Best accounting software for startups: 2025 guide for early-stage companies

FreshBooks is one of the few cloud accounting software platforms that includes time tracking on all its plans. For professional service firms, like consultancies, marketing agencies, or law practices, time tracking, project billing, and client management are paramount. Automation software designed for this sector often centralizes workflows, making it easier for teams to share information, track project progress, and stay aligned on tasks and client deliverables. This ensures accurate billing, improves cash flow by invoicing promptly, and helps in better resource management for future projects.

Level Up Your Small Business Accounting Game

We’ll explore the outstanding features, potential drawbacks and benefits of each accounting software. Leverage our insights so you can quickly identify the best SaaS accounting software for your business. But with so many SaaS accounting software on the Main Advantages of Accounting Services for Startups market, it can be overwhelming to choose the best fit for your business needs. In this blog post, we’ll explore the best SaaS accounting software based on features, ease of use, pricing, and overall value. Kashoo did not have a page with the Better Business Bureau at the time of our review.

Benefits of Accounting Software for Small Businesses

Others, like QuickBooks and Xero, can quickly scale up with you but have inexpensive entry-level tiers to get you started. As your startup grows, your financial needs will continue to evolve, which is why it’s important to find an accounting system that can scale with you. You’ll want to think about both your current and future needs, like handling multi-currency transactions, managing payroll for a growing team, or providing advanced reporting for potential investors. Choosing the best accounting software for startups poses some unique challenges.

Who It’s Right For

The app can do basically everything the software can (a rarity for any software provider, no matter the industry). If you work on the go, QuickBooks’s app, which includes mobile mileage tracking, might make it a good fit. Similarly, Zoho Books’s cheapest plan doesn’t include automatic journal entry creation. Instead, whenever you debit or credit an account, you’ll have to manually create an entry. If you log more than a few transactions a month, the lack of automation adds major time and hassle—you’ll want the $40 a month (or $50, billed monthly) Professional plan instead.

Evaluate Integration Capabilities

Tipalti shines when it comes to automating accounts payable (AP) processes. If your business deals with a large volume of supplier payments or has complex AP workflows, Tipalti is designed to simplify and streamline this entire area. It helps manage global supplier payments, ensure tax compliance, and reduce the manual effort involved in the payables cycle.

• ZipBooks is a cloud-based accounting software designed specifically for small businesses.
• Odoo provides CRM, sales, and finance apps, including accounting, invoicing, and expenses.
• Our 10 Best Accounting Software solutions represent the range of options available to SMBs to meet their accounting needs.
• For businesses that bill by the hour, this tool helps capture all billable time efficiently.
• During our review period, we didn’t hear back within a day, which was frustrating.
• Free tools like Wave can manage basic bookkeeping and invoicing, but may lack advanced features, integrations, or scalability.

• There’s no one-size-fits-all, but tools like QuickBooks, Xero, and Zoho Books are widely considered among the best accounting software for small business.
• Choose accounting software that’s independent, widely compatible, and doesn’t lock you in.
• Depending on the type of accounting software you invest in, the software will help you create and send invoices, track projects and spending, and much more.
• Xero is one of the best online accounting software for startups that helps streamline essential financial data with finesse.
• ZipBooks’ paid plan starts at $15 a month and offers better bookkeeping and automation features than its free accounting plan.
• Most SMBs are better served by OneUp’s higher-end Plus and Teams products that cost $29 and $69 a month and support three and seven users, respectively.

Starting with the right foundation can save you from painful data migrations later. QuickBooks Online by Intuit remains a market leader in 2025, especially for small businesses. Its robust features, scalability, and wide user base make it a reliable choice. As a startup founder turned angel investor, I’ve seen firsthand how the right accounting software can make or break early-stage ventures. ONEXT DIGITAL helps your business grow through the utilization of technology and an innovative mindset. We have a history of going over and above because we not only complete projects on time – we find ways to support our customers to achieve their specific goals.

• Due to its extensive feature set that makes bookkeeping, invoicing, tracking expenses, and tax preparation easier, QuickBooks is frequently worth the investment for small businesses.
• More sophisticated or expanding companies that require sophisticated tools like payroll, inventory control, or comprehensive reporting are served by Sage 50 and Oracle NetSuite.
• The company’s focus on simplicity doesn’t mean their software lacks power.
• Accounting software automates bookkeeping, tracks expenses, ensures compliance, and provides real-time insights, helping startups make better financial decisions and focus on growth.
• This makes it the best SaaS accounting software for people who are already using one or more apps from the brand.
• We’ll also spotlight how innovative solutions like Brex are reshaping accounting for fast-growing companies, especially as accountant shortage continues and accounting expertise is hard to come by.

Best for Simple Invoicing and Estimates

• The detailed end-of-year reports can also help you get a clear view of your finances and streamline your operation.
• Financial statements software helps small businesses by automating bookkeeping, reducing manual errors, and saving time.
• It offers basic accounting services for free, which makes it a great option if you’re running a business with a tight budget.
• Nothing on Oracle Netsuite indicates that this may not be ideal for small businesses.
• With Lendio’s free plan, you can send invoices, manage income and expenses, and generate profit and loss reports.
• Its accessibility from any device ensures that businesses can stay on top of their finances.

Naturally, usage has translated into business demands for accounting solutions compatible with iOS and Android apps. Many companies will try to make do with a lower-cost solution at the expense of functionality. Options such as Sage 50c, Zoho Books, and Quickbooks Online are great low-priced options for new businesses, but they’ll https://www.theclintoncourier.net/2025/12/19/main-advantages-of-accounting-services-for-startups/ lack ways to customize the software towards your business. Integrations, or APIs, allow distinct products to talk with one another. For example, your payroll system could update your HR team with a chat program (such as Slack) of any processing errors. Your payment processor might automatically push new receivable entries to your accounting system.