Best Accounting Software in India 2025

In today's dynamic environment, managing your business finances can pose a greater challenge than expected. With pressure on small business owners to create GST-compliant invoices, track expenses, and provide tax-related information to accountants on time, understanding a host of new compliance requirements can be almost overwhelming. This is why suitable accounting software in India has become more than a luxury, as it has become an essential service.

This guide will provide you with all you need to consider to pick the right accounting software in India for your needs, whether you are a freelancer, a small business, or a large business. We will outline key features, provide details on the top 10 accounting software in India, and provide actionable suggestions on picking the right solution to meet your needs in 2025. If you're looking to enhance your financial skills, consider our Stock Market Training Online Courses.

What Is Accounting Software?

At its simplest, accounting software is a digital tool used in the management of a business's financial activities. To put it that way, it is a modern-day ledger. The kind of software that shows its value by automating and improving functions such as invoicing, expense tracking, financial reporting, and more.

Rather than relying on manual data entries or tables made of Excel sheets, which can be prone to human error, it performs all of the following and more:

• Invoicing and billing

• Expense tracking

• Bank reconciliation

• Financial reporting

• Payroll management

• Inventory tracking

  
  

For the Indian business, arguably the most vital function is the ability to comply with local tax and compliance regulations. To master these crucial skills, you can enroll in a comprehensive Accounting and Taxation Online Course.

Why Use Accounting Software in India?

The advantages of having accounting software, particularly for businesses in India, are huge and much more significant than merely bookkeeping.

• Easy GST Compliance: The Goods and Services Tax (GST), to put it really simply, is the backbone of the Indian tax system. Among other key features, the best accounting software in India is able to automate GST calculations, create GST-compliant invoices and e-invoices (if you're familiar with this), as well as make the filing of GST returns (GSTR-1 or GSTR-3B) more intuitive. This is truly revolutionary to achieve GST compliance without penalty. To become a certified expert in this field, you may also want to explore a Certified GST Professional Course.

• Time and Money Savings: Automation processes can potentially save thousands of hours of manual data entry, data reconciliation, and report generation that can instead be spent on growing your business.

• Visibility and Control of Finances: Real-time dashboards provide instant clarity of your cash flow, payments owing, and profitability. This financial insight is invaluable to enable smart decisions with real-time data and a proper accounting process in place. If you're an aspiring professional, our SEBI NISM Certification Preparation Modules can further sharpen your expertise.

• Limit Human Error: The software removes the risk of calculation mistakes, incorrect filings, and mismatched entries, leading to more timely and accurate financial records.

• Data Security: Modern systems leveraged in the cloud will provide a secure way to keep your financial data safe from a variety of damage, from file sharing to hardware malfunctions and natural disasters.

Top 10 Accounting Software in India 2025

The Indian market is saturated with choices, but a handful of brands emerge more favorably. Here is our list of the best 10 accounting software for businesses in India for 2025, which includes incumbents and popular new entrants.

1. TallyPrime

A legacy and market leader, Tally is synonymous with Indian accounting. To master this software, check out the Top 40 Tally Interview Questions & Answers 2025.

• Best for: SMEs, traders, and manufacturers that need a robust, offline-first solution.

• Pros: Deep inventory management, excellent GST compliance, and a huge ecosystem of partners and help. For a complete guide on tax filing, our blog has plenty of information in the GST Filing Process Explained for Beginners.

• Cons: Desktop-based first, steep learning curve for new users, and the interface can sometimes feel dated.

2. Zoho Books

A powerful, cloud-based solution from a trusted Indian company.

• Best for: Startups, freelancers, and small businesses that focus on ease of use and a modern interface.

• Pros: Seamless integration with the entire Zoho suite, access in real-time from anywhere, and the best mobile accounting app.

• Cons: Subscription can add monthly costs, and advanced features can be limited on less expensive plans.

3. Busy Accounting Software

A trusted and feature-rich solution with a heavy focus on functionality, and great for Indian businesses.

• Best For: Businesses with specific needs like inventory management, multi-branch operations, and Tally-like functions.

• Pros: Solid GST features, strong reporting, and both desktop and online versions available. 

• Cons: Can be complex for beginners, and the interface is unexpected for a cloud-native solution.

4. QuickBooks Online

A universally recognized and trusted brand that has tailored its offering for the Indian market.

• Best for: Small Businesses, sole proprietors, independent contractors, and service-oriented businesses looking for a globally recognized and trusted platform that’s easy to use.

• Pros: Easy-to-use interface, great bank connection, easy reporting.

• Cons: It is often pricier than local alternatives. Some of the Indian-specific features are not as comprehensive as local software.

5. Vyapar

A simple and affordable option suitable for smaller traders and retailers.

• Best for: Micro businesses, local retailers, or shop owners needing a mobile-first, GST-compliant billing application.

• Pros: It can be used offline, is super easy to use, and affordable.

• Cons: It does not have advanced features, such as payroll or complicated reporting.

6. Marg ERP

Known for industry solutions, specifically in the pharmaceutical industry and for retailers.

• Best for: Businesses that have sophisticated inventory, chains of retail stores, and distribution businesses.

• Pros: Highly customizable. It has industry-specific modules.

• Cons: Not suited for regular business, and has a pretty steep learning curve.

  
  

7. ProfitBooks

A widely used online solution with a reputation for ease of use. 

• Best for: Non-accountants and small business owners wishing to manage their own bookkeeping without too much hassle. 

• Pros: Easy-to-use interface, good invoicing features, good customer support. 

• Cons: No advanced accounting features.

8. Saral

A flexible accounting software company that offers all sorts of solutions for many different-sized businesses.

• Best for: SMEs that need a good all-in-one solution for accounting, inventory, and payroll. 

• Pros: Lots of features and good local support. 

• Cons: The Business user interface could have a more modern design. 

9. ClearTax

ClearTax has a good reputation in India for tax filing, but they also have an accounting platform that we can review. 

• Best for: Businesses wanting an integrated accounting and tax solution.

• Pros: Works well with their tax filing services, as combining accounting with tax filing makes it easy for users.

• Cons: Their accounting platform is not as well-known and mature as other providers.

10. myBillbook

Another mobile-first solution emerging in popularity, myBillbook, provides functionality with a focus on billing and inventory management.

• Best for: Very small businesses and traders needing quick billing and managing their business on the go.

• Pros: Very user-friendly, and even a free version is provided for very modest needs.

• Cons: Limited in accounting features and invoicing.

If you want to dive deeper into the taxation side of things, check out our Accounting and Taxation Online Courses to gain professional expertise.