Accounting for Indian SMBs is rarely just about bookkeeping. Most businesses need a combination of GST compliance, invoicing, inventory tracking, bank reconciliation, reporting, and sometimes payroll—all while keeping costs and complexity under control.

There’s no single “best” accounting software for everyone. The right choice depends on how your business operates today and how much complexity you expect in the next 1–3 years.

This guide covers reliable, widely used accounting software options in India, explains where each one fits best, and helps you choose without overbuying.

1. Zoho Books: Cloud-First, GST-Ready, Scalable

Best for: Small to midsize businesses that want modern, cloud-based accounting

What it does well

• End-to-end accounting: invoicing, expenses, bank reconciliation, reporting

• Strong GST compliance, including e-invoicing and return workflows

• Multi-user access, audit trails, and integrations

• Works well for service businesses, D2C brands, agencies, and exporters
  
  

Cloud vs desktop

• Fully cloud-based (web + mobile apps)
  
  

Payroll

• Not native inside Zoho Books, but integrates with Zoho Payroll
  
  

Pricing (India, approx.)

• Free plan available for small businesses below turnover thresholds

• Paid plans typically start in the low thousands per year
  
  

When it makes sense
If you want visibility, automation, and flexibility without relying heavily on a CA for daily operations.

2. TallyPrime: Deep Accounting + Inventory Control

Best for: Businesses with complex inventory, GST structures, or accountant-driven workflows

What it does well

• Extremely strong GST handling and reporting

• Advanced inventory, stock, and ledger management

• Familiar to most Indian accountants and auditors

• Handles large data volumes reliably
  
  

Cloud vs desktop

• Primarily desktop-based

• Can be accessed remotely via Tally on Cloud / third-party hosting
  
  

Payroll

• Supported within Tally ecosystem
  
  

Pricing (India, approx.)

• One-time license, typically ₹18,000+ (single user), higher for advanced versions

  
  

When it makes sense
If inventory, compliance depth, and accountant familiarity matter more than modern UI or mobility.

3. Odoo: Accounting + Payroll in One System

Best for: Growing SMBs and mid-sized businesses that want an all-in-one ERP platform combining accounting, reporting, invoicing, inventory, CRM, HR and payroll in one ecosystem, ideal if you want more than just standalone accounting

What it does well

• Invoicing, expense tracking, bank reconciliation, financial reporting

• GST compliance and Indian localisation (e-invoicing, e-way bills via setup)

• Strong integration with CRM, sales, inventory, projects and HR

• Multi-company and multi-currency support

  
  

Cloud vs desktop

• Cloud-based

• On-premise option available
  
  

Payroll

• Available as part of the HR suite\

  
  

Pricing (India, approx.)

• Modular, per-user pricing

• Free tier available for one app only

• Paid plans scale with users, apps and implementation needs

When it makes sense
If you want a single system for accounting + payroll and don’t mind paying for a fuller suite

4. Vyapar: Mobile-First, India-Centric

Best for: Small traders, retailers, kirana stores, and service businesses

What it does well

• GST billing, invoicing, and basic accounting

• Inventory tracking suited for small shops

• Strong mobile experience (Android-first)

• Very low learning curve
  
  

Cloud vs desktop

• Mobile-first with desktop support
  
  

Payroll

• Limited (not enterprise-grade)
  
  

Pricing (India, approx.)

• Very affordable

• Annual plans typically in the low thousands

  
  

When it makes sense
If simplicity, speed, and mobile access matter more than advanced accounting depth.

5. Busy Accounting: Practical MSME Workhorse

Best for: Small and midsize businesses needing GST + inventory + reports.

What it does well

• GST billing and compliance

• Inventory and multi-location handling

• Strong reporting and data control

• Often used alongside or instead of Tally by MSMEs
  
  

Cloud vs desktop

• Desktop-first, with cloud / hosted options
  
  

Payroll

• Supported
  
  

Pricing (India, approx.)

• One-time license + optional annual support

• Typically mid-range, lower than Tally for some setups
  
  

When it makes sense
If you want strong accounting depth without fully committing to Tally.

6. ProfitBooks: Simple Cloud Accounting

Best for: Founders and small teams who want clarity without complexity

What it does well

• Basic invoicing, expenses, GST reports

• Clean UI and easy workflows

• Cloud-based and beginner-friendly
  
  

Cloud vs desktop

• Fully cloud-based

  
  

Payroll

• Not core

  
  

Pricing (India, approx.)

• Free plan with limits

• Paid plans at reasonable SaaS pricing

  
  

When it makes sense
If you’re early-stage, service-oriented, and want something easier than Tally or QuickBooks.

7. Bonus: Open-Source Alternatives (Niche but Valid)

Akaunting

• Open-source, self-hosted or cloud

• Invoicing, expenses, basic accounting

• Best for very small businesses or tech-savvy teams
  
  

GNUKhata

• India-focused open-source accounting

• Double-entry bookkeeping

• Often used by NGOs or cost-sensitive organisations
  
  

Important note:
These are less common in commercial SMB setups, but valid if cost or control is the priority

Quick Comparison Table

How to Choose (Simple Decision Lens)

• Service business, cloud-first → Zoho Books

• Heavy inventory, GST complexity → TallyPrime or Busy

• Accounting, Payroll, HR & operations in one system → Odoo

• Retail / trader / mobile billing → Vyapar

• Early-stage, simplicity first → ProfitBooks

• Zero budget / open source → Akaunting or GNUKhata
  
  

Final Take

Accounting software is not about features, it’s about fit.

The best tool is the one that:

• matches your compliance needs

• reduces manual work

• and can grow one stage ahead of where your business is today
  
  

For most Indian SMBs in 2025, the decision usually comes down to Zoho Books vs Tally vs a simpler India-first tool. Choose based on how complex your operations really are, not how complex you think they’ll become.