21 Best Accounting Software For Service Companies Reviewed In 2024
Best Accounting Software for Service Companies Shortlist
Here's my pick of the 10 best software from the 21 tools reviewed.
Our one-on-one guidance will help you find the perfect fit.
Choosing the best accounting software for service companies is vital to streamline financial management, track expenses, and boost overall efficiency. However, with so many options available, it can seem nearly impossible to find the best solution for your team.
To help businesses get started in their search, I used my experience in financial software and accounting processes to test and compare the top tools on the market. My in-depth reviews look at the features, pricing, and ease of use of each of the best accounting software solutions tailored for service companies.
Whether you’re a small business or a growing enterprise, this guide will help you find the right software to simplify your accounting processes.
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Best Accounting Software for Service Companies Summary
| Tools | Price | |
|---|---|---|
| Zoho Books | From $15/user/month (billed annually) | Website |
| Nimble | From $24.90/user/month (billed annually) | Website |
| SAP Business One | Pricing upon request | Website |
| BlackLine | Pricing upon request | Website |
| Acumatica | Pricing upon request | Website |
| myBillBook | From ₹217/user/month (billed annually) | Website |
| ZarMoney | From $20/month (up to 2 users, then $10/additional user/month) | Website |
| Wave | From $14/month | Website |
| Microsoft Dynamics 365 Business Central | From $110/5 users/month (billed annually) + a $4,500 implementation fee | Website |
| MarginEdge | Pricing upon request | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose Accounting Software for Service Companies
As you work through your own unique software selection process, keep the following points in mind:
- Scalability and Growth Prospects: When selecting accounting software, it's important to consider whether the software can grow with your business. Your chosen solution should be able to handle an increasing number of transactions, clients, and projects without requiring a complete overhaul.
- Industry-Specific Features and Customization: Choose an accounting software that offers industry-specific features or can be customized to fit your specific workflows. This ensures that the software can handle the unique aspects of your business, such as project-based revenue recognition and resource allocation.
- Integration with Other Business Tools: Efficiency in service companies often hinges on the ability of accounting software to integrate easily with other tools used in the business. The accounting software should integrate with these systems to ensure a smooth flow of data and reduce manual data entry.
- User-Friendliness and Training Requirements: The ease of use of accounting software is a significant consideration, especially for service companies that may not have dedicated accounting staff. The software should have an intuitive interface that can be easily adopted by all team members. Additionally, consider the training requirements. Some software solutions offer extensive tutorials, user guides, and customer support to help new users get up to speed quickly.
- Security and Data Protection: Service companies handle sensitive client information, making data security a top priority. Ensure that the accounting software follows industry best practices for data protection, such as data encryption, access controls, and regular software updates. Additionally, consider the software's compliance with relevant tax and accounting regulations to avoid legal issues.
Best Accounting Software for Service Companies Reviews
This in-depth analysis provides overviews of each accounting software tailored for service companies. Below, I will walk you through the pros and cons of each tool, their features, and their best use cases.
Zoho Books is an online accounting software designed to manage your finances, automate business workflows, and help you work collectively across departments.
Why I picked Zoho Books: Zoho Books offers an all-in-one platform that covers invoicing, expense tracking, tax management, and project billing. With advanced automation features and seamless integration with other Zoho apps, it streamlines accounting processes while providing real-time insights into your business’s financial health.
Standout features & integrations:
Features include invoicing, expense tracking, project management, and inventory management.
Integrations include Zoho CRM, PayPal, Stripe, G Suite, Microsoft Office 365, Slack, Zapier, Mailchimp, Shopify, and Square.
Pros and cons
Pros:
- User-friendly interface
- Strong integrations
- Comprehensive feature set
Cons:
- Limited third-party integrations
- Limited customization options
Nimble is a cloud-based hotel accounting software designed for the hospitality industry, offering advanced solutions for bookkeeping, accounting, and operations management.
Why I picked Nimble: Nimble provides a specialized focus on the hospitality industry, which sets it apart from other accounting software. It handles multiple properties and provides real-time data access with ease, offering tailored features that address the unique challenges of the hospitality sector. Additionally, its ability to expand upon relationship management helps service-based businesses nurture client interactions while staying on top of financial health.
Standout features & integrations:
Features include automation of complex accounting tasks like financial reporting and bank reconciliation, a centralized dashboard for managing multiple properties, and business intelligence tools for insightful performance statistics.
Integrations include QuickBooks, Xero, Sage, Oracle, SAP, Microsoft Dynamics, ADP, Paychex, Stripe, and Square.
Pros and cons
Pros:
- Centralized management
- Real-time data access
- User-friendly interface
Cons:
- Requires internet access
- Limited to hospitality industry
SAP Business One is an ERP solution designed for small and midsized companies, offering a range of features including accounting, financials, purchasing, inventory, sales, customer relationships, reporting, and analytics.
Why I picked SAP Business One: SAP Business One provides advanced ERP capabilities tailored specifically for small and midsized businesses. It offers extensive customization options and can be deployed both on-premise and in the cloud, making it versatile for different business needs. Additionally, the software’s real-time data insights make it particularly valuable for service-based industries seeking detailed financial control and analysis.
Standout features & integrations:
Features include real-time analytics, integrated business intelligence, and quick deployment options.
Integrations include SAP HANA, Microsoft Excel, Microsoft Outlook, Shopify, Magento, WooCommerce, Salesforce, QuickBooks, PayPal, and Stripe.
Pros and cons
Pros:
- Real-time analytics
- Customizable and scalable
- Comprehensive ERP solution
Cons:
- Higher learning curve
- Complex setup
Blackline offers financial operations solutions for businesses, focusing on accuracy, efficiency, and intelligence. It provides an advanced approach to digital finance transformation, which includes automation, real-time visibility, and robust security features.
Why I picked Blackline: Blackline stands out with its unified cloud platform and extensive integration capabilities, which are important for modernizing financial operations. The software's focus on future-ready financial operations makes it ideal for companies looking to streamline and automate their accounting processes.
Standout features & integrations:
Features include financial close automation, intercompany streamlining, invoice-to-cash optimization, and consolidation and financial analytics.
Integrations include SAP, NetSuite, Oracle, Microsoft Dynamics, Acumatica, Sage, Workday, Coupa, Salesforce, and QuickBooks.
Pros and cons
Pros:
- Extensive integrations
- Robust security
- Real-time visibility
Cons:
- Complex setup
- Limited customization flexibility
Acumatica is a cloud-based ERP business management system designed to meet the needs of mid-market companies. It excels due to its flexible deployment options, modern licensing, and high customer satisfaction ratings.
Why I picked Acumatica: Acumatica offers flexible cloud-based financial management tools that scale with growing businesses. Its strong project accounting features, including time and expense tracking, contract management, and billing automation, make it ideal for service-oriented companies. Additionally, Acumatica’s seamless integration with CRM and ERP modules enhances overall business efficiency.
Standout features & integrations:
Features include real-time business insights, automated processes via AI and machine learning, and a single source of truth for financial data. Acumatica also offers mobile access, unlimited users, and international capabilities.
Integrations include Amazon, BigCommerce, Shopify, Microsoft Dynamics 365, QuickBooks, NetSuite, Sage, Salesforce, HubSpot, and Avalara.
Pros and cons
Pros:
- High customer satisfaction
- Automated processes
- Real-time insights
Cons:
- Requires inital setup
- Complex implementation process
myBillBook is a GST billing and business management software designed for small and medium-sized businesses in India.
Why I picked myBillBook: myBillBook is known for its specialized focus on GST billing and invoicing, which is vital for Indian service companies. It offers features tailored for Indian businesses, such as GST-compliant invoicing, filing, and reporting, while also providing support for inventory management and expense tracking, making it a comprehensive solution for small and medium enterprises.
Standout features & integrations:
Features include customizable invoices, inventory management, e-invoicing, e-way billing, and online marketing tools.
Integrations include Tally, WhatsApp, Google Drive, Paytm, Razorpay, Amazon, Flipkart, Shopify, Zoho CRM, and QuickBooks.
Pros and cons
Pros:
- Inventory management
- GST compliance
- Customizable invoices
Cons:
- Limited to Indian market
- Steep learning curve
ZarMoney is an all-in-one accounting, invoicing, and inventory solution designed for various industries, including service companies. It combines advanced financial management with strong inventory tracking capabilities to help companies improve their economic health.
Why I picked ZarMoney: ZarMoney offers a unique combination of accounting and inventory management features, which are essential for service companies that also handle physical goods. The software’s ability to integrate multiple financial and operational functions into a single platform make it highly versatile and efficient for service-oriented businesses.
Standout features & integrations:
Features include advanced inventory management, online payments, and automated sales tax calculation. ZarMoney offers complete visibility into global inventory, supports multiple locations and warehouses, and enables predictive analysis to reduce overstocks and out-of-stocks.
Integrations include QuickBooks, PayPal, Stripe, Shopify, Amazon, eBay, WooCommerce, Square, Xero, and FreshBooks.
Pros and cons
Pros:
- User-friendly interface
- Advanced inventory management
- Comprehensive feature set
Cons:
- Lacks advanced inventory management features
- Limited customization options
Wave is a small business accounting software designed for service companies. It stands out due to its advanced suite of features available at no cost, making it accessible for startups and small businesses.
Why I picked Wave: Wave is the best free accounting software for small businesses because it offers essential financial tools like invoicing, expense tracking, and basic reporting without any subscription fees. Its user-friendly interface makes it accessible for business owners with minimal accounting experience, while still providing essential features like bank connections and receipt scanning. This makes Wave a great option for small businesses on a tight budget looking for a comprehensive, no-cost solution.
Standout features & integrations:
Features include invoicing, payments, banking, payroll, and access to advisors. Wave’s smart dashboard organizes income, expenses, payments, and invoices, making tax time simpler. It also offers unlimited bank and credit card connections, allowing automatic transaction imports.
Integrations include PayPal, Etsy, Shoeboxed, Zapier, Google Sheets, Slack, HubSpot, Mailchimp, Stripe, and QuickBooks.
Pros and cons
Pros:
- Easy to use
- Comprehensive features
- Digestible financial tools
Cons:
- No inventory management
- Limited customer support
Microsoft Dynamics 365 Business Central is an advanced business management solution designed for small to medium-sized businesses. It integrates various business processes into one unified system.
Why I picked Microsoft Dynamics 365 Business Central: Microsoft Dynamics 365 Business Central helps users unify multiple business processes, from financial management to supply chain operations, in a single platform. This integration is particularly beneficial for service companies that need to streamline their operations and improve efficiency. Additionally, the software’s seamless integration with other Microsoft products and customizable workflows makes it ideal for service-oriented businesses needing advanced, scalable solutions.
Standout features & integrations:
Features include financial management, project management, sales and service management, supply chain management, and reporting and analytics.
Integrations include Microsoft Office 365, Power BI, Azure, LinkedIn, Shopify, QuickBooks, Salesforce, PayPal, and Google Analytics.
Pros and cons
Pros:
- Scalable for growing businesses
- Strong integration capabilities
- Comprehensive business management
Cons:
- Complex setup
- Requires extensive customization for specific needs
MarginEdge is a restaurant management software that offers comprehensive solutions for cost control and operational efficiency. It excels due to its ability to streamline back-office processes and provide real-time insights into food costs, inventory, and menu analysis.
Why I picked MarginEdge: MarginEdge stands out as a specialized tool designed specifically for the restaurant industry. Unlike general accounting software, MarginEdge offers features tailored to the unique needs of restaurant management, such as automated invoice processing and real-time food cost tracking. Overall, it provides a holistic solution that covers everything from inventory management to menu analysis, helping restaurant owners make informed decisions.
Standout features & integrations:
Features include automated invoice processing, real-time food cost tracking, and comprehensive menu analysis.
Integrations include QuickBooks, Xero, Sage Intacct, Restaurant365, Toast, Square, Upserve, Aloha, Micros, and Revel.
Pros and cons
Pros:
- Comprehensive menu analysis
- Real-time food cost tracking
- Automated invoice processing
Cons:
- Limited to restaurant industry
- Occasional data sync issues
Other Accounting Software for Service Companies
Below is a list of additional accounting software for service companies that I shortlisted. While they didn’t make the top 10, they’re still valuable and worth further research.
- Kashoo
Best for simple accounting for small businesses
- Melio
Best for flexible business bill payments
- FreshBooks
Best for invoicing and expense tracking
- Vena
Best for financial reporting and analysis
- Brightpearl
Best for inventory management
- Plooto
Best for automated payment processing
- SYSPRO
Best for manufacturing and distribution features
- Odoo
Best for open-source customization
- NetSuite Cloud Accounting Software
Best for scalability for growing businesses
- Sage Accounting
Best for multi-currency support
- QuickBooks
Best for integration with third-party apps
Related Accounting Software Reviews
If you still haven't found what you're looking for here, check out these tools closely related to accounting software that we've tested and evaluated.
- ERP Software
- POS Systems
- Billing Software
- Forecasting Software
- Merchant Account Services
- Expense Report Software
Accounting Software for Service Companies Selection Criteria
The criteria for choosing an accounting software for service companies should directly address buyer needs and common pain points, ensuring that the software serves its intended purpose effectively. As an expert who has personally tried and researched these tools, here are the requirements I use when evaluating software:
Core Functionality - 25% of total weighting score:
- Invoicing and billing
- Expense tracking
- Payroll management
- Financial reporting
- Project accounting
Additional Standout Features - 25% of total weighting score:
- Integration with third-party applications
- Customizable dashboards
- Advanced analytics and reporting
- Mobile accessibility
- Automation of repetitive tasks
Usability - 10% of total weighting score:
- Intuitive user interface
- Drag-and-drop functionality
- Customizable workflows
- Role-based access control
- Easy navigation
Onboarding - 10% of total weighting score:
- Availability of training videos
- Interactive product tours
- Chatbots for instant support
- Webinars for in-depth training
- Pre-built templates for quick setup
Customer Support - 10% of total weighting score:
- 24/7 customer service availability
- Multi-channel support (phone, email, chat)
- Dedicated account managers
- Comprehensive help center
- Fast response times
Value For Money - 10% of total weighting score:
- Transparent pricing models
- Flexible subscription plans
- Free trial periods
- Discounts for long-term commitments
- Cost-benefit analysis
Customer Reviews - 10% of total weighting score:
- Overall satisfaction ratings
- Feedback on ease of use
- Comments on customer support quality
- Reviews on feature effectiveness
- User testimonials on value for money
Trends in Accounting Software for Service Companies
Here are some trends I’ve noticed for accounting software for service companies, plus what they might mean for the future. I sourced countless product updates, press releases, and release logs to tease out the most important insights.
- AI-Powered Automation: AI is automating routine accounting tasks. This reduces human error and frees up time for strategic activities, making it increasingly important for improving efficiency.
- Blockchain Integration: Blockchain ensures secure and transparent transactions, while also helping in reducing fraud and enhancing trust.
- Cloud-Based Solutions: Cloud-based accounting software offers real-time access to financial data. It supports remote work and collaboration, which is vital for flexibility and scalability.
- Advanced Analytics: Advanced analytics provide deeper insights into financial performance. They help in making data-driven decisions, making it important for staying competitive.
- Mobile Accessibility: Mobile-friendly accounting software allows access on the go. It supports quick decision-making and improves productivity. This trend is essential for modern business operations.
As service companies continue to evolve, accounting software is adapting to meet their unique needs with trends like increased automation, cloud-based solutions, and advanced analytics. Staying updated with these trends can help service companies choose the right software to drive efficiency, scalability, and long-term growth.
What Is Accounting Software for Service Companies?
Accounting software is a digital tool that helps businesses manage and automate various financial processes such as bookkeeping, invoicing, payroll, and tax management. When built for service companies, accounting software is designed to meet the unique needs of businesses that provide services rather than physical products. These solutions typically offer features such as invoicing, time and expense tracking, project-based billing, and financial reporting.
Common users include accountants, financial managers, and business owners who need to maintain accurate financial records, ensure compliance with tax regulations, and make informed financial decisions.
Features of Accounting Software for Service Companies
Choosing the right accounting software is important for service companies to manage their finances efficiently and effectively. Below, I will outline the most important features to look for in accounting software for service companies.
- Core Accounting Functions: Core accounting functions such as general ledger, accounts payable, and accounts receivable are essential. These features help in tracking revenue, expenses, and cash flow, which are fundamental for any business.
- Invoicing and Billing: Automated invoicing and billing capabilities are vital. This feature ensures timely and accurate billing, which is essential for maintaining healthy cash flow and client relationships.
- Time Tracking: This feature is important for service companies that bill clients based on hours worked. It helps in accurately tracking billable hours and ensures that all time spent on client projects is accounted for.
- Project Accounting: This allows businesses to track revenue and expenses on a project basis. It’s particularly important for companies that undertake project-based work, as it helps in monitoring project profitability and progress.
- Expense Management: These capabilities help in tracking and categorizing business expenses. It’s essential for controlling costs and maintaining profitability.
- Financial Reporting and Analytics: Strong financial reporting and analytics tools are necessary for gaining insights into the business's financial health. These tools help in making informed business decisions and identifying areas for improvement.
- Integration with Other Business Tools: Integration capabilities with other business tools such as CRM, project management, and payroll systems are important. This ensures an easy flow of data and reduces manual data entry, enhancing overall efficiency.
- Mobile Accessibility: Mobile support allows staff to access financial data on the go. This feature is particularly useful for businesses with remote or mobile employees, ensuring they can manage their workflow from anywhere.
- Compliance and Tax Management: Tax management features help in ensuring compliance with local, national, and international tax regulations. This feature is crucial for avoiding penalties and legal issues.
- Scalability: This feature is important for growing businesses. The software should be able to handle an increasing number of clients, projects, and transactions without requiring frequent upgrades.
Selecting the right accounting software for a service company involves considering features that cater to the unique needs of the business. By choosing software that includes these features, service companies can streamline their financial processes, improve accuracy, and gain valuable insights into their business operations.
Benefits of Accounting Software for Service Companies
Accounting software offers a range of benefits that can streamline financial processes, enhance accuracy, and provide valuable insights into a company's financial health. Below are some of the primary benefits you may experience while using an accounting software for service companies:
- Automation of Financial Processes: By automating routine financial tasks such as invoicing, payroll, and bank reconciliations, accounting software reduces the time and effort required for manual data entry, allowing employees to focus on more strategic activities.
- Real-Time Financial Insights: Accounting software provides up-to-date financial data, enabling businesses to monitor cash flow, track expenses, and analyze revenue trends in real-time. This helps in making informed decisions quickly and accurately.
- Improved Accuracy and Compliance: Automated data entry and integrated compliance features minimize the risk of human errors and ensure that financial records adhere to regulatory standards. This reduces the likelihood of costly mistakes and penalties.
- Enhanced Reporting and Analytics: With strong reporting and analytics capabilities, accounting software allows businesses to generate detailed financial reports, track key performance indicators, and gain insights into profitability and operational efficiency. This supports better strategic planning and decision-making.
- Scalability and Flexibility: Most accounting software solutions are scalable, meaning they can grow with your business. They offer customizable features and modules that can be tailored to meet the specific needs of service companies, ensuring that the software remains relevant as the business evolves.
Implementing accounting software can significantly improve the efficiency and accuracy of financial management in service companies. By automating routine tasks, providing real-time insights, ensuring compliance, enhancing reporting capabilities, and offering scalability, accounting software empowers businesses to focus on growth and strategic initiatives.
Costs & Pricing of Accounting Software for Service Companies
This section provides an estimate of average accounting software plans and costs for service companies. The data is based on various pricing guides and reports.
Plan Comparison Table for Accounting Software for Service Companies
| Plan Type | Average Price | Common Features |
| Free Plan | $0 | Basic invoicing, expense tracking, receipt scanning, and limited reporting |
| Personal Plan | $10 - $30 per month | Invoicing, expense tracking, basic financial reporting, and bank reconciliation |
| Business Plan | $30 - $100 per month | Advanced invoicing, multi-user support, inventory management, and payroll processing |
| Enterprise Plan | $100 - $300+ per month | Customizable reporting, advanced security, integration with other business apps, and multi-currency support |
When considering the cost and pricing of accounting software for service companies, it’s essential to balance functionality with budget. Be sure to evaluate free trials or demos to ensure the software meets your company’s specific requirements before committing to a long-term plan.
Accounting Software for Service Companies FAQs
Here are some answers to frequently asked questions you may have about Accounting Software for Service Companies and how it works.
How can accounting software help with project-based billing?
Accounting software designed for service companies often includes features that facilitate project-based billing. This allows businesses to track time and expenses associated with specific projects and generate invoices accordingly. The software can automatically calculate billable hours, apply the correct rates, and even handle different billing methods such as fixed-price or time-and-materials. This ensures accurate and timely invoicing, which can improve cash flow and client satisfaction.
How can accounting software improve cash flow management?
Effective cash flow management is critical for service companies, and accounting software can play a significant role in this area. The software can provide real-time insights into your cash flow, helping you identify potential issues before they become problems. Features like automated invoicing, payment reminders, and expense tracking can help ensure timely payments and reduce outstanding receivables. Some software also offers cash flow forecasting tools, allowing you to plan for future financial needs.
Is it possible to customize reports in accounting software for service companies?
Most accounting software solutions offer customizable reporting features, allowing service companies to generate reports that meet their specific needs. You can often choose from a variety of templates and customize them with different data fields, filters, and formats. This flexibility enables you to create detailed financial reports, project profitability analyses, and other critical documents that provide valuable insights into your business performance.
What should I consider when migrating to new accounting software?
Migrating to new accounting software requires careful planning to ensure a smooth transition. Start by evaluating your current processes and identifying any pain points that the new software should address. It’s also important to back up your existing data and ensure that it can be imported into the new system. Training your team on the new software is crucial to minimize disruptions. Finally, consider running parallel systems for a short period to ensure that the new software is functioning correctly before fully transitioning.
What’s Next?
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