Running a startup business can be difficult. One of the main problems is how to balance operational efficiency with financial control. The ultimate balancing act is reconciling accounts payable and accounts receivable, which are often managed in different systems that don’t talk to each other.
One solution is using accounting software designed for startups like QuickBooks Pro or Xero. These systems can help you maintain your financial processes in one centralized system, ensuring credit and debit balances stay in sync while making your job easier by automating tasks like invoicing and tracking cash flow. Below you can find these and other helpful accounting software available on today’s market with their pros and cons.
Our Top 5 Accounting Software For Startups
Best Accounting Software For Startups Reviews
1. Best Overall: Freshbooks
Are you looking for new software with which to track your finances and manage your expenses? FreshBooks offers accounting software that integrates seamlessly with any type of system. It is the perfect tool for startups with features such as time tracking, invoicing, project management, email marketing, and automatic filings.
FreshBooks is the most convenient and easiest to use software on the market, and it’s also affordable. It offers a free 30-day trial version, with no credit card required. It also comes with an easy learning curve, so you will be able to use it right away, without taking hours of your day to get started.
As we all know, startups often struggle with keeping track of their expenses. While there are plenty of online services that can help you keep track of your spending, using them can be time-consuming and tedious. Freshbooks can help entrepreneurs easily manage their costs.
2. Best For Small Business: Xero
There are many types of accounting software that startups can use to manage their finances, but none available at the moment is as hands-on and vivid as Xero.
Xero is web-based and designed for easy accounting. It offers free cloud storage and backup, real-time data synchronization, an innovative PDF tax journal report interface, and an intuitive interface efficiently controlled entirely by keyboard shortcuts.
These various features allow non-accounting individuals to download Xero quite quickly because it’s built upon a simple user experience. Its simplicity makes it perfect for small businesses that don’t necessarily need complex calculations or complicated ledgers with lots of columns of numbers on them.
Xero offers more options in terms of accounting, such as invoices and other business expenses. Moreover, the software presents these transactions on the dashboard in an attractive way so users can always stay updated with their company’s finances.
Rather than uploading documents to process transactions manually, Xero has simplified this process by allowing users to simply take a picture of transaction documents using their smartphone’s camera. Once uploaded, Xero automatically converts them into usable data for the user to see.
3. Best User-friendly: Zoho Books
Zoho Books is a comprehensive accounting suite for startups. With its built-in accounting tools, you can improve your business’ efficiency and accuracy while also saving time!
So what are the features? Well, for starters, Zoho Books has an intuitive dashboard that allows you to see important financial information at a glance. But, of course, you can also customize your dashboard however you need it to be.
Additionally, with this software, you automatically get access to Zoho Reports, live screen sharing of transactions with collaborators or CFOs from other locations, and email notifications when details about accounts are updated as long as the system monitors them.
Another key feature is Zoho Books’ integrated accounting system that provides a user-friendly interface to track progress and manage expenses. It follows the status of accounts, categorizes them, and facilitates reporting on the go.
Finally, Zoho Books has a range of reports for you to choose from! They include general income & expense reports, revenue & expense forecasts; P&L statements (with columns); line items and breakdowns; ledger accounting; and programmable macros for adding custom fields such as depreciation. And all these can be exported into excel format, imported into QuickBooks, or exported to PDF.
4. Best Easy-to-use: Sage Business Cloud
Sage Business Cloud is accounting software for startups. It is designed to be easy to understand, user-friendly, and highly customizable — so you can give your business the best of both worlds. Sage Business Cloud is used by small, medium-sized, and large enterprises alike. Entrepreneurs can find the tool that best fits them and run their business seamlessly with this cloud-based accounting software.
This program is available for iPad, iPhone, Android smartphones or tablets, web browsers on any device running PC or Mac OS. Sage offers features that help entrepreneurs better manage their business, whatever size they are. Sage Business Cloud is accounting software that allows you to start creating your first accounting journal entries within minutes of installing it.
This cloud-based software offers a variety of useful and easy-to-use features. For example, you can define your tax accounts, set up payroll for employees and pay contractors, and quickly add stock items in your product inventory for sales.
You can also set up fixed assets like property or machinery so that when it is sold or disposed of, the value will be recorded in your accounts, and related costs offset income from their sale.
5. Best Affordable: Kashoo
Kashoo is powerful accounting software that has been designed specifically for small and growing businesses. Its robust feature set will help you get a handle on your finances and stay in control of your business.
Main Kashoo Features
- A sleek, intuitive design.
- Comprehensive reporting functionality to ensure you never miss any important financial details.
- QuickBooks is importing functionality to allow seamless transition from one accounting system to the next.
- Secure access with multi-factor authentication and an audit trail that keeps every transaction safe and secure in a data breach.
Buyer’s Guide
The software on this list will help you manage your startup’s accounts receivable and accounts payable from day one. The software allows you to create invoices, track payments, and maintain customer records. It also automates month-end tasks such as balance sheet reconciliations and VAT returns.
It is best to choose the software that integrates with your accounting system. For example, Quickbooks Online integrates with Intuit’s online accounting software. You can quickly set up a free trial at Quickbooks Online, Xero, and Sage One. Choose the software which is most suitable for your startup and begin to earn money.
FAQ
What Accounting Software Do Startups Need?
QuickBooks Online. Intuit’s QuickBooks Online software is an excellent choice for small business owners and startups because it offers an affordable set of products, from invoicing and sales to payroll.
Which Accounting Software Is Best For Startups?
I would recommend QuickBooks Online to start. The ability to make adjustments without having to call an accountant or wait for a timely response from them is great. It’s also a great product for those looking into starting their businesses, as it has a comprehensive enough toolset and reporting abilities to set up your company correctly from day one. Plus, the cloud-based platform makes it easy and convenient for you as the owner of the company.
Is Freshbooks Ok For Startups?
The quick answer is Yes! First off, FreshBooks is straightforward to use – even if someone doesn’t have any accounting experience, they’ll be able to figure out their way around the software. Second, when you’re just starting, you’re going to want to spend as little as possible getting set up. To some people, FreshBooks might feel like it’s a waste of money when it might not be required for your needs. But when you think about what it can do for your business and how long it can last, a fraction of the price seems much more worth it!
