Good accounting software connects to your bank, categorizes transactions, sends invoices, tracks expenses and produces the reports your accountant needs. Choose by what your business actually does: invoicing clients, selling inventory, paying employees or handling sales tax. Check plan limits on invoices, users and bank connections, and ask your accountant which software they prefer to work in.
The right accounting software saves hours each month and makes tax time far less painful.
Start with what your business does
| If you… | Look for |
|---|---|
| Invoice clients | Custom invoices, online payment, reminders |
| Sell products | Inventory tracking, ecommerce integration |
| Employ staff | Payroll built in or a tight integration |
| Collect sales tax or VAT | Tax rates, returns and reports for your region |
| Track projects | Job costing and time tracking |
Core features every option should have
- Bank and card feeds with rules for categorizing.
- Receipt capture from your phone.
- Profit and loss, balance sheet and cash flow reports.
- Accountant or bookkeeper access at no extra cost.
Check the plan limits
Entry plans often cap the number of invoices, bills, users or bank connections, and keep features such as multi-currency or inventory for higher tiers. Price the plan you will need in a year.
Ask your accountant
Accountants often prefer specific software and may offer discounts on it. Choosing a tool they already know saves fees.
Track customers in a CRM and protect your financial logins with a password manager. Browse accounting and finance.
Common questions
Do I need accounting software if I have an accountant?
Usually yes. Accountants charge less and work faster when your books are kept in software with bank feeds and categorized transactions.
What are bank feeds?
Automatic imports of your bank and card transactions into the software, so you categorize rather than type them in.
Can accounting software do payroll?
Some include payroll or offer it as an add-on in certain countries; others integrate with a separate payroll service.
Cash or accrual accounting?
It depends on your business and tax rules. Most software supports both; ask your accountant which method you should use.