software.

Frequently Asked Questions (FAQs)

What is Accounting Software?

A business account software helps in keeping a track on the entire cash inflow and outflow of an organization. There are different kind of modules present through which the software works such as General Ledger, Account Receivables, Account Payable, etc. The software also manages the payroll system and takes care of reporting management. These individual modules are basic and can be customized to match the functionalities of any particular industry. For instance, the fund accounting system of a non-profit organization will vary from that of a government organization. As account management is one of the essential systems of a business, it often comes under the Enterprise Resource Planning System (ERP).

How does Accounting Software work?

An account software application can perform multiple tasks at the same time. There are various modules present inside the package. The basic ones are as follows,

  • Core accounting:

This module helps in managing the functions towards balancing a business book. The module is capable enough to maintain general ledger functionality and to keep a track on account payables and receivables. Core accounting module also handles fixed assets and bank reconciliation. In this way, it controls all the necessary accounting parts.

  • Project Accounting:

This solution system assists with tracking detail project cost required to maximize job profitability and efficiency of project-oriented organizations. It helps in selecting jobs that will guarantee better ROI by comparing job costs of available projects with past projects. To be able to better assist in decision making, it takes into consideration many factors such as labor costs, material and other such auxiliary inputs of project management.

  • Fund Accounting:

This type of support system helps mid-level and government organizations to track developmental expenditures. It also assists nonprofit organizations to monitor their donations to stand tall on the requirements of donors. The module makes sure everything run as per standard board regulations.

  • Inventory Management:

This section of an Account Management application handles inventory tasks including maximizing profits, minimizing depreciation costs, and avoiding overspending to keep the level intact as per requirement. Ideal software applications have functionalities that update inventory information on a real-time basis. To do so, it tracks products, orders, deliverables as well as sales. As per Generally Accepted Accounting Policies (GAAP), there are specific ways to stipulate proper value for inventory. Account Management Software having inventory application takes care of the same with ease.

  • Billing and Invoicing:

This tool takes care of payment collections. It automates the entire process thereby ensuring minimum chances of human error. It implements timely and consistent payment collection strategies to cater to any billing and collection method. It can handle all kind of business models and operational scales.

  • Budgeting and Forecasting:

Budgeting and forecasting are required to map the financial Outlook of any company. Account Management Software can do it by self-analyzing historical data and estimating future conditions. This feature comes handy for organizations where multiple variables account for the forecast.

  • Fixed Asset Accounting:

It creates a central database for fixed asset account management. The central database contains asset information, including location check-in and check-out. It also holds information on the due date of return and scheduled maintenance. The tool takes into account audit history, cost and depreciation as well.

  • Payroll Management:

It automates the payroll system by tracking and processing employee payrolls. The primary functions include generating paychecks, automating tax clearances, formatting legal and tax reports, etc. It can also create reminders to pay taxes in time thereby helping business farms avoiding legal penalties.

What is the best software for Accounting?

  • QuickBooks Online
  • Xero
  • FreshBooks
  • Sage Business Cloud Accounting
  • Zoho Books
  • Odoo Accounting
  • Wave Accounting
  • Sage Intacct

How to choose the best Accounting Software?

Without a doubt, online accounting software comes with a comprehensive financial solution package for multi-faceted businesses. As a business, all you need is software that keeps allows you to efficiently handle your billings, invoicing, financial reporting, expenses management, etc. Apart from that, it’s also crucial to check for some features which make the software standout from others.

  • Phone support:

There comes a time when you might get stuck in some complicated features of the software or face any application error. When the time is money, you can take the chance to wait for hours to get a response to your mail. A phone support feature is all you need while selecting the best accounting software for small business.

  • Online support options:

While some issues are too intense to wait around, some small problems are easily manageable manually. All you need is online support from the software provider, where you can get an instant response for your queries.

  • Training:

You cannot install a brand new software and expect your employees to start working on it instantly regardless of how technologically equipped they are. All new learnings take times, and so does a cloud accounting software. Some software allows live or online training to the employees regarding the usage of the app at a simple subscription fee.