How to choose accounting software for an SME

Why is it hard to find the right accounting software?

The market is crowded: large packaged products, mid-market ERP suites, and bespoke solutions all compete for your attention. Every vendor says theirs is best — but the right software depends on the size, processes, and accounting model of your specific business.

1. Define the features you actually need

Start by listing what the software must do:

• Basic invoicing — outgoing invoices, pro-forma, down-payment invoice, cancellation
• Incoming invoice entry — manually or automatically via OCR
• NAV Online Invoice integration — mandatory for all domestic B2B invoices in Hungary
• General ledger — posting, chart of accounts management
• Bank reconciliation — bank statement import, matching
• Inventory accounting — stock valuation, FIFO/LIFO, physical inventory
• Reports — balance sheet, P&L, VAT return

Small businesses often need only an invoicing tool plus a bookkeeping module. Larger companies may also need warehouse accounting, project costing, or multi-currency bookkeeping.

2. Check legislation compliance

The value of accounting software lies precisely in automatic legislation tracking. Ask the vendor:

• When are VAT rates, VAT return templates, and corporate tax calculations updated?
• Does it automatically generate NAV Online Invoice submissions?
• How does it handle year-end closing (opening balances, year-close, tax return preparation)?

3. Evaluate the user experience

Complex software that nobody wants to use is worse than nothing. Request a demo and notice:

• How many clicks does it take to post an outgoing invoice?
• Are error messages clear when something is filled in incorrectly?
• Is the feature you need easy to find, or do you have to dig through menus?

4. Support and maintenance

Accounting software is not "install and forget" — it changes every year and questions arise. Check:

• Is phone/email support available? How fast do they respond?
• What is the update model — automatic, or manual install?
• Is there a user community (forum, knowledge base)?

5. Pricing and licence model

Three main models:

| Model | Characteristics | Best for | |-------|----------------|---------| | Monthly SaaS | Low entry cost, automatic updates | Small businesses, 1–5 users | | Annual licence | Local install, one-off fee + annual support | Mid-size companies with data sovereignty needs | | Custom build | Fully tailored | Large companies with specialist processes |

Watch out for how user count, transaction volume, and extra modules (warehouse, payroll) affect the final price.

When does custom accounting software make sense?

If your processes are so specific that no packaged product covers them fully, custom development is worth considering. For example:

• Project-based costing with complex billing structures
• Consolidated accounting for multiple entities with custom reporting
• Specialist regulatory requirements (public sector, financial institutions)

The DevTools accounting system includes NAV Online Invoice integration, automatic bank reconciliation, and an SME-optimised interface. Request a demo.

Related pages:

• Accounting software details
• NAV Online Invoice integration guide