20 Best Accounting Software for Startups Reviewed in 2024
Best Accounting Software for Startups Shortlist
Here's my pick of the 10 best software from the 20 tools reviewed.
Our one-on-one guidance will help you find the perfect fit.
Choosing the right accounting software is important for startups to manage their finances efficiently and support growth. The best solutions offer features tailored to the unique needs of early-stage companies, such as easy invoicing, expense tracking, and cash flow management. However, with so many options available, it can be challenging to find the right solutions.
In this review, we’ll explore the top accounting software choices for startups, highlighting their key features, pricing, and how they can help you manage your finances efficiently. Whether you’re just starting out or scaling up, this guide will help you find the perfect solution to keep your finances in check.
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Best Accounting Software for Startups Summary
| Tools | Price | |
|---|---|---|
| Synder | From $52/month (billed annually) | Website |
| Zoho Books | From $15/user/month (billed annually) | Website |
| OneUp | Pricing upon request | Website |
| ZarMoney | From $20/month (up to 2 users) | Website |
| AccountEdge | From $20/month | Website |
| Instabooks | From $20/user/month (billed annually) | Website |
| Milestone | Pricing upon request | Website |
| Sage for Accountants | From $90/user/month | Website |
| LessAccounting | From $199/month | Website |
| Wave | From $14/user/month | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose Accounting Software For Startups
As you work through your own unique software selection process, keep the following points in mind:
- Cost-Effectiveness: Startups often operate on tight budgets, making cost an important factor. Look beyond the initial price and evaluate the total cost of ownership, including potential add-on fees and the return on investment.
- User-Friendliness: The software should simplify financial processes, not complicate them. Seek software with an intuitive interface that requires minimal training to help you save time and reduce errors.
- Customization Options: Your accounting software should be adaptable to your unique business needs. Look for flexibility in creating custom fields, reports, and workflows. This ensures the software works for you, not the other way around.
- Scalability: As your startup grows, your accounting needs will evolve. Choose software that can handle increased transaction volumes and complexity.
- Integration Capabilities: Your accounting software should integrate seamlessly with other tools in your tech stack, such as CRMs, ecommerce platforms, and payroll tools. This reduces manual data entry, minimizes errors, and provides a comprehensive view of your financial health.
Best Accounting Software for Startups Reviews
Here’s an in-depth analysis and overview of each accounting software for startups. This will walk through each tool’s pros and cons, features, and best use cases.
Synder is an accounting software designed for startups and small businesses that need to automate their bookkeeping processes. It specializes in real-time transaction synchronization, making it easier to manage finances across multiple platforms.
Why I picked Synder: Synder excels in handling the complexities of ecommerce and multi-channel sales. Its ability to integrate with numerous platforms and automate bookkeeping tasks makes it stand out from other accounting software. Additionally, the software simplifies the reconciliation of sales data from various sources, ensuring accuracy and saving time.
Standout features & integrations:
Features include automated revenue recognition, multi-channel sales synchronization, and comprehensive business analytics.
Integrations include Shopify, Stripe, Amazon, Square, PayPal, TikTok, QuickBooks Online, QuickBooks Desktop, Xero, and Sage Intacct.
Pros and cons
Pros:
- Multi-channel integration
- Automated bookkeeping
- Comprehensive analytics
Cons:
- Limited offline support
- No payroll management feature
Zoho Books is an advanced cloud-based accounting software for startups and small businesses. It provides tools for managing finances, automating workflows, and ensuring compliance with tax regulations, all within a user-friendly interface.
Why I picked Zoho Books: Zoho Books provides extensive features catering to small and larger businesses. Its affordability and the inclusion of a free plan make it accessible for startups. The software stands out due to its integration with other Zoho products, providing a seamless experience for users already within the Zoho ecosystem. Additionally, Zoho Books offers a wide array of tools for invoicing, expense tracking, project management, and inventory management, all in one platform.
Standout features & integrations:
Features include invoicing, expense tracking, project time tracking, and inventory management. Zoho Books allows users to create and send invoices, track expenses, manage projects, and monitor inventory levels. It also supports automated workflows, making handling recurring tasks and reminders easier.
Integrations include Zoho CRM, Zoho Inventory, Zoho Projects, PayPal, Stripe, Square, G Suite, Microsoft Office 365, Slack, and Zapier.
Pros and cons
Pros:
- Affordable pricing
- Comprehensive feature set
- Strong integration with Zoho ecosystem
Cons:
- Limited third-party integrations
- Learning curve for advanced features
OneUp is a business assistant and accounting software for small and medium-sized businesses, offering AI-powered financial insights. Its advanced AI categorization and financial performance tracking provide highly accurate and actionable data.
Why I picked OneUp: OneUp combines accounting with CRM and inventory management, making it ideal for startup businesses looking for an integrated solution. Its automatic bank reconciliation and AI-driven sales forecasting features make it particularly unique from other accounting software. Additionally, its mobile-friendly design is perfect for entrepreneurs who need to manage their finances on the go.
Standout features & integrations:
Features include AI categorization, financial performance tracking, cash flow forecasting, invoicing, and bill payment.
Integrations include Google, Intuit, PayPal, Square, BNP Paribas, Lloyds Banking Group, Stripe, Shopify, QuickBooks, and Xero.
Pros and cons
Pros:
- AI categorization
- Financial performance tracking
- Cash flow forecasting
Cons:
- Basic plan lacks some key features
- Limited advanced reporting options
ZarMoney is an all-in-one accounting, invoicing, and inventory solution for businesses. It combines financial management with advanced inventory tracking, making it ideal for startups needing both functionalities in one platform.
Why I picked ZarMoney: ZarMoney offers a large suite of accounting tools that cater specifically to the needs of startups, allowing for both growth and scalability. When judging it against other accounting software, its affordability and advanced features set it apart, particularly in areas like inventory management and multi-user collaboration. Additionally, its user-friendly interface makes it accessible even to those with limited accounting experience.
Standout features & integrations:
Features include advanced inventory management, which provides complete visibility into global inventory, and automated sales tax calculation, which simplifies tax compliance. Additionally, ZarMoney offers online payments, bank connections, and detailed reporting to help businesses manage their finances.
Integrations include QuickBooks, PayPal, Stripe, Shopify, Amazon, eBay, WooCommerce, Square, Google Drive, and Dropbox.
Pros and cons
Pros:
- Comprehensive feature set
- User-friendly interface
- Advanced inventory management
Cons:
- Limited customization options
- Advanced features may require learning
AccountEdge is a desktop accounting software for small businesses on Mac or Windows. It’s best due to its strong on-premise capabilities and advanced data management features.
Why I picked AccountEdge: AccountEdge is known for its strong desktop accounting capabilities, which are ideal for businesses that prefer on-premise solutions. Unlike many cloud-based alternatives, AccountEdge provides the reliability and security of a desktop platform while still offering remote access through its AccountEdge Connect add-on. This makes it a strong contender for startups that need advanced data management and reporting features without relying solely on cloud services.
Standout features & integrations:
Features include a full suite of accounting tools such as invoicing, expense tracking, payroll management, and inventory control. It also offers advanced data management capabilities, allowing users to organize and analyze their data with ease.
Integrations include Shopify, Stripe, PayPal, Square, Amazon, WooCommerce, QuickBooks, Xero, Sage Intacct, and PowerBI.
Pros and cons
Pros:
- Comprehensive feature set
- Reliable desktop platform
- Remote access option
Cons:
- Limited third-party integrations
- No native mobile app
Instabooks offers free startup accounting software to automate bookkeeping and provide real-time financial insights. Its advanced free features help new businesses manage their finances without incurring additional costs.
Why I picked Instabooks: Instabooks is a cost-effective solution for startups needing strong accounting features without the financial burden. It offers a highly flexible invoicing system that allows users to create personalized quotes tailored to each client’s needs. Additionally, the software’s intuitive interface makes it easy to convert quotes into invoices seamlessly, ensuring a streamlined process from client agreement to payment collection.
Standout features & integrations:
Features include bookkeeping software, real-time cash flow notifications, and customizable invoicing. It also offers tools for expense tracking, sales tax calculation, and financial reporting.
Integrations include QuickBooks, Xero, FreshBooks, Zoho Books, Sage, Wave, PayPal, Stripe, Square, and Shopify.
Pros and cons
Pros:
- Customizable invoicing
- Real-time financial insights
- Automated bookkeeping
Cons:
- Limited advanced features
- Fewer third-party integrations
Milestone is a business accounting software tailored for startups and growing businesses. It focuses on providing advanced financial management solutions, including bookkeeping, payroll, and tax services, designed to meet the unique needs of emerging companies.
Why I picked Milestone: Milestone offers a unique combination of accounting and HR services, which sets it apart from other software options. This integration allows startups to manage both financial and human resources, making it a valuable solution for growing businesses.
Standout features & integrations:
Features include monthly accounting services, system design and implementation, fractional CFO services, transaction readiness, monthly HR services, strategic HR initiatives, and payroll services.
Integrations include QuickBooks, Gusto, ADP, Paychex, BambooHR, Zenefits, Xero, FreshBooks, Zoho Books, and Sage.
Pros and cons
Pros:
- Comprehensive service offerings
- Expertise in both accounting and HR
- Customizable packages
Cons:
- Learning curve for new users
- Limited to service-based integration
Sage for Accountants is a customizable accounting solution for accountants and bookkeepers. It helps manage clients, collaborate with teammates, and grow profits.
Why I picked Sage for Accountants: Sage for Accountants provides users with an advanced suite of tools tailored to accounting professionals. It stands out due to its focus on automating bookkeeping and payroll tasks, significantly boosting productivity. The software also integrates essential accounting functions into one platform, making client management and compliance more efficient.
Standout features & integrations:
Features include automated bookkeeping, payroll processing, and client management tools. The software also offers cash flow forecasting and compliance services, ensuring that all financial operations are accurate and up-to-date.
Integrations include AutoEntry, GoProposal, Sage Payroll, Sage Accounting, Futrli, Microsoft Office 365, Google Workspace, QuickBooks, Xero, and HubSpot.
Pros and cons
Pros:
- Comprehensive client management
- Automated bookkeeping
- Integrated payroll processing
Cons:
- Limited customization options
- Steeper learning curve for beginners
LessAccounting is an online bookkeeping service that offers virtual bookkeeping solutions for freelancers and small businesses. It’s ideal for startups looking for efficient and cost-effective accounting software.
Why I picked LessAccounting: LessAccounting stands out for its simplicity and affordability. Unlike other accounting software, LessAccounting focuses on providing straightforward bookkeeping services without overwhelming users with unnecessary features. This makes it particularly suitable for small businesses and freelancers who need to keep their accounting processes simple and manageable.
Standout features & integrations:
Features include monthly account reconciliation, monthly clean books, accurate tax filing records, and financial health tracking. It also offers CPA consultation, historical bookkeeping, and support for international companies.
Integrations include QuickBooks Online, PayPal, Square, Stripe, Xero, Merritt Bookkeeping, and Bookkeeper.com.
Pros and cons
Pros:
- Simple monthly packages
- CPA consultation included
- Historical bookkeeping support
Cons:
- Not suitable for larger businesses
- No payroll management
Wave is a small business software offering free accounting software and other financial services for startups and small businesses. It’s best known for its user-friendly interface and advanced suite of money management tools, making it an ideal choice for startups looking for cost-effective accounting solutions.
Why I picked Wave: Wave’s unique offering of free accounting tools is a significant advantage for startups operating on tight budgets. The software stands out from other accounting systems by providing an advanced suite of financial management tools at no cost, making it accessible for new businesses.
Standout features & integrations:
Features include customizable invoicing, online payment acceptance (debit or credit cards), expense tracking, and payroll management. Its smart dashboard organizes income, expenses, payments, and invoices, simplifying tax time and providing a complete picture of business health.
Integrations include PayPal, Stripe, QuickBooks, Shopify, Etsy, Zapier, Google Sheets, HubSpot, Slack, and Mailchimp.
Pros and cons
Pros:
- Free accounting tools
- User-friendly interface
- Comprehensive financial management
Cons:
- Limited advanced features
- Customer support limitations
Other Accounting Software for Startups
Below is a list of additional accounting software for startups that I shortlisted. While they didn’t make the top 10, they’re still valuable and worth further research.
- Xero
Best for app integrations
- FreshBooks
Best for invoicing and billing
- NetSuite
Best for comprehensive business management
- Gusto
Best for payroll and HR services
- FloQast
Best for financial close management
- Dext
Best for expense management and receipt capture
- Budgyt
Best for budget management and forecasting
- Keeper
Best for bookkeeping automation
- Juniper Square
Best for real estate investment management
- QuickBooks
Best for small business accounting
Related Reviews
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Accounting Software for Startups Selection Criteria
The criteria for choosing accounting software for startups should directly address buyer needs and common pain points, ensuring that the software serves its intended purpose effectively. As an expert who has personally tried and researched these tools, here are the requirements I use when evaluating software:
Core Functionality: 25% of total weighting score
- Invoicing and billing
- Expense tracking
- Financial reporting
- Bank reconciliation
- Payroll management
Additional Standout Features: 25% of total weighting score
- Integration with third-party apps
- Automation of repetitive tasks
- Real-time financial dashboards
- Mobile app accessibility
- AI-driven insights and analytics
Usability: 10% of total weighting score
- Intuitive user interface
- Customizable dashboards
- Drag-and-drop functionality
- Easy navigation
- Minimal learning curve
Onboarding: 10% of total weighting score
- Availability of training videos
- Interactive product tours
- Pre-built templates
- Chatbots for instant help
- Webinars for in-depth training
Customer Support: 10% of total weighting score
- 24/7 availability
- Multiple support channels (phone, email, chat)
- Dedicated account managers
- Comprehensive help center
- Fast response times
Value For Money: 10% of total weighting score
- Competitive pricing
- Transparent pricing structure
- Free trial availability
- Flexible subscription plans
- Discounts for long-term commitments
Customer Reviews: 10% of total weighting score
- Overall satisfaction ratings
- Feedback on ease of use
- Comments on customer support quality
- Reviews on feature effectiveness
- User testimonials on value for money
Trends for Accounting Software for Startups
Here are some trends I’ve noticed for accounting software for startups, plus what they might mean for the future. I sourced countless product updates, press releases, and release logs to tease out the most important insights.
- Automation: Automation transforms accounting by streamlining repetitive tasks such as bank reconciliation and journal entries. This trend is important as it allows accountants to focus on higher-value activities like analysis and strategic planning. The increased efficiency and reduced manual errors make automation a significant trend for startups.
- Cloud-Based Accounting: Cloud-based accounting software enables real-time collaboration and remote work. Startups are increasingly adopting cloud solutions to enhance flexibility and scalability. This trend is essential as it supports the growing need for remote work and provides access to financial data from anywhere, ensuring business continuity.
- Data Analytics and Forecasting: Advanced data analytics and forecasting tools are becoming essential in accounting software. These tools help startups analyze financial data, identify trends, and make informed decisions. The ability to predict future financial performance and optimize resource allocation makes this trend vital for startups aiming for growth.
- Artificial Intelligence (AI): AI is revolutionizing accounting by automating complex tasks and providing predictive insights. AI-powered tools can handle data entry, invoice processing, and reconciliation, significantly reducing accountants' workload. This trend is interesting as it enhances accuracy and allows startups to leverage data for strategic decision-making.
- Blockchain Technology: Blockchain technology is gaining traction in accounting because it can provide secure and transparent transaction records. Startups are exploring blockchain to improve audit processes and ensure data integrity. This trend is essential as it enhances trust and reduces the risk of fraud in financial transactions.
What Is Accounting Software for Startups?
Accounting software for startups is designed to help new businesses manage their financial transactions, track expenses, and generate financial reports. Entrepreneurs, small business owners, and startup teams use it to maintain accurate financial records, ensure compliance with tax regulations, and make informed financial decisions.
The components of accounting software for startups typically include modules for invoicing, expense tracking, payroll management, and financial reporting. These features allow users to automate routine financial tasks, monitor cash flow, and gain insights into their financial health.
Features of Accounting Software for Startups
Accounting software is essential for startups to streamline financial processes, ensure accuracy, and support growth. Here are the most important features to look for in accounting software for startups:
- Core Accounting Functions: Core accounting functions include recording transactions, managing the general ledger, and generating financial statements. These features are essential for tracking revenue, expenses, and cash flow, ensuring your startup's financial health is accurately monitored.
- Automated Invoicing: Automated invoicing allows you to create and send invoices quickly and efficiently. This feature helps maintain a steady cash flow by ensuring clients are billed on time and follow-up reminders are sent for overdue payments.
- Expense Tracking: Expense tracking enables you to monitor and categorize business expenses. This feature is vital for managing cash flow and ensuring all costs are accounted for, which helps in budgeting and financial planning.
- Bank Reconciliation: Bank reconciliation automates matching your accounting records with your bank statements. This feature reduces errors and ensures that your financial records are accurate and up-to-date.
- Payroll Management: Payroll management automates calculating and distributing employee salaries, tax withholdings, and benefits. This feature is vital for ensuring that employees are paid accurately and on time and for helping maintain compliance with tax regulations.
- Financial Reporting and Analytics: Financial reporting and analytics provide insights into your startup's financial performance. Customizable reports and real-time dashboards help you monitor key metrics, identify trends, and make informed business decisions.
- Scalability: Scalability ensures that the accounting software can grow with your business. Look for software that can handle increased transaction volumes, support multiple currencies, and integrate with other business tools as your startup expands.
- Integration Capabilities: Integration capabilities allow the accounting software to connect with other tools in your tech stack, such as CRM systems, ecommerce platforms, and payroll tools. This feature reduces manual data entry, minimizes errors, and provides a comprehensive view of your financial health.
- Mobile Support: Mobile support enables you to access your accounting software from anywhere using a mobile device. This feature is essential for entrepreneurs who need to manage their finances on the go.
- Compliance and Audit Trail: Compliance and audit trail features ensure that your financial records meet regulatory requirements and provide a clear record of all transactions. This feature is important for maintaining transparency and preparing for audits.
Benefits of Accounting Software for Startups
Starting a new business comes with numerous challenges, and managing finances is one of the most important. Accounting software can be a game-changer for startups, offering a range of benefits that streamline financial management and support business growth. Here are some of the primary advantages associated with using accounting software for startups:
- Efficiency and Time-Saving: Accounting software automates many of the repetitive and time-consuming tasks associated with financial management, allowing business owners to focus on other critical areas of their startup.
- Accuracy and Reduced Errors: Accounting software significantly reduces the risk of human error by automating calculations and data entry, ensuring that financial records are accurate and reliable.
- Real-Time Financial Insights: Accounting software allows startups to access real-time financial data and reports, enabling better decision-making and more effective financial planning.
- Cost-Effective: Investing in accounting software can be more cost-effective than hiring a full-time accountant, especially for startups with limited budgets. While still providing professional-level financial management, it can be a wise investment.
- Scalability: As a startup grows, its financial management needs will evolve. Accounting software can quickly scale with the business, offering advanced features and integrations as needed.
Using accounting software can provide startups with the tools they need to manage their finances efficiently and accurately, supporting their growth and success. By leveraging these benefits, startups can focus on innovation and expansion, knowing that their financial management is in good hands.
Costs & Pricing of Accounting Software For Startups
Choosing the right accounting software for startups requires careful consideration of various pricing options and plans to ensure you get the most value for your investment. Each plan typically offers different features tailored to varying needs and business sizes.
Below, you'll find a breakdown of common plans and their pricing, making it easier to determine which plan best suits your startup's needs.
Plan Comparison Table for Accounting Software for Startups
| Plan Type | Average Price | Common Features |
| Free Plan | $0 | Basic income/expense tracking, invoicing, financial report creation, and 1-2 user access |
| Personal Plan | $10 - $50 per month | Income/expense tracking, invoicing, payable/receivable management, financial reports, and limited expense categorization |
| Business Plan | $50 - $150 per month | Multi-user access, recurring invoicing, expense reporting automation, inventory management, sales tax handling, dashboards, payroll processing, and mobile optimization |
| Enterprise Plan | $150+ per month | Custom fields, automated reporting, project costing, custom integrations, warehouse optimization, order management, sales pipeline visibility, robust analytics, and international taxation handling |
When selecting a plan, consider the size of your startup, the specific features you require, and how the software can scale with your business growth. This way, you can be sure you’ll find the right accounting software for your new business.
Accounting Software for Startups FAQs
Here are answers to some frequently asked questions I’ve received about accounting software for startups.
Can accounting software help with tax compliance?
Yes, many accounting software solutions offer features that assist with tax compliance. They can generate tax reports, track tax liabilities, and even integrate with tax filing services. This can help ensure your startup complies with tax regulations and deadlines.
Is it necessary to have industry-specific accounting software?
While only sometimes necessary, industry-specific accounting software can offer tailored features that general accounting software might need more. For example, a retail business might benefit from software with robust inventory management, while a service-based business might need strong project tracking capabilities.
How secure is cloud-based accounting software?
Cloud-based accounting software typically offers high levels of security, including data encryption, regular backups, and secure access controls. However, choosing a reputable provider and understanding their security measures is important to protect your financial data.
How can accounting software help with financial forecasting?
Accounting software can provide valuable insights into your financial data, helping you create more accurate financial forecasts. Features like budgeting tools, cash flow analysis, and financial reporting can help you predict future revenues and expenses, aiding in better decision-making.
What support options are available for accounting software?
Support options vary by provider but often include online resources such as tutorials and FAQs, email support, live chat, and phone support. Some providers also offer dedicated account managers or premium support plans for an additional fee. It is important to choose a provider that offers the level of support your startup needs.
Other Accounting Software Options
If you still haven’t found what you’re looking for here, check out these other tools that we’ve tested and evaluated:
- Accounting Software For Midsize Businesses
- Accounting Software for PC
- Engineering Accounting Software
- Accounting Software for Teams
- Accounting Software With CRM
- Real Estate Accounting Software
- Accounting Software With Client Portals
- Multi-Company Accounting Software
- Legal Accounting Software
- AI Accounting Software
- Accounting Workflow Management Software
- Accounting Software With Payroll For Small Businesses
- Accounting Software For Service Companies
- Accounting Software For Rental Properties
- Accounting Software For Advertising Agencies
- Accounting Software For The Self-Employed
- Accounting Software For Large Business
- Accounting Software For Consultants
- Accounting Software for Mac
- Accounting Software For Accountants
- Cloud-Based Accounting Software
- Lease Accounting Software
- Small Business Accounting Software
- Property Management Accounting Software
- Construction Accounting Software
- Accounting Software For Nonprofits
- Online Accounting Software
- Business Accounting Software
What's Next?
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