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Project accounting software helps you track budget vs actuals, billable time, costs, and profitability at the project level, not just at the company level.
If you run client services and need margins + utilization, choose a PSA-style tool (Teamwork.com, Productive, Scoro, Kantata).
If you need full accounting (GL/AP/AR) and projects are secondary, choose accounting-first (QuickBooks Online Advanced, Xero).
If you need multi-entity controls and finance-grade project reporting, step up to mid-market financials (Sage Intacct).
Shortlist by billing model first (fixed fee, retainer, T&M), then confirm you can report budget vs actuals weekly in minutes.
What is project accounting software?
Project accounting software is software that tracks revenue, costs, and profitability by project, so you can see budget vs actuals and margin in real time. It combines time tracking, expenses, billing, and reporting so delivery and finance can agree on what a project is actually costing.
Project accounting is not the same as basic invoicing or time tracking. Basic tools can bill hours, but they usually do not give you reliable project P&Ls, utilization context, or budget controls by phase, role, and rate.
How we evaluated these project accounting tools
We used the same evaluation criteria for every option listed below, because the “best” tool depends on how you sell your work and how complex your financial requirements are.
Our evaluation included:
Project budgeting, including support for fixed fee, retainers, and time and materials
Time and expense capture, including billable controls and approvals
Profitability visibility, such as budget versus actuals, margins, and utilization
Billing and invoicing workflows
Reporting depth, including project P&L and detailed drilldowns
Integrations with tools like QuickBooks, Xero, ERP systems, and BI tools
Multi-currency and multi-entity support, where relevant
Implementation complexity and time to value
How to choose the right project accounting software
Choosing the right project accounting software depends on what your business really needs. Different tools solve different problems, use this to help guide your decision making.
If you sell client services and need margins + utilization, pick a PSA-style tool.
If you need full accounting (GL/AP/AR) and only some project tracking, pick an accounting-first tool.
If you need multi-entity, revenue recognition, deeper controls, pick mid-market/enterprise financials.
Common mismatches I see all the time:
Accounting tools with “projects” often lack delivery workflows, so PMs still end up managing work elsewhere.
PSA tools often do not replace your general ledger, so finance still needs QuickBooks, Xero, or an ERP.
Enterprise financials can be overkill for small teams, especially if your real pain is time capture and budget discipline, not revenue recognition rules.
1. Teamwork.com (Best for client services teams that need profitability visibility)
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From what I have seen working with client services teams, Teamwork.com works best when you want to stay in control of margins while delivering great client work. It is built for teams that manage projects every day and need clear visibility into time, budgets, and profit.
Time tracking, budget updates, and profitability reports are built into the flow of the work, not hidden in a separate finance system.
If you want better control over budget versus actuals, cleaner billable time, and fewer margin surprises, this tool hits the sweet spot.
Best features
Time tracking: One thing that sets Teamwork.com apart is its built-in time tracking. Your team can log time directly on tasks using timers or manual entry, so hours are captured while the work is still fresh. I have found this especially useful for understanding how long specific tasks take and where projects tend to run over. With detailed Time Reports, you can clearly separate billable and non-billable hours, helping you protect margins and improve utilization.
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Budget tracking: Budgets are tied directly to time and rates, so as hours are logged, you can instantly see budget breakdown and remaining spend. Instead of building spreadsheets, you get a live view of planned versus actual costs. This makes it much easier to spot issues early and take action before a project goes off track.
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Planned vs actual reporting: Teamwork.com makes it simple to compare your original estimate with what actually happened. You can see where hours drifted, which tasks exceeded estimated plans, and how that affected profitability. Over time, this data helps you scope future projects more accurately.
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Resource forecasting and planning: Helps you plan ahead instead of guessing what your team can handle. You can see every project on your horizon and understand if you have enough capacity weeks or months in advance. This makes it easier to decide whether you can take on new work, plan hires, or shift start dates with confidence. Forecasting includes features like tentative projects and placeholders, which let you map potential future work before tasks are fully defined.
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Utilization reporting: Gives you a clear view of how effectively your team’s time is being used. You can see billable versus non-billable breakdowns and spot underused capacity quickly. This makes it easier to improve margins without increasing headcount.
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Limitations
It is not a full general ledger and does not replace GL/AP/AR accounting requirements.
If you want formal revenue recognition workflows inside the tool, you will likely need a finance-first system alongside it.
There is a learning curve if you want to set up budgets, rate cards, and reporting properly from day one.
Pricing
Deliver: $10.99/user/month
Grow: $19.99/user/month
Scale: $54.99/user/month
Enterprise: Custom pricing (contact for a demo)
Ratings & reviews
G2 rating: 4.4/5
A G2 user, Jose, shared, “Teamwork is a very easy platform for project management. You can almost from day one begin managing your projects, task lists, tasks and people from the platform with little to no experience at all of the application, which is Cloud-based too, so it's quite accessible everywhere an Internet connection is available (and via its mobile apps, in Android and iOS). It can also integrate with several other solutions, such as cloud storage, accounting, marketing, scheduling and even embed it into your own website.”
Check out real user reviews of Teamwork.com here.
2. Productive (Best all-in-one PSA for agencies tracking budgets, time, and profitability)
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From what I have seen working with agencies, Productive is a strong option when you want most of your operations in one system. I like it most for teams that want a single source of truth for both delivery and financial visibility. That said, it can feel complex for small teams or businesses with simple needs. Setup can take time, and some teams may find they are using only part of what the system offers.
Best features
Project budgeting built for agency work, including fixed fee, retainer, and time-and-materials structures.
Profitability reporting that connects time and costs back to budgets, so margin is not an afterthought.
Resourcing signals that help you see how staffing decisions affect delivery margin.
Limitations
Some of the best reporting and controls can be tier-gated, so “cheap per user” can get expensive once you add the right plan.
PSA tools can feel heavy if you only need light project tracking and invoicing.
Pricing
Essential: $10/user/month
Professional: $25/user/month
Ultimate: Custom pricing (contact for a demo)
Ratings & reviews
G2 rating: 4.6/5
A G2 user, Marc, shared, “The most helpful thing for us as an agency is the visibility we have over everything that is going on in the business. From an initial quote/budget, through the life of a project and into invoicing, the tight integration of relevant data makes errors far less likely. Being able to see all of our resourcing and utilisation (did I mention you can pull a report for just about anything?) all in one dashboard is really useful.”
3. Scoro (Best for quote-to-cash teams that want projects + invoicing in one system)
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From what I have seen, Scoro is a good fit for teams that care about the full process from quote to payment, not just delivering the work. I usually suggest it when the biggest problems happen between sending a quote, doing the project, creating the invoice, and getting paid. What I like is that quoting, projects, invoicing, and billing all live in one system. This makes it easier to make sure the work you delivered is actually billed.
But there are trade-offs. Setup often takes time because there are many settings and financial options to configure. The project management side is solid, but it is not as focused on detailed task collaboration as some delivery-first tools.
Best features
Quote-to-project conversion so estimates turn into structured work without re-keying.
Invoicing and follow-ups connected to delivery and project status.
Project status visibility tied to financial workflows, which is useful for leadership reviews.
Useful for fixed-fee and retainer setups where scope control and billing discipline matter.
Limitations
Scoro typically requires more configuration than simpler tools, especially if you want it to match how you sell and deliver work.
Costs can climb with higher tiers and larger teams.
Pricing
Core: $19.90/user/month
Growth: $32.90/user/month
Performance: $49.90/user/month
Enterprise: Contact for custom pricing
Ratings & reviews
G2 rating: 4.5/5
A G2 user, Justas, shared, “What I like best about Scoro is its speed, customisability, and clean UI. I’ve used a few CRMs in the past—mainly Salesforce—and Scoro has given me a Bette r experience in all three of those areas. It’s also quite intuitive, so it didn’t take long to get comfortable using it day to day. Overall, I’ve recommended Scoro to friends in sales. I’ve also had a fairly positive experience with Scoro’s support team whenever I needed help.”
4. Kantata (Best for mid-sized professional services needing PSA + resource planning)
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Kantata is designed for professional services organizations that need PSA depth plus real resourcing. I usually recommend it for mid-sized firms that manage large delivery teams where staffing decisions directly affect margins.
Best features
Project margins with resourcing context, so you can connect utilization and staffing to profitability.
Time, assignments, and delivery operations in one system, which helps reduce reconciliation pain.
Services-oriented reporting that supports operational reviews.
Limitations
Custom reporting can be challenging, especially if you want very specific rollups by team, practice, or region.
Implementation tends to be heavier than SMB tools, and you may need services support to get it right.
Pricing
Contact sales for pricing.
Ratings & reviews
G2 rating: 4.2/5
A G2 user, Erika, shared, “I like the functionality of the Workato workflow. It really gives us the ability to customize a lot of things. We highly leverage Kantata Professional Services Automation for resource planning and managing milestones. This helps us recognize and forecast revenue effectively as we operate using a milestone-based approach to revenue recognition. The integration with Salesforce through the Mavenlink connector is also beneficial.”
5. Intuit QuickBooks (Best for accounting-first teams that need project tracking)
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Intuit QuickBooks works best for teams where finance wants to own the main system and projects are tracked inside the accounting tool. At its core, it is accounting software first. I usually suggest it for teams that do not want to adopt a full PSA platform but still need visibility into project-level profit. The limitation is that its project management features are fairly basic. It does not offer advanced resource planning, detailed task collaboration, or delivery workflows like a PSA tool.
Best features
Project profitability and job costing style reporting once projects and transactions are set up consistently.
Invoicing workflows connected directly to your accounting system, which reduces duplicate entry.
A strong accounting foundation for teams that need GL, AR, AP workflows first.
Ecosystem integrations that help fill gaps (payments, payroll, reporting, apps).
Limitations
PM-style delivery workflows are lighter than PSA tools, so delivery teams may still prefer a dedicated PM platform.
As you scale, you may run into workflow and reporting needs that push you toward PSA or mid-market financials.
Pricing
Simple Start: $21/user/month
Essentials: $31/user/month
Plus: $45/user/month
Advanced: Contact for custom pricing
Ratings & reviews
G2 rating: 4.4/5
A G2 user, Nisha, shared, “What I like most about Intuit QuickBooks is how intuitive and user-friendly it is. It makes day-to-day tasks like invoicing, tracking expenses, and reconciling accounts manageable. I also appreciate how easy it is to pull reports quickly and integration with excel.”
6. Xero (Best for small businesses needing lightweight project tracking with accounting)
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In my experience working with small teams, Xero is a popular choice when you want simple, clean accounting without a steep learning curve. I like it for businesses that want easy invoicing, expense tracking, and clear financial reports from day one. It also offers basic project tracking, either built in or through add-ons, which can be enough for small service teams. But the project features are limited tool. As your team grows you will need to add another system alongside Xero.
Best features
Strong invoicing and accounts workflow for small business finance needs.
Invoice reminders and payment follow-up tools that help protect cash flow.
Accessibility for owners and ops who need to check the numbers from anywhere.
App ecosystem that makes it easier to add job costing and project tracking depth if needed.
Limitations
The depth of native “projects” varies, and many teams need add-ons for job costing and delivery workflows.
You can end up with a multi-tool stack (Xero + time tracking + project management), which adds process overhead.
Pricing
Starter: $29/user/month
Standard: $50/user/month
Premium: $75/user/month
Ratings & reviews
G2 rating: 4.4/5
A G2 user, Chris, shared, “Simple design interface that is easy to understand and navigate. Everything works as expected and, in some cases, even better. Anytime I've reached out to support with a question it has been answered promptly and usually with only corresponding one time and not multiple times.”
7. Zoho Books (Best budget-friendly option with project time + profitability basics)
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Zoho Books is a good choice for teams that want affordable accounting software with basic project features included. It offers good value for the price, especially for teams that do not need a full project accounting software system. But keep in mind some project and reporting features are only available on higher plans.
Best features
Solid invoicing and accounting features at a price that works for smaller teams.
Time tracking and project profitability basics (depending on your plan).
Good organization and usability for teams that do not want a steep learning curve.
Fit for simple project-based businesses where finance needs come first.
Limitations
If you need deep PSA capabilities (utilization, resourcing, complex budgeting), Zoho Books will feel limited.
Project reporting can be lighter than best-in-class PSA tools.
Pricing
Standard: $10/user/month
Professional: $20/user/month
Premium: $25/user/month
Ratings & reviews
G2 rating: 4.4/5
A G2 user, Richard, shared, “I really like the fact that Zoho Books is connected to inventory, which I use a lot. Anytime I create an invoice, it goes to Books immediately. The ease of downloading a PDF and the ability to send it via email is pretty good. I haven't tried the WhatsApp API yet, but it's something I might do in the future. I also love how easy and seamless the experience is and how easy it is to connect all the other apps within Zoho. Initial setup was a piece of cake, really easy to use, which helped me and even made it easier for my dad, who's not getting any younger, to use.”
8. Sage Intacct (Best for mid-market finance teams needing real project accounting depth)
Sage Intacct is built for finance teams that need strong control and detailed reports. I usually suggest it when basic project tracking is no longer enough and the finance team needs deeper visibility. It is designed for mid-sized businesses that manage multiple entities, complex budgets, and strict financial rules. You can track budget versus actuals across entities and produce detailed, finance-grade reports with confidence.
Best features
Dimensions-based reporting so you can slice profitability by project, phase, entity, and more.
Budget vs actuals visibility built for finance-level review.
Multi-entity support for organizations with real structural complexity.
Stronger controls and reporting depth than SMB accounting tools.
Limitations
Custom reports and dashboards can take time to configure well.
Quote-based pricing makes it harder to compare without getting into module and scope details.
Pricing
Contact sales for pricing.
Ratings & reviews
G2 rating: 4.2/5
A G2 user, John, shared, “Easy to access from anywhere. Always customer support when you need it. You can use it anytime and there are numerous features. Also very easy to switch from another software to sage.”
Take control of project profitability with Teamwork.com
If you want strong project accounting visibility without forcing project managers to work inside a finance-heavy system, Teamwork.com is built to bridge that gap between delivery and profit.
Teamwork.com connects time tracking, budgets, and profitability directly to the work your team is doing every day. That means clearer visibility into margins, more accurate billable time, and invoices that reflect what was actually delivered. Budget versus actuals is easy to check, so teams can spot issues early instead of finding out at the end of the project.
FAQs about project accounting software
What’s the difference between project accounting and job costing?
Job costing is typically focused on tracking costs and profitability for a job. Project accounting is broader and often includes billing workflows, time tracking, revenue recognition, and reporting by project dimensions.
Can project management tools replace accounting software?
In most cases, no. Project management tools can track time, budgets, and project-level costs, but they do not replace core accounting functions like the general ledger, accounts payable and receivable, tax handling, or compliance reporting. Most teams use both systems together to cover delivery and finance properly.
What reports should project managers track weekly?
Project managers should track planned versus actual hours, budget versus actual spend, and overall project margin. They should also review resource capacity to catch risks early and keep projects on track.
Should agencies choose a PSA or accounting-first tool?
For most agencies, a PSA tool is the better fit because it connects project delivery, time tracking, resourcing, and profitability in one system. Accounting-first tools are stronger for core finance needs, but agencies often still need a PSA to properly manage projects and protect margins.
Do these tools support retainers and fixed-fee projects?
Most do, but the quality varies. Project accounting software tools tend to handle retainer tracking, approvals, and margin reporting more cleanly than accounting-first tools.
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