If you’re a small business owner or freelancer searching for reliable, user-friendly, and cost-effective accounting software, you might have come across microsoft accounting in your search. But what exactly is it? Is Microsoft still offering accounting software in 2025? And what alternatives does Microsoft recommend today?

This guide will give you clear answers and deep insights into Microsoft’s history with accounting tools, what’s available now, and the best options for UK and US users today.

What Is Microsoft Accounting?

Microsoft Accounting was originally a desktop-based accounting software solution developed by Microsoft to help small businesses manage their finances. It was part of Microsoft's microsoft accounting suite and targeted small to medium-sized enterprises (SMEs) that needed a simple but robust way to:

• Create invoices and track payments

• Manage expenses

• Reconcile bank accounts

• Track customers and vendors

• Run financial reports

Originally released as Microsoft Office Small Business Accounting in 2006, it later evolved into Microsoft Office Accounting Express and Professional editions.

But here's the twist: Microsoft discontinued Office Accounting in 2009.

Why Was It Discontinued?

Despite offering useful features and being integrated with other Microsoft Office tools like Excel and Outlook, Office Accounting struggled to gain a strong user base. Microsoft cited “low adoption rates” as the main reason for shutting down the service.

However, that doesn’t mean Microsoft stepped away from supporting small business accounting altogether.

Does Microsoft Offer Accounting Software Today?

Microsoft no longer offers a standalone accounting solution like "Microsoft Accounting" or "Office Accounting." However, it provides powerful tools and integrations that support accounting workflows.

Here are the top Microsoft-supported accounting solutions available in 2025:

1. Microsoft Dynamics 365 Business Central

microsoft accounting Dynamics 365 Business Central is the modern replacement for Office Accounting.

It’s an all-in-one business management solution that covers:

• Financial management

• Inventory and supply chain

• Sales and customer service

• Project management

• Business insights through AI and data analytics

It’s perfect for small to mid-sized businesses that want to move beyond spreadsheets or outdated desktop accounting tools. Because it’s cloud-based, it’s accessible from anywhere and integrates deeply with Microsoft 365 (formerly Office 365), Power BI, and other Microsoft services.

Key features:

• Multi-currency and multi-country support

• Built-in compliance tools (great for UK & US regulations like Making Tax Digital or IRS reporting)

• Integration with Excel, Outlook, Power Apps, and Teams

• Automatic bank reconciliation

• AI-powered cash flow forecasting

Pricing: Starts at around £52.80/month (UK) or $70/month (US) for the Essentials plan. See pricing here.

✅ Ideal for businesses growing past spreadsheets and needing full financial visibility.

2. Microsoft Excel for Accounting

While not a dedicated accounting tool, many small businesses still use microsoft accounting  to manage bookkeeping, create invoices, and track spending.

You can create simple templates or use free ones from Microsoft:

• Small Business Invoice Templates

Excel’s benefits:

• Extremely flexible

• Easy to learn

• Compatible with almost every platform

• Works offline

Limitations:

• Manual data entry

• No real-time collaboration unless used with OneDrive

• Lacks automation and audit trails

✅ Best for very small businesses, sole traders, or freelancers with simple accounting needs.

3. Power BI for Financial Reporting

Power BI is Microsoft’s business analytics tool that allows you to turn financial data into powerful dashboards and reports.

Many accounting teams use Power BI to:

• Monitor real-time cash flow

• Track KPIs (e.g., profit margins, revenue, expenses)

• Visualize trends and make data-driven decisions

It connects seamlessly with Excel, Dynamics 365, Xero, QuickBooks, and more.

✅ Great for accountants and CFOs who want visual insight into financial data.

4. Third-Party Accounting Tools that Integrate with Microsoft

Although Microsoft doesn't offer a standalone accounting program anymore, it integrates well with popular third-party accounting solutions:

a. QuickBooks Online

• QuickBooks UK

QuickBooks syncs easily with Microsoft Outlook, Excel, and OneDrive. It also integrates with Power BI for advanced reporting.

b. Xero

• Xero UK

• Xero US

Xero integrates with Microsoft 365 and is fully compliant with HMRC’s Making Tax Digital (MTD) requirements.

c. FreshBooks

FreshBooks offers integration with Microsoft 365 and is ideal for freelancers and service-based businesses.

Benefits of Using Microsoft Tools for Accounting

Whether you use Excel, Dynamics 365, or integrate third-party tools, Microsoft’s ecosystem offers several benefits:

✅ Seamless Integration

Tools like Excel, Word, Outlook, Teams, and Power BI work together. For example, you can:

• Send invoices from Outlook

• Create financial reports in Excel

• Collaborate in real-time in Teams

✅ Cloud-Based Access

With Microsoft 365, you can manage your books from any device, securely and remotely.

✅ Automation & AI

Dynamics 365 uses AI for forecasting, fraud detection, and predictive insights that help you make smarter financial decisions.

✅ Scalability

Start with Excel or templates, and scale up to Business Central or Power Platform as your needs grow.

Use Cases: Microsoft Accounting in Action

Case Study 1: A UK-based Freelance Designer

• Uses Excel templates for invoice tracking and expense management

• Syncs with OneDrive to back up and share files

• Uses Word and Outlook for contracts and communications

Cost: Around £7.99/month (Microsoft 365 Personal)

Case Study 2: A Growing US Retail Business

• Migrated from spreadsheets to Dynamics 365 Business Central

• Tracks inventory, payroll, and financials in one place

• Uses Power BI for financial dashboards

Cost: $70/month per user

How to Choose the Right Microsoft Accounting Tool

Here’s a quick guide to help you choose the right tool based on your needs:

FAQs About Microsoft Accounting

❓ Is Microsoft Office Accounting still available?

No. Microsoft discontinued Office Accounting in 2009. It’s no longer supported or available for download.

❓ What is the modern replacement for Microsoft Accounting?

Microsoft recommends Dynamics 365 Business Central for modern accounting and financial management.

❓ Can I do my accounting in Excel?

Yes, many small businesses use Excel for basic accounting tasks. However, it's best for simple needs and not suitable for large or regulated businesses.

❓ What’s the best Microsoft accounting tool for the UK?

Dynamics 365 Business Central supports Making Tax Digital (MTD), which is required by HMRC. It’s the best Microsoft solution for UK compliance.

❓ What about for the US?

In the US, Business Central also supports GAAP compliance and integrates with popular US banks and tax systems.

Final Thoughts: Is Microsoft Good for Accounting?

While Microsoft doesn’t offer a single software product called “Microsoft Accounting” today, it provides a powerful suite of tools and integrations that can support businesses at every stage of growth.

Whether you’re using Excel to handle invoices or you’re ready to move into Dynamics 365 Business Central for end-to-end business management, Microsoft’s ecosystem is a strong, scalable, and secure foundation for financial success.