Accounting firms rely on a variety of software solutions to make their operations as efficient as possible. These solutions help them improve their workflows, and provide excellent service to their clients. 

As technology continues to transform the accounting industry, modern software for accounting firms has become increasingly important in enhancing various aspects of the accounting business. 

Let’s take a deep dive and see what type of software accounting firms use and which is the most important software your accounting firm cannot be without.

What Type of Software Do Accounting Firms Use?

  • Spreadsheets

Spreadsheet software provides accounting firms with a straightforward and highly customizable way to store, manipulate, and analyze financial data. Their interfaces are organized in tabular form, consisting of rows and columns that allow simple and complex mathematical formulas to be calculated. 

They’re typically used for common business tasks such as budgeting, analyzing data, making lists and inventories, and managing projects. While spreadsheets are a step up from manual bookkeeping, they lack the intelligence and automation that modern options like accounting software or ERP systems provide.

  • Accounting Software

Accounting software is used to manage the fundamental financial tasks of an accounting firm and streamline processes associated with bookkeeping, accounting, and financial reporting.

You can think of it as the central nervous system of your firm’s financial operations. It offers comprehensive features that allow your firm to seamlessly coordinate and manage all accounting transactions. By doing so, your accounting firm can keep precise financial records and provide its clients with financial insights.

Most accounting systems are capable of handling core financial functions like the general ledger, accounts receivable and payable, payroll, and financial reporting. 

  • CRM

Customer Relationship Software (CRM) plays a vital role in helping accounting firms maintain successful client relationships. It does so by streamlining communication processes with clients, boosting sales, providing better customer service, and building better relationships.

By connecting your customers, leads, and sales data in one place, CRMs provide a unified solution that helps accounting firms consolidate their communications.

  • ERP Systems

ERP systems are a robust upgrade to accounting software that includes an array of other functions ranging from CRM to HR. In other words, they are the full package. A one-stop-shop solution for accounting firm needs.

Typically, ERP systems help accounting firms lower costs by consolidating multiple licenses into a convenient integrated solution, while also reducing interoperability issues. Their automation functions can help reduce operational costs and free up time for the finance team to focus on growth activities.

ERP systems tend to be sought after by scale-ups and larger organizations that have outgrown the capabilities of their accounting software.

At Xledger, we empower every customer with ERP software that offers robust accounting features and cutting-edge tools to help them grow their business.


Book a FREE demo today to find out how our ERP software can help your accounting or CPA firm.

  • Tax Preparation Software

Since most accounting firms offer tax filing services, they also utilize tax preparation software to help them process and file income tax returns for their clients.

Tax preparation software for professionals enables accounting firms to optimize the process of creating, organizing, and filing tax returns. They are effective at catching inaccuracies and keeping up with the most up-to-date laws and regulations which minimizes mistakes. 

The software typically works like a survey that prompts accountants to input information about their client’s earnings and expenses. Afterward, it compiles it into a digital tax return that can be filed online with the IRS.

  • Document and Project Management Software

To stay organized, accounting firms use project and document management software that helps them better manage clients’ inflow and safely store and manage records. 

Project management software makes it easy to plan deadlines, allocate resources, as well as track the progress of projects. Document management software on the other hand helps safely store, manage, and track electronic documents. 

Beyond simply storing files, most document management software also supports digital signatures. This enables clients to easily and legally comply with legal standards while giving and receiving a binding signature. 

Signature software is a key component of working remotely with clients. This is particularly true when filing tax forms, contracts, and other legal documents that might require a client’s signature.

Why Choose an ERP System for Your Accounting Firm

ERP systems are a robust software solution for accounting firms. They include key features needed by all financial departments as well as an array of options for the rest of the organization.

With an ERP system, you can perform all accounting tasks needed to run your business and more. This includes billing, sales orders, purchase orders, the general ledger, timesheets, expenses, and electronic payments, as well as other key business functions like managing client relationships.

By having access to the real-time data that an ERP system provides, accounting firms can make strategic decisions with precision in a matter of minutes and complete major projects, such as closing out their accounting for the month, much faster. The centralization of information that an ERP system facilitates is also an excellent way to streamline your accounting department’s operations. 

Best ERP System for Accounting Firms

When it comes to software for accounting firms in the United States, there’s no better option than Xledger. 


Our online ERP software is a category leader that specializes in automating accounting processes, streamlining financial operations, and connecting all aspects of a business in one place.

If you’re ready to scale out of your simple or outdated accounting software, book a free one-on-one demo with our team of experts. From there, our team will guide you every step of the way. 

Free your finance team from tedious and repetitive accounting tasks and contact us today.

Curious About What Else ERP Software Can Do For Your Accounting Firm?

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