Small business accounting software is essentially a lightweight financial management solution, whereas enterprise systems like ERP are fully integrated business management platforms. Small business accounting software derives from a segment of the business that usually belongs to the family of Micro Small and Medium Enterprises. The term Small Business mostly relates to small scale industries and micro enterprises like manufacturers with limited production capabilities. Most small businesses also work as a subcontractor, therefore they need business software that not only supports accounting but inventory management as well. Therefore small business accounting software may be complex to define.

However, they are scalable accounting systems and they not only supports core accounting or inventory but also integrates with other aspects of business such as expenses, payroll, projects, order-to-cash, and procure-to-pay life cycle management, etc. While there are a lot of other commercial accounting software packages, not all accounting software belongs to the family of small businesses. Accounting software online is critical for small businesses in case there is a need for customization. Therefore readily available online accounting packages may often seem to be beneficial as it already contains solid internal custom built in configurations.

Zoho Finance Plus, Vyapar App, Tally and RealBooks etc. are some of the best accounting software for Small Businesses as these software caters to the needs of small and medium enterprises. Small businesses needs an accounting system to support their complete sales, purchase, inventory, payroll, and manufacturing operations as an integrated solution and small business accounting software often povides the strong capabilities for accounts software implementation.