The firm said the new financial management tool will help small businesses solve their cash flow problems. Redmond said the software was aimed at sole traders and firms employing up to 25 people.
Gareth Arnold, office accounting product manager at Microsoft UK, said, "Many small business owners today manage their business with a simple spreadsheet or have a shoebox of receipts, so they lack a comprehensive picture of their finances.
"Office Accounting brings this data together in one place, giving them far better control over their finances and cash flow."
Two versions of Office Accounting are available. Office Accounting Express is free and is designed for new and home-based businesses. Office Accounting Professional offers features such as stock management, job costing and multi-user access.
Microsoft Office Accounting is tightly integrated with Microsoft Office applications like Excel, Word and Outlook.