7 Best Accounting Software for Medium Sized Businesses in 2024

Depending on what you’re looking for, you may find yourself overwhelmed with promising and well-priced accounting software. Some will focus on data legibility and invoicing efficiency while others will perform complex debtor analytics and pull off free reports. On the other hand, the most advanced among these tools can even figure out taxation issues and GST/VAT returns on your behalf.

That said, discovering what is the best accounting software for medium-sized businesses is not an easy task. In light of this, we’ve listed the top 7 performers in this category to make the selection process easier for you. All products mentioned here are equipped with features that accountants value most in accounting software. We also highlight some of the features that make them suited to your business’s scale. The price range of each product is included as well to ensure that you’re looking at software that’s within your budget.

Our in-depth analysis of accounting software indicates that the times when computed accounting was reserved for the largest companies are way behind us. Now, most finance management operations are performed in the cloud, accountants from small and medium-sized companies can get a grasp of digitized accounting’s benefits, and do so without installing expensive programs or undergoing cumbersome training.

This development is not going anywhere soon since it’s one of the accounting trends we can expect to dominate this new decade. To start with, off-the-shelf and cloud-hosted accounting software systems cost considerably less than they did a decade ago, carry out all regular functions, and pull off just the same balances and reports.

What is even more impressive to accountants is the degree of customization they allow, and which resembles quite closely the legacy accounting systems of the top accounting organizations in the world. The Big Four accounting/audit firms globally, which had a combined revenue exceeding 157 billion U.S. dollars in 2020, are innovative users of sophisticated accounting solutions.

This adaptation of accounting tools to leverage modern technology is projected to continue. By 2026, the estimated global market value of accounting software is $20.4 billion.

However, keep in mind that this list is catered toward medium-sized businesses. For startups and smaller companies, check out this article listing the best accounting software for small businesses instead.

1. NetSuite ERP

NetSuite ERP is one of the most popular platforms used by medium-sized businesses and has been one of the top solutions in this software category. It’s an all-in-one enterprise resource planning solution that offers value to businesses of all sizes. Finance-wise, it provides a plethora of tools including order management, fixed assets, revenue management, and billing. It also gives all users reports and KPIs that are specifically tailored to their role in the company.

NetSuite ERP

Try out NetSuite ERP with their free trial

Why is NetSuite ERP suitable for medium-sized businesses?

It offers a host of ERP management functionality. This application offers a host of features that support the needs of various departments, including operations, sales, HR, finance, etc. It also helps improve employee productivity through automation and cross-departmental system.

More efficient financial workflows. NetSuite removes the need for the slow and error-prone manual data input. Instead, through its order and billing management tool, you can streamline operations such as fulfillment, finance, and sales. This results in a more accurate quoting process and fewer billing mistakes.

It helps reduce the instances of time- and money-consuming errors. NetSuite ERP is equipped with a series of tools that increase the accuracy of data operations in order to prevent, if not eliminate, the incurrence of hefty penalties. For instance, the platform centralizes shipping, invoice, order, and customer information to ensure that all details are accurate and up-to-date.

It helps with financial planning. The system aids your company in achieving your goals through its robust financial planning module. This tool allows you to easily execute advanced project accounting thanks to its powerful database capabilities. Customizable reports and templates also provide real-time access to data needed for budgeting, forecasting, and others.

It will scale with your company’s growth. As a mid-sized business, your company has a lot of room for improvement and growth. With its fully expandable and customizable functionality, you can tweak the system to adapt to your changing requirements. This will also remove the need for you to switch software or invest in other third-party applications in order to support your growth.

How much does NetSuite ERP cost?

To avail of NetSuite ERP’s service, you can contact the vendor to get a quote that’s ideal for your company’s size and requirements.

2. Paychex

Another popular software used to simplify accounting is Paychex. This cloud-based solution brings robust payroll automation tools and services tailored specifically for medium-sized businesses. Its proprietary Paychex Flex technology allows you to automate online payroll processing and tax administration. Furthermore, it also helps keep employees involved in making sure they are paid accurately with the help of self-service tools they can utilize using the mobile app.

Paychex is fully integrated with a time-tracking and HR solution, which further streamlines your business’ accounting process. As for third-party integrations, Paychex API allows you to seamlessly connect with your existing software systems.

Paychex

Try out Paychex with their free trial

Why is Paychex suitable for medium-sized businesses?

Scalable solution. Paychex is designed to grow with your business. It offers flexible payroll bundle options that you can tailor specifically not only to your current needs but also according to your goals and requirements.

Efficient payroll tax administration. Taxpay, Paychex’s tax administration tool, automates payroll tax calculation, payment, as well as filing of payroll taxes with the right tax agencies.

Promotes employee engagement. Paychex recognizes the critical role of employee participation in improving the efficiency of different business processes. In this case, Paychex’s employee self-service function saves accounting and HR staff more time as they no longer have to spend hours on the administrative tasks of updating and completing personal information, banking and tax details, and more.

Advanced reporting and analytics capabilities. Get deeper insights into your payroll, employee benefits, and HR with the help of more than 160 standard report templates, or create your own with customizable datasets and data filtering options.

Multiple employee payment options. You can pay your employees via direct bank deposit, checks, and prepaid cards.

How much does Paychex cost?

Paychex has three levels of subscription plans with Paychex Flex Essentials, the most affordable package, priced at $39 per month. Paychex Flex Select and Paychex Flex Pro, on the other hand, are both quote-based plans.

3. Gusto

Gusto is a feature-rich accounting solution designed to streamline payroll processes, budgeting, and financial management tasks. Made for businesses of all scales, the platform offers a wide range of tools to ease all the financial-related tasks that go into payroll management. From calculating each employee’s salary to ensuring tax compliance, Gusto provides notable features such as time tracking, financial reporting, automated payroll calculation, and employee benefits.

With its robust feature offerings, the platform enables accounting and HR departments to collaborate, streamline their workflows, and receive real-time financial insights. Furthermore, Gusto integrates with many widely-used applications. This means data can easily be migrated and processed from one software to another, thus simplifying and speeding up work. It integrates with top accounting platforms like Quickbooks, Xero, Freshbooks, and more.

Why is Gusto suitable for medium-sized businesses?

Efficient payroll processes. Gusto turns what used to be a cumbersome process into a convenient one with its wide range of payroll features. It lets you set payroll schedules, automatically file taxes, calculate deductions, and more. The platform also allows you to automate the calculation of employee rates, hours, and expenses.

Intuitive time tracking. The platform is equipped with a built-in time tracker that lets you monitor the duration of projects, tasks, pay items, and labor code entries. Applying paid-time-off policies and paid holidays to payroll calculations are also easy since the timesheets are customizable.

Effective project tracking. Tasks and budgets can be promptly monitored through Gusto’s project tracking tools. The platform lets you assign hours to projects and allow employees to track the number of hours that they spend working on them. What’s more, Gusto generates workforce cost reports to help you better understand your productivity and profit per employee.

Valuable workforce insights. Besides helping managers track tasks and projects, Gusto also provides talent management tools for conducting performance evaluations and career development programs. This helps businesses motivate, nurture, and retain a talented and skilled workforce.

Convenient tax filing. Gusto provides a variety of tax compliance features so you can automatically file taxes and avoid costly penalties from the government. The platform also keeps track of changing tax laws to ensure that your business remains tax-compliant at all times.

How much does Gusto cost?

Gusto comes with three reasonably priced packages, starting with the Simple plan which costs $40 per month and contains basic functionalities. The highest-tiered plan, Premium, on the other hand, is only available by quote and includes all the software’s features and premium support.

4. QuickBooks Online

QuickBooks Online is a cloud-based accounting solution created for small businesses, independent firms, and freelancers. By combining all essential accounting tools in a single platform, this application helps small businesses simplify tedious and time-consuming accounting and financial management routines, thus saving more time to prioritize more urgent tasks. Its features include automated data collection, tax calculations, invoice management, expense tracking, balance sheet reporting, sales monitoring, bill management, and more. Quickbooks Online is also available on multiple devices, which allows for more mobility.

Why is QuickBooks Online suitable for medium-sized businesses?

All-in-one platform. QuickBooks Online is designed to offer all essential accounting tools in a single platform, including profit and loss reporting, invoice customization, bill payments, and more.

Automated data collection. This accounting solution allows you to automate your data collection process, which ensures that your financial information is always up to date.

Auto-sync with your devices. QuickBooks Online supports multiple devices and is equipped with automatic data synchronization capabilities, which allows you to access your accounting and finance related data, tasks, reports, and more from your preferred device.

Customized reporting. This application allows you to generate reports based on your preferred data visualizations in order to make it easier for you to get insights into your financial data.

Enhanced data protection. With QuickBooks Online, all confidential data that enters your accounting system on a daily basis will be protected by your choice of intuitive data security feature.

How much does QuickBooks Online cost?

Built for small businesses, QuickBooks Online offers affordable pricing plans, which starts at $10.00/month.

5. Tipalti Approve

Tipalti Approve is a full-featured procurement system that enables businesses to track and manage their expenditures. Integrating with a host of reliable HR, SSO, and ERP systems, the platform enables managers to create and configure approval workflows to streamline the process. Purchase orders are automatically generated and updated when requests have been signed off. Complimenting the POs is a “Goods Received” feature that confirms that the ordered products are in the right hands. All the data is synced in real-time to minimize work on your end.

Besides streamlining the procurement process, Tipalti Approve has a solution for quick vendor onboarding. Furnishing self-served onboarding wizards, the platform can be used to map out the vendor approval process and centralize the documents and information related to each vendor. It also consolidates communications within request forms so you can keep track of every detail. Moreover, the system generates detailed reports on the dashboards with which you can track every activity in your spend pipeline. Tipalti Approve integrates with widely used apps like NetSuite, Slack, and Google, and is bolstered by enterprise-grade security.

Why is Tipalti Approve suitable for medium-sized businesses?

Streamlined workflows. Tipalti Approve features a comprehensive suite of tools for streamlining the entire approval process. The flows account for all the parties involved, including those from different departments, company mandates, and budgets. Since the system is integrated, changes to HR and SSO data are automatically reflected on the platform. All the data is synced in real-time.

Flexible request forms. Tipalti Approve is equipped with forms that can be styled to suit any type of order or subscription. They can account for various departments, offices, and locations. In addition, the system populates a table that documents all purchases.

Seamless vendor onboarding. Collaborations with new vendors are made easy by Tipalti Approve’s self-service onboarding wizards. You can also incorporate it with an existing workflow or create a new one involving AP. The platform also centralizes vendor information so you can easily place and track orders. Moreover, conversations between stakeholders are confined within request forms to make them easy to track.

Automated purchase orders. Signed-off requests can be set to automatically generate purchase orders on the system, which promotes convenience and saves you time. This also reduces the likelihood of human errors.  The platform can also automatically trigger emails sent to specific parties.

Duplicate requests. Tipalti Approve lets you consolidate and schedule recurring orders so that you won’t have to enter information for every transaction. It also has a feature that notifies concerned parties when an order has been received.

How much does Tipalti Approve cost?

Tipalti Approve’s pricing is quote-based. Contact the vendor directly for custom pricing.

6. AvidXchange

Invoice management and accounts payable automation software AvidXchange is a solution that is worth considering for a medium-sized business. It not only streamlines transactions but also allows you to accelerate processes with its workflow automation, bank reconciliation, and spend management functionalities. It also has a built-in supplier portal that will allow you to pay your vendors faster.

Why is AvidXchange suitable for medium-sized businesses?

Invoice management. With AvidXchange, businesses can make sure that no invoice falls through the cracks.

Fraud detection. The solution comes with security and fraud detection features to ensure your business’ financial security.

Purchase order automation. The platform can ensure that you never run out of materials for your operations by automating purchase orders according to your company policies.

Approval workflow automation. The process of reviewing and approving new transactions is easier with AvidXchange as it automates the whole process according to your unique rules.

Automated payments. AvidXchange comes equipped with pay services so you can easily pay bills from within the platform. This convenient feature also makes AvidXchange one of the best accounting software for small business to consider.

How much does AvidXchange cost?

AvidXchange is only available by quote. If you are interested, you can contact the vendor for more details.

7. FreshBooks

FreshBooks is a fast and robust accounting solution that can make complex financial management more enjoyable without compromising accuracy and compliance. This means that tasks such as the creation of professional-looking invoices can be done even without prior accounting experience since it’s only a few clicks away. There are online payment features as well that will help you and your team get paid faster. Moreover, its seamless integration with a series of external applications means that you can enjoy not only the system’s core functionalities but the extended ones as well.

Why is FreshBooks suitable for medium-sized businesses?

It has a host of accounting functions. FreshBooks is equipped with more than enough accounting functions for mid-sized businesses. This includes time tracking, billing history, invoice-to-payment, automated billing, and reporting capabilities.

Its pricing plan is SMB-friendly. One look at its pricing scheme and it’s quite obvious that FreshBooks targets small and mid-sized businesses. Packages offered are flexible, full-featured, and only differ in the number of clients. Plus, they have a 30-day free trial that will allow you to thoroughly test the system’s compatibility with your business.

It offers rich integration support. FreshBooks can integrate with a myriad of third-party solutions for a more streamlined workflow. This includes payment solutions, CRM systems, and live chat applications. This lessens the chance of needing to switch to other solutions that the system can work well with.

It’s available on mobile. The system’s mobile app for iOS and Android will ensure that you can do your finance-related activities even on the go. This means that even if you’re away, you can still communicate with your clients or personnel, be on the loop of important things, manage expenses, and more.

It’s easy to deploy and rebrand. The system won’t demand a dedicated IT team to be set up properly as it’s an easy-to-deploy solution that even freelancers can handle. It also allows you to modify various aspects of its design including the colors and logos so that the app could truly reflect your brand.

How much does FreshBooks cost?

FreshBooks is available in three pricing schemes that start at $15 per month. Each plan provides an identical range of functionalities with the main difference being the number of active clients to bill. There’s a free trial included as well.

Honorable Mention: Zoho Books

Zoho Books is a reputed member of the company’s ultra-successful productivity suite, exclusively designed to meet the needs of growing businesses. Generally, it can be described as an intuitive accounting solution designed for small businesses to handle their finances and to remain on top of their cash flow. It is very simple, easy-to-use, and able to help you make intelligent data-based decisions. It is also the pioneer accounting product of a reputed software provider, which eliminates all worries related to uptime, support, or security. Other highlights of this system are its numerous integrations, and the lowest pricing scheme discussed on this list.

Why is Zoho Books suitable for medium-sized businesses?

It automates bank feeds to save time and money. The distinctive advantage of Zoho Books is how it eliminates data entry, and allows you to import all bank and credit card transactions, and categorize those according to your bank’s rules. This possibility doesn’t only save time, but makes sure you’re working safely, and in line with all compliance standards.

It helps you bring more customers on board. Zoho Books enables end users to access their estimates and invoices, and make direct payments using the robust online client portal. Another handy possibility for your clients is to accept/decline their estimates, and to comment on them. In this way, the company will benefit from a more credible service and better reputation.

It facilitates and accelerates payment reconciliation. Zoho Books is tightly integrated with Stripe in order to reconcile each type of transaction, looking at the full picture of how money are moving in and out of the clearing account, and which processing fees are going to apply for it.

It eliminates all collaboration obstacles between sales and accounting teams. Thanks to the fact that Zoho Books is integrated with Zoho CRM, you can also use it to follow the credit statuses of your customers, create new orders, access product pricing information, and much more.

It operates in several languages. Growing businesses looking to expand their operations in other countries should also consider Zoho Books, as the system is available in English, German, Spanish, French, Italian, Dutch, Portuguese, Swedish, Chinese, Brazilian, and Japanese.

How much does Zoho Books cost?

Zoho Books is predominantly designed for small and medium businesses, which is why it offers one of the lowest and most flexible pricing schemes. The lowest plan is the Basic one ($10/month for 1 user and 25 contacts), while the highest is the Professional Plan ($29/month for unlimited contacts, users, and inventory management).

How can you choose the right accounting software for your industry?

Selecting accounting software that aligns with your industry’s unique requirements can greatly enhance its effectiveness and usability. While many solutions offer general accounting functions, industry-specific needs can vary significantly, from inventory management in retail to project tracking in construction. Here are key considerations for choosing accounting software tailored to your industry:

• Identify Industry-Specific Features
  Look for software that offers features specifically suited to your industry. For example, manufacturing companies might need robust inventory tracking, while nonprofits may require specialized reporting for fund tracking and grant management.
• Evaluate Compliance Requirements
  Many industries, such as healthcare and finance, have stringent regulatory requirements. Choose software that helps with compliance, including tax filing support, audit trails, and secure data management to meet industry standards.
• Assess Integration Capabilities
  Consider software that easily integrates with other essential tools used in your industry. For instance, real estate businesses may benefit from software that integrates with CRM systems, while e-commerce might need seamless integration with inventory and sales platforms.
• Look for Scalability Options
  Industries with seasonal fluctuations or growth potential, such as retail and hospitality, need scalable solutions that can adjust to changing business volumes without disrupting operations.
• Consider Multi-Location Support
  For industries operating across multiple locations or countries, select accounting software that offers multi-entity support, currency management, and localization features to streamline finances across all branches.

Don’t Base Your Accounting Software Choice Purely on Budget

Since this selection of products is handpicked for medium-sized businesses, you can be quite certain that the packages they offer are tailored to your scale. Therefore, it’s advisable to base your search on features that are most suited to your company’s needs and specs instead.

Zoho Books, for instance, provides excellent insights to assist you with your business decisions. If you want to streamline accounting processes, Freshbooks can be an excellent choice, while Tipalti has global compliance and regulatory requirements that help prevent issues with regulatory rules.

As our top pick, NetSuite ERP is a very comprehensive solution that can cover more than just you’re accounting needs. We recommend that you give it a go if you still haven’t decided on which software to choose. After all, it offers a no-risk free trial that you can immediately give a try.

Key Insights

• NetSuite ERP: Highly suitable for medium-sized businesses due to its extensive ERP management functionality, streamlined financial workflows, error reduction tools, robust financial planning, and scalability. Pricing is available on request.
• Paychex: Offers scalable payroll solutions, efficient payroll tax administration, employee engagement tools, advanced reporting, and multiple payment options. Pricing starts at $39 per month with higher tiers available by quote.
• Gusto: Known for efficient payroll processes, intuitive time tracking, effective project tracking, valuable workforce insights, and convenient tax filing. Pricing starts at $40 per month.
• QuickBooks Online: A comprehensive cloud-based accounting solution ideal for small businesses, offering automated data collection, customized reporting, enhanced data protection, and multi-device support. Pricing starts at $10 per month.
• Tipalti Approve: Features streamlined workflows, flexible request forms, seamless vendor onboarding, automated purchase orders, and recurring order management. Pricing is quote-based.
• AvidXchange: Offers invoice management, fraud detection, purchase order automation, approval workflow automation, and automated payments. Pricing is quote-based.
• FreshBooks: Provides a host of accounting functions, SMB-friendly pricing plans, rich integration support, mobile availability, and easy deployment and rebranding. Pricing starts at $15 per month.
• Zoho Books: Automates bank feeds, facilitates customer onboarding, accelerates payment reconciliation, integrates with Zoho CRM, and operates in multiple languages. Pricing starts at $10 per month.

FAQ

1. What is the best accounting software for medium-sized businesses? NetSuite ERP is highly recommended for medium-sized businesses due to its extensive functionality and scalability, allowing it to support various departments and streamline financial workflows.
2. How does Paychex help with payroll tax administration? Paychex’s Taxpay tool automates payroll tax calculations, payments, and filings with the appropriate tax agencies, ensuring compliance and reducing manual effort.
3. What features does Gusto offer for project tracking? Gusto provides project tracking tools that allow you to monitor hours spent on projects, assign hours to tasks, and generate workforce cost reports for better productivity insights.
4. Can QuickBooks Online be accessed on multiple devices? Yes, QuickBooks Online supports multiple devices and offers automatic data synchronization, allowing you to access your accounting data from anywhere.
5. How does Tipalti Approve streamline the vendor onboarding process? Tipalti Approve offers self-service onboarding wizards, centralizes vendor information, and integrates with existing workflows, making it easy to manage and track vendor relationships.
6. What security features does AvidXchange provide? AvidXchange includes fraud detection and security features to ensure the financial security of your business, along with automated invoice and purchase order management.
7. Is FreshBooks suitable for businesses with remote teams? Yes, FreshBooks offers a mobile app for iOS and Android, allowing remote teams to manage finance-related activities, communicate with clients, and stay updated on important tasks on the go.
8. What languages does Zoho Books support? Zoho Books operates in multiple languages including English, German, Spanish, French, Italian, Dutch, Portuguese, Swedish, Chinese, Brazilian, and Japanese, making it suitable for businesses expanding globally.

By Daniel Epstein

Daniel Epstein is a senior financial research analyst at FinancesOnline and the architect behind our Fintech and ERP content division. His main areas of expertise are blockchain technologies, cryptocurrencies, and the use of biometrics in fintech solutions. His work has been frequently quoted by such publications as Forbes, USA Today, Entrepreneur, and LA Times. With more than 1,800 solutions scrutinized in the last 5 years spent on our team he always prioritized offering readers an unbiased perspective on modern financial technologies.