Collaborative applications – also known as collaborative software – are increasingly being used by companies. The applications are meant to support intensive, effortless cooperation among team members, management and clients at any place and at any time. The uniqueness is their combination with social media and Web 2.0 functionalities (McAfee, 2009). The aim of this contribution is to identify the actual, in-field benefits of software-supported collaboration for small and medium-sized enterprises (SMEs) thus far reported in the literature. We review and summarise the findings of former research on the use of collaborative software. The term collaborative software is used to describe Web-based applications (platforms) to support communication and collaboration in enterprises. For our research of the literature we used the ProQuest and EBSCO databases, which included highly ranked journals in the field of SMEs. Only peer reviewed empirical research papers dealing with the use of collaborative software were included in the review. Our research questions were: 1. Which studies have focused on the use of collaborative software in SMEs? 2. What benefits of software-supported collaboration in SMEs have been found? 3. What were the other main findings of the studies? On the basis of the collected results we will discuss the intended vs. actual benefits software-supported collaboration have for SMEs. To the best of our knowledge, there is no other review of the benefits of collaborative software potentially relevant for SMEs, making this review is an important addition to other contributions in the field. The results provide valuable (albeit less comprehensive than we hoped) information to managers and practitioners in SMEs, helping them to decide their IT strategy and the importance of collaborative software therein. Knowledge about the benefits of software-supported collaboration as well as impacts on employee- and organisational-work design is useful for the effective implementation and use of collaborative software.