Are you searching for the best accounting software for startups? Read this article to find out which of the best accounting software for startups suits you the best. To a healthy financial system!
Best Accounting Software For Startups
- FreshBooks
- QuickBooks Online
- Xero
- Wave
- QuickBooks Self-employed
FreshBooks: The best accounting software for startups and service-based businesses
FreshBooks is cloud-based accounting software with high ratings for its intuitive interface, easy navigation, and robust features.
It covers the basics of double-entry accounting, expense tracking, project management, time tracking, invoice and estimates, and online payment processing. FreshBooks can be used on both Android and iOS devices, whether online or offline.
It has a well-organized platform and a visual dashboard to help you keep track of money and time. FreshBooks also offers a dedicated support team and customizes your FreshBooks to suit your business. It has the ability to adapt and scale with your business as it progresses.
It is mainly aimed at freelancers, self-employed individuals, and small business owners. Upgrading plans give you access to more billable clients, automated payment reminders, unlimited proposals, and client retainers.
It integrates with third-party integrations like Shopify, Gusto, G Suite, Stripe, and more.
Pros
- Cloud-based software
- User-friendly interface
- Affordable prices
- Advanced invoicing features
- Third-party software integrations
Cons
- Mobile app has certain limitations
- No inventory management available
- No payroll service available
Pricing
- Lite plan starts from $4.50/month for 5 billable clients
- Pro plan starts from $7.50/month for 50 billable clients
- Premium plan starts from $15/month for unlimited billable clients
- 30 day free trial available
QuickBooks Online: The overall best accounting software for startups
QuickBooks Online is the overall best accounting software for startups used by the majority of small businesses. It offers endless training forums and resources to support whenever and however needed. It makes bookkeeping fluid and efficient as all the accounting-friendly features are accessible on one single dashboard.
Just like FreshBooks, QuickBooks Online is also a cloud-based software and is available on a web browser and mobile app.
The mobile app comes with customized options such as receiving payments, reviewing reports, capturing receipt images, and tracking business mileage. If you’re looking for a payroll solution, it easily integrates with QuickBooks Payroll.
It also integrates with third-party integrations like PayPal and Stripe.
Pros
- Commonly used by accounting professionals
- Cloud-based software
- Mobile app
- Integration with third-party softwares
- Scalable
- Accountant-friendly software
Cons
- Upgrade required when users increase
- Problems with syncing banks and credit cards
- Overpriced when compared to other accounting softwares
Pricing
- Plan starts at 150 INR/month
Xero: The best accounting software for startups and micro-business owners
Xero is very simple accounting software for micro-business owners. It has a clean interface and fully integrates with third-party integrations with over 600 applications like Stripe, GoCardless, Gusto, PayPal, Amazon, Asana, Etsy, and Shopify.
The Early plan of Xero limits usage and allows entry for only five invoices or quotes, five bills, and only 20 transactions per month. Its Established plan has additional features like expense management, multi-currency, and project costing.
Pros
- Cloud-based software
- Simple Inventory management
- Mobile app
- Payroll integration with Gusto
Cons
- Limited reporting
- Limites customer service
- Fee charged for ACH payments
Pricing
- Early plan starts from $5.50/month
- Growing plan starts from $16/month
- Established plan starts from $31/month
Read: 5 Best Landing Page Builders For Startups
Wave: The best accounting software for startups available for free
Wave is ideal for small businesses that need to send small invoices and doesn’t need to track inventory or run payroll. Its free features cover all of your accounting needs and are therefore the best accounting software for startups.
Just like FreshBooks, it’s available on both Android and iOS devices. You can simply sign up, connect your business bank accounts, and watch the transaction data flow.
It is suitable for entry-level accounting needs with invoicing and reminders, custom sales tax, financial reports, foreign currency payments, and more.
Pros
- Free
- accounting
- invoicing
- receipt scanning
- You can run multiple businesses in one account
- Unlimited number of users
- Mobile app
- No transaction or billing limits
Cons
- Limited third-party software integrations
- No inventory management available
- Full-service payroll limited to 14 states
- High fee for credit card and ACH payments
Pricing
- FREE
QuickBooks Self-employed: the best accounting software for startups and part-time freelancers
QuickBooks Self-Employed is a cloud-based software for startups, part-time freelancers as well as independent contractors. It is an incredibly easy-to-use software that offers great tax and tax deduction tools. It automatically totals up all business transactions.
It helps freelancers stay organized with features like tracking mileage, sorting expenses, sending invoices, organizing receipts, and estimating and filing taxes flawlessly.
QuickBooks Self-Employed mobile app helps track mileage while driving and also capture photos of receipts for business expenses. It enables freelancers with a single bank account for both personal and business to mark each transaction as personal or business.
Pros
- Cloud-based software
- Mobile application
- Tracks mileage
- Can sync with TurboTax
- Helps differentiate between personal and business transactions
Cons
- Limited reporting
- Limited invoicing functionality
- Limited customization
- Data cannot be easily transferred
Pricing
- 30-day free trial available
- Plans for small businesses starts at INR 105/month
To sum it up, these are some of the best accounting software for startups. Hope this article on “Best Accounting Software for Startups” helped you find your match!
Also read: 6 Absolutely Vital Roles in a Startup (And their importance)
FAQ
Do I really need accounting software?
A sole proprietor with a modest income may not need the help of an accountant but small businesses with a large number of customers and employees can save their precious time, and keep track of their records accurately with the help of accounting software.
How do I choose the best accounting software?
- Research by keeping in mind both the needs and accounting skills you prefer.
- Look for cloud-based applications.
- Always keep your budget in mind.
- Pay attention to the add-on features it brings.
- Don’t forget to include your accountant during decision-making.
What software should I use for bookkeeping?
FreshBooks is cloud-based accounting software with high ratings. It is the most common accounting software used by tax professionals for their bookkeeping.
Read: 10 Best Presentation Softwares of 2021
Don’t forget to subscribe for more astounding articles!
