As we move deeper into 2025, the accounting software landscape continues to evolve at a rapid pace. Mainly driven by technological advancements and shifting business needs. For small and medium-sized businesses (SMBs) relying on these tools to manage their finances, staying updated on the latest features, integrations, and enhancements is crucial.
Whether you’re using QuickBooks, Xero, FreshBooks, or another platform, this article highlights the top accounting software updates to watch this year. From AI-driven automation to enhanced security measures, these developments promise to streamline financial management and empower businesses to make smarter decisions. Here’s what you need to know.
The Push Toward AI and Automation
Artificial intelligence (AI) is no longer a futuristic concept—it’s a core component of modern accounting software in 2025. Leading platforms are rolling out updates that leverage AI to automate repetitive tasks and provide actionable insights.
For instance, QuickBooks Online has expanded its Intuit Assist feature, which now uses generative AI to analyze financial data, predict cash flow trends, and even suggest tax-saving strategies. This update, rolled out in early 2025, allows users to ask natural-language questions like “How much can I save on taxes this quarter?” and receive detailed, tailored responses.
Similarly, Xero has introduced an AI-powered expense categorization tool that learns from user behavior to automatically sort transactions with greater accuracy. Announced in March 2025, this update reduces manual entry time by up to 30%, according to Xero’s internal testing. FreshBooks, meanwhile, has enhanced its AI-driven invoicing system, which now predicts payment delays based on client payment history and sends proactive reminders—cutting down on late payments for freelancers and small businesses.
For businesses, these AI updates mean less time spent on mundane tasks and more focus on strategic planning. If you’re using one of these tools, explore these features to see how they can lighten your workload.
Enhanced Cloud Collaboration Features
The shift to cloud-based accounting software has been accelerating for years, and 2025 brings new updates that make remote collaboration even smoother. QuickBooks Online’s Advanced plan now includes a real-time collaboration dashboard, launched in February 2025, where multiple team members or accountants can work on the same file simultaneously. This update mirrors Google Docs-style functionality, complete with live commenting and task assignment, making it ideal for businesses with distributed teams.
Xero has followed suit with a “Team Sync” update, released in April 2025, which integrates with Microsoft Teams and Slack. This allows users to receive instant notifications about financial approvals, overdue invoices, or budget alerts within their preferred communication platforms. For small businesses juggling multiple tools, this seamless integration reduces the need to switch between apps, saving time and minimizing errors.
Sage 50, traditionally a desktop-focused solution, has also made strides in the cloud with its Sage 50cloud update in January 2025. This hybrid model now offers better cloud backups and remote access options, bridging the gap for businesses transitioning from on-premises to cloud-based systems. These updates reflect a broader trend: accounting software is becoming a central hub for team collaboration, not just financial tracking.
Stronger Security and Compliance Tools
With cyber threats on the rise, accounting software providers are prioritizing security in 2025. QuickBooks Online introduced a “Security Shield” update in March 2025, featuring enhanced multi-factor authentication (MFA) and an AI-driven anomaly detection system that flags unusual login attempts or transaction patterns. This is particularly valuable for businesses handling sensitive financial data, as it adds an extra layer of protection against breaches.
Xero has taken a compliance-focused approach with its “Global Tax Hub” update, rolled out in February 2025. This feature automatically adjusts tax calculations and reporting to comply with local regulations in over 50 countries, including updates to U.S. tax codes following recent legislative changes. For businesses operating internationally or preparing for tax season, this reduces the risk of errors and penalties.
FreshBooks, catering to freelancers and smaller firms, added encrypted client portals in its April 2025 update. Clients can now securely upload documents or approve invoices without exposing data to email vulnerabilities. These security enhancements across platforms show that providers are responding to user demands for safer, more compliant tools—something to consider if data protection is a priority for your business.
Mobile App Upgrades for On-the-Go Management
Mobile accessibility is a game-changer for business owners who need to manage finances away from their desks, and 2025 updates are making mobile apps more powerful than ever. QuickBooks Online’s mobile app, refreshed in January 2025, now supports full inventory management on the go—allowing Plus and Advanced plan users to update stock levels, create purchase orders, and track shipments directly from their phones.
Xero’s mobile app update, released in March 2025, focuses on reporting. Users can now generate and customize profit-and-loss statements or cash flow reports from their devices, with options to export them as PDFs or share them via email. This is a boon for business owners who need quick insights during meetings or travel.
FreshBooks has leaned into its freelancer-friendly roots with a mobile update in February 2025 that simplifies time tracking. The app now uses geolocation to automatically log billable hours when you arrive at a client site, syncing seamlessly with invoices. These mobile enhancements make it easier than ever to stay on top of finances, no matter where you are—check your app store for the latest versions to take advantage.
Integration with Emerging Business Tools
Integrations are expanding in 2025, connecting accounting software with a wider range of business applications. QuickBooks Online rolled out a deeper integration with Shopify in April 2025, automatically syncing sales data, fees, and refunds into your books in real time. This update eliminates manual reconciliation for e-commerce businesses, saving hours each month.
Xero has enhanced its partnership with Gusto, a payroll provider, with a March 2025 update that streamlines payroll tax filings directly from the Xero platform. This is especially helpful for U.S.-based SMBs facing complex payroll regulations. Meanwhile, Zoho Books, popular among startups, introduced a native integration with Zapier in February 2025, allowing users to connect with over 5,000 apps—from CRM systems to marketing tools—without needing custom coding.
These integrations reflect a trend toward making accounting software the backbone of a business’s tech stack. If you rely on tools like Shopify, Gusto, or Zapier, these updates could significantly boost your efficiency.
How to Leverage These Updates
To make the most of these 2025 updates, start by checking your current software version—most cloud-based platforms roll out changes automatically, but you may need to enable new features manually. Explore in-app tutorials or support pages to understand how AI tools, mobile upgrades, or integrations apply to your workflows. For example, if you’re a QuickBooks user, test Intuit Assist’s predictive features with a few sample questions to see how it can guide your financial planning. If you’re on Xero, set up Team Sync with your communication app to streamline team updates.
For businesses still on older plans or desktop versions, 2025 might be the year to upgrade or switch providers. Compare your current tool’s capabilities against these updates to ensure you’re not missing out on time-saving or security-enhancing features. Many platforms offer free trials or discounted onboarding—take advantage to test the waters.
Looking Ahead
The accounting software updates of 2025 are all about empowerment—giving businesses tools to work smarter, not harder. AI and automation are reducing manual effort, cloud enhancements are fostering collaboration, and mobile upgrades are keeping owners connected. Security and compliance features provide peace of mind, while integrations tie everything together into a cohesive system.
As the year progresses, keep an eye on your software provider’s announcements—many are teasing mid-year updates that could bring even more innovation. Whether you’re a solopreneur, a small business owner, or managing a growing team, these updates can help you stay ahead of the curve. Which feature are you most excited to try? Let us know as you explore these game-changers for your financial management in 2025.