7 best accounting software for midsize businesses in 2025

Re-evaluating your accounting software when your company outgrows basic small business solutions is an important step toward continued growth.

Mid-sized businesses need more than simple bookkeeping software to ensure their accounting teams can work efficiently. They require automation, multi-entity support, real-time reporting, tax compliance, and integration with business tools like CRMs, payroll, and inventory management systems.

Why midsize businesses require specialized accounting software

The financial operations of a midsize business are significantly more complex than those of a small business. While small businesses rely on basic bookkeeping for tracking income and expenses, midsize businesses manage higher transaction volumes, multi-entity operations, and stricter compliance requirements. This shift demands more comprehensive accounting software with automation, advanced reporting, and integration capabilities.

Higher transaction volume and financial complexity

Small businesses typically handle a few dozen transactions daily, often using simple spreadsheets or entry-level software like QuickBooks Online. Midsize businesses, however, process hundreds or thousands of transactions across multiple accounts, departments, and locations. Without automation, financial reconciliation becomes time-consuming and prone to errors. With Ramp’s automated expense management, medium-sized businesses can save 15 hours each month.

Payroll and employee benefits management

Small businesses may have a handful of employees, making payroll processing straightforward. Midsize companies, however, manage full-time, part-time, and contract workers across multiple locations. This requires automated payroll processing, tax withholding, and benefits tracking, features not typically available in small business accounting tools.

Compliance and tax requirements

Tax compliance becomes more demanding as businesses grow. Small businesses often deal with basic sales tax and payroll tax filings, while midsize businesses must navigate multi-state tax regulations, corporate tax filings, and industry-specific compliance laws. Most businesses face tax-related penalties due to filing errors, leading to heavy penalties that ultimately affect their business. Advanced accounting software helps automate tax calculations, generate audit-ready reports, and ensure compliance.

Financial reporting and forecasting

Small business owners often focus on cash flow tracking and profit-loss statements in the general ledger. Medium-sized businesses, however, need detailed financial reporting, revenue forecasting, and budget planning tools. Around 73% of business leaders believe that data helps them make better decisions. However, with outdated financial data, this becomes difficult. Specialized accounting software provides customizable reports and predictive analytics to support long-term financial strategy.

Integration with other business tools

Small businesses typically operate with standalone software for invoicing, payroll, and inventory. Midsize businesses, however, need seamless integration between their accounting system, CRM, ERP, and HR software. Without this, financial data becomes fragmented, leading to inefficiencies and reporting discrepancies.

Best accounting software for medium-sized businesses

Midsize businesses have outgrown basic accounting tools, but they don’t need the complexity of enterprise-level systems. The right accounting software streamlines financial management, automates tax compliance, and provides real-time insights, all while supporting business growth.

Unlike small businesses, where owners often handle bookkeeping, midsize businesses rely on finance teams, CFOs, or outsourced accountants. With medium-sized businesses spending 17% more on professional services, it becomes quite important to choose the right software and keep your books up to date.

1. NetSuite ERP: Best for midsize companies with expansion

NetSuite ERP, owned by Oracle, is a cloud-based accounting and enterprise resource planning (ERP) solution designed to support growing businesses. It offers a comprehensive financial and project management system that goes beyond basic bookkeeping, making it ideal for companies with complex accounting and business needs, multi-entity operations, and global expansion plans.

Key benefits

• Grows with the business by handling multiple locations, subsidiaries, and currencies without switching platforms.
• Provides real-time financial data with instant access to cash flow, revenue, and expenses.
• Keeps tax filings compliant by supporting GAAP, IFRS, and local tax regulations.
• Reduces manual work by automating invoicing, accounts payable, and revenue recognition.
• Connects with CRM, payroll, and inventory systems to improve workflow efficiency.

Drawbacks

• Takes time to set up and requires training and IT support during implementation.
• No clear pricing, as businesses must contact sales for a quote, and no free trial is available.
• It is too advanced for businesses with simple accounting needs.

NetSuite ERP is a good choice for midsize businesses operating in multiple locations, managing large financial transactions, or dealing with international tax regulations. It works well for real estate, manufacturing, wholesale distribution, and e-commerce companies looking for a single integrated system.

2. Microsoft Dynamics: Best for AI-driven financial automation

Microsoft Dynamics 365 is a cloud-based accounting and ERP system designed for businesses that rely on Microsoft tools. It integrates seamlessly with Microsoft 365 (Excel, Outlook, Teams), Power Platform, and Azure, making it a strong choice for companies already using Microsoft products. Midsize businesses benefit from its scalability, AI-driven automation, and customizable financial management tools.

Key benefits

• Works well with Microsoft 365 apps, making it easy for teams to collaborate and share data.
• Automates financial and business processes, reducing manual work and improving efficiency.
• Uses AI-driven insights to optimize budgeting, forecasting, and financial planning.
• Supports tax management and compliance across multiple regions.
• Allows on-premises deployment for businesses that prefer local data control.

Drawbacks

• Requires a complex setup, making implementation time-consuming.
• High cost compared to other midsize business accounting solutions.
• Best suited for businesses already using Microsoft products, limiting flexibility for those on other platforms.

Microsoft Dynamics 365 is a good choice for midsize businesses that already use Microsoft tools and need a fully integrated financial management system. It works well for companies in manufacturing, professional services, and technology industries that want to automate accounting processes and use AI-driven insights.

3. Zoho Books: Affordable accounting automation option

Zoho Books helps businesses manage finances, track cash flow, and automate accounting tasks without the high price tag of larger ERP systems. It provides invoicing, expense tracking, bank reconciliation, and multi-currency support, making it a practical choice for midsize companies handling frequent transactions and international payments.

Key benefits

• Automates invoicing, expense tracking, and bank reconciliation to save time.
• Supports multiple currencies for businesses with international operations.
• Provides detailed financial reports to help track profitability.
• Sends automatic payment reminders to improve cash flow.
• Offers 24/5 customer support via phone, email, and live chat.

Drawbacks

• Takes time to learn, especially for businesses new to automation.
• Limited third-party integrations compared to other accounting tools.
• Caps on users and transactions may not fit businesses with rapid growth.

Zoho Books works well for midsize businesses that need automation without a high cost. It’s a good option for service-based companies, e-commerce businesses, and those handling international transactions who want an easy way to manage their accounting without overpaying for extra features.

4. Workday Financial Management: Best for managing finance and workforce together

Workday Financial Management is an accounting and finance platform built for businesses needing more than bookkeeping. It connects financial data with workforce management, making it easier to track company performance in real-time. With its AI-driven automation and deep analytics, Workday helps midsize businesses simplify accounting, improve forecasting, and stay compliant as they grow.

Key benefits

• Integrates financial and workforce data in one system for better visibility.
• Automates accounting tasks, reducing manual work and improving efficiency.
• Provides real-time financial reporting and forecasting to support business growth.
• Uses AI-driven insights to improve financial planning and decision-making.
• Supports compliance with built-in controls for risk management.

Drawbacks

• Requires a complex setup and IT involvement during implementation.
• Pricing is not transparent and requires a custom quote.
• It may include more features than necessary for businesses with simpler accounting needs.

Workday Financial Management works best for midsize businesses that need accounting and workforce management in one system. It’s ideal for companies with growing teams, complex payroll needs, or those looking to automate financial processes and improve reporting accuracy.

5. Sage 50: Best for desktop accounting

Sage 50 is a desktop-based accounting software solution that offers cloud connectivity, making it a good fit for businesses that prefer local data control while still accessing financials remotely. It includes invoicing, expense tracking, bank reconciliation, and inventory management, helping midsize businesses stay on top of their finances without relying on fully cloud-based solutions.

Key benefits

• Allows desktop installation while still offering cloud access for remote work.
• Provides strong expense tracking with custom cost codes for better budgeting.
• Includes real-time inventory management for businesses handling stock.
• Offers full accounting features, including invoicing and bank reconciliation.
• Keeps financial data secure with local storage options.

Drawbacks

• The interface looks outdated compared to newer cloud-based alternatives.
• Costs more than many cloud-based accounting solutions.
• Offers fewer third-party integrations compared to other accounting tools.

Sage 50 works best for midsize businesses that want the reliability of desktop accounting software but still need cloud access. It’s a good choice for retailers, wholesalers, and service-based businesses that require expense control, inventory tracking, and local data security while maintaining remote accessibility.

6. Xero: Best for easy app integrations

Xero is a cloud-based accounting software built for businesses that need flexibility and app integrations. It connects with over 1,000 third-party applications, including HubSpot for CRM, Gusto for payroll, and DEAR Inventory for stock management, making it easy to sync financial data across different business tools.

Midsize businesses looking for scalable accounting software can use Xero to manage finances, track expenses, and automate bookkeeping tasks without being locked into a single ecosystem.

Key benefits

• Integrates with over 1,000 business apps, allowing seamless workflow automation.
• Offers unlimited users on all pricing plans, keeping costs predictable.
• Provides strong financial reporting with data visualization tools.
• Features a user-friendly interface that simplifies complex accounting tasks.
• Supports multi-currency transactions for businesses with international operations.

Drawbacks

• Charges extra for premium features like expense management and project tracking.
• Limited customer support options compared to competitors.
• Entry-level plans restrict invoicing and bill payments, requiring an upgrade for full functionality.

Xero is a great choice for midsize businesses that need easy integration with other tools while keeping accounting simple. It’s ideal for service-based companies, e-commerce businesses, and growing teams that require scalable accounting software with flexible pricing and automation features.

7. Epicor: Best for industry-specific accounting solutions

Epicor is an enterprise resource planning (ERP) and accounting solution for midsize manufacturing, distribution, retail, and construction businesses. It focuses on financial management, automation, and operational efficiency, making it a preferred choice for companies with complex accounting needs.

Epicor serves more than 27,000 businesses worldwide, helping them manage financial reporting, compliance, and industry-specific workflows with tailored solutions.

Key benefits

• Provides industry-specific financial management tools for manufacturing, distribution, and retail.
• Integrates with supply chain, inventory, and digital commerce platforms.
• Offers strong reporting and data management features for financial planning.
• Automate accounts receivable and payable and perform compliance tracking to reduce manual work.
• Supports multi-entity accounting, making it easier to manage multiple business locations.

Drawbacks

• Requires a complex setup process and IT involvement.
• Does not provide transparent pricing, requiring businesses to request a custom quote.
• It can feel overly complex for companies with basic accounting needs.

Epicor works best for mid sized manufacturing, distribution, and retail businesses that need industry-specific financial tools. It’s ideal for companies managing supply chains, large inventories, or multi-location operations that require customized accounting and ERP features beyond standard bookkeeping.

Cloud-based vs. on-premise accounting solutions

Choosing between cloud-based and on-premise accounting software depends on how your business handles data, security, and accessibility. Cloud-based software stores financial data online, making it easy for teams to access reports, process transactions, and track expenses from anywhere.

Businesses with remote employees or multiple locations benefit from its real-time collaboration and automatic updates. Around 50% of businesses will move to cloud financial solutions by 2028 due to lower IT costs and easier scaling.

On-premise software keeps financial data on local servers, giving businesses full control over security, compliance, and software updates. Companies in regulated industries or those needing strict data privacy controls often prefer this setup. However, it requires IT resources to manage maintenance, backups, and security patches, making it more expensive over time.

Cloud-based accounting works well for businesses that need flexibility, automation, and easy integrations, but it relies on a stable internet connection and comes with ongoing subscription fees. On-premise solutions provide greater control and a one-time licensing cost but limit accessibility and require dedicated IT support.

Businesses that prioritize mobility and scalability often choose cloud-based options, while those needing custom IT infrastructure and full data ownership may find on-premise software a better fit.

How to choose the best accounting software for ROI

The best accounting software helps your business save time, reduce errors, and drive smarter financial decisions. For midsize companies, the right choice automates workflows, integrates with existing systems, and scales with growth.

Automation plays a big role in maximizing ROI. Businesses that eliminate manual data entry and streamline approvals cut accounting costs and free up time for strategic planning. Seamless integrations with payroll, CRM, and expense management tools prevent inefficiencies that slow down financial operations.

By automating expense management, categorizing transactions with AI, and syncing data in real-time, Ramp helps companies close books faster and improve financial accuracy, which are the key drivers of ROI.

Accounting software should be an investment. The right platform pays for itself by cutting costs, improving efficiency, and giving your business the insights needed to grow.