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10 Best AI Tools for Accounting & Finance in 2024

Senior Content Marketing Manager

May 15, 2024

Artificial intelligence is a game-changer for finance teams. If you’re not using AI tools for accounting tasks, you’re making things more complicated than they need to be. 

AI accounting tools can save you time and money while improving business performance. It automates repetitive tasks so you can put your brainpower into more important things like decision-making. 🤠

Ready to let accounting automation transform your workflow? Here are the 10 best AI tools for accounting and finance to get you started.

What to look for in an AI tool for accounting

9. blue dot, 10. truewind.

How Is AI Used in Accounting?

Accounting firms have long used data entry software to reduce human error and improve profitability. When you add AI technology to the mix, magic happens.

Accounting is all about calculations, mathematics, regulated processes, and tax compliance. Those are some of the things automation software does best.

AI accounting software allows accountants to put tedious tasks on autopilot and improve their financial operations. Here are some of the many benefits AI brings to accounting processes:

• AI-powered data prediction
• Faster financial data analysis thanks to advanced algorithms
• Improved financial report accuracy
• Lightning-fast automated invoice processing
• Real-time insights and alerts
• Reduced manual data entry
• Scalability without an increase in manual work

AI tools for accounting provide indisputable benefits, from improving financial insights to automating time-consuming tasks. It’s all about identifying what you’re looking for and finding the right tool.

Everyone from freelance CPAs and startups to Fortune 500 CFOs and large accounting firms can use features like these:

• Automated bookkeeping : AI tools should automate bookkeeping tasks to help you save time, make better decisions, improve expense management, and reduce financial statement errors
• Automated invoice processing : Good AI-powered accounting software can automate payments and invoices to improve expense reports
• Integrations: AI accounting tools that integrate with your other software—from Slack to QuickBooks—make life easier
• Machine learning : Leading AI tools use machine learning algorithms to assess mathematical models and improve processes without instruction; it’s an accounting industry must-have
• Templates: When manual work is required, a good tool can speed it up with bookkeeping templates , payroll templates , and general ledger templates

10 Best AI Tools for Accounting 2024 

The hardest part of finding an AI tool for accounting is sifting through all the options. We’ve narrowed it down to the top 10 tools in 2024.

With this list, you can assess each tool based on the best features, limitations, pricing, and reviews to make the right choice.

ClickUp Accounting is a cloud-based business management software designed to simplify financial processes. Manage accounts, create shareable reports, and let ClickUp Brain act as your digital personal assistant so you can focus on the larger strategy.

ClickUp Brain is an AI-powered virtual assistant that uses natural language processing to help with everything from financial management and project detailing to client check-ins and meeting updates. We’ve built hundreds of AI tools for every aspect of your accounting system.

You can also use ClickUp Docs to create spreadsheets and explore templates for all things finance. 

For example, the ClickUp Accounting Template is designed to help manage your invoices, sales records, income, and predicted revenue. Keep up with accounts receivable and accounts payable (AR/AP) and use resource tracking to improve overall financial performance.

ClickUp has over 1,000 ready-made integrations with other tools to keep everything in one convenient, customizable Dashboard. 

ClickUp best features 

• Choose from hundreds of templates to help with everything from budget and cash flow management to project management
• Use ClickUp Brain’s AI power to summarize financial planning meetings, connect with clients, outline audit policies, update sales forecasting reports, and more
• Choose from over 100 ClickUp Automations to put back-office tasks on autopilot
• Make informed decisions and improve your business’s financial health with help from ClickUp’s ChatGPT Prompts for Finance
• Switch between multiple views, create custom Dashboards for every team member, and use project time tracking to streamline your workflow

ClickUp limitations 

• Some users may face a learning curve with ClickUp’s many features and functionalities (we’ve solved this with free video tutorials for almost everything)
• ClickUp Brain isn’t available on the Free Forever plan

ClickUp pricing 

• Free Forever
• Unlimited: $7/month per user
• Business: $12/month per user
• Enterprise: Contact for pricing
• ClickUp Brain is available on all paid Workspace plans for $5 per member per month

ClickUp ratings and reviews 

• G2: 4.7/5 (8,800+ reviews)
• Capterra: 4.7/5 (3,800+ reviews)

Vic.ai is an AI-powered invoice processing tool with high accuracy rates and advanced machine learning algorithms. It uses powerful algorithms trained on millions of invoices to automate almost every aspect of billing without the need for templates or custom rules.

Once an invoice is uploaded, Vic.ai can extract essential details from invoices, detect duplicates, and put the approval process on autopilot. It also keeps your team on track by identifying which employee needs to review each step of the invoice approval process. 

Vic.ai best features 

• Use integrations with leading enterprise resource planning (ERP) tools to automatically sync financial data
• Reduce human error by allowing Vic.ai to identify and flag duplicate invoices and other accounting mistakes
• Automatically recognize, code, and calculate value-added tax (VAT) and other taxes to improve accuracy and tax compliance
• Improve financial decision-making using insights and analytics based on your accounting firm’s latest data

Vic.ai limitations 

• No visible pricing information; some customers report that the tool is expensive for freelance accounting professionals and small businesses
• Reviews mention a need for additional sorting and report options to improve efficiency

Vic.ai pricing 

• Customers must contact Vic.ai and provide business information to request a price quote

Vic.ai ratings and reviews

• G2: 4.8/5 (20+ reviews)
• Capterra: N/A

Bill is a cloud-based tool that automates AR/AP processes. It’s designed for accounting firms and businesses that want to streamline the billing and invoicing process.

Users also gain access to Divvy From Bill, an automated credit and expense management software, at no extra charge. Divvy offers lines of credit up to $15 million and tools to help control budgets and manage spending.

Bill best features 

• Use smart rules and workflows to automate bill payments and approvals
• Control spending across teams, projects, departments, and vendors with increased visibility
• Get cash-back rewards for eligible purchases made with Divvy lines of credit
• Navigate multiple clients with ease to process AP invoices, approval, and payments

Bill limitations 

• May charge fees from some services and individual transactions
• Bill does not provide support for all credit cards, payment methods, and currencies

Bill pricing 

• Essential: $40/month per user
• Team: $55/month per user
• Corporate: $79/month per user

Bill ratings and reviews 

• G2: 4.3/5 (600+ reviews)
• Capterra: 4.2/5 (200+ reviews)

Indy is an AI workflow and admin program designed for independent professionals. It allows freelancers to create proposals, draft contracts, send invoices, and—most importantly—get paid. 🤑

Bonus: How to Professionally Ask for Payments From a Client

With Indy, you can track your time for effortless billing, negotiate the terms of your contract, store files, and run your business from one convenient dashboard.

Indy best features 

• Take advantage of the free plan and get unlimited access to basic features with limited access to advanced functionality
• Let the Indy AI writing assistant help you create contracts and proposals using ChatGPT technology
• Unify your work using the app’s integration with Zapier and Google Calendar (paid plan only)
• Set up recurring invoices, offer multiple payment options, set tax rates, and keep track of every transaction to ensure tax compliance

Indy limitations 

• Free plan limits users to three clients
• Some user reviews report inaccuracies when manually tracking time

Indy pricing 

• Pro: $12/month per user

Indy ratings and reviews 

• Capterra: 4.7/5 (100+ reviews)

Zeni uses AI to automate accounting, spending, and budgeting processes to streamline financial operations. It provides real-time financial data analysis to improve business decisions, integrating AI with human knowledge for the most effective information.

Use Zeni to automate the time-consuming daily expense tracking and bookkeeping procedures.

Zeni best features 

• Get a top-down perspective on your financial operation using the one-page view
• Compare monthly, quarterly, and yearly reports to track financial progress and identify trends
• Extract necessary data from receipts and forward it to a dedicated email address for consolidation and record-keeping 
• Improve communication and information sharing between multiple teams with automatic updates and notifications

Zeni limitations 

• Some user reviews mention a need for more guidance regarding how to review and process data to improve decision-making
• May be expensive for some freelancers, entrepreneurs, and startups

Zeni pricing 

• Starter: $549/month per month billed annually
• Growth: $799/month per month billed annually

Zeni ratings and reviews 

• G2: 4.7/5 (20+ reviews)

Docyt is an AI-powered bookkeeping platform designed to automate back-office and accounting tasks. Gain insight with real-time reports and ensure financial control over all aspects of your business.

Docyt also allows you to keep all critical financial information and documents in one secure place and create separate vaults for different projects or businesses.

Docyt best features 

• Multiple plans to suit various needs, from expense management to automated bookkeeping for large operations
• The mobile app is easy to use and navigate, providing secure, on-the-go financial tools and information
• Use the expense tracking feature to track and control your business’s budget and cash flow
• Integration with most major POS and PMS systems to provide industry-specific reporting

Docyt limitations 

• Some user reviews mention difficulty connecting with customer support and slow response times
• Some users mention the need for additional features to assist with accounting project management

Docyt pricing 

• Expense Management : $50/month
• Revenue Reconciliation: $50/month
• Corporate Credit Card Management: $50/month
• Mini: $149/month
• Insight: $149/month
• Impact: $299/month
• Advanced: $499/month
• Enterprise: $999/month
• Accounting Firm & CFO: Contact for pricing

Docyt ratings and reviews 

• Capterra: 4.6/5 (30+ reviews)

Gridlex is a unified suite of business tools that includes Gridlex Sky. Sky is an accounting, expenses, and ERP software created by Gridlex to make financial processes easier. 

Use Gridlex Sky to oversee all accounting, expense management, and ERP functions with customizable automations and AI-driven insights. Sky can handle invoicing, billing, payroll, general ledger management, and more.

Gridlex best features 

• Gridlex Sky users also receive access to Gridlex Ray, an HR software, and Gridlex Zip, a CRM and customer service help desk tool
• Eliminate the need for manual work and reduce the risk of human error with automated calculations for profitability, revenue, and expenses
• Use the expense management feature to organize and store receipts and expense claims through a straightforward interface
• Automate expense approvals and reimbursements to reduce administrative processing

Gridlex limitations 

• Lack of customer reviews on popular platforms makes it difficult to gauge the overall user experience
• Advanced features such as revenue recognition automation are not available on the first pricing tier

Gridlex pricing 

• Start: $10/month per user
• Grow: $30/month per user
• Scale: Contact for pricing

Gridlex ratings and reviews 

Booke is a bookkeeping automation tool that makes daily accounting tasks easier. It uses AI technology to reconcile errors and provide real-time data extraction. The more you use it, the better the AI becomes.

Get faster client responses and avoid tedious back-and-forth communication with Booke’s user-friendly messaging portal.

Booke best features 

• Leverage AI to resolve coding errors, categorize transactions, communicate with clients, and automate your work
• Increase efficiency with AI-powered automation for month-end close tasks
• Find and fix errors in seconds with Booke’s advanced error detection features
• Integration with popular tools like QuickBooks and Xero lets you sync your financial data

Booke limitations 

• Lack of user reviews on popular platforms makes it difficult to make a decision based on general customer experiences
• A minimum of five clients for each pricing tier

Booke pricing 

• Smart: $10/month per client
• Premium: $20/month per client
• Robotic AI Bookkeeper : Contact for pricing

Booke ratings and reviews 

Blue Dot is an AI tax compliance platform that uses patented technology to help businesses ensure tax compliance. Reduce tax vulnerabilities for consumer-style spending and get a 360-degree view of all employee-driven transactions.

Use the tax knowledge base to find any information you need for your business and harness the power of natural language processing to leverage external data.

Blue Dot best features 

• Use VAT Box to identify and calculate any eligible or qualified VAT spending
• Let the Taxable Employee Benefits feature leverage AI to detect and analyze wage tax information
• Improve your expense management workflow and let Blue Dot’s proprietary AI-driven suite apply checks and tax rules to keep your business compliant
• Create corporate income tax reports that ensure compliance with minimal need for human input

Blue Dot limitations 

• Can be challenging to get an idea of general customer experiences due to a lack of user reviews on popular platforms
• No visible pricing data

Blue Dot pricing 

• Customers must contact Blue Dot and book a demo to get quotes and pricing information.

Blue Dot ratings and reviews 

Truewind is an AI-driven finance and bookkeeping platform that empowers small businesses and startups. It provides accurate monthly reports and tailored financial solutions for your industry.

Users also receive access to Truewind’s concierge team of experts to ensure precision and transparency.

Truewind best features 

• Make timely, informed business decisions with faster monthly close times and efficient bookkeeping
• Contact and work with certified public accountants (CPAs) who can assist you with every step of your business’s financial processes
• Keep back-office operations accurate with minimal hands-on time so you can put your focus on growing your operation
• Simplify bookkeeping processes and integrate them with the tools you use to make financial management stress-free

Truewind limitations 

• Lack of user feedback on popular review platforms
• No visible pricing and subscription data

Truewind pricing 

• Customers must schedule a demo with Truewind for pricing information.

Truewind ratings and reviews 

Maximize efficiency and accuracy with ai.

The integration of AI software has changed the accounting and finance industries. AI tools use automation to improve the accuracy and speed of financial reporting, offering valuable insights so you can make better decisions. 🌻

If you’re ready to streamline your financial processes, reduce costs, and improve efficiency for all things financial management, it’s time to embrace digital transformation. Get started today— sign up for ClickUp !

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15 AI tools to solve your accounting problems

• July 4, 2023
• 32 Comments

Introduction to AI in Accounting

In today’s fast-paced business world, accounting professionals are constantly seeking ways to streamline their processes and improve efficiency. One of the most promising technologies that has emerged in recent years is artificial intelligence (AI). AI has the potential to revolutionize the accounting industry by automating repetitive tasks, analyzing vast amounts of data, and providing valuable insights. In this article, we will explore the benefits of using AI tools in accounting and discuss the top 15 AI tools that can help solve accounting queries more effectively.

Benefits of Using AI Tools in Accounting

AI tools offer numerous benefits to accounting professionals .

• Firstly, they can automate mundane and time-consuming tasks such as data entry and reconciliation, freeing up accountants to focus on more strategic and value-added activities. This not only increases productivity but also reduces the risk of human error.
• Secondly, AI tools are capable of analyzing vast amounts of financial data in real-time, enabling accountants to identify patterns, trends, and anomalies that may have otherwise gone unnoticed. This can help businesses make more informed financial decisions and mitigate risks.
• Lastly, AI tools can improve the accuracy and speed of financial reporting, ensuring compliance with regulatory requirements and providing stakeholders with timely and reliable information.

Top 15 AI tools for solving accounting queries

• Clausehound

Clausehound is an AI-powered tool specifically designed for accountants to simplify contract analysis. It uses natural language processing algorithms to identify critical terms and clauses in contracts, ensuring compliance and reducing legal risks. By automating the contract analysis process, Clausehound saves accountants valuable time and resources, allowing them to focus on more strategic tasks.

The tool’s advanced algorithms can swiftly review contracts and extract relevant information, making it easier for accountants to make informed decisions. Whether it’s identifying payment terms, termination clauses, or indemnification provisions, Clausehound provides a comprehensive analysis of contracts, highlighting potential risks and opportunities.

Furthermore, Clausehound’s user-friendly interface and intuitive search capabilities make it accessible for accountants of all levels of expertise. By leveraging Clausehound, accountants can streamline their contract analysis process, minimize errors, and ensure compliance with legal requirements.

Concentrix is an AI-driven solution that aids accountants in managing tax compliance efficiently. With ever-changing tax regulations, staying up-to-date and ensuring accurate tax calculations can be a daunting task. Concentrix automates tax calculations, identifies potential deductions, and generates accurate tax reports, saving accountants valuable time and resources.

By leveraging Concentrix, accountants can streamline their tax compliance process and minimize the risk of errors. The tool’s advanced algorithms analyze financial data, identify tax-saving opportunities, and ensure compliance with tax regulations. Concentrix also provides real-time updates on changing tax laws, enabling accountants to stay informed and make accurate tax calculations.

Moreover, Concentrix’s user-friendly interface and seamless integration with existing accounting software make it a valuable tool for accountants. By automating tax compliance processes, Concentrix allows accountants to focus on more strategic tasks, such as financial analysis and planning.

Finicity is an AI tool that enables accountants to streamline financial data analysis. Traditional manual data collection and analysis can be time-consuming and prone to errors. Finicity automates data collection from various sources, such as bank statements and invoices, and provides real-time insights into financial performance.

By leveraging Finicity, accountants can make data-driven decisions and identify potential areas for improvement. The tool’s advanced algorithms analyze financial data, identify trends, and generate comprehensive reports. Accountants can gain valuable insights into cash flow, profitability, and financial health, facilitating more informed decision-making.

Finicity’s seamless integration with existing accounting software makes it easy for accountants to access and analyze financial data. By automating data collection and analysis processes, Finicity saves accountants valuable time and resources, allowing them to focus on more strategic tasks, such as financial planning and budgeting.

GreenPath is an AI-powered tool designed to enhance financial planning and budgeting. It leverages advanced algorithms to analyze income, expenses, and financial goals, providing personalized recommendations for saving and investing. Accountants can leverage GreenPath to assist their clients in creating effective financial strategies and achieving their financial objectives.

By utilizing GreenPath, accountants can provide their clients with valuable insights into their financial health. The tool’s intuitive interface allows accountants to input relevant financial information and generate personalized recommendations. Whether it’s creating a budget, planning for retirement, or saving for a specific goal, GreenPath provides actionable recommendations tailored to individual needs.

GreenPath’s comprehensive financial planning capabilities make it an invaluable tool for accountants. By leveraging GreenPath, accountants can enhance their advisory services, assist clients in making informed financial decisions, and foster long-term financial success.

MindBridge is an AI tool that detects anomalies and potential fraud in financial data. It uses machine learning algorithms to analyze large datasets and flag suspicious transactions or patterns. By leveraging MindBridge, accountants can ensure the integrity of financial records and proactively identify fraudulent activities.

Traditional manual methods of detecting fraud can be time-consuming and may not capture all anomalies. MindBridge automates the fraud detection process, analyzing vast amounts of financial data to identify potential red flags. The tool’s advanced algorithms learn from patterns and anomalies, improving their detection capabilities over time.

By utilizing MindBridge, accountants can enhance their audit processes and minimize the risk of fraud. The tool provides accountants with real-time alerts and detailed reports, facilitating efficient investigation and resolution of potential issues. With MindBridge, accountants can ensure the accuracy and integrity of financial records, strengthening trust and compliance.

AuditFile is a comprehensive AI tool designed specifically for auditors. It automates the auditing process by analyzing financial statements, identifying potential risks, and providing recommendations for improvements. With its intuitive interface and robust features, AuditFile simplifies the audit workflow and ensures compliance with regulations.

One of the key features of AuditFile is its ability to perform risk assessments. By analyzing financial data, this tool can identify areas of potential risk and provide recommendations for mitigating those risks. This allows auditors to focus their efforts on high-risk areas and allocate their resources more effectively.

AuditFile also offers advanced analytics capabilities, allowing auditors to gain deeper insights into financial data. The tool can analyze large volumes of data and identify patterns and trends that may have otherwise gone unnoticed. This helps auditors identify potential anomalies or irregularities and take appropriate actions.

Furthermore, AuditFile provides a collaborative platform for auditors to work together and share information. The tool allows multiple users to access and update financial data in real-time, ensuring that everyone is working with the most up-to-date information. This improves communication and coordination among team members, leading to more efficient and effective audits.

DataRails is an AI-powered tool that integrates with existing accounting software to provide real-time data analysis. By consolidating data from multiple sources and automating complex calculations, DataRails enables accountants to gain a holistic view of their financial data.

One of the key features of DataRails is its ability to automate data consolidation. The tool can automatically pull data from various sources, such as spreadsheets and databases, and consolidate them into a single, unified view. This eliminates the need for manual data entry and reduces the risk of errors.

DataRails also offers advanced reporting capabilities, allowing accountants to generate customized reports and dashboards. The tool can analyze financial data and generate visualizations that provide insights into key performance indicators and financial trends. This helps accountants make informed decisions and communicate financial information effectively to stakeholders.

Furthermore, DataRails provides powerful forecasting capabilities. The tool can analyze historical data and generate accurate predictions for future financial performance. This helps accountants identify potential risks and opportunities and make proactive decisions to optimize financial outcomes.

In conclusion, DataRails is a versatile AI tool that empowers accountants with real-time data analysis capabilities. By automating data consolidation, providing advanced reporting, and offering forecasting capabilities, DataRails helps accountants streamline their processes and make informed decisions.

FARO is an AI-based platform that helps accountants automate repetitive tasks and streamline their workflows. By leveraging natural language processing and machine learning, FARO can understand and process unstructured data, reducing the risk of errors and increasing efficiency.

One of the key features of FARO is its ability to automate data entry. The tool can extract information from documents such as invoices and receipts and enter them into the accounting system automatically. This eliminates the need for manual data entry and reduces the risk of errors associated with manual processes.

FARO also offers advanced reconciliation capabilities. The tool can match transactions from different sources, such as bank statements and invoices, and reconcile them automatically. This helps accountants identify discrepancies and ensure the accuracy of financial records.

Furthermore, FARO provides personalized dashboards and reports that provide insights into key financial metrics. The tool can generate visualizations and KPIs that help accountants monitor financial performance and identify areas for improvement. This enables accountants to make data-driven decisions and optimize business outcomes.

In conclusion, FARO is a powerful AI tool that helps accountants automate repetitive tasks and improve efficiency. By automating data entry, offering advanced reconciliation capabilities, and providing personalized dashboards, FARO enables accountants to focus on higher-value tasks and drive business growth.

• IBM Watson Assistant

IBM Watson Assistant is an AI-powered virtual assistant that can answer accounting-related queries in a conversational manner. This tool uses natural language understanding and machine learning to provide accurate responses and assist accountants in their day-to-day tasks.

One of the key features of IBM Watson Assistant is its ability to understand natural language queries. The tool can analyze the context and intent of a question and provide relevant and accurate responses. This enables accountants to get the information they need quickly and efficiently.

IBM Watson Assistant also offers advanced calculation capabilities. The tool can perform complex calculations, such as tax calculations and financial ratios, in real-time. This helps accountants save time and effort and ensures accuracy in their calculations.

Furthermore, IBM Watson Assistant can provide real-time updates on financial data. The tool can connect to accounting systems and provide up-to-date information on accounts, transactions, and balances. This enables accountants to stay informed and make informed decisions based on the most current data.

In conclusion, IBM Watson Assistant is a valuable AI tool that helps accountants find answers to accounting queries quickly and accurately. By understanding natural language queries, offering advanced calculation capabilities, and providing real-time updates, IBM Watson Assistant improves productivity and efficiency in the accounting profession.

Intellias is an AI-based tool that focuses on financial planning and analysis. By leveraging machine learning algorithms, Intellias can analyze financial data, identify trends, and generate accurate forecasts.

One of the key features of Intellias is its ability to analyze historical financial data. The tool can identify patterns and trends in financial data and use this information to generate accurate forecasts. This helps accountants make informed decisions and plan for future financial outcomes.

Intellias also offers advanced budgeting capabilities. The tool can generate budgeting scenarios based on different assumptions and variables, allowing accountants to evaluate the impact of different decisions on financial performance. This helps accountants optimize resource allocation and make strategic decisions.

Furthermore, Intellias provides personalized dashboards and reports that provide insights into key financial metrics. The tool can generate visualizations and KPIs that help accountants monitor financial performance and identify areas for improvement. This enables accountants to make data-driven decisions and optimize business outcomes.

In conclusion, Intellias is a powerful AI tool that helps accountants with financial planning and analysis. By analyzing historical data, offering advanced budgeting capabilities, and providing personalized dashboards, Intellias empowers accountants to make informed decisions and drive business growth.

Jira is a powerful project management tool that can also be utilized for accounting purposes. With its AI capabilities, Jira can automate various accounting workflows, including budget planning, tracking expenses, and generating financial reports. It can also integrate with other accounting software to streamline data transfer and ensure data accuracy.

One of the key features of Jira is its ability to track and manage invoices. It can automatically generate and send invoices to clients, track payment statuses, and send reminders for overdue invoices. This helps businesses maintain a healthy cash flow and improves overall financial management.

QuickBooks is a popular accounting software that has integrated AI capabilities to simplify accounting processes. It can automate tasks such as bank reconciliation, expense tracking, and invoice generation. QuickBooks also provides real- time financial insights, allowing accountants to make informed decisions based on accurate and up-to-date data.

With QuickBooks, accountants can easily collaborate with other team members and clients. The software enables multiple users to access and update financial records simultaneously, reducing the need for manual data entry and minimizing the risk of errors.

• SAP S/4HANA

SAP S/4HANA is an intelligent ERP (Enterprise Resource Planning) system that combines AI, machine learning, and advanced analytics to optimize accounting processes. It can automate tasks such as financial planning, cash management, and financial reporting, enabling accountants to work more efficiently.

One of the standout features of SAP S/4HANA is its ability to provide real-time insights into financial performance. It can generate interactive dashboards and reports that allow accountants to analyze key financial metrics and identify areas for improvement. This helps businesses make data-driven decisions and stay ahead of the competition.

Thrive is an AI-powered accounting platform that aims to simplify complex accounting tasks. It can automate processes such as bank reconciliation, expense categorization, and financial statement generation. Thrive also provides real-time financial insights and customizable dashboards, allowing accountants to monitor key financial metrics at a glance.

One of the unique features of Thrive is its virtual assistant, which can answer accounting queries and provide relevant information in real-time. This eliminates the need for manual research and speeds up the query resolution process.

Accountants can simply ask the virtual assistant a question, and it will provide the most accurate and up-to-date answer based on the available data.

Xero is a cloud-based accounting software that leverages AI technology to automate various accounting processes. It can handle tasks such as bank reconciliation, expense tracking, and invoice generation. Xero also integrates with other business applications, allowing seamless data transfer and reducing the need for manual data entry.

One of the standout features of Xero is its ability to provide real-time financial insights. It can generate interactive reports and dashboards that allow accountants to monitor key financial metrics and identify trends. Xero also enables collaboration with clients and other team members, making it easier to share financial information and work together on projects.

How AI tools are revolutionizing the accounting industry

AI tools are revolutionizing the accounting industry by automating repetitive tasks, minimizing errors, and generating valuable insights. These tools have transformed traditional accounting processes, allowing accountants to focus on more strategic tasks and providing them with the ability to deliver more value to their clients.

• One of the key benefits of AI tools in accounting is the automation of time-consuming tasks. With AI-powered tools, accountants can automate tasks such as data entry, reconciliation, and report generation, saving valuable time and resources. This automation not only increases efficiency but also reduces the risk of errors, improving the accuracy of financial records.
• AI tools also have the ability to analyze vast amounts of financial data and generate valuable insights. By leveraging advanced algorithms and machine learning capabilities, these tools can identify trends, patterns, and anomalies in financial data that may go unnoticed by human accountants. This enables accountants to make data-driven decisions, identify potential risks, and uncover opportunities for growth.
• Furthermore, AI tools in accounting enable accountants to provide more proactive and advisory services to their clients. By automating repetitive tasks, accountants have more time to focus on analyzing financial data, identifying areas for improvement, and providing strategic recommendations. This shift from a transactional role to a more advisory role enhances client relationships and adds value to the services provided.

Considerations when choosing an AI tool for accounting

When choosing an AI tool for accounting, there are several considerations to keep in mind.

• Firstly, it is important to assess the specific needs and requirements of your accounting practice. Consider the tasks that are most time-consuming or prone to errors and prioritize tools that address those areas.
• Secondly, evaluate the user-friendliness and compatibility of the AI tool with your existing accounting software. Seamless integration and ease of use are crucial factors that can impact the adoption and effectiveness of the tool.
• Additionally, consider the reputation and track record of the AI tool provider. Look for reviews, testimonials, and case studies to gauge the effectiveness and reliability of the tool. It is also advisable to reach out to other accounting professionals or industry experts for their recommendations and insights.
• Lastly, consider the cost and return on investment of the AI tool. Assess the pricing structure, ongoing support, and potential savings or revenue generation that the tool can provide. It is essential to balance the benefits of AI tools with its cost to ensure a positive impact on your accounting practice.

Some of the frequently asked questions include

• Are you tired of spending hours on manual accounting tasks? Discover how AI tools can revolutionize your accounting processes.
• Want to take your accounting to the next level? Find out how these 15 AI tools can help you solve your biggest accounting challenges.
• Are you struggling to keep up with the demands of your growing business? Explore how AI tools can streamline your accounting operations and save you valuable time.
• Curious about how AI can transform your financial management? Learn how these innovative tools can automate tedious accounting tasks and increase accuracy.
• Are you ready to say goodbye to human error in your accounting? Discover how AI tools can improve accuracy and eliminate costly mistakes in your financial statements.
• Want to improve accuracy and reduce human error in your accounting operations? Learn how these 15 AI tools can enhance your financial management.

AI tools have revolutionized the accounting industry by automating tasks, generating insights, and enabling accountants to provide more strategic and value-added services. The top 15 AI tools discussed in this article, including Clausehound, Concentrix, Finicity, GreenPath, and MindBridge, offer a wide range of capabilities to assist accountants in solving accounting queries.

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32 thoughts on “15 ai tools to solve your accounting problems”.

[…] the way financial institutions manage compliance requirements. AI-powered systems can automate financial accounting and auditing processes, reducing manual efforts, and ensuring accuracy and consistency in […]

[…]       Automation of routine tasks: With the help of accounting software and advanced AI tools, accountants can automate repetitive tasks such as data entry, bank reconciliations, and invoice […]

[…] When selecting an AI tool for accounting and finance, it is crucial to assess your organization's specific needs and goals. By doing so, you can ensure that the AI tool you choose aligns with your company's unique requirements and supports your overall objectives. Here are some guidelines for evaluating the compatibility of AI tools with your accounting and finance processes: […]

Adam, Boon, and Chelsey were in partnership sharing profits and losses in the proportion of 2/8,3/8 and 3/8 respectively. Their position on 30th December 2021 was as follows.

Liabilities ($) • Sundry Creditors (suppliers’ balances) 70500 • Bills Payable 20000 • General Reserve 24000 • Capital Accounts: Adam 30000, Boon 40000, Chelsey 45000  Total Liabilities: 229500

Assets • Cash at Bank 23150 • Bills Receivable 7350 • General Reserve 24000 • Sundry Debtors (customers’ balances) 80000 • Stock 52500 • Buildings 43500 • Furniture 23000  Total Assets: 229500

On 1st January 2022, they admitted Smith into partnership for 1/4th share on the following terms: – Smith to bring $ 35000 as capital – A goodwill account of the firm to be opened in the books at $ 60000 – The value of stock to be reduced by 10 % – Building to be appreciated by 10 % – Bad debts of $ 6000 to be written off. – There being a claim for damages against the firm, a liability to the extent of $ 1500 should be created. – An item of $ 400 included in sundry creditors is not likely to be claimed and hence, should be written off. – After Smith’s admission, goodwill should be written off.

Required: a. Prepare the journal entries for the above adjustments. b. Record the above journal entries in the necessary ledger accounts and c. Prepare the balance sheet of the firm after the admission of Smith.

Adam, Boon, and Chelsey were in partnership sharing profits and losses in the proportion of 2/8,3/8 and 3/8 respectively. Their position on 30th December 2021 was as follows. Liabilities ($) • Sundry Creditors (suppliers’ balances) 70500 • Bills Payable 20000 • General Reserve 24000 • Capital Accounts: Adam 30000, Boon 40000, Chelsey 45000  Total Liabilities: 229500 Assets • Cash at Bank 23150 • Bills Receivable 7350 • General Reserve 24000 • Sundry Debtors (customers’ balances) 80000 • Stock 52500 • Buildings 43500 • Furniture 23000  Total Assets: 229500 On 1st January 2022, they admitted Smith into partnership for 1/4th share on the following terms: – Smith to bring $ 35000 as capital – A goodwill account of the firm to be opened in the books at $ 60000 – The value of stock to be reduced by 10 % – Building to be appreciated by 10 % – Bad debts of $ 6000 to be written off. – There being a claim for damages against the firm, a liability to the extent of $ 1500 should be created. – An item of $ 400 included in sundry creditors is not likely to be claimed and hence, should be written off. – After Smith’s admission, goodwill should be written off. Required: a. Prepare the journal entries for the above adjustments. b. Record the above journal entries in the necessary ledger accounts and c. Prepare the balance sheet of the firm after the admission of Smith.

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6 Top-Rated AI-Enabled Tools for Accounting

2. Dynamic 365 Business Central

6. sap business one.

• Benefits of using accounting tools with AI capabilities

How much does AI accounting software cost?

The tools train the AI algorithms based on past user actions and replicate them to assist with data extraction and entry, transaction categorization, and invoice processing. This helps improve accuracy and efficiency in accounting, giving you access to valuable insights into financial trends, budgeting, and forecasting.

Our research team explored the AI capabilities of top-rated accounting tools. We narrowed our list to the top six based on verified user reviews, sorted alphabetically.

In our research, we identified that the listed AI software solve accounting-related concerns, including budgeting and forecasting, billing and invoicing, expense management, vendor management, and reporting and analytics.

BILL AI automates invoice creation by filling in essential details, such as vendor name and email address, due date, amount, payment terms, PO number, IBAN, and SWIFT code (for international payments). The tool also detects duplicates in multi-page invoices and sends warning messages to avoid levying extra charges on clients or customers or making double payments.

What are the AI capabilities of BILL? *

Data entry automation: Upload invoices in PDF or image format using a computer or mobile device. The feature uses AI to extract information and create digital invoices automatically.

Invoice processing: Check the extracted details for incomplete or duplicate information before converting data into digital invoices. 

Expense categorization: Automatically categorize and allocate expenses using AI. After you create an entry, AI recognizes patterns and utilizes learnings from past uploads to assign them to appropriate expense categories. 

Why consider BILL’s AI capabilities?

Accounting and finance managers can consider BILL AI to reduce manual data entry errors and costly bill duplication, saving you time and effort. You can utilize the tool’s data extraction capabilities to convert paper-based documents into digital invoices. The tool only extracts complete and readable information, so you can focus on other value-adding accounting activities, such as budgeting and forecasting, instead of manually entering data into the system and calculating accounts payables and receivables.

Customer support: BILL offers a learning center, guides, webinars, blogs, customer stories, FAQs, emails, chats, and phone calls for assistance on tool capabilities and implementation.

We selected products for this article based on their average ratings as of December 2023; however, the article displays each product’s current average rating, which may differ if more reviews have been left since our analysis.

BILL Accounts ...

Trial/free version.

• Free Version

Starting price

$45 per user per month

Billing cycle

Device compatibilty.

Dynamic 365 Finance module, a part of the business central suite, offers AI-enabled features to smoothen your budgeting and forecasting. The tool analyzes historical financial data to predict future cash flows, helping you make informed budgeting and finance plans. The AI algorithms leveraged by the tool automate the processing of expenses and invoices, including data extraction, categorization, and approval workflows. Its AI credit risk management feature simplifies the analysis of various business details, including payment history and financial stability, to prepare credit terms for lenders and borrowers.

What are the AI capabilities of Dynamic 365 Business Central? *

AI insights: Perform predictive analytics, including forecasting financial trends, cash flow projection, and other key performance indicators for the business’s financial health. 

Fraud detection: Use AI to analyze transactions in real time and detect patterns that may indicate fraud in sales, purchases, and other transactional activities. The feature helps to identify a pattern of probable mistakes by studying historical transactions and assesses future transactions accordingly. 

Automated reconciliation: Match transactions automatically based on predefined criteria. This can include matching bank statements with corresponding entries in the ledger or sub-ledgers. Reconciliation items include cheques, deposits, and other incoming transactions.

Why consider Dynamic 365 Business Central’s AI capabilities?

Accounting and finance managers looking to implement AI and automation functionality to enable data and outcome-driven financial reporting can consider Dynamic 365 Finance. You can prepare plans for payment insights, cash flow forecasting, and budget proposals. This process drives better business decisions by accessing accurate trends and insights and speeding up operational efficiency.

Customer support: Dynamic 365 Business Central offers blogs and an online learning center for users to understand the tool’s functionality and implementation.

Dynamics 365 B...

$169.92 per user per month*

*Pricing converted from INR to USD

Evaluate the accounting software's AI features and automation capabilities for their alignment with your team’s unique requirements. For complete business account management, you can look for features, including automated data extraction and validation, expense categorization, and predictive analysis.

FloQast uses generative AI to match the business’s financial transactions with the bank statements and highlight gaps between the budgeted and actual amounts. Its AI algorithms apply rule-based logic (automated reasoning) to identify the most similar references for automated matching and reconciling transactions efficiently. Each transaction is assigned a confidence score, allowing you to prioritize the review of matches that may require additional human oversight.

What are the AI capabilities of FloQast? *

Automated responses: Instruct the AI tool to draft responses to team members’ comments, emails, and updates using text-based prompts.

Variance analysis: Calculate the difference between the budgeted and actual amounts and explain the reason behind gaps in the analyzed data. The feature lets you select specific factors to highlight gaps that closely affect the business objectives.

AI reference field mapping: Use AI to automatically parse through the uploaded accounting spreadsheets or manual entries and map them to the fields in the existing accounting books on the system. 

Why consider FloQast‘s AI capabilities?

Accounting and finance managers looking to leverage automation to address team queries, identify budget gaps, and map new entries to the fields in the existing bookkeeping system can consider FloQast. The tool’s reconciliation management allows teams the flexibility to select the most appropriate reconciliation method for each account. This automation can save you time and reduce errors in manual bank reconciliation. It’ll also enhance work efficiency and accuracy, especially when working with large volumes of financial data.

Customer support: FloQast offers blogs, webinars, video testimonials, paper-based and digital e-books, chats, and email support for users seeking assistance on the tool’s functionality and implementation.

Available upon request from the vendor

AI-enabled features in Odoo let you automate expense management for accounting. The tool utilizes ML, NLP, and computer vision to analyze datasets, identify patterns, and make predictions based on historical data. Its one-click validation feature lets you verify all the extracted financial data for incorrect or missing entries. The tool learns from your selected corrections and provides similar suggestions for future anomalies in uploaded images or PDFs.

What are the AI capabilities of Odoo? *

Image and metadata recognition: Use the optical character recognition (OCR) reader to scan and extract data from PDF documents and convert them into digital invoices. 

Image scanner: Capture and upload paper-based invoices using your Odoo mobile application and convert them into digital invoices. 

Email alias: Choose invoices as the alias model and select the default partner (supplier) for invoices received through this alias. When an email containing an invoice arrives at the alias address, the feature automatically parses the information and creates a new invoice draft in the system. 

Why consider Odoo’s AI capabilities? 

Consider Odoo for your invoice management processes to automate and simplify capturing and adding data into the system. As the email alias feature can automatically digitize received invoices, you won’t have to spend time downloading and importing invoices from multiple sources. This process makes it easier to manage audits with digital invoices. 

Customer support: Odoo offers blogs, online guides, tutorials, and a community forum for users seeking assistance with software implementation and features.

$24.90 per user per month

Opt for user permission settings to assign and revoke access to data and dashboards in the accounting system. Users can access the enabled resources and perform related activities, including sharing, editing, and viewing financial data. This restricted access feature can help secure users’ financial information.

Ramp is for employee expenses, vendor management, and business accounting. The tool automatically collects the expense data using the employee's virtual card and matches it to the predetermined entries. The captured details are verified for incorrect or incomplete entries, and non-compliant expenses are flagged, notifying the employees of out-of-policy spending via push notifications or emails. The tool analyzes past vendor transactions to assess the price of a product and provides a list of options (new and existing) to ensure you pay a fair price. This feature allows you to spot the best vendor according to your planned budget and needs.

What are the AI capabilities of Ramp? *

Vendor comparison: Upload a purchase contract, and the tool will benchmark the vendor’s product price by analyzing crowd-sourced data of competitors. The feature also helps you understand the cost per user for a product.

Categorizing and coding: Use AI to categorize expenses based on patterns in historical data. Use the categorization to automate the coding of expenses to the correct accounts.

AI assistant: Ask questions, build approval workflows, and get suggestions to reduce business costs from the AI Copilot, your virtual assistant.

Why consider Ramp’s AI capabilities? 

Consider Ramp when looking to enhance employee expense and vendor management. The tool automates all repetitive tasks, including capturing and categorizing expenses and setting pricing benchmarks to avoid overspending on product purchases. All these capabilities save you time and let you focus on enhanced budget planning and forecasting. 

Customer support: Ramp offers blogs, online guides, webinars, and a help center for users seeking assistance with software implementation and features.

$12 per user per month

AI-enabled features in SAP Business One are utilized for various accounting tasks, from financial closing and consolidation to management and legal reporting. The tool automates expense reporting, allowing you to generate forecasts, analyze trends, and identify risks. This leads to better budgeting, resource allocations, and investments. Additionally, the tool detects anomalies in financial data that could indicate fraud or regulatory compliance, such as in reporting and tax filing.

What are the AI capabilities of SAP Business One? *

Automatic journal entries: Analyze transactions and generate journal entries automatically. The feature uses predefined rules and ML to understand the context of transactions.

Intelligent workflows: Trigger actions automatically based on specific criteria. You can also adjust the next steps in the workflow based on real-time task completion status. 

Closing automation: Automate revaluation of foreign currency, inventory valuation, prepayment adjustments, and other tasks related to the end of the financial year. The feature defines customer closing steps for different postings (operational, closing adjustments, etc). You can activate an option in system initialization to automatically change the status to ‘Closing period’ for the set date.

Why consider SAP Business One’s AI capabilities? 

Accounting and finance teams and managers looking for an all-in-one automated accounting solution can benefit from SAP Business One’s AI capabilities, from data extraction to reporting and tax filing. The tool takes away all the manual effort from the team with automated workflows and custom closing period settings. This ensures no due dates are missed and the accounts are accurate as of year-end. You can allow the grace closing period, after which the new period becomes active, and the team can add necessary final entries.

Customer support: SAP Business One provides a resource center, learning hub, chat, call, and email support for users seeking assistance with the software features and implementation.

SAP Business One

Consider an AI accounting software with audit trails to document changes in the accounting books, including reports, expenses, and invoices. This will help you conduct investigations or audits.

What are the benefits of using accounting tools with AI capabilities?

AI-enabled accounting tools solve multiple purposes in terms of expense tracking, data extraction, invoice digitization, budgeting, and forecasting. Below, we have discussed some common benefits of AI-enabled accounting software based on their features.

	Task automation, including data entry, invoice processing, reconciliation, and bank account monitoring, using AI algorithms frees up your accounting team’s time for more strategic work and analysis. As AI can analyze and process data faster and more accurately than humans, it’s easier to improve the turnaround time.
	You can use AI to analyze historical business data and trends and to predict future cash flow, including revenues and expenses. This will allow you to make informed decisions about budgeting, resource allocation, and investments. AI will also provide access to real-time data and insights, enabling you to make data-driven decisions and stay ahead of the competition.
	AI-enabled accounting tools detect and prevent potential violations or errors in transactions, eliminating costly fines and penalties associated with non-compliance. AI algorithms analyze financial data, such as unusual expenses, missing invoices, or suspicious payments. The tool notifies you via email or push notification for immediate corrective measures for any detected anomalies.

Accounting software offering AI capabilities can cost as low as $12 per month or up to $79+ per month depending on various factors, including the AI capabilities, number of users, reporting and analysis, support, and integration. Most AI tools for accounting solutions typically include the following pricing plans:

Free trial: No-cost trial plans range from a week to a month, giving users access to limited AI-enabled features. This is ideal for users wanting to try specific features before investing.

Free version: Most free software plans offer basic AI-enabled accounting features, including accounts receivable, accounts payable, and bank reconciliation. Ideal for small business teams on a budget.

Entry-level: Plans start from $12 per month and offer limited features, including custom workflows, user role management, expense management, and vendor management, in addition to bookkeeping, analytics, and reporting.

Mid-tier: Ranges from $37.40 per month to $55 per month and offers all AI-enabled accounting features with advanced data analysis and insights, OCR, automated payment reminders, and multi-currency support. Suitable for team members who’ve outgrown the basic accounting tools. 

High-end: Plans that go up or over $79 per month with custom features and priority support. They offer unlimited access to all entry and mid-level AI features.

Hidden costs associated with AI accounting software

Besides the software license, there may be additional costs, including:

Data migration: Transitioning from an existing accounting tool to an AI-enabled one or exporting data might require help from the software support team, implying extra cost. The vendors may charge extra to integrate systems for data sharing.

Training: Training employees to prompt an AI tool for accurate results may require some additional fee.

Data storage: AI accounting software often involves storing large volumes of financial data. You need to be careful of any additional charges associated with exceeding predefined storage limits, especially as the business scales.

Frequently asked questions when selecting AI accounting software

Here are some common questions to ask software vendors when finding the best AI tools to enhance your team's accounting needs.

AI algorithms in accounting systems verify captured data in real time for duplicate and missing entries. Plus, the tool learns from historical data and user interactions, improving its accuracy over time and adapting to changes in transaction patterns. If the software detects any discrepancies, it should alert you via email or push notifications while investigating and rectifying them.

AI-enabled accounting systems automate bank reconciliation by matching transactions between your accounting records and bank statements. You can securely integrate your bank accounts with the systems to import the statements instead of manual uploads. In terms of financial audits, the software provides relevant financial data in a structured format, which is visualized using charts and graphs to highlight the key points.

Accounting systems with AI capabilities can automate the analysis of historical financial data, categorizing transactions, identifying patterns, and assessing cash flow trends over time. You can use this data to forecast cash flow and estimate future cash inflows and outflows. Some AI accounting software allow you to perform scenario planning by adjusting the variables and assumptions. This process helps you model different financial scenarios and learn to manage risks in various situations that could affect your business’s financial health.

Our research team identified these capabilities from vendor websites (as of Dec. 21, 2023) based on their analysis of what users find valuable in or expect from AI-enabled accounting software. This list is not exhaustive. For additional capabilities, refer to the vendor's website.

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About the author.

Saumya Srivastava

Saumya Srivastava is a writer at Capterra. She provides expert insights and helps small businesses identify the right software for their needs by conducting primary and secondary research and analyzing user sentiment. A postgraduate in mass communication, she has worked as a content creator for an educational website and an advertising agency. Her expertise lies in social media marketing and content strategy. When not working, she can be found meditating or spending time outdoors.

RELATED READING

Methodology

We selected the six products with the highest ratings to feature in this article. To be considered for this list, products must:

Have at least 20 unique product reviews published on Capterra within the past two years, with an average rating of 3.0 or higher (as of Dec. 21, 2023).

Show evidence of offering the required AI capabilities, as demonstrated by publicly available sources, such as the vendor’s public pricing plan documentation.

Meet our accounting software definition: ‘Accounting software automates an organization's financial functions and transactions with modules including accounts payable, accounts receivable, payroll, billing and general ledger.’

The “best functionality” tool is identified based on the highest user ratings for functionality that a vendor receives based on user reviews as of Dec. 21, 2023.

Research for this article was provided by Akriti Sharma .

The “top-rated” is identified based on the highest user ratings for overall quality that a vendor receives based on user reviews as of Dec. 21, 2023. 

For the section titled 'How much does AI-enabled accounting software cost?’ only products with publicly available pricing information and AI features included in the pricing plan as of Dec. 21, 2023, were considered for pricing calculations.

Editorial Independence:

We select and rank products based on an objective methodology developed by our research team. While some vendors may pay us when they receive web traffic or leads, this has no influence on our methodology.

11 Best AI Accounting Apps 2024

What if you could streamline your accounting tasks with the power of AI Accounting Apps? Wouldn’t it be great if you could automate complex calculations, reduce human error, and save valuable time? Welcome to the world of AI accounting software.

AI Accounting platforms are revolutionising the way businesses manage their finances, offering efficiency. AI accounting Apps is not just a trend; it’s a powerful tool too.

It’s transforming the accounting landscape, making it more accessible, efficient, and reliable. Whether you’re a small business or a large corporation, AI accounting software can make a significant difference.

Listed below are 11 top-notch AI Accounting Apps starting with

1. zoho books: the ai accounting apps.

Accounting apps make all the difference in a small business’ success. Whether you are an individual or run your own business, an accounting app is an important tool for financial management, as it uses accounting data to streamline financial tracking, simplify decision-making, and keep all of your financial information organized for when you need it. Accounting apps can connect to tax software , track inventory, monitor cash flow, and help with financial reporting, simplifying modern business management.

Table of Contents

Top 6 Best Accounting Apps

What is an accounting app, accounting apps comparison table, experience efficiency and growth with freshbooks.

• Frequently Asked Questions

Business owners have unique needs for parsing accounting data and running their businesses efficiently. The following are some of the top accounting app options in 2024.

1. FreshBooks (Best Overall)

With FreshBooks cloud-based software, you can log expenses, track mileage, process payroll, generate financial reports, automate processes, and create and send invoices from any device. This versatile mobile accounting app helps with time tracking and project management. FreshBooks also automatically tracks expenditures and scans, logs, and categorizes receipts with a user-friendly interface to make expense tracking easier.

• Mileage Tracker App – FreshBooks is the best accounting software for incorporating mileage tracking, ensuring that all your time on the road is tracked and tax filing is easy.
• Receipt & Expense Tracking App – You won’t miss out on important tax deductions again because the Freshbooks app for accounting makes it easy to keep all expenses and receipts organized. If you’re wondering which receipt scanning solution is best for your business, check out our article on the best receipt scanner app .

The following prices are based on the annual subscription price. The Lite tier costs $19 per month, the Plus tier is $33 per month, and the Premium tier is just $60 per month.

2. QuickBooks

The QuickBooks accounts app is often used for small business accounting, creating financial reports, and tracking income. It automates time tracking, expense management, and data collection, and you can customize QuickBooks online for your unique business needs.

Some customers have found that the QuickBooks online app crashes while they’re using it, and many users have had difficulty getting direct professional support when they run into an issue. The QuickBooks app also lacks a dashboard where you can see an overview of finances and tasks.

The starting cost for Intuit QuickBooks is $30 per month for the Simple Start plan, $60 per month for the Essentials plan, $90 for the Plus plan, and $200 for the Advanced plan. QuickBooks offers a free trial for 30 days, and you can get 50% off of your first 3 months.

3. Zoho Books

Zoho Books accounting app for small businesses allows for invoicing, online payments, expense tracking, inventory management, project management, generation of business reports, and more.

The pricing tiers can be confusing and get expensive for larger organizations. There is also a monthly transaction cap that can be limiting, and there are fewer integrations on this app when compared to competitors.

Zoho Books has a special free tier for small business owners with a revenue of less than $50K annually. The Standard tier costs $15 per organization per month, the Professional tier is $40 per organization per month, the premium is $60 per organization per month, the Elite tier is $120 per organization per month, and the Ultimate tier is $240 per organization per month. You must also add $2.50 per user per month. All pricing above is based on annual billing.

Xero is a cloud-based accounting software that can automate administrative tasks, store documents, scan files, capture and save receipts, and sync with bank accounts. It can be customized to your needs.

Sometimes glitches with the app interfere with the user experience, and some users have found that customer service may be lacking. One of the main drawbacks mentioned in reviews is the pricing packages.

Pricing per month is $15 for the Early package, the Growing package costs $21 per month, and the Established package is $78 per month. Xero offers free trials to new users and 50% off your first 3 months’ subscription costs.

5. Sage Accounting

Sage business cloud accounting makes creating invoices, managing expenses, monitoring payments and receivables, and automating bank reconciliation easy. A user-friendly interface allows you to upload your products and track inventory levels remotely, manage expenses, and perform accurate financial reporting.

Some reported drawbacks to the Sage accounting app include unreliable bank feed links, poor telephone user assistance, and difficulties editing entries, whether or not they’ve been reconciled.

The Sage accounting plan starts at $17 per month for the Start plan, the Standard plan costs $39 per month, and the Plus plan costs $55 per month. There is also the option to try the Sage accounting app for free for 30 days or get 50% off for 3 months.

Wave is an easy-to-use online accounting software that tracks income and expenses, helps you stay organized, and manages cash flow, keeping you ready for tax time. You can connect your bank account in seconds for automatic bookkeeping, and the accounting reports keep you up-to-date on your finances.

You cannot integrate third-party apps or software, nor are there additional features like time tracking or inventory management features. There is also only live support if you purchase a paid plan.

Wave accounting and invoicing features are completely free, with no hidden fees. Still, you do have to pay for online payment processing (per use), bookkeeping services (mobile receipts are $11 monthly, and payroll services are $25 per month plus $6 per user), and any coaching by the Wave advisors.

An accounting app is software you can install on your mobile device to simplify accounting tasks. It captures and records financial transactions, and it can make categorizing and filing financial records less time-consuming, so you can focus on running your business instead of doing tedious paperwork.

The FreshBooks small business accounting app is a useful tool you can incorporate into your daily processes to streamline your finances and make day-to-day cash flow tracking easier.

To make searching for the best app for small business accounting easier, we have compiled a list of the top options, their best uses, and their starting prices.

FreshBooks	Best Accounting App Overall	Yes	Yes, and
QuickBooks	Best for Comprehensive Features	Yes	Yes	$30
Zoho Books	Best Workflow Automation	Yes	Yes	$15
Xero	Best for Freelancers	Yes	Yes	$15
Sage Accounting	Best for Businesses or Individuals Working Onsite	Yes	Yes	$17
Wave	Best Free Accounting App	Yes	Yes	Accounting features are free, but integrations cost extra

FreshBooks is more than your typical accounting solution. It is the simplest accounting software to implement into your business practices. It allows you to track expenses, view reports, create and send invoices, manage projects and clients, and organize files and financial data in one place. Users appreciate the simple interface of the mobile accounting apps, and the all-in-one software saves you time and streamlines financial tasks for businesses of all sizes.

FreshBooks is one of the easiest accounting software options to use. Find out more about why Freshbooks is the best small business accounting app — try FreshBooks free .

FAQs about Accounting App

Look at the following frequently asked questions to learn how FreshBooks can help your business stay organized and thrive in today’s modern economy.

Can I access my business info from the FreshBooks mobile app?

Yes, all of your business information can be accessed from the FreshBooks mobile accounting app , as it is automatically synced across all devices. No matter where you are or which device you use, you will have full access to all your important data and information.

Are all the same features available in the mobile app?

Yes, most of the same features are available in the app, making FreshBooks the best accounting app. You can run your business from your tablet or phone, log expenses, track time, and send invoices. Some features, however, are unavailable in the mobile app, including reporting.

Which devices can I access the FreshBooks app from?

The devices you can access the FreshBooks app from include PCs, laptops, tablets, and phones, with apps for iPhones and Android phones available. You can use it from any type of mobile device, as long as it can connect to the internet, which is why FreshBooks is the best accounting app for small businesses.

What app can I use for accounting?

You can use the FreshBooks accounting app . It is one of the top choices of the many business accounting app options for accounting automation, tracking business expenses, processing payroll, and creating accounting reports. FreshBooks has easy-to-use accounting solutions for your small business needs.

What is an easy accounting program?

An easy accounting program is small business accounting software that assists in organizing financial data using a user-friendly, modern interface. FreshBooks is one of the easiest small business accounting apps to use, allowing you to create and send invoices, track expenses, and manage projects with just a few clicks.

How do small businesses keep track of expenses?

Small businesses keep track of expenses by using single-entry or double-entry bookkeeping . The FreshBooks software can be used on your desktop or as a mobile app and has simple accounting features that let you scan, log, and categorize receipts. You can also connect to your financial accounts or credit card to automatically enter expenditures.

Sandra Habiger, CPA

About the author

Sandra Habiger is a Chartered Professional Accountant with a Bachelor’s Degree in Business Administration from the University of Washington. Sandra’s areas of focus include advising real estate agents, brokers, and investors. She supports small businesses in growing to their first six figures and beyond. Alongside her accounting practice, Sandra is a Money and Life Coach for women in business.

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Squeeze Growth

Entrepreneurship, Productivity & Marketing

15 Best AI Accounting & Finance Tools and Software

Written By Zarqoon Amin on April 5, 2024

AI accounting and finance apps make your processes more efficient.

They are automation tools that not only reduce manual work but also summarize large data into key insights to help you monitor your financials and make strategic business decisions.

If you are looking for such features, I have reviewed some top AI accounting and finance apps for you.

Whether you are a solopreneur or a manager in a large organization, you can use these tools to improve your operations.

What is AI Accounting and Finance Software and What Tools Are Best for You?

AI Accounting and Finance software refers to any application that automates repetitive tasks and generates reports. It helps you set several processes on autopilot and get instant financial status and key insights.

Most cloud systems use AI and automation to speed up data entry and create financial statements.

There are also independent tools you can use with your accounting software to generate specific results, like data analysis or anomaly detection. These apps integrate with your accounting system and financial sources and automatically organize your data.

Top Features to Look for In AI Accounting and Finance Software;

• Data entry automation.
• Financial data analysis and reporting.
• Tracking and real-time alerts.
• Integrations.

Below, I have compiled a list of the 15 best AI accounting and finance software products. You’ll find several accounting, budgeting, and finance tools in the list.

1. AccountsIQ

AccountsIQ is an AI-powered cloud accounting system. It provides all the core accounting and finance modules, including business intelligence and integrations.

You can use it to record general entries, automate payments, consolidate statements, and manage cash flow. The software automates both basic and complex tasks and offers a bulk email option for follow-ups.

For supervision, AccountsIQ delivers an approval workflow. Managers can set up budgets and approve invoices and payments from their smartphones.

You can oversee multiple entities and handle foreign currency transactions.

AccountIQ’s growth plan also has a separate software for fixed assets. It keeps track of all your company’s assets and automatically calculates depreciation expenses.

Core Features

• Cloud accounting.
• AI capabilities.
• Consolidation.
• Fixed asset management.
• Cashflow forecasting.
• Analytics and reporting.
• Bulk email.
• Multi-entity support.
• Mobile friendly.

AccountsIQ charges €199 to €450 per month. You can ask for the enterprise plan.

2. Sage Intact

Sage is a cloud accounting system for growing companies. With its AI-powered tools, you can reduce manual data entry and automate your workflows.

The software covers core financial operations and other side departments such as supply chain, HR, budgeting, and analytics. You can manage receivables, payables, cash, and orders and convert your financial data into valuable insights for forecasting and budgeting.

You can integrate Salesforce with the core accounting system and buy add-ons to extend and customize your workflows.

• Accounting system.
• Payroll and HR.
• Budgeting and planning.
• Collaboration.
• Reporting and insights.
• Multi-entity consolidation.

Sage shares prices on request. Contact sales for the quotes.

Docyt delivers data entry and financial reporting automation.

The software scans your receipts, bills, and credit card purchases and automatically categorizes them in the proper general ledger. Additionally, it tracks your bank transactions and reconciles them daily.

Any missing or unusual amount gets flagged instantly for review, easily detecting incomplete or unauthorized transactions.

Via the dashboard, you can easily monitor both financial and operation metrics and generate PL and cash flow reports. Docyt also gives you the option to set reporting on autopilot. That means the software sends necessary files to your email inbox daily, so you don’t have to log in for the report download.

• Multi-entity accounting.
• Expenses management .
• General ledger.
• Reconciliation.
• Month-end closing.
• Analytics dashboard.
• Financial reporting.
• Email alerts.

Docyt’s basic plan costs $299, and the Enterprise plan costs $999. You can ask for the demo.

4. Botkeeper

Botkeeper is designed for accounting firms. It’s an AI assistant tool that helps you optimize your accounting and general operations and monitor key metrics.

The app’s core function is categorizing general entries and automatically sending them to your accounting system. You can connect it with QuickBooks or Xero and update your ledgers.

If there is any discrepancy, it detects and brings them to your attention.

Other notable features of Botkeeper include business insights, document storage, client collaboration, and project management .

• General entry automation.
• Transaction monitoring.
• Business insights.
• Document storage.
• Work management.
• Client communication.

Botkeeper’s monthly rate is $69. You can take a tour before purchasing the subscriptions.

Dext sells a suite of accounting products. Its product line has a receipt scanner mobile app, data extraction software, an e-commerce data consolidation tool, and a discrepancy alert.

You will get automation tools to optimize your workflows and third-party integrations to sync your accounting system with Dext. The software supports Sage, QuickBooks, and Xero and also connects with popular e-commerce platforms and POS systems.

With Dext insights, you can monitor your finances in real-time and generate reports for stakeholders or clients.

All in all, it’s a good app for process automation and analytics.

• Accounting.
• Scanning facility.
• Data extraction and sorting.
• Accounting matching and automation.
• Discrepancy alert.
• Real-time insights and reports.
• Mobile app.

Dext prices start from $30. You can take a free trial.

6. Truewind

Truewind offers AI assistance to startups, accounting firms, and established companies. The app acts as your digital accountant, automating repetitive workflows and providing data visibility.

If you are a startup organization, you can purchase its full-service accounting. The in-house team handles your books of accounts and taxes and also offers CFO services.

For accountant firms and established organizations, Truewind delivers tailored solutions. The software works well with popular accounting systems and provides an API for custom integrations.

• Accounting automation.
• AI assistant.
• Audit trails.
• Document collection.
• Client follow-ups.
• Full-service bookkeeping.

Truewind shares prices on request. Book a demo to know more.

Vic sells AI payable solutions to mid-size companies. The software helps you handle invoices and process vendor payments.

Top notable features of Vic include purchase order matching, invoice data extraction, approval process, and payment workflows. Your vendors will get the flexibility to upload their invoices directly from their smartphones.

Via the analytics module, you can monitor invoice processing and generate spending insights.

You can integrate Vic with major ERP platforms and upload files in various formats. Vic also supports desktop and mobile devices.

• Vendor invoice management.
• Approval workflows.
• PO matching.
• Payment processing.
• Desktop and mobile.
• Integration.

Vic shares prices on request. You can also ask for the demo.

Booke collects, categorizes, and reconciles transactions. The platform sells two AI products to automate bookkeeping and eliminate accounting errors.

You’ll receive desktop and mobile apps for easy accessibility and reporting tools to communicate with clients and your team. You’ll also get the OCR feature and payable automation to upload and categorize receipts in bulk.

You can integrate Booke with your productivity apps for document sharing and connect it with your accounting systems to sync transactions.

For auditing, Booke has an activity journal and detection tool. Every transaction and edition are screened and logged for review.

• AI bookkeeper.
• Data scanning and categorizing.
• Activity journal.
• Error detection.
• Payable workflow.
• Chrome extension.

Booke charges $20 for the automation plan, and $50 for the AI package. You can request a demo.

FloQast helps you centralize information and simplify the month-end closing process. It automates several workflows, such as document collection, reconciliation, collaboration, and reporting.

The software is excellent for tracking and visibility.

You can create checklists with deadlines and automatically detect data entry issues. To keep an eye on the closing process, you’ll get an analytics dashboard with reporting options for stakeholders.

All the necessary productivity and collaboration tools are also available on FloQast. You can connect Slack, set up roles, assign unresolved tasks, and automate information requests and follow-ups.

• Information request workflow automation.
• Compliance management.

FloQast shares prices on request. Book a demo to know more.

10. Quickbooks Intuit

If you use Quickbooks for accounting, you don’t have to go anywhere else for the smart features.

Quickbooks already use machine learning to automate time-consuming tasks. Via its scanning and tracking technology, small business owners can easily eliminate data entry and set monitoring on autopilot.

But Quickbooks also plans to introduce an AI assistant, which would help you get quick business insights. With this tool, you can get targeted financial information and data-backed recommendations.

• Receipt capture.
• Automation.
• Estimation and budgeting.
• AI assist (coming soon)
• Assisted bookkeeping.
• Multicurrency.

Quickbooks plans begin at $15. You can explore assisted bookkeeping services for free.

Zeni offers finance concierge services to startups. It uses artificial intelligence to automate daily bookkeeping and summarize operations in a single dashboard.

The product is designed to make money management easier for the founders. For a flat fee, Zeni handles everything and converts invoice data into readable charts. From your side, you only need to upload bills and reimbursements and let Zeni automate everything.

With Zeni’s user-friendly interface and human expert services, founders can keep an eye on their cash reserves and handle operations with ease.

• Finance concierge.
• Bookkeeping.
• Reimbursements and payroll.
• Cash runway monitoring.
• Reporting dashboard.
• Budgeting and forecasting.
• Inventory management.

Zeni prices start from $549. You can book a demo to check out its products.

Wally is a personal finance mobile application. It has AI capabilities that make tracking your monthly spending and cash flow a lot easier.

The software automatically categorizes your expenses and gives you a summary of your current financial position.

If you have recurring bills, Wally alerts you beforehand, so you can pay dues on time.

With its AI assistant, you can optimize your budgets and get financial advice.

Wally comes in both Android and Apple versions and supports around 15k banks from 70 countries.

• Personal finance.
• Spending management.
• Finance guide.

You can try Wally for free.

13. RocketMoney

RocketMoney is a good alternative to Wally. It tracks your monthly spending and helps you increase your savings.

Core capabilities of RocketMoney are budgeting, net worth calculation, recurring payments, and insights. It also analyzes your expense pattern and recommends the best way to save money.

One other good feature of RocketMoney is bill negotiation. The app scans your bills and provides better rates for insurance and other services.

• Spending tracking.
• Net worth calculation.
• Subscription management.
• Bill negotiation.
• Credit score monitoring.
• Saving recommendation.

RocketMoney is free to use. For premium membership, it charges around $4 to $12 per month.

You’ll receive a 7-day free trial to explore the premium features.

14. Datarails

Datarails is a finance analytics tool. It automates time-consuming processes and extracts data for forecasting and budgeting.

The app is built to improve your Excel work.

You don’t have to migrate or replace your Excel sheets. The software simply consolidates the original data for better visibility and generates reports for the stakeholders.

You can tailor your dashboard metrics to get specific results and share your dashboard with your team.

There’s also a module for scenario planning. You can create different variations of your budgets to optimize your operational costs.

The best feature of Datarails is the FP&A AI chat. It analyzes your records and delivers specific financial data on request.

• Excel add-in.
• Financial planning and budgeting.
• Scenario planning.
• Custom dashboard.
• ERP and CRM integrations.

Datarails provides custom packages. Contact sales to get the quotes.

Cube is also a finance analytics and reporting platform. Like Datarails, it extracts data from Excel and creates readable charts and reports.

Some of the data you can generate with Cube includes cash flow forecasting, sales projections, workforce planning, and consolidation. You can run unlimited scenarios on Cube and customize your forecasting dashboard.

Templates for Excel and Google Sheets are included in the subscription. You’ll find templates for dashboards, calendars, financial statements, and budgeting.

You can connect third-party applications with Cube and add your team members for collaboration.

• Financial analytics and planning.
• Excel and Google Sheets data import.
• Collaborations.

Cube prices start at $1500. You can ask for the custom package.

Bookkeeping is time-consuming.

Each business transaction needs to be individually recorded and properly categorized to keep an accurate book of accounts.

AI accounting and finance tools make things easier for you. With applications like Docyt and FloQast, you can speed up your workflows and efficiently generate data for financial planning and budgeting.

Explore the above applications to compare different AI accounting products. Good luck!

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10 Best AI Tools for Accounting (Free and Paid)

In the evolving landscape of business, the surge of AI’s presence is undeniable. One sector witnessing a notable improvement is accounting. With the influx of options, identifying the best AI tools for accounting has become paramount.

We’ve meticulously crafted a list just for you. These AI tools, handpicked for excellence, stand poised to revolutionize financial workflows. For the seasoned accountant or a nascent enterprise, their impact is profound.

In an industry where precision and efficiency reign supreme, these AI tools deliver. They’re your go-to for intricate financial challenges or streamlining daily tasks. So, are you ready to transform your accounting game? Dive into our guide and discover the power of AI-driven solutions.

Best AI Tools for Accounting

• Accounts IQ

Description

In the modern landscape of accounting, Docyt shines brightly. Recognized as one of the best AI tools for accounting, it blends AI precision with automation effortlessly. Gone are the days of intricate financial tasks; with Docyt, they become a breeze, providing real-time insights into financial reports and ensuring a continuously updated general ledger.

A standout feature is Docyt’s invoice management. It automatically captures key invoice details like vendor names and dates. Moreover, amounts are detected without needing human intervention, setting the stage for automatic accounting entries. But its power doesn’t stop there. Docyt delves into your spending patterns, promptly tagging and categorizing expenses. The result? Financial oversight becomes a walk in the park.

Then there’s reconciliation. Docyt seamlessly matches transactions from bank accounts with the general ledger. Spot an inconsistency? Docyt’s on it. Its AI engine guarantees pristine ledgers at all times. And for that final touch, Docyt offers tailored real-time financial reports, giving you a transparent view of your financial health.

To wrap it up, Docyt represents the pinnacle in today’s accounting tools. It’s efficient, accurate, and entirely automated, delivering both time savings and impeccable financial accuracy.

Back Office Automations Expense management: $50/month Revenue Reconciliation: $50/month Corporate Credit Card Management: $50/month Bookkeeping Automations Mini: $149/month Insight: $199/month Impact: $299/month Advanced: $499/month Enterprise: $999/month

2. Blue Dot

When diving deep into the world of AI tools for accounting, Truewind stands out impressively. It’s a game-changer for startups. By harnessing the power of AI, Truewind revolutionizes traditional bookkeeping.

Remember the tedious process of manually entering bank transactions? Those days are behind us. Truewind automatically imports bank data with ease. But its capabilities don’t end there. Thanks to cutting-edge AI and natural language processing, it tags expenses with pinpoint accuracy. Even a simple descriptor like “coffee shop” doesn’t confuse Truewind.

Furthermore, when we talk about financial reports, Truewind delivers. Startups can effortlessly access clear and succinct income statements, balance sheets, and other financial documents. These insights illuminate the financial journey ahead. Should any questions arise, Truewind’s expert support is just a call away.

In short, for startups on the quest to find the best AI tools for accounting, Truewind should be on their radar. It offers unmatched clarity, precision, and streamlined financial management.

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18 AI Tools for Accounting and Finance

Emily Perkins

Head of Content Strategy

Notable and interesting AI-powered tech solutions making waves for accounting and finance teams.

February 15, 2024

Artificial intelligence (AI) is changing the business landscape at a remarkable pace, and strategically selecting and implementing AI tools for accounting and finance is critical to stay competitive and support future growth. Leading companies are leveraging AI to augment their teams and boost productivity so they can devote more attention to strategic work and reshape their organizations for the better.

In a 2023 Financial Services GenAI Survey , Ernst & Young found that nearly all (99%) of the financial services leaders surveyed reported their organizations were deploying artificial intelligence (AI) in some manner, and all respondents said they are either already using, or planning to use, generative AI (GenAI) specifically within their organization.

However, navigating the AI landscape can be daunting for accounting and finance professionals. With many AI-branded tools and solutions entering the market, it can be difficult to sort through and find the technology providers that are reputable and viable for your business. 

Here, we summarize 18 notable, interesting or emerging AI-powered technology solutions for accounting and finance teams. While some are more suited for global enterprises and others for start-ups, they are all interesting to explore and be aware of. Each of the tools highlighted below leverage AI functionality to solve a unique or complex business need.

For research and data:

AlphaSense is a market intelligence and search platform that has grown substantially over the last few years, most notably fueled by Google parent Alphabet’s $100 million investment. For accounting and finance teams, AlphaSense has an AI solution tailored for the financial industry to assist leaders with researching and navigating market trends, asset management, investments, corporate banking, private markets, financial reports, and more.

For regulatory and compliance:

Ascent is a regulatory compliance data platform for the financial services industry. Staying on top of regulatory obligations can be extremely time consuming and difficult to navigate. Ascent uses AI to analyze regulatory data and text to pinpoint relevant rules and regulations for an organization’s particular business needs.

For auditing:

Trullion is an accounting oversight platform that “uses AI to simplify revenue recognition, lease accounting, and audit workflows.” Trullion assists financial teams in reporting revenue accurately, performing AI-powered audits, and extracting and managing lease data. Trullion also supports compliance and accurate reporting for customer revenue, specifically with ASC 606 and IFRS 15.

‍ For autonomous invoice processing:

Vic.ai offers an AI-powered autonomous finance platform to manage end-to-end accounts payable management from invoice ingestion to payment processing. Vic.ai specializes in autonomous invoice processing and approvals with touchless autopilot to reduce manual and time-consuming work, saving 80% more time. Vic.ai also handles payment processing via card, check and ACH, and integrates with all major ERPs.

‍ For the month-end close:

HighRadius is a leader in the invoice-to-cash application space, and positions their solution suite for the “office of the CFO” with predictive AI to manage accounts receivables, treasury management, and account reconciliation and the financial close process. HighRadius is an enterprise-level platform with a little bit of everything to support “autonomous finance”.

For ERP integrations:

Alpha.AI provides AI-powered, no code ERP integrations to connect advanced software solutions to existing systems. They specialize in automating procure-to-pay and cloud solutions, enabling them to save time, gain control, and optimize costs. Alpha.AI leverages generative AI to automate API development for any ERP system.

Propell.ai supports Nordic and European enterprise markets to automate document management and bookkeeping, as well as integrating AI-powered solutions, such as Vic.ai , with any ERP system.

For financial advisors:

Gridlex Sky offers cloud-based solutions with AI-driven financial advisors for tasks like invoicing, credit control, and forecasting for B2B accounts​​. Gridlex Sky specializes in multi-currency transactions and conversions, expense management, and calculation management. 

For work collaboration:

Karbon is a collaborative cloud platform for accounting practice management. Karbon provides work efficiency tools like project management, workflow automation, calendar integrations, and client management capabilities. KarbonAI helps summarize client communications like emails and comments.

For receipt management:

Receipt-AI is a receipt management app for managing various types of receipt photos via text and email. Receipt-AI ingests receipt data into accounting tools such as Xero and QuickBooks, and is a simple, user-friendly receipt management tool.

For spreadsheet work:

Rows is a modern spreadsheet editor that incorporates AI and ChatGPT to build spreadsheets quicker, and analyze and summarize data. Rows enables form and dashboard building, and integrates with a variety of standard business software.  

For financial fraud:

Signifyd offers a payment optimization platform to automate risk decisioning, handle exemption management, protect from payment chargebacks, and manage payment recovery. Signifyd is mostly a commerce platform for merchants, but can identify and block fraudulent payments, among other fraud detection services. 

For tax compliance:

Blue dot is an all-in-one tax compliance platform that uses deep learning and machine language learning to provide a 360-degree view of all employee-driven transactions. Blue dot also tracks global expenses to identify VAT recovery opportunities, and manage regulations related to taxable employee benefits (TEB).

For entrepreneurs and founders:

Truewind is an AI-powered bookkeeping and financial platform, and is positioned as end-to-end CFO support for start-up founders and entrepreneurs. Truewind offers a “CFO copilot” to review monthly financial health, assist with operating budgets, and review vendor contracts. Truewind also takes care of tax credits and filing.  

Zeni.ai is another AI-powered bookkeeping tool targeted for fractional CFOs and start-up founders, with solutions for managing start-up tax, bill pay, expense reimbursements and traditional bookkeeping.

For independent business owners and freelancers:

Indy is an AI bookkeeping and workflow tool designed for independent business owners, such as freelancers, designers, and contractors. It offers all-in-one capabilities for managing project proposals, tracking billable hours, generating invoices, housing contracts, and receiving payments.

For offshore outsourced accounting:

Klarity offers an alternative solution for traditional business process outsourcing for accounting teams. Karity can handle accounting processes and compliance workflows on a 24/7 model to replace offshore business models.

For autonomous procurement sourcing:

Fairmarkit is an autonomous sourcing platform to support procurement teams with strategic sourcing. Fairmarkit leverages AI and automation to source more vendors faster, and more accurately. Fairmarkit also provides access to a global marketplace of vendors and suppliers.

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The Best Accounting Software of 2024

Top 10 accounting software apps to try, choose the accounting software app that’s right for you, look for apps with payroll and tax functions, intuit quickbooks online — top pick, zoho books — best business insights, wave accounting — best free version, freshbooks accounting software — lowest monthly subscription fee, sage 50cloud accounting — best for small businesses, xero — best for project tracking, trulysmall accounting by kashoo — best for invoicing, accountedge pro — best for scalability, oneup — best for inventory management, zipbooks — best for tracking expenses, accounting software apps: features summary table.

Written by: BestApp.com App Testing Team - Updated: May 07, 2021

When it comes to accounting software, we love Intuit QuickBooks Online for its flexibility and customizable reports. If Intuit QuickBooks Online isn't the right app for you, we found nine other accounting apps to help with invoicing, account reconciliation, and expense tracking.

How We Chose the Best Accounting Software

We looked for apps that have essential features for helping small businesses keep track of revenue and expenses, including bank syncing, online invoicing, and automatic payment reminders. When you’re ready to choose an accounting software app, the next step is learning how to determine which option is the best fit for your business.

To choose the right accounting software app, you’ll need to consider your budget and your accounting needs. Some apps have low monthly fees, while others require annual payments. Before you start comparing features, determine how much you’re willing to spend. Then, look for apps that have everything you need to keep track of incoming and outgoing funds. 

If you need more than just invoicing and expense tracking, look for apps that integrate with payroll software and have features to help you with your tax filings. 

Our Accounting Software Reviews

Download:  Android ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ | iOS ★ ★ ★ ★ ★ ★ ★ ★ ★ ★

Intuit QuickBooks Online combines accounting, payroll, and tax features all in one app. The software supports batch processing, making it possible to import hundreds of invoices or expense receipts with just a few clicks. Advanced dashboards and reporting capabilities give you insight into how your business is performing, and the app even gives you the option of connecting with a live bookkeeper who has experience in your industry, ensuring that transactions are recorded quickly and accounts are reconciled correctly.

Intuit QuickBooks Online supports multiple users and syncs changes automatically, ensuring everyone is always working with the most up-to-date data. With this app, you can also invite your accountant to access your records, making it easier to prepare quarterly tax filings or get ready for end-of-year financial planning sessions.

Notable features:

• Free trial available
• In-app purchases: $0.99 to $124.99 per item
• Support available: Help articles, FAQs, Online chat, Email, Ask the community

Intuit QuickBooks Online Pros & Cons
Payroll features included	One of the most expensive options
Imports transactions from bank accounts
Project dashboards available

Download: Android ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ | iOS ★ ★ ★ ★ ★ ★ ★ ★ ★ ★

Zoho Books makes it easier to perform end-to-end accounting functions, from negotiating the financial aspects of a business deal to recording the revenue and making sure employees and contractors get paid on time. The app eliminates the need to calculate your sales tax liability manually, preventing errors and helping your business comply with all relevant tax rules, and has a wide range of features to help you deal with payables, receivables, and inventory.

Zoho Books connects directly to your bank accounts, eliminating the need to enter transactions manually, and allows you to set up custom rules for different transaction types. The app even incorporates some basic CRM features, such as a contact database and client portal, to enhance collaboration and reduce your data-entry workload.

• In-app purchases: $1 – $274.99 per item
• Support available: Help center, Email, Toll-free number

Zoho Books Pros & Cons
Integrates with Stripe	User/contact limits on basic plan
Well-designed user dashboard
Valuable security features

Wave Accounting is completely free, but it has many of the same features as paid accounting software apps. For example, it syncs to your bank account, making it easy to import transactions instead of having to enter each one manually. The user dashboard also gives you immediate access to your most important performance metrics, including monthly cash flow, income, expenses, overdue payables, and past-due receivables, showing you exactly what you need to do to make your business even more successful.

The app uses 256-bit encryption to protect your financial data, has smart dashboard features to make it much easier to file your taxes, and even supports double-entry accounting, eliminating uncertainty and ensuring that you understand exactly what’s happening in your business. 

• Free version available
• Support available: Help center, Request form

Wave Accounting Pros & Cons
Free software	No telephone or chat support
Bulk transaction processing saves time
Works with multiple businesses

FreshBooks combines invoicing, mileage tracking, time tracking, and more into a mobile app that lets you manage your company’s finances on the go. With the built-in invoice generator, it takes just a few seconds to create an invoice with your company’s logo and a custom thank-you message for the customer. FreshBooks also allows customers to pay their invoices online, which means you get paid up to 11 days faster than you would if you had to wait for a check or process a payment by phone.

Connecting your bank account to FreshBooks makes it easy to import transactions automatically, preventing data-entry errors and ensuring every transaction is accounted for in your financial statements. You can even take pictures of your receipts and store them in the cloud.

Notab le features:

• In-app purchases: $4.50 – $15 per month

FreshBooks Accounting Software Pros & Cons
Templates to reinforce company branding	Five-client limit on Lite plan
Dropdown menus to speed up invoicing
Integrates with payroll software

Sage 50cloud Accounting gives you remote access to your financial information, giving you peace of mind as you grow your business. The app comes with advanced inventory management capabilities to ensure you always know how much stock you have on hand and when it’s time to place an order. Cash flow and invoicing tools help you track expenses, follow up on late payments, and determine how much money customers owe you. 

Sage 50cloud Accounting comes with several tools to make job costing easier, including job phases and cost codes, helping you make your business more profitable. With Sage 50cloud Accounting, you can even offer direct deposit or payroll debit cards.

• In-app purchases: $56.08 – $139.58 per month
• Support available: Help center, FAQs, Phone

Sage 50cloud Accounting Pros & Cons
Batch processing of checks	No 24/7 support offered
Easy-to-use interface
Excellent reporting capabilities

Xero’s accounting app gives you the freedom to conduct business from anywhere you have an internet connection. The app connects to your bank account, making it easy to categorize transactions and reconcile your accounts, and it also has built-in tools to help you create, preview, and send invoices within seconds. Xero gives you a better handle on your cash flow by making it easy to view outstanding invoices and see which ones are overdue or about to be overdue.

Converting prospects into paying customers is a breeze; all you need to do is tap a button to transform an estimate into an invoice. Xero also helps you monitor business spending and quickly determine how much you owe vendors.

• In-app purchases: $5.50 – $31 per month
• Support available: Help center

Xero Pros & Cons
Simplifies project tracking	Cannot set inventory reorder levels
Integrates with Gusto for payroll processing
Double-entry accounting features

Download:   iOS ★ ★ ★ ★ ★ ★ ★ ★ ★ ★

TrulySmall Accounting by Kashoo is designed to simplify even the trickiest accounting tasks, giving you more time to spend marketing your business and building relationships with customers. Made for freelancers, independent contractors, and owner-operators, the app eliminates manual imports and data entry, automating many of the accounting activities that take up so much time. To help you save money and avoid a steep learning curve, TrulySmall Accounting comes with only the most essential features for small businesses.

One of this app’s key features is Auto-Post — users can enable Auto-Post to have all of their transactions automatically categorized, reconciled, and posted to the correct CRA/IRS-approved accounts. TrulySmall Accounting even helps you maximize your tax deductions by helping you sort each transaction into an IRS-recognized category.

• $19.95 per month or $199 per year

TrulySmall Accounting by Kashoo Pros & Cons
Accommodates multiple companies	Free trial shorter than many other options
Supports multiple users
Easy to learn

AccountEdge Pro has multiple command centers to give you better control over every aspect of accounting, from sales and billing to inventory management. With the ability to set up recurring transactions, it’s much easier to track business expenses, whether you pay them daily, weekly, monthly, or even annually. The software is also capable of assigning each line item to a different department, making your accounting reports as accurate as possible.

Double-entry journal entries make it easy for your accountant to track business assets, record liabilities, and monitor your company’s profitability. AccountEdge Pro also has a variety of tools to make tax time less stressful, such as sales tax reports and tax exception reports.

• Starting at $15/month
• Support available: Knowledge base, Support form, Phone support

AccountEdge Pro Pros & Cons
Easy to navigate	No Android app
Many customization options
Regular upgrades to improve features

Download:  Android ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ | iOS

OneUp automates 95% of a company’s accounting activities, taking some of the stress out of running a business. With seamless invoicing, creating and sending an invoice requires just a few clicks, helping small businesses get paid faster than ever. OneUp also includes a simple CRM system and tools for inventory management, making it ideal for product-based businesses as well as service providers who rely on high levels of engagement to keep their businesses running.

Every plan includes the same features, from the $9-per-month Self plan to the $169-per-month Unlimited plan. One-on-one support is also available for the Pro, Plus, Team, and Unlimited Plans, giving users access to helpful advice on using this app to the fullest.

• $9 – $169 per month
• Support available: Help center, request form

OneUp Pro Pros & Cons
Inexpensive plans available for small firms	No support for $9/month Self plan
Automatic adjustment of inventory levels
Matches bank entries to expense categories

Download:  Android ★ ★ ★ ★ ★ ★ ★ ★ ★ ★

ZipBooks offers accounting, invoicing, and billing features to help you track your time, manage your expenses, and get paid as quickly as possible. The app uses information from your banking transactions and other financial activities to prepare a wide range of reports, such as an income statement that breaks expenses down by category, making it easier to spot concerning spending trends.

ZipBooks uses data-driven insights to help you make decisions and determine if you need to change the way you operate. Using data from your financial statements and transactions, the app produces scores for invoice quality, overall business health, and other metrics and then provides tips for improving your score in each category. ZipBooks integrates your billing with your bookkeeping, eliminating the need to enter transactions manually and ensuring that you have a complete picture of your company’s financial performance.

• $5 – $15 per month

ZipBooks Pro Pros & Cons
Excellent reporting features	Must use a separate inventory program
Fill-in-the-blank invoices
Simple to use

Accounting Software Apps Comparison Table
— Top Pick	$0.99 – $124.99 per item	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best Business Insights	$1 – $274.99 per item	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best Free Version	Free	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Lowest Monthly Subscription Fee	$4.50 – $15 per month	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best for Small Businesses	$56.08 – $139.58 per month	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best for Project Tracking	$5.50 – $31 per month	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best for Invoicing	$19.95 per month or $199 per year	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best for Scalability	Starting at $15/month	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders
— Best for Inventory Management	$9 – $169 per month	✓ Bank Sync ✓ Online Invoicing X Multiple Devices ✓ Auto Payment Reminders
— Best for Tracking Expenses	$5 – $15 per month	✓ Bank Sync ✓ Online Invoicing ✓ Multiple Devices ✓ Auto Payment Reminders

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Silverfin’s connected Working Papers solution sees 94% annual growth as companies shift from Excel to AI

User-based to client file-based pricing: The benefits of modern solutions for accounting firms

The 3 Best AI Tools for Accounting  

Written by: Vicky Nicholls

19/02/2024 - 02:38

The application of an AI tool for accounting extends far beyond chatbot interfaces like ChatGPT. 

It can also delve into the realm of machine learning for data analysis and helping your firm solve a myriad of challenges, such as:

• Reducing workload
• Increasing capacity without increasing headcount
• Detecting fraud
• Providing monetisable insights

Such capabilities enable accounting firms to adopt a more proactive and strategic approach to their operations, enhancing efficiency, profitability and the decision-making processes. 

“AI is here to stay, and its impact will be widespread.” Bill Mew, CEO and founder of Crisis Team , Accountingweb Tech Trends for 2024

The Benefits of AI Tools for Accountants

Here are some key benefits of integrating AI accounting tools into your firm.

Increased Accuracy and Efficiency  

AI improves accuracy and efficiency in financial reporting. By automating data processing, you can minimise human errors in manual data handling. 

Plus, it allows you to fast-track compliance workflows and produce precise management accounts that foster trust with your clients.

• A study by Accenture predicts that AI can help accountancy firms boost productivity by up to 40% by 2034

Real-Time Data Analysis and Insights

AI’s ability to rapidly process and analyse large volumes of data enables firms to gain deeper insights in real-time .  Your firm can analyse massive datasets in-depth to uncover insights and generate real-time financial reports and advice for clients. 

With all your data connected in the cloud, you can also use data analysis to benchmark clients against your firm’s entire portfolio. This helps you quickly identify trends, threats, and opportunities, allowing for more informed decision-making and creating additional value for your clients.

Read more: Getting your data in the right place for AI, with AI

Automation of Repetitive Tasks

How much time do you and your colleagues spend on high-volume, routine accounting activities? 

AI can reduce mundane workloads and shift your focus from data entry and number crunching to more strategic tasks. It saves time, allows you to handle a higher workload without increasing your headcount, and gives you the ability to develop new revenue streams .

• McKinsey research claims up to 50% of the activities carried out by accountants have the potential to be automated using current technologies. These tasks include data entry, invoice processing, reconciliation, fraud detection, revenue forecasting and analysing unstructured data. Automating this work frees up a significant amount of time for value-adding activities.

Train Your Team

Why not use AI to train your staff on what to look out for and how to remedy common issues? It’s a way for you to offer on-demand training without taking time away from your more senior staff. 

As your juniors go through the process, they’ll learn your firm’s best practices and how to handle accounting scenarios according to your standard operating procedures (SOPs).

“Having an AI tool like Silverfin Assistant – helping with otherwise time-consuming manual processes and checks – is already a great starting point. It sits right where we as accountants work day to day – not in a separate tool. Silverfin Assistant also helps junior accountants who still have a lot to learn. There are clear and detailed explanations of the checks performed by the tool, highlighting why they were made and why they matter. These invaluable insights supercharge the progress of junior-level staff and their performance simultaneously.”   Russell Frayne, Director of Transformation at Gravita

The Best AI Tools for Accounting Firms

1. silverfin assistant: for streamlining your accounting workflows.

Silverfin Assistant is your AI-powered advisor. It gives you reliable data you can trust and actionable insights your firm can monetise.

By continuously analysing your client files, the tool will find things you might miss, like:

• Unusual balances
• Missing transactions

It saves hours of manual work, automatically improves your data quality, and helps you serve your clients better. Additionally, Silverfin Assistant’s AI capability will swiftly identify opportunities within your data to enable firms to offer proactive and informed advice to clients. 

“Using Silverfin Assistant for VAT compliance and the management account reports has delivered significant time savings, and it’s just getting less and less.” Rosie Cooper, Director, PM+M , Introducing Silverfin Assistant webinar

That’s not all. You can also use Silverfin Assistant to train your junior staff members. Let the AI program show your accountants what to look out for when analysing client files. With clear and detailed explanations it’s the perfect way to bridge knowledge gaps and boost confidence. Plus, you stay in control as Silverfin Assistant makes suggestions on suspected anomalies but it is down to the accountant to accept or reject these proposals. 

Discover Silverfin Assistant: An introductory video on AI-enhanced accounting

2. dext precision: for simplifying your financial records.

Dext Precision uses AI to simplify the accounting process of managing financial records like receipts and invoices. It helps streamline data entry, reduce manual input, and improve the accuracy of financial transactions.

Using machine learning, it extracts information from receipts and invoices and automatically categorises the expense based on custom rules.

Dext Precision is typically an add-on product that works alongside Dext Prepare and Dext Commerce. It takes all of your data from Xero or QuickBooks Online , and the AI algorithm alerts you to any discrepancies like missing or bad data.

3. Karbon AI: For Streamlining Your Communications and Tasks 

Still in Beta, Karbon AI uses the power of Chat GPT to give accounting firms a collaborative practice management environment.

Using the tool, you can automate tasks and work faster by:

• Summarizing long emails into bite-sized chunks.
• Set a task within your workflow to automatically draft an email reflecting your progress.
• Reply to emails by clicking on “Compose Reply”.
• Compose emails in seconds using quick prompts and adjusting the tone to suit the situation.

4. Vic.ai: For Rapid Accounts Payable Processing

Vic.ai is an innovative platform designed to transform the accounts payable process for accounting teams. It claims it can improve your invoice processing productivity by 355%.

The platform minimises manual errors by replacing traditional OCR and rules-based methods with AI-powered solutions. Vic.ai’s technology enables faster, more accurate invoice processing, from ingestion to payments. 

Vic.ai also offers real-time insights and benchmark data by normalising and analysing costs using AI and statistical analysis.

Embracing the Future of AI in Accounting

Adopting AI tools in accounting is a strategic move towards efficiency, accuracy and insightful financial management. 

These AI tools for accountants go beyond using ChatGPT for content. It’s a testament to how you can improve your accounting firm’s operations and use the technology to offer scalable solutions to meet your growing business demands.

Several of these tools are in the early stage of development. Karbon AI is still in open Beta, but other specialists, like Silverfin Assistant, have been available for several years. It offers honed developments for accountants, focusing on where AI can make the biggest difference and deliver the greatest benefits.

Read more: The real benefits of Artificial Intelligence in accounting

Ready to implement AI accounting tools in your firm? Book a demo with Silverfin and start your firm’s digital transformation.

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Speak to us today to learn how you can become a connected accountant.

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StudyMonkey

Your personal ai accounting tutor.

Learn Smarter, Not Harder with Accounting AI

Introducing StudyMonkey, your AI-powered Accounting tutor .

StudyMonkey AI can tutor complex Accounting homework questions, enhance your essay writing and assess your work—all in seconds.

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AI Accounting tutoring is available 24/7, on-demand when you need it most.

Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing, and reporting these transactions to oversight agencies and tax collection entities.

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Ican Pathfinder

9 best free accounting apps 2024.

Best Free Accounting Apps: Accounting students have their work cut out for them. Though accountants are some of the highest-paid workers in the world, the path to a career in accounting is hard. Hence the need to use accounting apps.

There are numerous accounting apps created to make the work of students easier. Many of them are study aids that are useful at any point while studying.

If you have a smartphone or a tablet, there is every reason to download and use any of these accounting apps. They are some of the best educational aids you can have access to in your field.

And if you are already a practicing professional accountant, some of these apps can be very handy. They are good substitutes for the expensive applications used by big firms.

They give you what you need without costing an arm and a leg.

9 Best Free Accounting Apps

1. student accountant.

Student Accountant is an accounting app developed by one of the top accounting bodies in the world, the Association of Certified Chartered Accountants, ACCA.

The app is free and is mostly updated. To really get the best app though, you need to be registered as a student of ACCA. However, any accounting student can also use it.

As an ACCA student, the app would keep you up to date with exams, news from the world of accounting, career advice, quizzes, technical articles and much more.

So if you are a student of ACCA, it would be a shame if you don’t have this app. You can download it here for Android devices or here for iOS devices.

2. Exam Expert

This is also another free accounting app from ACCA.

As the name implies, it is an exam-focused app that uses videos as a study aid. All ACCA students should have this app as it is always updated throughout your journey to being an ACCA-certified accountant.

Basically, all types of ACCA qualification exams are covered using video tutorials. You don’t want to miss out on a wonderful app.

It is a free app. You can download the Android version here . While those with iOS devices can go here to download it.

3. Accounting Calculator

Accounting students are aware that standard calculators do not have some of the features needed to handle some of the complex calculations they come across.

Accounting Calculator by Yuki   is an accounting app that takes care of this problem. This calculator has provisions for percentage calculations.  There are also functions for including or excluding tax to get accurate results.

The app can display up to 12 digits on the screen. This makes it awesome when handling complex calculations where you don’t have to round up answers to ensure accuracy in your final results.

The downside of this app is that it is only available to Android devices at the moment. However, it is a free app, and you can download it from here .

ad:  ICAN Pathfinder: All Ican Past Questions

This is a powerful free app that does a lot of things that accounting students and professionals would find useful.

As professional accountants, Mint gives you all the relevant financial and tax information, tools and news anytime you need them.

For students, though, using the Mint app is an opportunity to put their accounting skills to the test and see how it measures up to international standards.

The app has many features, and students can customize it to help them track their credit card spending and other financial records.

Android users can download it here , while iOS devices can get it here.

5. Learn Accounting

Learn Accounting from WAG Mobile Software Services is a complete accounting app for accounting courses.

The Learn Accounting app comes in a bundle that contains about 300 learning apps covering several disciplines.

The free version gives you access to the first chapter of the courses in the app. If you want to get access to the full material, it would cost you only $10.

Courses covered by Learn Accounting include Accounting introduction, Accounting Vocabulary, Double Entry Accounting, Accounting Cycle and Equations, Managerial and Cost Accounting, Profit and loss, and many others.

Over 4 million people in about 175 countries are using the app. So it must be doing so many things very well.

You can download the app for Android and iOS devices here and here respectively.

GnuCash is one of the oldest accounting apps in the world. Since the 1990s, it has been helping individuals and small businesses handle all their accounting needs.

Some of the features include the ability to handle invoicing, employee expenses, for example, exchange calculations, and payroll features too.

Students can use this app to have practical experience on how small businesses handle their accounting problems.

It is surprising that the developers have kept this awesome and flexible accounting app completely free.

GnuCash is only available for Android devices and can be downloaded here.

7. Money Manager Ex

This is another free and great accounting tool that can be used by traders, in the home or as a practical learning tool for students.

The app is one of the easiest accounting apps to understand. Another amazing feature of this app is that you can also carry the portable version on your portable flash drive.

Unfortunately, users of iOS devices would have to wait for a compatible version to be developed for them. The Android app can be downloaded here .

8. Turbo Cash

Turbo Cash is a free accounting software that is designed for owners of small and medium scale enterprises.

As a student, if you need a bit more complex accounting software that is also free, Turbo Cash would do just fine. It can handle everything from VAT calculations, purchase orders, debtors, and creditors.

Unfortunately, this app is not available for mobile devices. You would need your laptop to access it.

But it is highly recommended for students to use as they make the gradual shift from simple to complex accounting apps used by the very big businesses.

You can access free Turbo Cash from here.

ATS: Become ICAN-Certified Accountant After High School

9. Adminsoft Accounts

This is another free computer-only accounting app specially designed for businesses.

The app can handle invoicing, statements of account stock control, purchase orders, and budgeting. As an additional bonus, it can also handle human resources issues too.

With a bit of creativity, students would be able to utilize the app as a study aid to get hands-on experience on how businesses handle their accounting issues

Follow this link to install the program on your computer.

Benefits of using free accounting apps for Studies

Accounting apps today have the capability to enrich the student’s learning experience. Here are some of their benefits:

Increased Accuracy

A big advantage of using an accounting app is the accuracy it offers. When you keep track of financial data, you can make mistakes. This can be bad for any business. But with accounting apps you get instant calculations and automated data entry, which lowers the possibility of errors. This makes sure finances are efficiently monitored and utilized for their correct purposes.

Time Efficiency

Accounting software largely saves time. This means you can undertake activities such as data entry, calculation, report generation, and fund tracking in no time. Through automation, you can create time for other essential projects.

Real-Time Tracking and Reporting

Accounting apps offer monitoring of funds and financial data in real-time. This enables the presentation of accurate and latest financial data, streamlining administrative tasks and enriching decisions. The instant report generation feature engenders transparency and full disclosure as anyone can trace how funds are being utilised.

good job, i am interested in the accounting app

Am interested

I own an android and several of these links are broken. Is there any way to correct them so I can make sure I download the correct apps please?

Thanx for the advice

Accountancy doude complete doubts apps

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• What is Accounting?
• What Is a General Ledger?
• What are Accounts Receivable?
• Balance Sheet vs Income Statement
• What are Real Accounts?
• What is Working Capital?
• Net Sales vs Gross Sales
• Overview of Financial Controls
• Financial Accounting
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• Cost Accounting
• Cloud Accounting
• Project Accounting
• Best Accounting Software
• Free Accounting Software
• Nonprofit Accounting Software
• Cloud-Based Accounting Software
• Billing and Invoicing Software
• Payroll Software for Small Businesses
• QuickBooks Alternatives
• QuickBooks vs FreshBooks
• QuickBooks Time Pricing
• FreshBooks Pricing
• NetSuite Pricing
• Calculate Customer Acquisition Costs
• Calculate Accumulated Depreciation
• Accounts Receivable Turnover Ratio
• Calculate Cost of Goods Manufactured
• Calculate Cost of Goods Sold
• Calculate Job Order Costing
• Debt Service Coverage Ratio
• Calculate Unit Economics

​​7 Best Small Business Accounting Apps of 2024

Are you a solopreneur or small business owner? Then you know how critical having a convenient way to track your business expenses and income on the go can be. Here are our top five apps for best mobile accounting apps based on features, pricing, and ease of use.

Sage Business Cloud

Our work is supported by affiliate commissions.

Need to manage your business finances on a budget without overwhelm or burnout? Then it’s time to consider small business accounting software .

Small business accounting apps are a cost-effective and efficient way to help you keep your financial records up-to-date while on the go.

They’ll help you reach your financial goals faster, discover growth opportunities, and fulfill your tax obligations to the government, whether or not you’re in office.

We look at the top 7 best small business accounting software, their features, and which businesses can benefit most from each. Let’s get started.

What are the Best Small Business Accounting Apps?

Before you choose a small business accounting software or app, you’ll have to consider important factors like functionality, price per user, and ease of use. The best accounting software is generally easy to start with and covers basic bookkeeping functions.

It’ll allow you to send invoices readily , generate reports, automate expenditure tracking, and instantly transfer funds to your account, all from a user-friendly mobile interface. Below we explore the top accounting software options that bring the full power of their website features to mobile.

1. FreshBooks

Best invoicing for freelancers and solopreneurs.

From the freelancer who needs invoice creation to the small business owner that needs income and expense tracking, FreshBooks has basic features for everyone. Its unlimited time tracking and invoicing, even on the lite plan, make it ideal for service-based small businesses. 

FreshBooks is well-known for its cutting-edge, cloud-based accounting platform on the web. Its mobile app does not disappoint either. Stay on top of your client invoicing, tracking time, and logging expenses from your mobile device with the FreshBooks accounting app.

With the FreshBooks app, you can expect a smooth and bug-free experience on Android and iOS, plus an intuitive, user-friendly interface.

Key Features

FreshBooks has built a strong reputation as one of the best accounting software on the market, and its Android and iOS apps are no exception.

• Mileage Tracking: Do a lot of work on the move? FreshBooks offers mileage tracking for your business trips and meetings in your expenses. Easily separate business trips from personal trips to keep accurate records of your business expenses. See your tax deductions from the app for maximum tax savings.
• OCR Receipt and Record Recognition: Record business expenditure with FreshBooks OCR technology. Just use the app to take a picture of your receipt the next time you pick up the tab for a client's lunch or project supplies. The app will automatically record the merchant, the total amount spent, and taxes in your expenses, making bookkeeping simple for small business owners.
• Checkout Links : No need to chase your client down just to get your payment. With FreshBooks' custom checkout links feature, all your client needs is to click a button to pay instantly. You can create as many custom checkout links as you want and receive payment via WePay, FreshBooks’ payment processing partner.
• In-App Estimates and Proposals: No need to spend time creating a separate proposal or estimate for each client. With Freshbooks accounting software, you can create and send an estimate or proposal right from within the app . You’ll even get a notification when your proposal or invoice is viewed.

FreshBooks offers four pricing plans, with the fourth option being the custom pricing option in case you have specific needs. Its most affordable plan starts from $15 per month (currently on sale for $4.50/month) for five billable clients and one user .

The Plus plan bills at $25/month for 50 billable clients, and the premium plan at $50/month for unlimited billable clients .

• Budget-friendly for freelancers and solopreneurs.
• Unlimited and customizable recurring invoicing and estimates
• Time and expense tracking.
• Responsive customer support team
• Tax reporting
• Accounts payable section
• Expensive if you need to have multiple user access.
• Basic plan doesn’t offer a client retainer option.

Ideal for Large Teams and Medium-Sized Businesses

If you want a truly efficient small business accounting solution for your team, Xero has the features you need. Analytics, project tracking, and expense claims are available only as a paid add-on. 

While most small business accounting software will charge you per user, Xero leaps ahead of the competition to offer unlimited multiple users . This makes it ideal for collaboration and working in teams where multiple people are involved in your accounting process.

• Invoicing: Most small business accounting software offer invoicing features, but Xero’s invoicing is truly seamless. Quickly turn all your quotes into beautiful customized invoices in seconds. Plus, get real-time updates when a client views your invoice.
• Employee Time Tracking: Track time and keep your employees’ productivity high with the employee time tracking feature. Ensure your team is on track with all its goals and milestones as Xero automatically logs all worked and paid hours.
• Automatic Bank Reconciliation: Reconciling your accounts doesn’t have to be a chore. Xero does account reconciliation daily and lets you categorize and keep track of your bank transactions daily using suggested matches . You can even code your bank transactions in bulk (based on your plan).

The Xero accounting app provides standard features like invoicing, billable clients, and expense tracking . It also lets you reconcile your bank accounts and track employee time even on its basic plan. You can send payment reminders for overdue invoices too.

Other impressive key features include a built-in contact management system plus multi-currency billing in over 150 currencies . Send estimates and quotes right from within the Xero app.

At $22 per month , Xero’s basic plan may not be the cheapest option on the market. But, given that additional users cost anywhere from $10 to $20 per user, business owners will save more if they have a large team.

The standard plan is $35 per month and offers unlimited invoicing and quotes. You can also track expenses and payments and plan your business finances 30 days in advance. Finally, the premium plan bills $47 per month and offers multi-currency billing.

• Unlimited users on all plans
• Built-in contact management system
• Online storage for digital copies of receipts and invoices
• Time-tracking and project management come at an additional fee per project
• No multicurrency support on both Starter and Standard plans

3. QuickBooks

Best comprehensive accounting for medium-sized businesses..

QuickBooks Online offers a good number of advanced features like advanced reporting and security on invoicing on its mobile app, which is uncommon on other mobile accounting apps. This makes it ideal for all kinds of small businesses and even medium to large businesses that need business accounting, inventory management, payroll capabilities, or financial reporting on the go. 

QuickBooks Online outshines its competitors simply because it packs more punch into its mobile app than most other accounting software. That means your QuickBooks app will work just like the web version , which is impressive.

You’ll be able to handle everything related to your day-to-day accounting tasks like invoicing, estimates, and quotes, plus expense management. For small to medium-sized business owners, other features include

• Secure Invoicing: Most small business accounting software allows you to send invoices and estimates, but QuickBooks online goes one step further. Send invoices attached to text messages or any messaging platform of your choice with secure encryption, plus get live alerts once your invoice is viewed. You’ll also get job costing to pick the most profitable projects and create 1099s for your independent contractors.
• Advanced Reporting: Keep an eye on your open invoices, customer balances, and overdue amounts with advanced accounting reports like the Customer Balance Summary or Accounts Receivable Aging Summary . The QuickBooks accounting app puts your accounting data in your palms, so you can truly run your business finances from your phone. You can create custom reports and view sales trends, so you know what’s working in your business now. (This is available on the advanced plan only).
• Multiple User Access: If you grant multiple users with the QuickBooks online web version, all your registered users can still use the accounting app simultaneously.
• Mileage Tracking: If your business involves a lot of transit time, QuickBooks Online lets you automatically track your mileage via GPS from the app so you can record business travel in an instant. You also can set up your estimates and have them signed remotely even while you’re away on vacation.

QuickBooks Online isn’t necessarily the cheapest option compared to others, with single-user basic plans starting from $25 per month. However, you get 1099 contractor filing , mileage tracking, reports, and estimates .

To get started, you can try the QuickBooks mobile app for 30 days free before switching to any paid plan.

• Reporting even on basic plan
• Supports 1099 contractor filing
• Remote estimate set up and handling
• User interface is customizable on the app
• More expensive than most other accounting apps
• Accept payments feature is sold as an add-on service
• The Android version of the app has bugs.

Best Free Accounting and Invoicing Software for Small Businesses

For accounting and bookkeeping software that’s truly free, look no further than Wave. The Wave mobile app simplifies your accounting tasks and makes tax season a breeze for small business owners. You get unlimited users, bank account reconciliation, and inventory management for zero monthly fees. 

So far, we’ve seen accounting software charging per user or based on features, but Wave is completely disrupting the market by offering everything for free . No gimmicks, no free trials, and no limitations.

Yes, you read right. Everything is absolutely free on Wave. This makes it the ideal small business accounting software for startups, very small businesses, and solopreneurs.

• Unlimited users: This accounting platform lets you have unlimited users for multiple businesses with one account. You can give each user limited or full access to accounting functions. So whether you want to add a business partner or bookkeeper , Wave has a preset profile for each accounting professional with limited permissions. You can add your store manager because it has inventory management capabilities.
• Unlimited Invoicing : Wave doesn’t just let you track income; you can also create unlimited customized invoices for unlimited clients. Send out estimates, create recurring billing invoices, and even automate reminders for overdue invoices for free. Plus, after receiving payment for your invoice, simply send a receipt automatically and record the payment as part of your bank transactions.
• Chart of Accounts: Wave’s accounting software makes reconciling your wave accounts with real-world bank statements a breeze. Plus, you get a chart of accounts that lets you readily track all business expenses, assets, and liabilities so you can always stay on top of your cash flow.

Wave charges a nominal fee of 2.9% + 60¢ per transaction to process payments (3.4% + 60¢ to process American Express) if you use it to accept payments. Accounting and invoicing are 100% free with Wave.

• 100% free accounting and invoicing features
• Unlimited custom invoicing
• Unlimited billable clients
• Unlimited multiple users for free
• Free iOS and Android app versions
• The Android version doesn’t run as smoothly as iOS.
• Credit card processing fees go up fast in high-volume transactions.

5. Sage Business Cloud Accounting

Best small business cloud accounting software for startups.

If you need cloud accounting or bookkeeping software with great customer support plus education on how to do your bookkeeping, then the Sage accounting mobile app is for you. Its basic plan is heavier on bookkeeping features than accounting, but you still get the basics of inventory tracking and small business accounting. 

The Sage cloud accounting mobile app shines because it simplifies your small business bookkeeping and accounting needs when you’re on the go. Whether you choose the web version or app, you’re sure to get a great user experience thanks to a colorful dashboard and user-friendly interface.

Whether you choose its web version or the mobile app, you’re sure to get a great user experience thanks to a colorful dashboard and user-friendly interface. Other features include

• Invoicing : The sage accounting app lets you send invoices directly from your phone , track overdue invoices and even upload photos and documents related to an expense (like receipts) to your reports and invoices. This is especially helpful for expense-tracking , another feature you’ll find on the app.
• Contact management: You can also manage your contacts directly from the Sage app as it syncs your contacts with its contact management feature. Keep track of all business communication and categorize bank transactions , whether on the road or in a meeting with your app.
• Self Help Hub: Finally, Sage has the most comprehensive online education portal for accounting designed for small businesses and solopreneurs.

Sage Business Cloud accounting offers two pricing plans, a budget-friendly $10 per month plan for small business owners and a $25 per month advanced plan.

• Cash flow forecasting
• Automatically reconciles bank accounts
• Supports unlimited users
• Inventory tracking features
• Built-in contact management for business conversations
• Comprehensive accounting education online portal
• No mileage tracking
• Android user experience is not smooth.

6. Zoho Books

Best accounting app for automation and collaboration..

When it comes to automation and collaboration, you can’t go wrong with the Zoho Books app. Let Zoho Books handle all the accounting tasks you hate by simply automating them with its workflow builder. While it doesn’t offer payroll integration, Zoho Books is still a robust option if you need book-keeping features on an app that is bug-free .

If you find manually entering records, categorizing payments, and uploading receipts to be a chore, the Zoho Books app will end that. It brings automation and collaboration on business records to mobile in a hassle-free way.

Zoho Books offers your standard accounting and book-keeping features like

• Tracking payables and time tracking: Track time and payables both from your phone. You can even use Siri to set reminders for your transactions and timers, plus create expenses in iOS.
• Invoicing and estimates : If you need to create one-time or multiple recurring invoices , the Zoho Books app lets you do that easily. You can also automatically track and record mileage via Apple or Google Maps too.
• Multiple Users and Collaboration: Need to collaborate with other users? You can add up to 10 users per account based on your subscription.
• Workflow automation: Most business owners use multiple apps to run their online business. With Zoho’s full suite of native tools and third-party integrations, you can do all your project accounting and finances from one place.

You can use Zoho Books for free if your business makes less than $50,000 annually. The free plan gives you one user and one accountant access , up to 1,000 invoices and

However, for businesses that earn more than that, Zoho Books app has a basic plan from $9 per month for three users and goes up to $19/month for the Zoho Books Professional plan, which also gives you five users.

The Premium plan bills a t $29 per month for medium to large businesses with multiple branches and allows you to have a custom domain , vendor portal, and budgeting.

• Free plan for freelancers and solopreneurs
• Time and expense tracking
• Multi-currency support
• Supports multiple third-party payment gateways
• Workflow automation rule options are available
• The Android version doesn’t operate smoothly as the iOS version
• It doesn’t integrate payroll into the mobile app

Best Accounting App for iOS Users

If simplicity is your thing and you’re looking for small business accounting software with robust bookkeeping features on iOS, Kashoo is your go-to option. You can send invoices and estimates for free , track income and clients plus customize your CoA on its advanced plan.

Kashoo may not have an android version ready yet (sorry Android users!), but its brilliance in being a simple, no-frills accounting software for small businesses and solopreneurs make it a worthy mention. The accounting app makes bookkeeping straightforward, especially if you have no clue where to start.

• Invoicing and sales tax tracking: Simply create and send invoices, collect payments and even track your sales tax without getting lost in complex charts and data-loaded dashboards.
• Automated Payments and Account Reconciliation : You’ll be able to automate your payments without any added fees too. Kashoo lets you set up payments to automatically go to your bank account the minute they come in. No need to manually reconcile and sort them because that’s done for you too.
• Double Entry Ledger: Worried about errors when entering your financial transactions? Kashoo’s double entry ledger has built-in safeguards to guide you and automatically categorize and record your financial transactions correctly. The automatic categorization feature is both IRS and CRA compliant and only works with your official bank data, so you don’t have duplicate entries.
• Advanced contact management: Other apps offer you contact management, but Kashoo takes it further by automatically creating a contact in the mobile app any time you communicate with a new vendor. No need to sync or upload any data.

Kashoo offers a free plan if you’re looking only to send invoices, but if you want to track expenses , sales, and sales tax, you’ll have to sign up for its $20/month plan.

For $30 per month Kashoo plan, you can get all the features on its truly small accounting plan plus multi-currency billing, advanced reporting , multiple users , inventory management and payroll.

• Free invoicing only plan available.
• Expense tracking and photo upload to categorize expenses
• Automated payments and account reconciliation
• IRS/CRA Standard CoA
• No Android app version
• Not suited for businesses with advanced accounting needs

Discover the Best Mobile Accounting Apps for Your Small Business

Whether you’re a solopreneur, freelancer, or fast-growing small business, lots of small business accounting software makes it easy to track your revenue on the road. A mobile app for accounting allows you to send invoices, estimates, and receipts and helps reconcile your accounts no matter where you are.

Here are a few things to consider when choosing a mobile accounting app for your small business.

• Ease of Use: How intuitive is the app’s user interface? Consider cloud-based accounting software whose apps provide a smooth user experience on Android and iOS. Keep in mind how tech-savvy your team is, so you don’t choose something too complex for them.
• Available Features: Which accounting features do you need the most on mobile? Do you need billing and invoicing ? Or is inventory management more important to you? Choose an app based on which accounting features you need most when you’re on the road.
• Cost per user: If you have a team that helps you with bookkeeping, you’ll need to consider if they need access to the app. What is the price per user? Can you restrict user access based on the profiles you create? It’s worth considering some free small business accounting software if you’re on a budget.

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

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Top 14 cost accounting problems with solutions.

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In this article we have compiled various cost accounting problems along with its relevant Solutions. After reading this article you will learn about cost accounting problems on: 1. Cost Sheet 2. Economic Ordering Quantity 3. Store Ledger 4. Wage Payment  5. Labour Hour Rate 6. Secondary Distribution 7. Incentive Schemes 8. Idle Capacity Cost  9. Batch Costing 10. Contract Costing 11. Process Costing 12. Normal Loss, Abnormal Loss and Abnormal Gain 13. Equivalent Production 14. Apportioning Total Process Costs.

• Cost Accounting Problems on Apportioning Total Process Costs

Cost Accounting Problems

1. cost accounting problem on cost sheet (4 problems):.

Problem 1 :

The accounts of Basudev Manufactures Ltd. for the year ended 31st December 1988 show the following:

(a) Material Consumed

(b) Prime Cost

(c) Works Cost

(d) Cost of Production

(e) Total Cost and

Prepare a Cost Sheet for the year ended 31.3.86 from the following figures extracted from the books of Best Engineering Co.

Opening Stock:

(i) Raw Material 40,350,

(ii) Work-in-Progress 15,000 and

(iii) Finished Stock 35,590.

Cost incurred during the period:

Materials purchased 2,50,000, Wages paid 2,00,000, Carriage inward 2,000, Consumable Stores 10,000, Wages of Storekeeper 7,000, Depreciation of Plant & Machinery 10,000, Materials destroyed by Fire 5,000, Repairs & Renewals 5,010, Office Manager’s Salary 10,000, Salary to Office Staff 20,500, Printing & Stationary 10,000, Power 10,500, Lighting for Office Building 2,000, Carriage outward 3,000, Freight 5,000, Entertainment 2,500, Warehousing charges 1,500, Legal charges 2,000, Expenses for participating in Industrial exhibition-6,000.

Closing Stock:

(i) Raw material 35,000,

(ii) Work-in-Progress 14,500, and

(iii) Finished Stock 40,030. Profit 25% on cost.

Best Engineering Co.

Cost Sheet:

for the year ended 31.3.86

From the following figures relating to the manufacture of a Electronic Product during the month of July 1990, prepare a statement showing Cost and Profit per unit:

Working Notes:

Calculation of Closing Finished Stock:

Closing Finished Stock= Opening Finished Stock + Production – Sales

= Nil + 20,000 – 18,000 = 2,000.

The following data are available for 2006:

It is expected that in 2007:

(a) Production will be 1,00,000 units.

(b) Prices of materials will go up by 33⅓%.

(c) Variable selling overhead and fixed expenses will rise by 25% and Rs. 25,000, respectively. What would be the cost per unit and selling price in 2007, if it is desired to maintain the same rate of profit on sales as in 2006?

(i) Calculation for Material Cost per unit in 2007

(ii) Calculation for cost per variable selling overhead in 2007

Selling overhead increased by 25% i.e. selling overhead per unit in 2007

= Rs. 4.00 + 25% of Rs. 4 = 4.00 + 1.00 = Rs. 5.00

(iii) Fixed expenses in 2007 = 75,000 + 25,000 = 1,00,000

(iv) Rate of profit on sales = 2/12 × 100 = 16⅔%

(i) Variable overhead changed with production unit.

(ii) Fixed expenses assumed related with office and administration.

2. Cost Accounting Problem on Economic Ordering Quantity (2 Problems):

From the following information calculate the Economic Order Quantity:

Annual usage – 20,000 units

Cost of Materials (per unit) – Rs. 250

Cost of placing and receiving order – Rs. 2,000

Annual cost of carrying inventory (including interest) – 10% of cost

Problem 1(a) :

A manufacturer uses 75,000 units of a particualr material per year. The material cost is Rs. 1-50 per unit and the carrying cost is estimated to be 25% p.a. of average inventory cost. The cost of placing an order is Rs. 18.

You are required to determine the Economic Order Quantity and frequency of orders p.a.

We know EOQ = √2AO/C

A = Annual consumption = 75,000 units

O = Ordering cost per unit = Rs. 18.

C = Carrying cost per unit = 25% of Rs. 1.5 = 0.375

. . . EOC = √2 × 75,000 × 18/0.375 = 2,691 units (approx).

Frequency of order p.a. = 28 (approx.)

Problem 2 :

From the following particulars determine the Economic Order Quantity:

Additional information:

(i) Annual consumption of materials = 2,000 tonnes;

(ii) Carrying cost 10%,

(iii) Ordering cost Rs. 5 per order.

The total cost of the inventory is minimum, when the ordering quantity is 500 units, i.e. Rs. 19,662-50.

Therefore Economic Order Quantity = 500 units.

3. Cost Accounting Problems on Store Ledger (4 Problems):

From the following particulars find out the value of closing stock when materials are issued under Simple Average Method:

From the following details write Store Ledger under simple average method:

The stock verifier found a shortage of 10 kg. on 16.12.06 and another shortage of 10 kg on 26.12.06.

Problem 3 :

The particulars of receipts and issues of materials in a factory in January 2007 are:

Pricing of issues is to be done on FIFO basis. A shortage of 10 kg was noticed on 16th January. Prepare the Store Ledger for the month of January 2007.

Problem 4 :

The following are the details supplied by J.K. Corporation in respect of its raw materials for the month of December 1988:

On 31.12.88 a shortage of 100 units was found. Find the values of issues and resulting stocks on different dates using (i) LIFO. (ii) FIFO; and (iii) Simple Average methods.

1. Rate of stock issued on 10.12.88 = Rs. 5.00 + Rs. 6.00/2 = Rs. 5.50

2. Value of stock issued on 31.12.88 = Rs. 6.00 + Rs. (Here opening Stock rate i.e. Rs. 5 will not be considered as it has already been exhausted).

4. Cost Accounting Problem on Wage Payment (2 Problems):

Calculate total monthly remuneration of workers A, B, C and D on the basis of the following information for the month of January 2007:

(i) Standard Production for each worker = 1,000 units

(ii) Rate of wages = 10 paise per unit

(iii) Bonus = Rs. 5 for each 1% increase over 90% of the standard.

(iv) Dearness Allowance per month = 100% of piece wage.

The units completed by the four workers were as under:

A = 950 units, B = 900 units, C = 960 units, D = 850 units.

% of work done by the workers:

A = 950/1,000 × 100 = 95%

B = 900/1,000 × 100 = 90%

C = 960/1,000 × 100 = 96%

D = 850/1,000 × 100 = 85%

In a factory bonus system, bonus hours are credited to the employee in the production of time taken which time saved bears to time allowed. Jobs carried forward from one week to another. No overtime is worked and payment is made in full for all units worked on, including those subsequently rejected.

From the following, you are required to calculate for each employee:

(a) The bonus hours and amount of bonus earned;

(b) Total wage cost;

(c) The wage cost of each good unit produced.

5. Cost Accounting Problems on Labour Hour Rate (3 Problems):

Calcutta Engineering Co. has three production departments X, Y and Z and one service department S.

From the following particulars calculate Labour Hour Rate of each of the departments X, Y and Z:

There were 125 working days of 8 hours each. Services rendered by the Service Department are to be apportioned to the production departments X 50%, Y 25%, and Z 25%.

1. Labour hours worked = No. of working days × hours of daily work × No. of workers

X: 125 × 8 × 7 = 7,000

Y: 125 × 8 × 5 = 5,000

Z: 125 × 8 × 5 = 5,000

2. Labour hour rates = Expenses/Labour hours worked

Moonlight Engineering Company has three production departments, A, B and C and one service department S. Following are the particulars of a month of 25 working days of 8 hours each.

Calculate the labour hour rate for each of the production departments:

Service rendered by the service department to production departments A, B and C is in the ratio of 2: 2: 1, respectively.

1. Total Assets value = Rs. 5,000 + Rs. 6,000 + Rs. 6,000 + Rs. 3,000

= Rs. 20,000

. . . Depreciation = 12% of Rs. 20,000 = Rs. 2,400

2. Labour hours worked = No. of working days × Hours of daily work × No. of workers:

X: 25 × 8 × 20 = 4,000

Y: 25 × 8 × 25 = 5,000

Z: 25 × 8 × 30 = 6,000

A machine was purchased for Rs. 55,000. It was installed in a shop over ⅕th of its floor area at an additional cost of Rs. 5,000. The working life of the machine as also the scrap value was estimated at 10 yrs and Rs. 5,000, respectively.

From the following details compute the Machine Hour Rate:

It is estimated that the supervisor devotes one-fourth of his time for the machine, the cost of power is Rs. 20 per 100 units and the machine consumed 10 units per hour.

Normal working hours of the machine is estimated at 1,200 but during the year it actually worked for 1,000 hrs.

6. Cost Accounting Problems on Secondary Distribution (1 Problem):

XYZ Ltd. has two production and two Service departments namely P 1 and P 2 , and S 1 and S 2 , respectively.

From the following information prepare a statement showing primary distribution of overhead:

7. Cost Accounting Problems on Incentive Schemes (2 Problems):

A worker takes 12 hours to complete a work on daily wages and 8 hours on a scheme of payment by results. The worker’s day rate is Rs. 6.00 per hour. The cost of material of the product is Rs. 20 and the overheads are recovered at 200% of the total wages.

Calculate the factory works cost of the product under:

(i) Rowan Plan and

(ii) Halsey Scheme.

Production department of a company pays its workers standard wages @ Rs. 2.00 per hour plus a bonus under the Rowan Premium Bonus Scheme and Dearness Allowance of Rs. 50 per week of 55 hours.

At the end of a particular week the time sheet of a worker is summarised below:

Calculate the gross wages (including bonus and D.A.) of the worker of the week.

(i) Time Saved

Job No. 205 = (30 – 25) hours = 5 hours

Job No. 108 = (25 – 20) hours = 5 hours

Job No. 12 = (5 – 3) hours = 2 hours

8. Cost Accounting Problems on Idle Capacity Cost (1 Problem):

Illustration 4 :

A manufacturing company has two production departments X and Y and three service departments: Store, Maintenance and Time Keeping.

The departmental distribution summary showed the following expenses for June 2007:

Production Departments:

9. Cost Accounting Problems on Batch Costing (2 Problems):

Rina, a contractor got a contract to supply 100 wooden dolls per day to M/s R. K. Mitra & Co. The cost of holding a doll is Rs. 2 p.a. and the set-up cost of production is Rs. 3. Assume there are 300 working days in a year.

What would be the optimum run size for unit manufacture?

We know optimum run size

or EBQ = √2AS/C

where A = Annual production units

= 100 × 300 = 30,000

S = Setting cost per unit = Rs. 3

C = Carrying cost per unit = Rs. 2

. . . EBQ = √2 × 30,000 × 3/2 = 300 units

Saha & Bose Ltd. has made a contract with Mitra & Das Ltd. to supply 4,800 T.V. sets per annum.

It is estimated that the carrying cost per T.V. per annum will be Rs. 10 and that the set-up cost per batch is Rs. 648. Find out:

(a) Economic Batch Quantity.

(b) The time interval between two consecutive optimum runs,

(c) The minimum inventory holding cost.

(a) EBQ = √2AS/C = √2 × 4,800 × 648/12

= √2 × 4,800 × 54 = 720

(b) Time interval between two consecutive optimum runs

= 365/No. of set-up per annum

Again, No. of set-up per annum = Annual Production/EBQ

= 4,800/720 = 20/3

. . . Time interval between two consecutive optimum runs

= 365/20/3 = 365 × 3/20

= 1,095/20 = 54.75 days = 55 days

(c) Minimum inventory holding cost per annum

720/2 × 12 = Rs. 4,320

10. Cost Accounting Problems on Contract Costing (3 Problems):

A construction company undertook two contracts namely Contract No. 005 and Contract No. 052, on 1.1.06 and 1.7.06, respectively. On 31st December 2006, when the accounts were closed, the portion of the contracts was as follows:

The total establishment expenses incurred during the year amounted to Rs. 25,000. These are to be charged to the two contracts in proportion to wages.

Prepare the Contract A/cs.

Calculation for Profit to be charged to P/L A/c.

(a) Contract No. 005 = 2/3 × 2,25,000/2,50,000 × 62,000 = 37,200

(b) Contract No. 052 = 2/3 × 72,000 × 1,60,000/20,000 = 38,400

M/s Pine Corporation undertook a contract for Rs. 2,40,000. You are requested to prepare the Contract A/c and Contractee’s and Work-in-Progress A/c for the year ended 31st December 2006 from the following information:

10% of value of material and 15% of wages may be considered as being incurred for the proportion of works completed but not certified. Other charges are charged as a proportion of direct wages.

XYZ Ltd. obtained a contract for Rs. 7,50,000 on 1.1.06. At the end of the year the following information were collected:

The above contract contained an escalator clause:

“In the event of price of raw material and rates of wages increased more than 10%, the contract price would be increased accordingly by 25% of the rise in the cost of materials and wages beyond 10% in each case.”

It was found that since the date of signing of the contract the price of material and rate of wages increased by 25%. The value of the work certified should not be considered in the effect of escalator clause.

(i) Calculation for the amount of Contract Price increased due to Escalation Clause.

As the wages and material cost increased by Rs. 34,800 beyond escalation clause the contract price will be increased by 25% of Rs. 34,800 = 8,700.

(ii) Calculation for Profit to be charged to Profit & Loss A/c

= 2/3 × 1,24,200 × 2,25,000/3,00,000 = 2/3 × 1,24,200 × 3/4 = 62,100.

11. Cost Accounting Problem on Process Costing (3 Problems):

Product A passes through two processes I and II and then to Finished Stock. From the following data prepare the Process A/c’s:

Mukherjee & Co. produces an article through two processes X and Y which is then sent to the finished stock.

The details of the processes are:

12. Cost Accounting Problems on Normal Loss, Abnormal Loss and Abnormal Gain (1 Problem):

Illustration 1:

The following are the details of Process X, Process Y and Process Z:

Stock in process is valued at Prime Cost and Finished stock at the price at which it is received from process III.

Find out the amount of provision to be made to offset the inter-process profits added.

13. Cost Accounting Problems on Inter-Process Profit (1 Problem):

The following illustration will be helpful to understand how to calculate the inter-process profit. A product passes through three processes before it is transferred to Finished Stock.

The following details for January 1992 are available:

Stock in processes is valued at Prime Cost and Finished Stock at the price at which it is received from process III.

Profit on Closing Stock: 40,000/2,40,000 × 12,000 = 2,000

Profit on Closing Stock = 2,42,000/6,60,000 × 30,000 = Rs. 11,000

Statement showing the amount of provision to be made to offset the inter-process profits added:

13. Cost Accounting Problems on Equivalent Production (1 Problem):

Illustration 1 :

The following information is available regarding process X during the year ended 31.3.95.

Production Records:

Cost Record:

Work-in-process as on 1.4.94:

Material Rs. 25,500 Labour Rs. 15,000

Overhead Rs. 12,000

Cost for the year 94-95

Material Rs. 60,000, Labour Rs. 35,000, Overhead Rs. 17,500 Prepare the

(a) Statement of Equivalent Production

(b) Statement of Cost for each element

(c) Statement of Evaluation.

14. Cost Accounting Problems on Apportioning Total Process Costs (2 Problems):

In the process line of XY Company three joint products are produced for the month of May 1990.

The following data were available:

Pre-separation point costs amounted to Rs. 20,000. The joint products are manufactured in one common process; after which they are separated and may undergo further individual processing. The pre-separation point costs are apportioned to joint products according to weight.

You are required to prepare a statement showing the estimated profit or loss for each product and in total.

From the following information, find the profit made by each product apportioning joint cost on sales value basis:

. . . Joint Cost should be borned by:

Product A = 1,32,000/2,20,000 × 1,67,600 = 1,00,560

Product B = 88,000/2,20,000 × 1,67,600 = 67,040

Related Articles:

• Top 4 Problems on Labour Turnover with Solutions | Cost Accounting
• Top 5 Problems on Overhead with Solutions | Cost Accounting

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