Accounting Software

Essential accounting software buying information

Accounting software simplifies an organisation's financial management by automating tasks such as tracking what you owe (accounts payable) and what’s owed to you (accounts receivable), handling invoices (billing), and keeping accurate financial records (general ledger). It integrates all accounting functions to give you a real-time view of your financial health.

“I really appreciate the ability to create rules to categorise transactions,” says Blake Oliver, certified public accountant (CPA)[1], specialising in accounting technology and co-host of The Accounting Podcast. “By doing this diligently, you can automate 80 to 90% of transaction coding.”

Many professionals, including accountants, bookkeepers, business owners, finance managers, and operations teams, use business accounting software to keep their books in order, monitor expenses, produce reports on the business’s financial performance, and comply with tax regulations.

Most accounting solutions on the market are priced monthly, and their entry-level plans typically range from $13 (approx 20 AUD) to $299 (approx. 465 AUD) per month and support one to four users. Premium and advanced system subscriptions can go up to $499 (approx. 777 AUD) per month.[2] Nearly half (47%) of the accounting software buyers Capterra advisers spoke to in the last two years budgeted less than $210 (approx 327 AUD) monthly.[3]

When evaluating their options, first-time accounting buyers should consider their budget, number of users, specific use cases, and necessary integrations. Consulting with stakeholders on critical questions can help you hone in on the best systems based on your needs. Discuss questions such as:

• How easy is creating, managing, and sharing custom financial reports?
• When and how does this system flag bank reconciliation errors?
• Will it integrate smoothly with our existing systems to ensure comprehensive data connectivity?
• How easy is it to monitor business spending, and can I see how spending changes over time?
• How straightforward is it to manage bills for customers, including setting up regular billing for repeat customers?
• How does this software monitor contributor activity and enforce authorisation protocols?

What are the best accounting systems?

According to our research, Zoho Invoice is among the best-rated in the category, rated 4.74 out of 5 based on over 783 verified user reviews from the past 2 years. It offers a free invoicing solution tailored for freelancers and small businesses. The platform supports digital invoicing, recurring billing, integration with payment gateways, time tracking, client self-service portals, and basic reporting, making it suitable for efficiently managing essential billing and payment processes.

These are the main features:

• Billing & Invoicing: Intuitive and customisable interface with easy invoice creation, mobile access, multi-currency support, automated reminders, and professional client dashboards.
• Invoice Creation: Fast and flexible invoice generation using templates, time logs, cloning, and mobile access.
• Invoice Processing: Simple setup and tracking of payments and overdue invoices.
• Online Invoicing: Convenient online invoice delivery with payment links, client portals, and device accessibility.
• Invoice History: Easy access and filtering for tracking, reporting, disputes, and tax purposes.
• Payment Processing: Seamless integration with PayPal and Stripe, fast notifications, and a user-friendly interface.

What is accounting software?

Accounting software helps businesses track day-to-day finances. It’s like having a digital assistant that records money coming in and going out of the business, neatly sorts the transactions into simple categories, and gives an overview of a business’s financial performance.

Using small business accounting software eliminates the need for spreadsheets or paper records to track expenses, and helps you record transactions, create and send invoices, and put together detailed financial reports.

“When I started bookkeeping 20 years ago, I manually entered transactions from paper bank statements,” says Oliver. Now, much of that work is automated. I don't see how you could run a modern business without accounting software. Using spreadsheets for accounting is a massive waste of time. There are businesses that still do it that way, but they are becoming rare.”

According to Gartner's forecast, the global financial management software market will be valued at $24.4 billion (approx. 37.9 billion AUD) by 2026.[4]

Capterra covers 1,083 different accounting products, and we published 8,265 verified reviews from users of this software in the past year alone.[5]

Accounting software pricing

Most products in the business accounting software market are priced monthly, and their entry-level plans, which support one to four users, average $144 (approx. 224 AUD) per month. Premium and advanced subscriptions typically cost around $312 (approx. 485 AUD) per month.

• Entry-level accounting systems include the core functionality of general ledger, accounts payable and accounts receivable, financial reporting, and bank reconciliations.
• A premium or advanced product priced higher typically includes additional features such as income and balance sheet, expense tracking, billing and invoicing, and inventory management.

Nearly half (47%) of the accounting software buyers Capterra advisers spoke to in the last two years budgeted less than $210 (approx. 326 AUD) monthly.

First-time buyers should be aware that:

• Setup, training, and data migration are common upfront costs.
• Maintenance and customer support are common recurring costs.

Pro tip: Hidden fees to look out for

Oliver advises first-time buyers to ask upfront about the costs of certain features that the software provides, like:

1. Credit card processing fees: “Those fees can be high," says Oliver. “It’s often cheaper to have customers pay by bank transfer.”

2. Built-in payroll feature: “It can be pricey,” says Oliver. “So you might want to consider a standalone option, instead of using the one that comes with the software.”

Some vendors offer free versions of their software; however, these products generally have much leaner feature sets and do not allow for a higher number of users.

Various versions of free accounting software are available, and many products offer free trials to let users test the system before committing to a longer-term paid contract. This is a good option for users who have narrowed their list down to a few products and want to ensure they like the product before making the final decision.

Accounting software features rated by users

All accounting tools offer basic functionality necessary to balance a business's books, such as a general ledger and bank account reconciliation, and most share a set of common features.

Highly rated core accounting software features

• Financial reporting: Generate reports to assess the business's financial performance. 90% of reviewers rate this feature as critical or highly important.
• General ledger: Also known as bookkeeping, the general ledger records and centralises all financial transactions. 86% of users rate it as a critical or highly important feature.
• Bank reconciliation: Compares and matches accounting records with bank statements to identify discrepancies. 82% of users rate this as a critical or highly important feature.
• Accounts payable and receivable: Tracks money owed by the company to creditors or suppliers (accounts payable) and outstanding money owed by clients to the company (accounts receivable). 79% of users rate accounts payable, and 77% rate accounts receivable as critical or highly important features.

Highly rated common accounting software features

Our analysis of proprietary review data reveals other common accounting features users rate as valuable:

• Income and balance sheet: These create statements detailing a business's financial position, including assets, liabilities, and equity, at a certain point in time. 93% rate this feature as critical or highly important.
• Expense tracking: This feature keeps a detailed log of everyday company expenses, such as purchases and bills, to view the flow of funds. 82% of users rate this as a critical or highly important feature.
• Billing and invoicing: This feature creates, manages, and sends bills to customers or clients. 83% of users rate this feature as critical or highly important.
• Payroll management: This feature efficiently manages employee salary processes, data, taxes, and records administration. 73% of users rate it as critical or highly important.

Top accounting software benefits identified by users

Smoother financial management: Users say accounting software gives them a stronger grip on their finances by helping them control all financial activities from one platform and providing easy access to real-time financial insights.

“I like its ability to centralise and automate financial processes, from accounting and asset management to financial planning and data analysis.”

–Mark P., financial analyst in consumer goods

Improved team collaboration: Users value centralised access to financial data, simplifying review processes and enhancing team productivity. This ensures that tasks such as reviewing bills and financial statements are done faster, as there’s no waiting around for someone to send files.

“I like that the Accounting team can all work together easily on the same things (bills, reports, etc.).”

–Hannah H., HR and accounting specialist in computer software

Supports growing small businesses: Users find accounting software valuable for supporting and growing their small businesses, especially all-in-one solutions with everything needed in one place, which can be ideal for startups. This means you can add new features to the software without any trouble as your business gets bigger.

“It has many modules that give you the ability to expand your implementation as the business grows and changes over time.”

–Phillip S., senior accountant in insurance

Streamlined bookkeeping: Users like how accounting software makes their bookkeeping processes much easier by automatically capturing transactions with descriptions, so all information is in one place and easy to access.

“Very effective bookkeeping function where you can store all your financial-related documents, files, contracts, bills and receipts in a well-organised way for easy access.”

–Robert M., accountant for a non-profit organisation

Common challenges of accounting software identified by users

Operational difficulties are a direct cause of negative sentiments for most reviewers of small company accounting software. Slow connectivity, system lag time, and glitchy updates disrupting workflow are common issues users highlight. These challenges are exacerbated when customer support is slow to respond or provides ineffective solutions.

According to Oliver, operational issues might also arise from an incorrect setup: “I advise companies to work with an accountant to create a customised chart of accounts that provides the necessary data for compliance and decision-making. Unfortunately, business decision makers often sign up for accounting software to send invoices and get paid, neglecting necessary customisation. They bring in an accountant later, which can be difficult. It's challenging to change categorisation after data is entered. It's best to set it up correctly from the start.”

Many users, particularly from small businesses, also raise concerns about the pricing. Nearly half (47%) of prospective buyers looking for an accounting solution are already using an accounting tool but considering switching providers primarily due to affordability issues, closely followed by insufficient functionality.

Oliver agrees that cost is one of the challenges of this kind of software: “It used to be a one-time purchase, but now you pay hundreds or thousands of dollars per year for the license. There aren’t many cheaper options either, because one vendor dominates the market. I would advise buyers to think of the cost in terms of the time saved. The software is part of your business infrastructure now.”

As businesses continue to invest in digital tools, accounting software remains a critical area where purchasing decisions can have lasting financial implications. According to Capterra’s 2025 Tech Trends Survey, 52% of business decision-makers whose companies experienced software purchasing regret said it was easy to overcome financially.[6] However, 39% reported that the financial impact was significant, underscoring the importance of thorough evaluation before committing to new platforms.[6] While many businesses can absorb the cost of a misstep, the consequences can still be substantial—especially for smaller firms or those with tighter budgets.

The same survey also revealed that the most common repercussions of software regret were an increase in costs (50%) and adoption difficulties (46%).[6] These challenges point to a growing need for accounting solutions that are not only cost-effective but also intuitive and easy to implement. As vendors respond to this trend, we’re seeing a shift toward more transparent pricing models, improved onboarding experiences, and greater emphasis on user-friendly design. These developments aim to reduce friction during adoption and help businesses avoid the costly pitfalls of poor software choices.

To effectively address these limitations, you should seek product demos and contact advisers before purchasing. Alternatively, nearly 45% of accounting tools listed on Capterra offer free trial options, letting you thoroughly test basic and advanced features to find the right fit.

What is accounting software used for?

Analysis of our extensive accounting software reviews highlights the most common use cases:

• Digitise bookkeeping: Businesses adopt accounting software to digitise all bookkeeping tasks, from maintaining sales records to reconciling bank statements, leading to fewer mistakes and less time spent on data entry.
• Automate invoicing: Accounting software allows users to send out invoices automatically and set up recurring billing, ensuring consistency and professionalism in billing practices.
• Track expenses: Users leverage accounting software to monitor business spending and earnings, making approving or rejecting transactions and controlling budgets easier.
• Handle taxes: Accounting software makes it easier to find what you can write off on your taxes (to claim tax deductions) and simplifies the preparation of quarterly or yearly tax returns.
• Improve financial reporting: Businesses use accounting software to shorten their reporting cycles and more frequently and accurately generate financial statements. This enables the creation of detailed and customisable reports for smart decision-making.

Many Australian accounting software programs are designed to support specific industries:

• Accounting practice management software
• Auto dealer accounting software
• Construction accounting software
• Church accounting software
• Lease accounting software
• Nonprofit accounting software

Who uses accounting software?

Accounting software is one of the first tools businesses implement to manage their finances. Its relevance spans across business sizes and functions, proving invaluable for various professionals tasked with financial responsibilities, such as:

• Bookkeepers
• Accountants
• Chartered accountants
• Certified public accountants (CPAs)
• Financial managers Operations managers

Most businesses that contacted us for accounting software in the last two years are owners of businesses with less than $1 million (1.56 million AUD) in annual revenue and small teams, five or fewer employees and software users. Among the businesses we spoke with, non-profit organisations (15%) and accounting firms (9%), including independent certified public accountants (CPAs), are the top two buying segments of this software.

Key users typically hold positions such as the founder or owner, controller, chief financial officer, accountant, and treasurer.

Common accounting integrations

Based on our extensive review database analysis, we’ve identified that the three most common integrations for accounting packages are payment processing, payroll, and CRM. By integrating with these popular systems, users can enjoy an automated flow of financial information from multiple sources into one centralised accounting system.

Most (68%) buyers prefer integrated accounting suites instead of standalone bookkeeping solutions. Such all-inclusive solutions cater to accounting needs, such as billing and invoicing, expense reporting, and payroll, leading to faultless connectivity between business operations.

Recent trends in accounting software

Recent trends in accounting software are increasingly shaped by the growing integration of artificial intelligence (AI) and the urgent need for more robust financial oversight in project management.

According to Capterra’s 2023 AI in Project Management survey, 30% of project managers in Australia cite inadequate financial resources as a key reason for project failure.[7] This highlights a critical gap in budgeting and financial planning that modern accounting tools are now being designed to address. As businesses face tighter margins and more complex financial environments, the demand for smarter, more adaptive accounting solutions continues to rise.

AI is playing a pivotal role in this transformation. The same survey found that 38% of Australian project managers in companies already using AI report leveraging it specifically for budget management.[7] This reflects a broader shift toward automation and predictive analytics in accounting software, enabling teams to forecast costs more accurately, identify financial risks earlier, and streamline budget tracking.

As AI capabilities become more accessible, accounting platforms evolve from passive record-keeping tools into proactive financial management systems that support better decision-making and project outcomes.

Learn more about how accounting software can help your business

• Single Touch Payroll reporting explained
• 5 Budgeting tips for small business owners

Sources

[a]. To collect this data, 545 employees were interviewed at companies in Australia in September 2023. The respondents for this survey had to fulfil the following criteria:

• Be an Australian resident;
• Be between the ages of 18 and 65 years old;
• Work full-time or part-time;
• The company they work for uses project management software and has more than one employee;
• They themselves use a computer to perform daily tasks at work at least sometimes;
• Be either moderately or very involved in project management processes within the company.

1. Blake Oliver, LinkedIn
2. Capterra software pricing data: The pricing analysis includes only products with publicly available pricing information and qualified software products within the category. Read the complete methodology here.
3. Capterra adviser call notes methodology: Findings are based on data from telephonic conversations that Capterra’s adviser team had with small-to midsize businesses seeking accounting tools. For this report, we analysed phone interactions from the past year. Read the complete methodology here.
4. Software Market Insights: Accounting and Finance, Gartner
5. Capterra reviews data: Capterra reviews are collected from verified users for individual software products. This report analysed reviews from the past year as of the production date. Read the complete methodology here.
6. Capterra’s 2025 Tech Trends Survey was conducted online in August 2024 among 3,500 respondents in the U.S. (n=700), U.K. (n=350), Canada (n=350), Australia (n=350), France (n=350), India (n=350), Germany (n=350), Brazil (n=350), and Japan (n=350), at businesses across multiple industries and company sizes (5 or more employees). The survey was designed to understand the timeline, organizational challenges, adoption & budget, vendor research behaviours, ROI expectations, and satisfaction levels for software buyers. Respondents were screened to ensure their involvement in business software purchasing decisions.
7. Capterra's 2024 Impactful Project Management Tools Survey was conducted online in May 2024 among 2,500 respondents in the U.S. (n=300), Canada (n=200), Brazil (n=200), Mexico (n=200), the U.K. (n=200), France (n=200), Italy (n=200), Germany (n=200), Spain (n=200), Australia (n=200), India (n=200), and Japan (n=200). The study aimed to understand the leadership and emotional intelligence skills needed for PMs to successfully lead teams and projects, leveraging/incorporating AI. Respondents were screened to be project management professionals at organisations of all sizes. Their organisation must currently use project management software.