What Matters When Choosing Accounting Software

Freshbooks
Best for Credit Card & Checkout Payments
Freshbooks
Unlimited invoices
Expense tracking
Automated payment reminders
Financial reporting tools
Integration tools
Zoho Accounting
Best for financial management
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Send invoices easily to customers
Manage customer lists
Track transactions and expenses
Integration with various payment gateways
Ability to add business bank account(s)
Access to real-time reports
Xero
Best for 3rd party apps access
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Automate income and expense tracking
Real-time inventory management
Bank reconciliation tools
Create digital purchase orders
Access to JAX AI finance partner
Sage Accounting
Best accounting and payroll combo
Sage Logo Brilliant Green RGB
Invoicing
Income & expense tracking
Cash flow management
Tax management
Debtors Manager
Introduction

Cloud accounting software genuinely saves a small business time on recording transactions, invoicing and tax preparation, but choosing the right one means matching software to the business’s actual needs and scale, not simply picking whichever option has the longest feature list.

These are the factors that genuinely matter when choosing accounting software.

Match features to what the business actually needs

A sole proprietor with simple invoicing needs doesn’t need the same software as a business managing inventory, payroll and multi-currency transactions; choosing based on genuine, current needs avoids paying for unused complexity.

This matters both for cost and for the time needed to learn and maintain the system properly.

Genuine ease of use matters more than a long feature list

Software that’s technically capable but genuinely difficult to use tends to get used poorly or inconsistently, undermining the accuracy it’s meant to provide; testing the actual day-to-day workflow before committing matters more than comparing feature checklists.

A free trial period, which most reputable providers offer, is worth using properly to test this before committing to a paid plan.

Check genuine South African tax compliance support

Software that properly supports South African VAT, tax categories and SARS-compliant invoicing genuinely saves time and reduces error compared to software built primarily for a different tax jurisdiction and adapted afterward.

This is a genuinely important, easy-to-overlook check for any accounting software marketed internationally rather than built specifically for the South African market.

Consider genuine data security and support

Since accounting software holds sensitive financial data, checking the provider’s genuine data security practices and the quality of available support matters as much as the feature set itself.

Data protection obligations around this kind of sensitive financial information are set out by the Information Regulator, worth understanding regardless of which software is chosen.

Frequently asked questions

Does every small business need the same accounting software features?

No, needs vary by business type and scale, and choosing based on actual current needs avoids paying for unused complexity.

Why does ease of use matter more than a long feature list?

Software that’s technically capable but hard to use tends to be used poorly or inconsistently, undermining accuracy.

Why check South African tax compliance support specifically?

Software built for the South African market properly handles VAT and SARS-compliant invoicing, saving time and reducing error.

Should data security be considered when choosing accounting software?

Yes, since it holds sensitive financial data, the provider’s security practices and support quality matter as much as features.

Should a free trial be used before committing?

Yes, testing the actual day-to-day workflow matters more than comparing feature checklists on paper.

Originally published in 2024. Updated September 2026 into a clearer, principle-based guide to choosing accounting software, without naming specific unverified products.

Main Features

Accounts Payable

Record and keep track of what the company owes to its suppliers or vendors for products or services received on credit.

Accounts Receivable

The recording of money owed to a company by a customer who received products or services on credit.

Bank Reconciliation

Software is able to match the cash balances on the balance sheet to the corresponding amount on your bank statement and resolve any discrepancies.

Billing & Invoicing

Invoicing of clients and billing to suppliers. 

Budgeting/Forecasting

The budgeting feature allows you to see the company’s expected revenue and costs, market trends, cash flow and more. Using the cash flow forecast feature you can predict revenue and expenses associated with your business, as well as adjustments you plan to make to create the projection.

Expense Tracking

This feature helps you stay up-to-date with your expenses. It records your expenses by tracking receipts, invoices and other outgoing expenses.

Financial Reporting

Detailed reporting of your business’s finances, which includes your financial statements being provided to disclose the business’ financial data.

General Ledger

This process includes a journal entry or logging every business transaction as it occurs. The accounts recorded in a general ledger include assets, liabilities, equity, expenses, and income or revenue.

Inventory Management

Deals with the process of ordering, storing and using a company’s inventory.

Tax management

The management of tax, including managing sales tax (VAT).

Pricing

Monthly subscription – Cloud accounting software can cost from as little as R150 per month for small businesses. The majority of cloud accounting software packages offer a free 30-day trial.

You can opt to pay monthly or annually. Most providers allow you to change or upgrade your plan at any time.

Your subscription includes features such as invoicing, quotes generation, income and expense tracking, and integration with your bank accounts and other management systems. 

Additional features – There are additional features that you may have to pay for separately, such as payroll management, inventory management – you may also have to pay for additional users on your account. 

Buyer's Guide

There are several accounting software options available on the market. Here are a few tips to help you choose the right one for your business.

 

Consider the following:

24/7 Access

One of the biggest advantages of using cloud accounting software is that it can be accessed from any device, location, and at any time of day. To facilitate this, many of the options available come with a mobile app where you can manage essential tasks such as invoicing and payroll. This can help small businesses run more efficiently and flexibly.

Ease of use

It has never been easier to get yourself up and running so you can start invoicing and balancing your books right away. For business owners it is important to choose the option that provides an easy-to-understand dashboard with access to all your important financial information. Also ensure that you can easily manage tasks such as track and pay bills on time, claim expenses, connect to your bank feed, as well as accept payments.

Your budget

There is little doubt that accounting software has greatly reduced the costs of accounting services while also offering incredible value. However, it is still a good idea to carefully examine your budget to determine how much your business can afford to spend. Before you commit, also consider your business operations and what tools and functionalities you really need. Most providers offer tiered packages making it easier for business owners to only select packages that suit their needs and budget.

Security

Accounting software offers more security over your data than any other options. Most cloud computing services backup your data hourly and they use the latest in security software. Other additional safety measures that can be implemented are two-step authentication to log into your account.

Accounting Software benefits

  • Flexibility – Can work from anywhere, not limited to a single PC or device.
  • Efficiency – Saves small businesses time and money.
  • Clarity – Can see your current financial position at any time.
  • Accuracy – Able to automate and speed up the calculations of business expenses such as tax and payroll, etc.
  • Tax compliance – Able to track and manage sales tax (VAT).
Compare our best picks
Sage Accounting

Pros

Ease of Use
SARS Compliant
Mobile and Cloud-Based
Seamless Bank Integration
Strong Payroll Integration

Cons

Cost of Add-ons
Limited Advanced Features
Less Customization

Monthly subscription – Cloud accounting software can cost from as little as R150 per month for small businesses. The majority of cloud accounting software packages offer a free 30-day trial. You can opt to pay monthly or annually. Most providers allow you to change or upgrade your plan at any time.

Pros

Supports unlimited users at no extra cost
Highly intuitive dashboard with automated bank reconciliation
Strong collaboration tools for business owners and accountants
Connects with over 1000 external smart business apps

Cons

The Starter plan limits invoices and bills
Lacks inbound phone support; relies on email and callbacks

Xero is widely recognised as the ideal accounting solution for SMEs because of its affordability, user-friendly interface, robust automation, and flexible cloud capabilities.

Zoho Accounting

Pros

Has a free forever plan
All pricing is local and affordable
Integrates easily with third-party applications

Cons

Free plan has little features
Add-ons come with additional costs

Zoho Books is the ideal accounting software platform for South African SMEs. It’s affordable, integrates easily with other applications and handles basic accounting tasks very well.

Freshbooks

Pros

Has free trials for three plans
Integrations with external apps and payment systems
Seamless expense tracking and invoicing

Cons

Can be costly when adding team members
Select plan has no clear pricing

For SMEs looking for simple, efficient accounting, FreshBooks is an ideal platform. With its detailed financial reporting, third-party app integration and mobile app, the platform makes accounting tasks easy and simple.

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