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.
Accounting software enables accounting professionals to manage accounts and perform various accounting and financial operations such as record keeping, financial reporting, billing, and invoicing.
Financial management software is used for tracking and analyzing the financial stability of organizations as well as making predictions about their future financial performance.
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.
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.
These 3 products, listed in alphabetical order, are among the top-rated ones in both software categories.
To be included in the list, the products must:
- Be listed under Capterra’s 2022 Shortlist report for accounting and financial management software. Learn more about the Capterra Shortlist methodology here.
- 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.”