The 5 best accounting software solutions for medium-sized businesses

The line between small business and corporate giant isn't always clear, but certain markers help identify companies that occupy the middle ground. In the US, a midsized business employs at least 100 and 999 people and generates annual revenue ranging from $10 million to $1 billion. These aren't arbitrary numbers. They reflect a distinct operational reality where companies have outgrown startup constraints but haven't yet reached enterprise scale.

European definitions paint a more modest picture. The European Union classifies medium enterprises as those with 50 to 250 employees and annual revenue below €50 million. This reflects different market structures and economic scales across the Atlantic, but the underlying principle remains consistent: these businesses operate with multiple layers of management and departmental divisions.

Consider a regional healthcare provider with 400 employees across six locations, or a specialty manufacturer generating $75 million annually from three production facilities. These organizations have dedicated finance teams, manage complex vendor relationships, operate across states and borders, and earn revenue that demands sophisticated tracking. They've moved past QuickBooks but don't need SAP's enterprise arsenal.

The practical test is straightforward. If your company maintains separate departments for sales, operations, and finance, if you're managing payroll for hundreds rather than dozens, and if your annual revenue consistently hits eight or nine figures, you're squarely in midsized territory. This distinction matters because your accounting software needs have fundamentally changed from those early days of keeping books in spreadsheets.

The accounting needs of a 300-person company differ vastly from those of a 30-person startup. As operations scale, financial complexity multiplies. Multiple cost centers emerge, regulatory requirements intensify, and stakeholders demand real-time insights. The right software platform must handle this complexity without requiring an army of accountants to operate it.

Real-time financial visibility

Modern midsized businesses can't wait until month-end to understand their financial position. Your accounting platform should provide instant access to cash flow, revenue trends, and expense patterns through customizable dashboards. When a CFO needs to answer a board member's question about Q3 spending trends during a Tuesday morning call, the data should be seconds away, not buried in static reports from last week.

Seamless integration with existing systems

No accounting software operates in isolation. Your platform must connect smoothly with the CRM your sales team uses, the payment processors handling customer transactions, and the payroll system managing employee compensation. Look for pre-built connectors to popular business tools and robust APIs that allow custom integrations. A platform that forces manual data entry between systems wastes time and invites errors.

Multi-entity and multi-currency support

Growth often means complexity. You might have subsidiary companies, international operations, or distinct business units that need separate financial tracking while rolling up to consolidated reports. Your accounting software should handle multiple legal entities within a single platform and process transactions in various currencies without constant manual conversions. This becomes particularly important when managing overseas suppliers or serving international customers.

Automated workflows

Manual processes that worked with 50 employees break down at 500. Strong accounting platforms automate routine tasks like invoice routing, expense approvals, and payment scheduling. They should allow you to set spending thresholds, create multi-level approval workflows, and automatically flag exceptions. When a department head submits a $50,000 purchase order, the software should know exactly who needs to review it and in what order.

Granular user controls

Not everyone needs access to everything. Your controller requires different system permissions than your accounts payable clerk or department managers. Modern platforms offer role-based access controls that limit users to relevant functions and data. This isn't just about security. It's about creating a clean, focused experience where users see only what they need to do their jobs well.

Choosing the best accounting software for a medium-sized business can be daunting, given the many options on the market. To help, we've hand-picked five leading solutions, each excelling in different areas. Below, we break down each software's overview, key features, pros and cons, and ideal use cases.

1. Brex

Brex is a spend management platform that offers powerful accounting tools tailored for growing companies. Brex’s software combines accounting automation software, expense management, business banking, and corporate cards with accounting integrations in one solution. Brex helps midsize businesses track and control spending in real time while syncing seamlessly with their bookkeeping. It’s cloud-based and designed for startups and midsize firms that want to automate financial workflows without a full ERP. Brex gained popularity with venture-backed startups and has since become a top choice for mid-market companies looking to modernize spend and accounting workflows.

Key features

• Unified spend management: Issue corporate credit cards for employees with custom limits, capture receipts, and automatically categorize expenses. Brex’s platform provides real-time tracking of all company spending in one dashboard, which is invaluable for budgeting and cash flow oversight.
• AI-powered expense automation: Brex's expense management automation uses AI to auto-categorize transactions and flag anomalies. By learning from your data, it significantly reduces manual expense coding (e.g., automatically tagging software subscriptions vs. travel expenses).
• Seamless accounting integrations: Brex natively connects with popular accounting and ERP solutions like QuickBooks, Xero, NetSuite, and more. In fact, it boasts over 1,000 software integrations across finance, HR, and productivity tools. This means expenses and card transactions flow into your accounting ledger without tedious manual entry.
• Automated reconciliation and reporting: The platform can match receipts to transactions (using OCR) and reconcile credit card spend automatically. It also generates spend reports and integrates with your general ledger for a faster month-end close.
• Built-in compliance controls: Brex offers features like custom approval workflows, policy enforcement, and audit trails for all transactions. These controls help midsize companies stay compliant with internal policies and regulatory requirements by ensuring proper review and documentation of expenses.

Benefits

• Streamlines expense management and eliminates the need for separate corporate card and expense reimbursement programs.
• Real-time visibility into company spending, with budgets and alerts to prevent overspending.
• Generous rewards program on Brex credit card spending (tailored to business needs like travel, SaaS subscriptions, etc.).
• Scales with growth, offering a free tier (Essentials) for startups and a low-cost premium tier for scaling companies.
• 24/7 customer support via live chat and phone for quick issue resolution.

Pricing

Brex offers three pricing tiers to suit growing companies. The Essentials plan is free and includes unlimited cards, expense tracking, and core spend management tools. The Premium plan, starting at $12 per user per month, adds advanced capabilities like custom workflows, policy enforcement, and analytics. For large teams or enterprises requiring global capabilities, Brex provides custom pricing with tailored support and onboarding options. There are no implementation fees, and most businesses can self-serve setup within a short time.

2. QuickBooks Online

Intuit’s QuickBooks Online (QBO) is one of the most widely used accounting software platforms for small and midsize businesses. It’s a cloud-based accounting solution tailored toward small to medium-sized businesses. QuickBooks Online is known for its easy-to-use interface and a comprehensive feature set covering everything from basic bookkeeping to payroll. Many growing companies start with QuickBooks and continue using it as they scale because it’s affordable, familiar, and supported by a large network of accountants and consultants. With tiered plans that add more advanced features as you upgrade, QuickBooks can serve companies from startup to mid-size, although very large or complex organizations may eventually outgrow it.

Key features

• Core bookkeeping: QBO handles all fundamental accounting tasks — recording transactions, managing a general ledger, accounts payable and receivable, invoicing, bill payment, and bank reconciliation. It automates bank feeds (importing transactions from your bank/credit accounts) with smart categorization rules, saving time on data entry.
• Invoicing and sales management: Create and send professional invoices, including options for clients to pay online. You can track sales, sales tax, and even basic inventory within QuickBooks. The platform supports customizable invoicing templates and payment processing integrations.
• Payroll and time tracking (Add-ons): QuickBooks offers payroll as an add-on service, integrating employee pay runs and tax withholdings into your books. It also has time tracking features (or integrates with TSheets/QuickBooks Time), which are useful for project-based businesses like agencies that track billable hours.
• Reporting and dashboard: QBO provides a range of built-in reports (P&L, balance sheet, cash flow, etc.) and even some more advanced ones (budget vs. actual, class or location-based reports), especially in higher-tier plans. More than 40 built-in reporting templates are available, and data can be exported to Excel for further analysis. The home dashboard gives at-a-glance metrics like income, expenses, and bank balances.
• Extensive Integrations Ecosystem: One of QuickBooks Online’s strengths is its ecosystem of 650+ connected apps and integrations. It integrates with ecommerce platforms (Shopify, Amazon), payment processors (PayPal, Stripe), CRM systems, project management tools, and hundreds of others. This allows a midsize business to build a customized workflow.

Benefits

• Ease of use: QBO’s interface is considered very user-friendly, even for non-accountants. The onboarding and tutorials are helpful, and many bookkeepers are already familiar with the platform.
• Widespread adoption and support: Because QuickBooks is so popular, it’s easy to find accountants or advisors who know it well. There’s abundant documentation, a robust community forum, and third-party training resources.
• Scalable plans: You can start on a lower-cost plan and upgrade as you need more features/users. The top-tier “Advanced” plan supports up to 25 users and includes advanced reporting and automation.
• Integration capabilities: QuickBooks connects with many other business apps (from PayPal to Shopify), enabling automation of data flow between systems.
• Cloud convenience: Your team can access QuickBooks from anywhere, including via a solid mobile app for checking financials, sending invoices, or capturing receipt photos on the go.

Pricing

QuickBooks Online offers four subscription tiers based on team size and feature needs. The Simple Start plan costs $35 per month for a single user. Essentials is $65 per month and supports up to three users. Plus, priced at $99 per month, allows five users and adds inventory and project tracking. The Advanced plan supports up to 25 users and costs $235 per month, offering deeper analytics and enhanced customer support. Additional services like payroll, time tracking, and inventory add-ons can increase the total cost.

3. Xero

Xero is a popular cloud-based accounting software originating in New Zealand, designed for small and medium businesses worldwide. It’s known for a clean, modern interface and a collaborative approach that makes it easy for business owners, finance staff, and external accountants or advisors to work together. Xero offers a comparable core feature set to QuickBooks (invoicing, bank reconciliation, bills, etc.) but shines in areas like unlimited users (no extra charge) and strong multi-currency support. Many midsize businesses with global footprints or that prioritize a user-friendly design choose Xero. It has become a favorite for businesses that work closely with accounting firms. Accountants rave about Xero’s tools for managing multiple clients.

Key features

• Comprehensive core accounting: Xero handles all everyday accounting needs — sending invoices and quotes, paying bills, managing expense claims, and performing bank reconciliations. It excels at bank reconciliation, using machine learning to suggest matches for transactions, which speeds up the process. The software supports standard financial reports and allows basic customization or export of reports.
• Unlimited users and roles: Unlike many competitors, Xero allows unlimited users on all its plans. You can invite your whole finance team, management, and your external accountant at no additional cost. Granular permission settings let you control who can see what (e.g., limit certain users to invoicing only, etc.).
• Multi-currency and global features: Xero’s Established plan includes multi-currency accounting with over 160 currencies supported. It will automatically pull in exchange rates and revalue foreign currency balances. This makes Xero a strong choice for midsize firms dealing with international customers or subsidiaries. Additionally, Xero offers localized tax calculations (e.g., VAT/GST) for many countries.
• Project tracking and timesheets: Xero includes a projects module for tracking project-specific expenses and time, which is useful for service businesses. You can allocate transactions to projects and run profitability reports. While not as advanced as dedicated project management software, it covers basic job costing needs (premium plans only).
• App integrations and marketplace: Xero connects with 800+ third-party apps, from ecommerce and POS solutions to payroll, inventory management, and more. It has an extensive app marketplace, integrating with tools like Gusto for US payroll, Shopify for online sales, and HubSpot or Salesforce for CRM. This flexibility allows midsize businesses to customize Xero into an integrated financial hub.

Benefits

• User-friendly interface: Xero is often praised for its intuitive, modern interface. The learning curve is minimal, and many users find it easy to use even if they don’t have an accounting background.
• Collaboration: Easy sharing with accountants or team members. Multiple users can work simultaneously without issues, and the ability to invite your external accountant at no extra cost is a plus.
• Mobile app: Xero’s mobile app is robust, allowing on-the-go invoice creation, expense receipt capture, and reconciliation of bank transactions. This is handy for business owners or managers who travel a lot.
• Strong for international use: If your midsize business operates globally, Xero’s built-in multi-currency and compliance with various countries’ tax systems are extremely convenient. It’s truly designed with a global user base in mind.
• Regular updates and innovation: Xero, as a newer player (founded in 2006), is cloud-first and continuously updates with new features, often leveraging community feedback. The team has a good track record of rolling out improvements and keeping the software current.

Pricing

Xero provides three straightforward pricing tiers. The Early plan, at $20 per month, is best for freelancers or very small teams, as it limits invoices and bills. The Growing plan costs $47 per month and removes usage limits. The Established plan, at $80 per month, includes advanced features like multi-currency accounting, expense claims, and project tracking. Notably, Xero includes unlimited users at all pricing levels, making it ideal for midsize teams that require broad access.

4. Sage Intacct

Sage Intacct is a cloud-based financial management software specifically built for midsize and larger businesses with sophisticated accounting needs. Unlike generalist small-biz software, Intacct is known for its depth in accounting functionality, and it’s often the next step up when companies outgrow QuickBooks. Sage Intacct is frequently praised for strong financial controls, auditability, and flexibility. It’s used in many industries, including tech startups, SaaS companies, nonprofits, healthcare, and more, especially those that need robust reporting or must adhere to strict compliance standards. As of 2025, Sage Intacct is recognized as one of the top ERP/accounting solutions in the mid-market, even winning innovation accolades for integrating AI features for smarter insights. IIt's a true ERP-lite solution that's highly customizable, module-based, and scalable, while still being more agile and affordable than the massive enterprise ERPs like Oracle or SAP.

Key features

• Multi-entity and consolidation: Intacct excels at handling multiple entities, locations, or subsidiaries. You can manage the books for each entity and then easily consolidate for a parent company view, with automated currency conversions and inter-company eliminations. This makes it ideal for organizations with several legal entities or operating units.
• Advanced general ledger and automation: Sage Intacct’s GL is very powerful, supporting multi-dimensional reporting (with dimensions like location, department, project, customer, etc.) that allows slicing and dicing financial data in ways that QuickBooks or Xero cannot. It also offers automated revenue recognition which is crucial for companies with subscription models or complex contracts (e.g., adhering to ASC 606 compliance).
• Robust financial reporting and dashboards: Intacct provides a highly customizable reporting engine. Finance teams can create detailed financial reports and KPIs tailored to their needs. For example, operational dashboards for a SaaS company showing MRR (monthly recurring revenue) or a nonprofit showing fund accounting reports. These reports can be scheduled and delivered automatically. Intacct’s ability to generate granular reports and even handle things like GAAP vs. cash basis reporting simultaneously are big selling points.
• Integration and APIs: Sage Intacct was built with integration in mind. It has a well-documented API and a marketplace of add-ons. One notable integration is with Salesforce CRM. Intacct connects seamlessly with Salesforce to tie sales and finance, often to automate quote-to-cash processes. Beyond Salesforce, many other expense management, budgeting software, and other finance solutions have connectors to Intacct.
• Automation & AI features: In recent releases, Sage Intacct introduced AI-powered capabilities, like AI-driven timesheets and anomaly detection for transactions. It also offers workflow automation in areas such as accounts payable (e.g., approvals, OCR bill scanning) and accounts receivable. Routine tasks like importing bank feeds or matching transactions can be partially or fully automated, reducing manual work.
• Compliance and audit trail: Intacct is built to support strong internal controls. Every transaction has a detailed audit trail, including who entered/approved it and when). The system is GAAP, IFRS, and SOX compliant, making it suitable for companies that need to adhere to regulatory standards. You can set up user roles so that, for example, one user can prepare a payment but a different user must approve it as a true segregation of duties.

Benefits

• Scalability: Sage Intacct is highly scalable for rapidly growing businesses, especially those expecting to go from midsize to large. It can handle increasing transaction volumes, more entities, and more users without significant performance issues.
• Sophisticated feature set: It offers many advanced features out-of-the-box or via add-on modules, such as project accounting, contract revenue management, inventory management, and even specialty modules like nonprofit fund accounting. This means mid-size companies can avoid patching together too many separate tools, and Intacct can be a one-stop financial solution.
• Industry specializations: Certain industry-specific configurations and best practices are available, often through Sage Intacct partners. For instance, SaaS companies leverage Intacct’s subscription billing and revenue recognition; nonprofits use its fund accounting; and professional service firms use project accounting.
• Trusted and auditable: Many CFOs and controllers appreciate that Intacct is built with accountants in mind, It produces audit-ready financials, has strong security, and is endorsed by the American Institute of CPAs (AICPA). It instills confidence that financial data is accurate and controlled.
• Continuous updates: As cloud software, Intacct gets frequent updates (usually quarterly releases) that add new features and improvements. Sage has been investing in AI and machine learning to continue modernizing the platform, which means customers benefit from innovations without needing to switch systems.

Pricing

Sage Intacct uses custom pricing based on the specific modules and number of users required. While exact pricing is only available via quote, typical entry costs for core financials start around $15,000 to $20,000 annually. Additional modules such as project accounting, multi-entity consolidation, and revenue recognition increase the cost. Implementation fees can range widely, from $5,000 to over $50,000, depending on business complexity. Ongoing training and support packages may also be priced separately.

5. NetSuite

NetSuite is a leading cloud ERP platform that includes a fully featured accounting module. While NetSuite is often associated with larger enterprises, it’s also a popular choice for upper-midsize companies that need an all-in-one solution for not just accounting, but also inventory, order management, CRM, and more. NetSuite is essentially a one-stop platform that can run your entire business. For a medium-sized company anticipating significant growth or with particularly complex operations, NetSuite can be an ideal choice. It’s highly scalable and customizable, albeit with a higher cost and complexity. NetSuite remains one of the most robust accounting solutions for midsize businesses, especially those looking for an integrated suite that goes beyond finance. It’s worth noting that implementing NetSuite is a bigger project than the other software on this list, but the payoff is a single solution that can handle virtually everything.

Key features

• Comprehensive financial management: NetSuite’s accounting capabilities are industry-leading. It supports multi-book accounting (handling different accounting standards simultaneously), powerful GL with segments for detailed reporting, accounts payable and receivable automation, fixed asset management, and more. It has built-in revenue recognition tools to comply with accounting standards and can easily produce consolidated financials for multi-entity organizations.
• Order-to-cash and procurement: NetSuite integrates accounting with order management and procurement. For example, sales orders flow through to invoicing and revenue recognition; purchase orders flow through to accounts payable. This end-to-end integration means less manual data transfer between systems, and your inventory, sales, and finance are all on one platform. It’s particularly beneficial for product-based companies like wholesalers, manufacturers, and ecommerce businesses that need inventory and accounting bundled together.
• Inventory and warehouse management: A distinguishing feature of NetSuite is its robust inventory management and warehouse management modules. Midsize companies that carry inventory can manage stock levels, track orders, handle shipments, and even use advanced features like demand planning and warehouse bin management, all feeding into the accounting system in real time. This eliminates the need for a separate inventory system.
• Global business management: NetSuite is designed for global companies. It supports multiple subsidiaries, currencies (190+ currencies), and languages, with automatic currency conversions and local tax compliance in many jurisdictions. If your business operates in several countries, NetSuite can consolidate all that activity. It also has capabilities for global ecommerce integration and multi-country tax compliance, making cross-border operations much simpler.
• Customization and SuiteApps: NetSuite is highly customizable. It offers a platform (SuiteCloud) where you can tailor workflows, add custom fields, and even build custom applications. Moreover, there is a marketplace of SuiteApps with add-ons for specific needs. If your base instance lacks a niche feature, you can likely find an add-on or create one. NetSuite’s flexibility is a big draw for companies with unique processes.
• Integrated CRM: Apart from accounting, NetSuite includes modules for CRM (customer relationship management), HR (human resources), project management, and ecommerce. The CRM component, for example, ties in with orders and revenue, giving sales and finance a shared view of customers. Essentially, NetSuite can replace a patchwork of 5-6 separate solutions within one platform.

Benefits

• All-in-one solution: NetSuite can run your entire business on one platform, with no need to maintain separate software for accounting, inventory, CRM, etc. This leads to real-time data visibility across departments and can improve decision-making.
• Unmatched scalability: As an Oracle product used by global enterprises, NetSuite can scale from midsize to very large with ease. It can handle large transaction volumes, many users, and multiple business units. You’re unlikely to outgrow NetSuite in terms of size; many companies stick with it as they hit enterprise employee and revenue metrics.
• Advanced capabilities: Out of all the picks, NetSuite offers the deepest feature set. Complex tasks like consolidating financials across dozens of entities, managing multi-country operations, or implementing sophisticated inventory strategies (like just-in-time inventory or drop shipping flows) are all possible within NetSuite.
• Strong support and community: Oracle NetSuite provides extensive documentation and a network of implementation partners. It also offers 24/7 support (with certain support packages) and a large user community. Also, because it’s been around for a while, many best practices and resources exist for various industries using NetSuite.
• Continuous improvement: Oracle is continuously enhancing NetSuite. Recent updates have added AI-driven insights, better integration with ecommerce platforms for things like automatic reconciliation of Shopify payments, and other improvements. Being on NetSuite means your software is regularly updated with new enterprise-grade features without you having to implement them from scratch.

Pricing

Oracle NetSuite follows a subscription pricing model that includes a base license fee (typically around $999 per month) plus individual user licenses, which start at approximately $99 per user per month. Pricing scales based on the number of users and the modules selected (e.g., inventory, CRM, project management). Implementation often involves professional services and ranges from $25,000 to over $100,000, depending on scope and configuration needs. Premium support tiers are available at an additional cost.

As you evaluate accounting software options, be mindful of these common mistakes that midsize companies often encounter. Avoiding them will save you time, money, and headaches down the road.

Failing to assess specific business needs

Perhaps the most common mistake is not thoroughly assessing your own requirements before looking at software. Different businesses have different needs, and identifying yours first is essential. Don't let a flashy demo drive your decision for features you don't actually need. Conversely, don't assume every accounting package is the same. Some offer industry-specific versions or modules for construction, nonprofits, or healthcare that you could miss if you don't look carefully.

Take the time upfront to document what you need the software to do for your business, and use that as a constant reference. A medical device manufacturer might need lot tracking and FDA compliance features, while a professional services firm prioritizes project profitability reporting. These requirements should guide every vendor conversation.

Overemphasizing price (too much or too little)

Focusing solely on price is risky. Some companies try to cut costs and go with the cheapest option, only to find it doesn't meet their needs. This leads to inefficiency or an early replacement. Others overspend on expensive software, thinking the highest price equals the best quality, and end up with overly complex platforms they don't fully utilize.

Avoid these extremes. Budget appropriately based on functionality and value. Remember, the goal is the best fit, not the cheapest price tag or the fanciest product that busts your budget. A $50,000 solution that perfectly matches your needs delivers better value than a $15,000 platform requiring constant workarounds or a $100,000 package where you use 20% of the features.

Not involving the right people

Another pitfall is selecting software in a silo. For instance, only the IT team or only the CFO makes the call without input from actual end-users like accountants, accounts payable clerks, or financial analysts. This can result in user resistance or important requirements being overlooked.

Engage a cross-functional team in the decision. Include finance team members who will use the software daily, representatives from operations or sales if they'll interface with the platform, and IT staff for integration concerns. Also, consider consulting your external accountant or auditor. They might provide insights into which platforms produce reports that align well with compliance needs and audit requirements.

Ignoring integration and future tech strategy

Integration deserves repeated emphasis because it's critical. Don't choose software that locks your data in or doesn't play well with others, especially if you already have core tools in place that need to connect. Integration shouldn’t be an afterthought, so verify compatibility before deciding.

A related mistake is not thinking about the future. If you plan to adopt a CRM or implement ecommerce capabilities later, consider that in your decision now. It's often better to choose an accounting platform that's part of a broad ecosystem to future-proof your technology stack. The accounting software you select today should support your business, not just now, but three to five years from now.

Overlooking the importance of training

The best software is one that your team will actually use productively. A mistake companies make is underestimating the effort needed to implement and train. Don't assume that switching software will be entirely seamless.

Budget time for training sessions, possibly with the vendor or an implementation partner. Prepare your team for the change by explaining why you're making the switch and how it will benefit them. If employees aren't adequately trained or convinced of the new platform's value, you might face low adoption or workarounds that defeat the purpose of the new software. One company discovered six months after implementation that half their accounting team was still maintaining shadow spreadsheets because they didn't trust the new platform they'd never been properly trained on.

By being aware of these pitfalls, you can take proactive steps to avoid them. Do your homework on both your needs and the software, keep future requirements in mind, involve your team, and don't rush the process. Selecting accounting software is a significant project, but with careful planning and change management, it will pay off with smoother financial operations and better business insights.

Fraud costs American businesses billions annually, and medium-sized companies face particular vulnerabilities. They're large enough to have complex operations and multiple employees handling finances, yet often lack the sophisticated controls of major corporations. Modern accounting software does a pretty good job protecting the business with things like role-based access, automated audit trails, and customizable policy enforcement. But there are a few other controls you can implement to reduce fraud risk without breaking the budget or hampering operations.

Segregation of duties

The single most important control is segregation of duties in accounting, ensuring no individual has complete control over any financial transaction from start to finish. The person who approves purchases shouldn't be the same person who processes payments. The employee who receives checks shouldn't also record them in the accounting software. The staff member who handles payroll shouldn't be able to add new employees to the roster.

For a 300-person company, this might mean the purchasing manager approves vendor invoices, the accounts payable clerk processes payments, and the controller reviews and releases the actual funds. Each person serves as a check on the others. Even in smaller finance departments, critical tasks should be split. If your accounting team has only three people, rotate responsibilities periodically and ensure the owner or CFO reviews key transactions.

Regular reconciliations and reviews

Bank and credit card statements should be reconciled monthly by someone without payment authority. This simple practice catches unauthorized transactions, duplicate payments, and unusual patterns. A supervisor should then review the reconciliation itself, examining not just the math but the actual transactions.

In addition to reconciliations, implement regular reviews of vendor lists, payroll registers, and expense reports. These reviews help identify unusual patterns or outliers that might indicate fraud or errors. Focus on comparative analysis, such as examining whether similar expenses vary significantly between employees or departments. While you don't need to examine every transaction, sampling enough to create deterrence helps maintain financial integrity.

Approval hierarchies and spending limits

Every employee with spending authority should have a defined limit, and transactions above those limits should require additional approval. A department manager might approve expenses up to $5,000, while anything above that needs director approval, and purchases over $25,000 require CFO sign-off.

Modern accounting software makes this simple to implement. Set up automatic routing so purchase orders or expense reports flow to the right approver based on amount, vendor, or category. Document these limits clearly and review them annually. As the company grows, limits may need adjustment, but the principle remains constant. No single person should have unlimited spending authority.

Vendor verification and management

Fraudulent vendors are a common scheme in growing companies, making vendor management controls essential.. Establish a formal process for adding new vendors that includes verification of tax ID numbers, physical addresses, and business legitimacy. Require documentation like W-9 forms and proof of insurance where applicable.

Maintain a clean vendor database and review it quarterly for duplicates, unusual names, or vendors with addresses matching employee addresses. One distribution company discovered an accounts payable clerk had created a fake vendor with a name similar to a real supplier, diverting over $200,000 before detection. Simple verification would have prevented this loss.

Digital access controls

As accounting moves online, digital controls become as important as physical ones. Each user should have unique login credentials with permissions limited to their job requirements. An accounts receivable clerk doesn't need access to payroll functions. A payroll processor doesn't need the ability to create new vendors.

Implement two-factor authentication for all accounting software and banking platforms. Require password changes every 90 days and immediately disable access when employees leave. Review user permissions quarterly to ensure they still match job responsibilities. Many fraud cases involve former employees whose access wasn't promptly revoked.

Whistleblower mechanisms

Employees often notice suspicious activity before management does, but they need safe ways to report concerns. Establish an anonymous hotline or online reporting tool where staff can flag potential issues without fear of retaliation. This might be as simple as a dedicated email address monitored by the board chair or an outside firm.

Communicate this mechanism clearly and remind employees periodically. Studies show that tips detect more fraud than any other method. A technology company avoided a major embezzlement when a warehouse worker reported that a manager was loading personal vehicles with company inventory after hours.

Regular audits and surprise checks

Schedule regular internal audits of different areas throughout the year. These don't need to be complex financial audits but focused reviews of specific processes. Audit expense reports one quarter, vendor payments the next, then payroll, and so on. The key is unpredictability. Employees contemplating fraud are deterred when they know reviews could happen anytime.

Supplement scheduled audits with surprise checks. Count petty cash unexpectedly. Review credit card statements in detail for a random month. Verify that employees receiving paychecks are actually working at the company. These spot checks often reveal control weaknesses even when they don't find fraud.

Documentation and audit trails

Require supporting documentation for every financial transaction. Invoices should be matched to purchase orders and receiving reports. Expense reports need receipts. Payroll changes require written authorization. This documentation should be digital where possible, creating permanent audit trails.

Modern accounting platforms automatically maintain these trails, recording who entered transactions, when they were approved, and any subsequent modifications. Train staff to include notes explaining unusual transactions. When questions arise months later, these details prove invaluable. A retail chain avoided a lawsuit by showing detailed documentation that a disputed vendor payment was properly authorized and for legitimate services.

The investment in these controls pays dividends through fraud prevention and improved efficiency and accuracy. Well-designed controls don't slow business operations. They create clarity around processes and accountability for results. For growing companies, implementing these measures early establishes a culture of integrity that scales with the business.

Selecting accounting software for a midsized business requires balancing current needs with future growth. The platforms examined here range from Brex's modern expense management software at $12 per user monthly to Oracle NetSuite's comprehensive ERP system costing tens of thousands annually. The right choice depends on matching software capabilities to your company's specific operations, industry requirements, and growth trajectory.

The most successful implementations involve cross-functional teams in selection, prioritizing integration with existing software, and budgeting adequately for training. These companies also implement robust internal accounting controls to prevent fraud risks that emerge as organizations grow. A medical device manufacturer needs different capabilities than a professional services firm, and recognizing these distinctions early prevents costly mistakes.

At Brex, we built our platform specifically for growing companies that need enterprise-grade financial controls without all the complexity. Our AI automatically categorizes expenses and flags anomalies, while our unified spend management eliminates manual expense reconciliation between corporate cards and your accounting software.

The accounting and finance team at Brondell says: “Brex gives us more visibility into our spend and accuracy in our month-end close. We export expenses weekly instead of monthly and Brexʼs reporting and integration helps us address any minor issues upfront. Brex helps us automate the accuracy of our expenses.”

And with native integrations to QuickBooks, NetSuite, and over 1,000 other tools your team already uses, implementation takes days, not months. Start with our free Essentials plan or explore Premium features at just $12 per user monthly to see how accounting automation software can give your finance team time back to focus on strategic growth.