# Category Compare: Bookkeeper vs. Accounts Payable Software | Capterra > We define and compare bookkeeper and accounts payable software so you can determine which tool is right for your business. Source: https://www.capterra.com/resources/category-compare-bookkeeper-vs-accounts-payable-software --- # Category Compare: Bookkeeper vs. Accounts Payable Software By Preksha Buttan Preksha Buttan Writer Experience I am a writer at Capterra, where I've been providing expert insights to help small businesses find the right software solutions since Janua... [See bio & all articles](https://www.capterra.com/resources/author/pbuttan/) Published March 20, 2023 7 min read ## In this report, we define and compare bookkeeper software and accounts payable software so you can decide which tool is right for your business. Whether you want to manage your business’s cash flow or generate bills and invoices for vendors, both [bookkeeper](https://www.capterra.com/bookkeeper-software/) and [accountants payable software](https://www.capterra.com/accounts-payable-software/) can help you. But when it comes to investing in one of the two tools, it can be confusing to decide which tool to go for, especially when they both can help you track and manage finances. However, understanding the differences between them can simplify your decision-making process. Bookkeeping software is a comprehensive solution whereas accounts payable is a subset of it. Both tools can be used to automate financial tasks yet are meant to address different business challenges. In this article, we'll discuss the similarities and differences between the bookkeeping and accounts payable software categories. We have also alphabetically listed the top five products for each category based on verified software reviews. [Read more](#methodology). ## What is bookkeeper software? [Bookkeeper software](https://www.capterra.com/bookkeeper-software/) helps small and midsize businesses keep track of their financial data. It can simplify recordkeeping for a business by serving as a digital replacement for traditional business ledgers and other business books.  A bookkeeper tool provides features that automate various accounting tasks, including recording expenses and income, creating invoices, managing accounts payable and receivable, generating financial reports, and reconciling bank statements. Automation of repetitive accounting tasks helps save time and reduces errors, providing accurate financial information. ## Key features of bookkeeper software The primary features of bookkeeper software include: - **Accounts payable:** Maintain a liability account to track money your business owes to suppliers or vendors for goods or services received but not yet paid for. - **Accounts receivable:** Maintain an asset account to track the money your business is owed by its customers for goods or services sold on credit. - **Billing and invoicing:** Create and send bills and invoices to your customers for goods and services provided to them. - **Expense tracking:** Track your expenses in real time to understand the cash flow, monitor spending, and identify areas for cost saving. - **Cash management:** Manage cash balances, monitor cash inflows and outflows, and plan how business funds are used. ## Top 5 bookkeeper software These five products are listed in alphabetical order. (The [full methodology](#methodology) for how these products were chosen can be found at the end of this piece.) Error Could not fetch Product Information #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty ## What is accounts payable software? [Accounts payable (AP) software](https://www.capterra.com/accounts-payable-software/) assists businesses in managing accounts payable processes and controlling cash expenditures. This tool automates the process of capturing invoice data, paying bills, approving payment requests, and setting up recurring payments. AP software helps reduce errors, improve payment accuracy and timeliness, and free up time for accounting staff to focus on other strategic tasks. Additionally, AP software can provide businesses with real-time visibility into their cash flow and financial obligations, enabling them to make informed decisions about their finances. ## Key features of accounts payable software The primary features of accounts payable software include: - **Approval process control:** Automate payment approval process by routing payment requests to appropriate approvers based on predefined rules to reduce the risk of fraud or unauthorized spending. - **Invoice processing:** Create and process invoices of vendors and suppliers and enter invoice data (invoice number, date, amount due, etc.) into the system. - **Vendor management:** Track and store vendor information (name, contact information, services offered, contracts, etc.) in the system. - **Audit trail:** Maintain a detailed record of every transaction related to the accounts payable account, including the date and time of the transaction, details of the user who made the transaction, amount details, and more. - **Duplicate payment alert:** Get notified when an invoice is entered into the system that matches an existing invoice, reducing the risk of overpaying vendors. ## Top 5 accounts payable software These five products are listed in alphabetical order. (The [full methodology](#methodology) for how these products were chosen can be found at the end of this piece.) Error Could not fetch Product Information Error Could not fetch Product Information #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty #### Trial/Free Version - Free Trial - Free Version #### Device Compatibilty ## What do they have in common? Both bookkeeper software and accounts payable software are types of accounting software that: - Help businesses manage their finances, keep track of every financial transaction, and save time and effort on repetitive tasks with automation.  - Offer features such as billing and invoicing, expense tracking, bank reconciliation, and cash management. However, if you are an accountant, you can use the bookkeeping tool to manage accounts payable processes but you cannot use accounts payable software for bookkeeping purposes. The reason is that bookkeeping software is more comprehensive, while accounts payable software is a specialized tool designed to automate and streamline the accounts payable process. ## Which of the two tools is right for your business? To decide whether you need a bookkeeping tool or accounts payable tool, you have to first analyze business needs and end goals.  As specified above, bookkeeping software is a more comprehensive solution. It will work best for you if want to record transactions such as sales, purchases, and payments as well as track the money that your business owes to vendors and suppliers. Bookkeeping software may also be a good fit for you if you’re a bookkeeper in a small business performing solo or in a small team as this tool will fulfill all your basic accounting needs. On the other hand, if you need a tool to specifically manage your accounts payable, opt for the accounts payable tool. This type of tool is a good choice for businesses with multiple accountants specializing in managing different types of accounts. Accountants responsible for only handling accounts payable will benefit the most from accounts payable software.  Once you’ve decided which software to use, head to our [bookkeeper software](https://www.capterra.com/bookkeeper-software/) and [accounts payable software](https://www.capterra.com/accounts-payable-software/) category pages, where you can find a sortable list of products and software reviews from verified users. If you want to narrow your search to only the most popular and highest-rated solutions, visit Capterra Shortlist reports for the top [bookkeeper software](https://www.capterra.com/bookkeeper-software/#shortlist) and [accounts payable software](https://www.capterra.com/accounts-payable-software/#shortlist) tools. Our reports are based on an analysis of thousands of user reviews. ## How to choose the right software for your business Here are some considerations to keep in mind while evaluating potential solutions: - **Identify the essential accounting features.** Start your software search by analyzing your accounting processes to understand what you need the tool for. Check the type of financial data you need to track and maintain and then thoroughly check the feature list of the software you are considering. Doing this step will help you find a tool that offers the features and functionalities that you need for your accounting processes.   - **Consider your accounting team size.** Check the size of your accounting team as you analyze your accounting needs. If you have a small team, going for one solution that offers multiple functionalities will be better. Otherwise, you can look for solutions that serve certain specific needs. Accounts payable software is an example here as this tool specifically helps manage accounts payable processes.  - **Keep your budget in mind.** It goes without saying that you have to keep your budget in mind as you look for a tool to solve your accounting challenges. If you decide to go for a specialized tool, then you may have to invest in multiple tools to solve different challenges. This can increase your overall expense. In a comprehensive solution, check the list of features to ensure that you are not overpaying for those you do not require. The right accounting tool will be the one that solves all your challenges without burning a hole in your pocket. ## Common questions to ask while selecting a tool for your business Here are some questions to ask software vendors before making a final purchase: What are the invoicing features offered by the tool? A bookkeeping solution maintains invoices of goods and services sold to customers and an accounts payable solution maintains a record of invoices from vendors and suppliers. Check with your vendor which type of invoicing feature their tool offers and go for a solution that caters to your invoicing needs. Does the tool have financial reporting capabilities? Financial reporting allows you to generate reports such as income statements, balance sheets, and cash flow statements, among other financial reports. As these reports help you understand the financial standing of your business, ask your vendor if reporting is a part of their accounting solution. Can you use the tool for budgeting and forecasting? The budgeting and forecasting feature allows you to predict the financial state of your business based on current trends in the reports. Since the predictions enable you to make decisions for your business, check with your vendor if their tool offers this capability. * * * **Methodology** We highlight the top five products from each category—those with the highest average user ratings. In addition, to be included in this list, the products must: - Have at least 20 unique product reviews published on Capterra, with an average rating of 3.0 or higher (as of February 15, 2023). - Meet our software market definition for bookkeeper and accounts payable software: - Bookkeeper software: “_Bookkeeper software helps small and midsize businesses keep track of their financial data._” - Accounts payable software: “_Accounts payable software automates the process of controlling cash expenditures._” **Note:** Reviews and ratings data in the product cards is as of March 7, 2023. New reviews may have been added since the publication of this article, so the reviews data in this piece may not reflect current conditions. **_Disclaimer:_** _The products in the category comparison images are examples to show a feature in context and are not intended as endorsements or recommendations by Capterra. They have been obtained from sources believed to be reliable at the time of publication._ * * * ### Was this article helpful? * * * ## About the Author [### Preksha Buttan](https://www.capterra.com/resources/author/pbuttan/) Preksha Buttan is a writer at Capterra. She provides insights to help small businesses identify the right software for their needs by analyzing more than 550,000 Capterra user reviews and nearly 48,000 interactions between Capterra software advisors and buyers. ### RELATED READING - [How Much Does Accounting Software Cost in 2026? 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