Free course · Lesson 12 of 12 · 6 min
Choosing software and working with an accountant
What to look for in accounting software, the questions that separate the options, and how to split the work with a bookkeeper or accountant so you pay for advice, not clean-up.
Bookkeeping Basics / Lesson 12
- List the features a small business actually needs from accounting software.
- Compare desktop and cloud software on cost, data and access.
- Decide what to do yourself and what to hand to a bookkeeper or accountant.
- Prepare what an accountant needs at year end.
What software should do for you
- Double-entry books with a chart of accounts you can change.
- Invoices, customer payments and the A/R aging; bills, bill payments and the A/P aging.
- Bank and credit card reconciliation, and importing transactions from your bank.
- Sales tax or GST/HST tracking that produces the figures for your return.
- Payroll if you have employees, with current tax tables, or a link to a payroll service.
- The three financial statements, on accrual and cash basis.
- A closing date, user permissions and an audit trail of changes.
- Backups, and a way to export your data if you ever leave.
Questions to ask before you choose
| Question | Why it matters |
|---|---|
| What does it cost over five years, including payroll and extra users? | Monthly prices add up and often rise; a one-time price does not. |
| Where is my data, and who can see it? | On your own computer, or on the vendor's servers. |
| Does it work without the internet? | Matters if your connection is unreliable or you work on site. |
| Does it handle my country's taxes? | US sales tax, Canadian GST/HST, PST and QST, and payroll in each country. |
| Can my accountant work with it? | Ask them before you buy; it saves both of you time. |
| Can I get my data out? | Exports to spreadsheet or standard files, so you are never locked in. |
Desktop or cloud? Cloud software runs in a browser, so you can log in from anywhere, and you pay a subscription. Desktop software runs on your own PC, keeps your file under your control and often works offline; access from elsewhere takes more setup. Neither is right for everyone. Our desktop vs cloud guide goes through the trade-offs.
Who does what
| Task | You | Bookkeeper | Accountant (CPA or CPA, Canada) |
|---|---|---|---|
| Keep receipts, issue invoices | Yes | ||
| Enter transactions, reconcile monthly | Yes, or | a bookkeeper | |
| Run payroll and file sales tax returns | Yes, or | a bookkeeper | Advises on setup |
| Year-end adjustments and statements | Prepares | Reviews and finalizes | |
| Income tax returns and tax planning | Yes |
What your accountant needs at year end
- Trial balance and general ledger for the year.
- Bank, credit card and loan reconciliations for the last month, with the statements.
- A/R and A/P agings at year end.
- Fixed asset purchases and disposals, with invoices.
- Payroll summaries and copies of W-2s and 1099s, or T4s and T4As.
- Sales tax or GST/HST returns filed during the year.
- Loan statements showing the year-end balance and interest paid.
Where to go from here
You now know enough to keep a small business's books with confidence: double entry, the chart of accounts, sales and purchases, reconciliation, payroll and sales tax, the statements and the close. Pass all twelve quizzes to get your certificate of completion, and keep the glossary handy for any term you meet.
Key terms
Try it
- What your accountant needs from your software: A longer checklist.
- Desktop vs cloud accounting software: The trade-offs side by side.
- Subscription vs one-time cost: Ten years of costs, worked out.
- Is AcboBooks right for me?: A short, honest fit check.
Check your understanding
Pick an answer to see if it is right and why. Nothing is sent anywhere; your result is kept in this browser.
Part of Bookkeeping Basics, a free course from AcboBooks LLC. General information, not tax, legal or accounting advice. Last reviewed October 25, 2026.