Everything you need to know when looking for accounting software in 2025
Accounting software buyer guide: Comparison of top platforms and frameworks to choose the right accounting software solution for your business.
Choosing the right accounting software for your business growing financial operations.
Efficiently managing finances is very important for the success of businesses. With multiple revenue streams, cross-border transactions, and complex compliance requirements, enterprises require accounting software that automates financial processes, removes scope for manual errors, and provides a real-time view of their financial health.
So, how do you pick the best one among the many options available? Are you looking for simple invoicing software or a full-blown enterprise-grade financial management system?
This guide walks you through the decision-making process by addressing:
- Why automated accounting software is essential
- Features to look for and benefits to expect
- Top accounting software platforms compared: QuickBooks, Xero, FreshBooks, Zoho Books, Sage Intacct, Zenskar
- Trends that are shaping the future of the industry
- FAQs when choosing an accounting software
Financial accounting is much more than bookkeeping for companies exceeding $10M+ ARR, with multi-entity structures or complex transactions. Finance leaders, like CFOs and controllers, require greater visibility of real-time financial data, seamless integrations with their ERP and other financial applications, and automation to eliminate manual reconciliations and ultimately guarantee compliance.
Why do scaling businesses need to switch to modern enterprise accounting software?
As companies grow, financial operations become more complex. Modern accounting platforms aren’t just nice-to-have — they’re essential for staying efficient and compliant at scale. Here are the key advantages of switching to a enterprise grade accounting software.
Here are some significant advantages of enterprise grade business accounting software.
Automates complex financial operations - Enterprise-grade accounting platform automates recurring billing and invoicing. By doing so businesses can recognize revenue by accurately calculating deferred revenue, tracking MRR/ARR, and calculating contract-based revenue without much manual intervention needed. This reduces compliance risk with accounting norms of ASC 606 and IFRS 15 and generate audit-ready reports.
Multi-Entity & Multi-Currency support - Scaling businesses need to manage subsidiaries, global entities, intercompany transactions and cross-border payments with ease. Advanced accounting platforms offer real-time FX rates, seamless consolidations, and cross-border tax handling. Such tools also automate the reconciliation and ledger entries making sure there are no mismatches and the calculations are error free.
Tax compliance & regulatory reporting - Navigating multi-country tax codes and filings is complex. It helps automate calculations of international tax rates, and produce ISO-certified tax reports at audit-ready. Leading accounting software automates and guarantees GAAP & IFRS compliant bookkeeping and reporting. It also allows for 1099 contractor payments processing & reporting for compliance with IRS regulations. Businesses can configure tax setups for different regions and customize the submission and sales tax calculation with integrations like Avalara or TaxJar.
Integrations with ERP, CRM, and payment systems - Its essential for businesses using a combination of technology stack to unify financial data and cash flow management for seamless and error free finance management. A modern accounting software therefore allows for deep integration with ERP (SAP, NetSuite, Microsoft Dynamics), CRM (Salesforce, HubSpot), and payment processors (Stripe, PayPal, Adyen). By allowing real time data sync between this systems ensure smooth financial operations.
Data driven financial Insights and forecasting - When you’re dealing with massive volumes of data, having a KPI dashboard that offers real-time P&L statements, cash flow and revenue forecasts can be a game-changer. Enterprise accounting software helps finance leaders and CFOs make smarter decisions by providing all the essential financial data in unified analytics dashboard with automatic financial risk alerts. This days there are also AI accounting software that not only automates but facilitates predictive analytics and decisions making.
Flexibility and scalability for growing financial operations - Run of the mill accounting software and spreadsheets were never designed to handle high-volume financial transactions. Dealing with growing transaction volumes, multi-location reporting, multi-currency revenue streams, expense categorization, and approval processes can become a logistical nightmare. Therefore growing enterprises require an intelligent, automated accounting solution that integrates financial data, automates reconciliation, offers audit-ready financial statements, and integrates with core business systems. This enables companies to expand without hitting bottlenecks in their financial management processes.
Must-Have features when selecting enterprise accounting software
Accounting software must go beyond basic bookkeeping—it needs to automate compliance, integrate with mission-critical business systems, and provide real-time financial intelligence to support business growth at scale.
We now understand the advantages and must-have features when looking for enterprise-grade accounting software. Let’s compare some top platforms: QuickBooks, Xero, FreshBooks, Zoho Books, and Sage Intacct.
Comparison of the Top Accounting Software Platforms
Top 6 Accounting Software Compared: QuickBooks vs. Xero vs. FreshBooks vs. Zoho Books vs. Sage Intacct vs. Zenskar
ISO 27001
SOC 2
Ensures ASC 606/IFRS accounting standards
GDPR
SOC 2 + HIPAA
GoBD
GDPR
PCI
SOC 2
GDPR and CCPA
PCI DSS
HIPAA
(*As of 25th Mar'25)
Let's delve into each accounting software solution, focusing on its features, benefits, and potential challenges.
QuickBooks Online Advanced
Features
- Custom financial reports to track business health.
- Automates tasks like invoicing and bill approvals.
- Connects easily with CRM, ERP, and other apps.
- Lets you control user access with detailed permissions.
Pros
- Grows with your business and handles large transaction volumes.
- Cloud-based, so your team can work from anywhere.
- Combines accounting, invoicing, and expense tracking in one place.
Cons
- It can feel pricey compared to similar tools.
- Some features take time and training to understand fully.
- Customer support quality can be hit or miss, according to reviews.
Xero
Features
- Strong multi-currency support for global businesses.
- 800+ app integrations, including Shopify and Stripe.
- Simple invoicing and automated bank reconciliation.
- Customizable financial reports and dashboards.
Pros
- Great for businesses operating in multiple countries.
- Makes financial management easier with smart integrations.
- Helps keep cash flow in check with real-time updates.
Cons
- Lacks advanced forecasting tools.
- Some users report limited customer support options.
- It can feel less powerful for large-scale enterprises.
Zenskar
Features
- It’s ideal for SMEs operating with complex pricing models.
Automated revenue recognition (ASC 606 & IFRS 15). - Modify usage data without affecting pricing or invoicing.
- Intelligent dashboards with real-time revenue tracking.
Pros
- Automated invoicing with complex billing and revenue tracking.
- Recognize revenue in straight-line, over time, by milestones, or usage, independent of billing cadence.
- Push real-time journal entries automatically.
- Scales easily with high transaction volumes.
Cons
- It might not suit businesses looking for advanced AR and AP capabilities.
- Being an enterprise-grade platform solving a complex problem might not be an excellent fit for SMBs looking for a simple, run-of-the-mill solution.
FreshBooks
Features
- Simple invoicing and payment tracking.
- Time tracking for projects and billable hours.
- Mobile-friendly app for on-the-go management.
- Essential reporting tools for small business needs.
Pros
- Perfect for freelancers and small service teams.
- Easy to use, even for non-accountants.
- Helps save time with automated reminders and follow-ups.
Cons
- It is not built for complex financial operations.
- Limited integrations compared to more prominent platforms.
- Lacks advanced reporting and revenue management.
Zoho Books
Features
- Full integration with the Zoho suite.
- Automated recurring invoices and payment reminders.
- Handles multi-currency transactions.
- Built-in tax compliance and filing features.
Pros
- It is best for startups already using Zoho products.
- Keeps tax management simple and automated.
- Affordable for small and growing businesses.
Cons
- Lacks deep financial forecasting tools.
- Limited for businesses with complex billing needs.
- Few integrations outside the Zoho ecosystem.
Sage Intaact
Features
- Multi-entity and multi-currency support.
- Strong financial reporting with customizable dashboards.
- Automates revenue recognition and deferred revenue tracking.
- Integrates with major ERP and CRM platforms.
Pros
- It is ideal for large enterprises with complex structures.
- Keeps financials audit-ready and compliant.
- Supports high transaction volumes and multiple locations.
Cons
- Setup and implementation can be complex.
- Higher price point than mid-market solutions.
- Requires training to maximize its advanced features.
Future trends in accounting software: what’s next for financial management
Accounting software is evolving fast as businesses grow and financial tasks become more demanding. The future is all about smarter automation, stronger security, better insights, and hassle-free compliance. Here’s where things are heading for SaaS, AI, cloud-based companies, CPaaS, API-driven businesses, and fintech companies.
1. AI & Automation: Smarter forecasts and less manual work
- Automatically sorts and categorizes transactions.
- Predicts cash flow and flags potential issues early.
- Spots unusual spending and helps prevent fraud.
- Speeds up invoice matching and payment approvals.
How it helps: Less manual number crunching, more time spent on strategy. AI in accounting software will play a big role in streamlining these tasks.
2. Blockchain: Keeping your financial records safe and tamper-proof
- Locks down financial data so it can’t be changed.
- Speeds up audits with real-time tracking.
- Uses smart contracts to automate payments.
- Adds extra protection against fraud.
How it helps: Safer transactions and quicker audits, and an added layer of trust in accounting software with AI.
3. Machine Learning: Smarter planning for what’s next
- Learns from past data to make better forecasts.
- Flags risky patterns and potential fraud.
- Alerts you about late payments or cash flow issues.
- Continuously improves predictions with more data.
How it helps: Helps finance teams make sharper decisions with the best AI accounting software.
4. Voice-Enabled Accounting: Handle finance with simple voice commands
- Ask real-time questions and get instant answers.
- Approve invoices or payroll just by speaking.
- Log expenses on the go with voice input.
How it helps: Saves time and makes everyday financial management smoother.
5. Regulatory Compliance: Staying on top of tax and reporting
- Tracks tax laws and accounting rules in real time.
- Automatically calculates and files taxes.
- Prepares audit-ready reports with full histories.
- Keeps financial data secure and compliant.
How it helps: Less worry about compliance. AI-based accounting software makes staying updated easier.
Accounting software is becoming more innovative, faster, and easier to use. In the next few years, AI, machine learning, and blockchain will help finance teams spend less on manual work and more on big-picture strategy. The future isn’t just about keeping books—it’s about staying ahead of the curve.
When selecting accounting software for your business, it's essential to address common questions to ensure the solution aligns with your operational needs and goals. Below is a curated FAQ section to assist in your decision-making process:
1. How can accounting software benefit my business?
Accounting software streamlines financial processes by automating invoicing, expense tracking, and financial reporting tasks. This automation enhances accuracy, saves time, and provides real-time insights into your company's financial health, facilitating informed decision-making.
2. What's the difference between cloud-based and desktop accounting software?
Cloud-based accounting software is accessible online, allowing you to manage finances from any device with internet access. In contrast, desktop accounting software is installed locally on your computer and typically requires that specific access device. Cloud solutions often offer advantages like automatic updates, remote accessibility, and seamless collaboration among team members.
3. Is it safe to store financial data in the cloud?
Reputable cloud-based accounting software providers implement robust security measures, including data encryption and regular backups, to protect your financial information. However, choosing a trusted provider and adhering to best practices, such as using strong passwords and enabling two-factor authentication, is crucial to enhance data security.
4. Do I need accounting knowledge to use accounting software?
Modern accounting software has user-friendly interfaces to accommodate users without extensive accounting backgrounds. While basic financial literacy is beneficial, many platforms offer tutorials and customer support to assist you in effectively managing your finances.
5. Can accounting software integrate with other business systems?
Many accounting software solutions offer integration capabilities with various business systems, such as Customer Relationship Management (CRM) platforms, Enterprise Resource Planning (ERP) systems, payment gateways, and customer support tools. These integrations facilitate seamless data flow between systems, reducing manual data entry and enhancing operational efficiency.
6. How do I choose the right accounting software for my business?
When selecting accounting software, consider factors such as the specific financial tasks you need to perform (e.g., invoicing, payroll), the number of users, required integrations with other systems, scalability to accommodate business growth and compliance with industry-specific regulations. Evaluating these aspects will help you choose a solution that aligns with your business needs.
7. Can accounting software assist with tax compliance?
Many accounting software packages include features that help manage tax compliance, such as calculating tax liabilities, generating tax reports, and ensuring adherence to current tax laws. These tools can simplify the tax filing process and reduce the risk of errors.
8. Is free accounting software sufficient for my business needs?
Free accounting software may offer basic functionalities suitable for small businesses with simple financial processes. However, as your business grows and financial operations become more complex, you might require advanced features in paid versions, such as multi-currency support, detailed financial reporting, and enhanced security measures.
9. How can I ensure the accounting software will support my business in the long term?
To ensure long-term suitability, choose scalable accounting software that offers regular updates to adapt to changing regulations and provides customization options to meet evolving business requirements. Consider the vendor's reputation and commitment to ongoing development and support.
10. Will accounting software replace the need for an accountant?
While accounting software automates many financial tasks, it doesn't entirely replace the expertise of a professional accountant. Accountants provide strategic financial advice, ensure compliance with complex regulations, and offer insights that software alone cannot deliver. Therefore, using reliable accounting software and professional accounting services is often the most effective approach.
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