Best Accounting Software of 2026

Here’s what we’ll cover:

What you need to know about accounting software

What is accounting software?

Essential features of accounting software

Benefits and competitive advantages of using accounting software

How to choose the best accounting software for your business

Software related to accounting tools

More resources for your accounting journey

What you need to know about accounting software

Accounting software is a tool designed to help businesses manage their financial processes and track statements, cash flow, invoicing, bank accounts, and purchase orders. It serves as a comprehensive solution for tracking financial transactions, managing accounts, and generating financial reports. These systems can help organizations save time by automating accounting processes and providing insights into financial health. 

Over the last year, we’ve spoken to over 3,250 software buyers to help them find the right tool to support their accounting teams. [1] To give an idea of the market, we have 591 accounting tools on our site, and we’ve published over 6,500 verified reviews for these tools in the past year alone. [2]

When selecting an accounting software solution, pricing is a crucial factor to consider. Most accounting software products are priced on a monthly subscription basis. While advanced systems can exceed $2,000 per month, entry-level plans can be found for as little as $11 per month, with some options offering free versions. Generally, entry-level plans average $144 a month. There is diversity when it comes to budgeting for this tool. While 47% of accounting software buyers we spoke to budget $210 or less per month, 63% budget over $630. [3]

Choosing the right accounting software can be a complex process given the variety of options available. In this guide, you’ll learn about essential components of accounting software, get step-by-step guidance on how to choose the right solution for your business, and tap into the expertise of our experienced accounting software advisors, Eric Franco and Chris Soltani. To get expert guidance, schedule a free consultation or start a chat with us today.

What is accounting software?

Accounting software is a digital tool that enables businesses to manage and automate their financial processes, ensuring accurate and efficient handling of financial data. It serves as a comprehensive solution for tracking financial transactions, managing accounts, and generating financial reports.

Most accounting software options offer a core package that can handle different accounting tasks:

• General ledger

• Accounts receivable

• Accounts payable

• Bank reconciliation

• Payroll services

• Financial reports

The primary functionality of accounting software includes managing general ledgers, accounts receivable, accounts payable, and bank reconciliations. It also supports payroll processing and financial reporting. By automating these routine tasks, accounting software helps businesses save time and reduce the risk of manual errors, ensuring compliance and accuracy in financial management.

The benefits of accounting software extend to improved financial visibility and decision-making. Users can easily access real-time financial data, allowing for better cash flow management and strategic planning. Additionally, the software often integrates with other business systems, enhancing overall operational efficiency.

Common features of accounting software include invoice generation, expense tracking, and budget management. More advanced features might offer project accounting, tax management, and customizable reporting, providing businesses with the tools needed to adapt to their specific financial needs.

By streamlining financial operations, accounting software empowers businesses to focus on growth and profitability, making it an essential tool for modern financial management.

Essential features of accounting software

When comparing accounting software systems to choose the best solution for your business, it’s key to understand what features to expect. There are core features that users should expect from their accounting tools, such as general ledger, financial reporting, bank reconciliation, accounts payable, and accounts receivable. However, other features are still common, like billing and invoicing, expense tracking, tax management, and financial management, among others. We analyzed thousands of reviews and spoke to thousands of accounting professionals to break down the core and common features of accounting software.

Core accounting software features 

Common accounting software features

Along with these features, users can search for software that includes additional ones that may not be core or common features. For example, 94% of reviewers rate income and balance sheet features as highly important. Additionally, depending on the needs of each buyer, some might need additional features like contact management or tracking features. 

Chris Soltani, a senior advisor who specializes in accounting, notes that many buyers want to be able to have IDs and barcoding features on their assets so they can track their lifespan. Eric Franco, another Texas-based accounting advisor, adds that “some buyers want the system to handle contracts as well, contract management along with assets.” 

For more information on accounting-specific features and recommendations, feel free to schedule an appointment with Eric Franco or one of his colleagues.

Benefits and competitive advantages of using accounting software

Soltani has been helping accounting professionals find software to help their businesses for 12 years. Based on his conversations with buyers, two clear benefits of using accounting software, he points out, are saved costs and improved tracking of their assets. “A lot of times, companies are outsourcing to CPA firms, so the reason people are shopping for fixed asset programs is they generally bring this in-house and save costs.” He also adds, “Companies are tracking their assets on Excel and spreadsheets. A big reason why they’re looking for these tools is to improve this expense tracking.” 

Additionally, our data shows other benefits directly impacting accountants. These include:

• Improved team collaboration by offering a centralized platform where financial data is accessible to authorized members in real time. This transparency ensures everyone is aligned, reducing miscommunication and errors. Shared dashboards, automated workflows, and integrated communication tools enable teams to collaborate efficiently on tasks like invoicing and expense tracking. 

• Optimized financial management by automating and simplifying complex tasks. Accounting software allows businesses to track income, expenses, and assets accurately, providing a clear financial overview. With budgeting, forecasting, and reporting features, businesses can make informed decisions based on precise data. The software also includes tools for tax compliance and audit trails, helping businesses maintain regulatory compliance and reduce financial discrepancies.

• For small businesses, accounting software offers solutions that address their specific needs. It provides user-friendly interfaces and customizable features suited for limited resources and expertise. The software automates tasks like invoicing, payroll, and expense tracking, freeing up time for business owners to focus on growth. Many small business accounting solutions are scalable, allowing adaptation as the business expands and ensuring continued efficiency.

Accounting software can focus on many specialized features within the accounting sector and cater to diverse business needs depending on their requirements. 

How to choose the best accounting software for your business

Choosing the right accounting software involves a systematic approach to ensure it meets your community’s needs. Here’s a five-step process that you can follow:

Step 1: Define your requirements

Chris Soltani and Eric Franco point out that buyers often have misconceptions or confusion when considering accounting software systems. Many initially focus on fixed asset accounting needs, only to realize later that they also require features such as IT asset management or maintenance capabilities.

This highlights the importance of identifying your core needs before making a decision. Consider factors such as your business's size, the complexity of your financial operations, and any unique requirements, such as system integrations or specific reporting capabilities. Involve key stakeholders in this assessment to ensure a comprehensive understanding of your needs.

According to Software Advice’s advisor team, based on 3,302 phone interactions with accounting software buyers from January 2024 to January 2025, 66% of buyers requested core accounting features, with another 66% seeking financial reporting and 27% looking for billing and invoicing functionalities.

Clearly defining your needs will help you prioritize essential features and avoid unnecessary extras, ensuring the software you choose effectively supports your business’s daily operations and long-term goals.

Understand the cost of accounting software

The cost of accounting software can vary significantly based on factors like:

• Number of users

• Features and modules required (e.g., invoicing, financial reporting, asset management)

• Type of storage (cloud-based or on-premise)

• Integrations with other tools, like CRM or ERP systems

• Support and training options

Businesses should budget for not only the initial purchase or subscription costs but also setup, migration, and potential training costs. Having a clear view of costs upfront helps in planning and managing the long-term financial commitment associated with accounting software.

Advanced accounting software tools can cost over $2,000 a month, while entry-level plans average $144 per month. Businesses have diverse strategies for budgeting for this tool. While 47% budget $210 or less per month for accounting software, a third budget over $630.

For first-time buyers, it's important to start the evaluation process with a clear budget, understanding the number of users, specific use cases, and required integrations. Engaging with stakeholders to compile a list of essential questions for vendors can help ensure the system aligns with your business needs, such as:

• Do you need software to integrate with existing financial systems and tools?

• What kind of reporting and analytics does the tool provide?

• Is the software scalable to accommodate business growth?

• Does the software offer mobile access for on-the-go financial management?

• What kind of customer support and training does the vendor provide?

Assess business-specific functionalities

Assess and analyze your current workflows to determine what's working well and where you need help. Make a list of pain points, such as issues with financial reporting, data accuracy, or billing.

Also, consider the unique requirements related to your industry. Involve your team in the process to gain practical insights about which features and integrations would save the most time.

Finally, think about your growth plans. A small business might need a simpler system than a large enterprise. However, if you're planning to expand, invest in software that can grow with you. Consider questions like:

• How easy is it to add new users as our business grows?

• Does the pricing scale reasonably as we add users or transactions?

• Can we start with basic features and add more advanced ones as our needs evolve?

Step 2: Research and shortlist accounting tools

There are several accounting tools available on the market, and finding the one right for you can be quite a task. Fortunately, here are a couple of resources that can help you make a confident decision.

Get help from a qualified accounting advisor

At Software Advice, our advisors like Chris Soltani have experience helping hundreds of businesses identify solutions that match their accounting needs and budgets.

If you need guidance, you can talk to one of our specialized advisors and get tailored recommendations about the best accounting software for your needs.

Explore our list of accounting software

If you’re not ready to talk to an advisor just yet, you can also start compiling your shortlist of legal practice management software with our FrontRunners report. Only products that earn top user ratings make it to this list. To be eligible for consideration, a product must:

• Have at least 20 unique user reviews in the last 24 months

• Be a stand-alone legal practice management system, not just a partial tool, and

• Offer key features.

Alternatively, visit our accounting software directory page to explore the top options available on the market. This will give you a clear understanding of the features and benefits each tool offers, enabling you to make a more informed and confident purchase decision. 

Step 3: Request demos and ask questions

Eric Franco notes that often there are misconceptions about accounting software, stating that many buyers are surprised by the system's capabilities, such as handling contracts or maintenance.

To ensure you and your team feel comfortable using the accounting tool, contact the vendors of your shortlisted options to arrange live demonstrations. During the demos, observe how the software handles key tasks such as accounting, financial management, and invoicing.

To maximize these sessions, be well-prepared before you try out the demo. Arrange demos with each vendor on your shortlist, include key team members who will use the software, and compile a list of questions and scenarios tailored to your business's needs.

Ask specific questions related to your business’s needs to see how well the software aligns with your requirements. Here are some questions that you can ask:

• How is data migration from our existing system managed?

Understanding the data migration process is crucial when transitioning to new accounting software. This involves transferring existing financial data, records, and reports from your current system to the new one. It's important to know whether the vendor provides tools or services to facilitate this process and if they offer support to ensure data accuracy and integrity during the transition.

• What is the usual timeline for implementation?

The timeline for implementing new accounting software can vary depending on the complexity of your business needs and the software itself. It's essential to have a clear understanding of the expected duration for setup, customization, and full deployment. This helps in planning resources and minimizing disruptions to your business operations.

• Do you offer user training and customer support, and what does it entail?

Effective user training and support are key to maximizing the benefits of new software. Inquire about the training options provided by the vendor, such as workshops, online tutorials, or personalized sessions. Understanding the scope and format of the training can help ensure that your team is well-equipped to use the software efficiently.

• Can financial reports be customized for specific business needs?

Customization of financial reports allows businesses to tailor the software to meet unique reporting requirements. This flexibility is important for generating insights specific to your business operations, such as departmental performance or project profitability. Confirm whether the software allows for such customization and how it can be achieved.

• How does pricing adjust as we increase users or transactions?

As your business grows, the number of users or transactions may increase, affecting the cost of the software. Understanding how pricing scales with growth can help you budget effectively and avoid unexpected expenses. Inquire about any tiered pricing structures or discounts for additional users or higher transaction volumes.

• Is it possible to start with basic features and add advanced ones later?

Scalability is an important consideration when choosing software. Determine if the software allows you to start with essential features and expand to more advanced functionalities as your business needs evolve. This flexibility can be cost-effective and ensure the software continues to meet your requirements over time.

• Could you provide a detailed breakdown of all costs, including any initial or recurring fees?

A comprehensive understanding of the total cost of ownership is vital for budgeting. Request a detailed breakdown of all costs associated with the software, including initial setup fees, subscription or licensing fees, and any additional charges for support, training, or upgrades. This transparency helps in making informed financial decisions.

• What type of financial reports does the tool generate?

Accurate and customizable reports are crucial for tracking budgets, analyzing expenses, and ensuring transparency. Knowing the reporting capabilities helps avoid gaps in financial oversight and enhances decision-making.

• What are the data security features of the tool?

Data security features are necessary to protect sensitive financial data and confidential communications. Strong data security features, including encryption and access controls, help prevent data breaches and unauthorized access.

• Does the tool support integration with the existing tech stack?

Accounting software that supports integration with your existing tech stack ensures smooth data flow between systems, such as CRM or ERP tools. Integrations reduce manual data entry, prevent errors, and enhance operational efficiency.

Step 4: Make the most of your accounting software

Once you’ve selected and finalized your accounting software, the implementation phase begins. Whether you're upgrading from another system or moving from manual processes to digital, consider the following steps to ensure a smooth transition:

Data migration: Carefully transfer all financial data, records, and reports from your old system or paper files to the new software. Collaborate with both your current and new software providers to ensure that all data is accurately migrated and nothing is overlooked, maintaining data integrity and continuity.

Training: Equip your team with the necessary skills to utilize the new software effectively. Organize comprehensive training sessions with the help of your software provider, and distribute user-friendly training materials. Schedule multiple sessions and refresher courses to ensure everyone is confident and proficient in using the new tools.

Workflow customization: Tailor the software to fit your business's specific needs by customizing workflows, templates, and dashboards. This personalization will help streamline processes and improve efficiency, allowing your team to focus more on strategic tasks.

Communication: Inform your team about the transition to new software. Set clear expectations about potential temporary disruptions and emphasize the long-term benefits, such as improved accuracy and efficiency. This transparency will help maintain trust and reassure your team during the transition period.

Feedback and support: Encourage feedback from your team about the new system to identify any challenges or areas for improvement. Maintain open lines of communication with your software provider for ongoing support and to address any issues promptly.

By following these steps, you can ensure a successful transition to a new accounting software system that supports your business's operations and growth objectives.

Software related to accounting tools

Depending on which accounting software you choose, you may need to supplement some features with related software systems. Some types of software that are closely related to accounting software, or can feature as standalone solutions, include:

• Accounting practice management software is designed to help accounting firms manage their operations more efficiently. It includes features for client management, workflow automation, and time tracking, enabling accountants to streamline their practice and enhance client service.

• Accounts payable software assists businesses in managing their payables by automating invoice processing, payment approvals, and vendor management. It ensures timely payments and accurate financial records, reducing the risk of errors and improving cash flow management.

• Accounts receivable software helps businesses manage incoming payments by automating invoicing, payment tracking, and collections. It improves cash flow by ensuring timely payments and providing insights into outstanding invoices and customer payment behavior.

• Audit software is designed to facilitate the auditing process by automating data collection, analysis, and reporting. It helps auditors identify discrepancies, ensure compliance with financial regulations, and provide accurate audit reports.

• Auto dealer accounting software is tailored for automotive dealerships to manage their unique financial needs. It includes features for inventory management, sales tracking, and financial reporting specific to the auto industry, helping dealers streamline operations and improve profitability.

• Billing and invoicing software automates the billing process by generating invoices, tracking payments, and managing customer accounts. It simplifies financial transactions and ensures accurate billing, making it easier for businesses to manage their revenue streams.

• Budgeting software helps businesses plan and manage their financial resources by providing tools for creating, monitoring, and adjusting budgets. It enables organizations to allocate resources effectively, track financial performance, and make informed financial decisions.

• Compliance software ensures that businesses adhere to industry regulations and standards by providing tools for monitoring, reporting, and managing compliance-related activities. It helps organizations mitigate risks and avoid penalties by maintaining up-to-date compliance records.

• Debt collection software streamlines the debt recovery process by automating communication with debtors, tracking outstanding debts, and managing payment plans. It improves collection efficiency and reduces the time and effort required to recover overdue payments.

• Financial reporting software provides tools for generating accurate and comprehensive financial reports. It helps businesses analyze financial data, track performance, and make informed strategic decisions by offering insights into key financial metrics.

• Fund accounting software is designed for non-profit organizations and government entities to manage their finances according to fund accounting principles. It ensures transparency and accountability by tracking funds separately and providing detailed financial reports.

• General ledger software serves as the central repository for an organization's financial data, recording all financial transactions and generating key financial statements. It provides a comprehensive view of a company's financial health and supports accurate financial reporting.

• Sales tax software automates the calculation, collection, and remittance of sales tax. It ensures compliance with varying tax laws across different jurisdictions and simplifies the process of managing sales tax obligations, reducing the risk of errors and penalties.

• Trust accounting software is designed for businesses and law firms to manage client trust accounts and ensure compliance with legal and ethical standards. It provides tools for tracking trust transactions, generating reports, and maintaining accurate records of client funds.

More resources for your accounting journey

• 5 Top-Rated Accounting Software For Small Businesses

• How To Close Your Books Faster and More Accurately

• A Guide to Billing and Invoicing Software Pricing Models

About our contributors

Author

Eduardo Garcia is a content analyst at Software Advice, covering research on new technologies and specializing in retail and healthcare. He has previously worked in corporate communication at the European Investment Bank and the World Organisation for Animal Health. 

Eduardo’s research and analysis is informed by more than 130,000 authentic user reviews on Software Advice and over 25,000 interactions between Software Advice software advisors and medical and retail software buyers. Eduardo also regularly analyzes market sentiment by conducting surveys of medical practitioners and administrators, as well as retail leaders and consumers, so he can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services.

Eduardo also has a decade of experience in the private sector, communicating about topics such as artificial intelligence, smart cities, advanced analytics, and big data. His research has appeared in , , , , and .

In his free time, Eduardo likes exploring wildlife, hitting the beach, traveling, and trying to discover a sport he is good at.

Editor

Caroline Rousseau is a senior content editor at Software Advice. A former content analyst, Caroline has, for the past five years, built, written, and edited research reports about technological trends, opportunities, and challenges with an SMB audience in mind. Her content has been featured in French Tier 1 media including Le Monde, L’Express, and Le Figaro, among other publications. Her previous experience as a graphic designer, translator, and LQA specialist in various industries converged into a skill set that allows her to create compelling content about today’s business matters.

Caroline’s personal interests include literature and art and she has a passion for Albert Camus, graphic novels, and drawing.

Advisors

Chris Soltani is a Senior Advisor at Software Advice. He joined the team in 2013 and is based in Austin, TX. Chris specializes in helping businesses navigate the complexities of selecting the right software solutions for accounting, project management, manufacturing, learning management, and supply chain management. He is dedicated to providing tailored recommendations that align with each client's unique needs and goals.

His favorite part of being a Senior Advisor is truly helping buyers overcome the challenges they face when researching the hundreds of options available online. Chris takes pride in simplifying the decision-making process and ensuring that each client finds the perfect fit for their business.

Eric Franco is a Senior Advisor at Software Advice. He joined the team in 2019 and is based in Austin, TX. Eric focuses on guiding clients through the selection of software for accounting, project management, manufacturing, learning management, and supply chain. 

His favorite part of being a Senior Advisor is hearing the sense of relief in a stressed buyer's tone when they realize he can help. Eric values the opportunity to ease the software selection process for clients, ensuring they feel supported and confident in their decisions.