Finance Software

Category Compare: Accounting vs. Financial Management Software

By | 3 min read | Published

In this report, we define and compare accounting software and financial management software so you can decide which tool is better suited for your business needs.

People often blur the lines between accounting software and financial management software, but their distinct functions make them vastly different from each other. This report will identify the similarities and differences between the two software categories and help you select the right one for your business requirements.

What is accounting software?

Accounting software enables accounting professionals to manage accounts and perform various accounting and financial operations such as record keeping, financial reporting, billing, and invoicing.

What is financial management software?

Financial management software is used for tracking and analyzing the financial stability of organizations as well as making predictions about their future financial performance.

What do they have in common?

The objective of both software types is to streamline the management, reporting, and distribution of financial information within the organization. Financial management is a more broad market that comprises accounting, cash management, and compliance management. Both types of software help manage financial statements, reporting, bank reconciliation, fixed assets, and budgeting.

Accounting software features

Financial management software features

Which tool is right for you?

If detailed reporting on your day-to-day financial transactions, budgeting, payroll, and billing are your requirements, accounting software is the ideal solution. However, if you need help with forecasting the financial stability of your business, making economic predictions, and meeting specific financial objectives, then financial management software is your best bet.

The question now is: Which specific tool is right for your business? To start your search, head over to our accounting software or financial management software category pages. There you’ll find a sortable list of products, software reviews from verified users, and comprehensive buyers guides.

With so many software options to choose from, it might be helpful to narrow down your search to only the most popular and highest-rated solutions. In that case, check out our Capterra Shortlist reports for the top accounting software and financial management software, based on an analysis of thousands of user reviews.

3 top-rated accounting and financial management software

These 3 products, listed in alphabetical order, are among the top-rated ones in both software categories.

 
Note: Reviews and ratings data in the product cards is as of March 3, 2022. New reviews may have been added since the publication of this article, so the reviews data in this piece may not reflect current conditions.
The products in the category comparison images are examples to show a feature in context and are not intended as endorsements or recommendations by Capterra. They have been obtained from sources believed to be reliable at the time of publication.

Methodology

To be included in the list, the products must:

  1. Be listed under Capterra’s 2022 Shortlist report for accounting and financial management software. Learn more about the Capterra Shortlist methodology here.
  2. Meet our software market definition for recruiting and HR software:
    • Accounting: “Accounting software enables accounting professionals in any type of organization to manage accounts and perform various accounting and financial operations such as record keeping, financial reporting, billing, and invoicing.”
    • Financial management: “Financial management software is used for tracking and analyzing financial stability of organizations as well as making predictions about their future financial performance.”

About the Author

Ashish Upadhyay

Ashish Upadhyay

Ashish Upadhyay is a content writer at Capterra, helping small businesses identify the right software for their business needs by analyzing user reviews data for the highest rated products in relevant software categories. Prior to joining Gartner, he worked in insurtech, fintech, and real estate. Specializing in marketing, project, and IT management, Ashish’s works have been featured in MAST magazine and Medium. In his free time, he enjoys working out and playing video games.

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