Top Picks: The Best Accounting Software for Startup Success

1. QuickBooks

QuickBooks Online is a top choice for small businesses, and for good reason. It's the most widely used accounting software in the world. With QuickBooks, you can easily track receipts, income, and transactions. You can even take photos of receipts and link them with expenses, making it super convenient.

QuickBooks Online is compatible with PCs, Macs, tablets, and phones, so you can manage your finances from anywhere. Plus, new subscribers can get a 30-day free trial and 70% off for the first three months.

Here are some standout features:

• Cloud-based, so you can use it anywhere
• Integrates with hundreds of third-party apps
• Perfect for those familiar with QuickBooks Desktop
• Accountant-friendly software

QuickBooks helps you keep track of your income and expenses so that you can prepare for taxes. Customers save an average of $3,534 per year.

However, it's not all perfect. The online version isn't as robust as the QuickBooks Desktop version, and customer support can be lacking with long wait times. Also, necessary add-ons and integrations can make the software seem overpriced compared to other small business accounting software.

Despite these drawbacks, QuickBooks Online remains a solid choice for small businesses looking for a reliable and user-friendly accounting solution.

2. FreshBooks

FreshBooks is a top choice for small businesses and freelancers who need a simple yet powerful accounting solution. It's perfect for very small businesses with just one or two people. FreshBooks offers a range of features that make managing your finances a breeze.

Pricing Plans

FreshBooks has four main pricing plans:

• Lite ($8.50/month):
• Plus ($15/month):
• Premium ($27.50/month):
• Select (Custom pricing):

Standout Features

FreshBooks excels in several areas:

• Customer Support: FreshBooks offers phone and email support, which is rare among accounting software providers. Their vast knowledge base is also a great resource.
• Project Accounting: You can easily track employees’ time and add it to your invoices. Compare your budget costs to actual time and expenses to manage your operations better.
• Mobile App: FreshBooks’ mobile app can perform almost all the same functions as the desktop interface. Send invoices, enter and pay bills, accept payments, upload receipts, and more.
• Financial Reporting: FreshBooks generates a wide range of reports, including balance sheets, P&L statements, and general ledgers.

FreshBooks makes managing your cash flow easier than most other small business accounting software solutions. With its well-organized platform and visual dashboards, you can keep track of all your money in real-time.

Who It's Right For

FreshBooks is ideal for small businesses overwhelmed by the amount of information they need to track. Its clean, user-friendly interface allows users to easily enter their information and track multiple expense streams. Whether you're paying for employees, supplies, or equipment, FreshBooks has you covered with professional and convenient tracking features.

3. Zoho Books

Zoho Books is a cloud-based accounting software designed for small to medium-sized businesses. With six different plans, businesses of all sizes can find a package that fits their needs. Zoho Books offers affordability and easy online access, making it a great entry-level accounting application.

Zoho Books comes packed with features like multilingual invoice processing, sales tax monitoring, billing and timesheet administration, customer and vendor portal access, inventory integration, forecasting, and customizable reporting. Higher-priced tiers unlock more advanced analytics, real-time data, additional user accounts, increased usage limits, and expanded integration options.

Pros

• Free plan available
• Works within the Zoho product suite
• Wide range of use cases for different businesses
• Several plan options to choose from
• Email, voice, and chat customer support for all paid plans

Cons

• Not ideal for large companies
• Only 15 maximum users with the highest-cost plan

Pricing & Notable Features

Zoho Books offers a wide range of plan options totaling six, including their free plan. The plans increase in features and the number of users able to utilize the platform. Note that the pricing listed below is per month, billed annually. Prices will increase if you opt for monthly billing.

Zoho Books is best for businesses that use other Zoho applications, but its appeal isn't limited to such cases. We also recommend it to larger small businesses, growing businesses, and established businesses that want its customizability, depth, and usability.

4. Xero

Xero is our fourth pick for the best accounting software for startups. It's a cloud-based solution that covers all the basics like recording transactions, calculating tax, and tracking inventory and financial data. Xero is especially great for small businesses with multiple users.

Pros

• Easy to use bookkeeping software
• Run basic reports and analytics to measure the health of your small business
• Record products and services in the business ledger
• Good software for self-employed persons
• Easy to use mobile app

Cons

• Fewer reports than FreshBooks and Intuit QuickBooks
• Inventory management is quite basic
• Xero charges for ACH transactions

Pricing & Notable Features

• Early ($13 per month)
  • Ability to send quotes and up to 20 invoices online
  • Tracking for up to five bills
  • Data capture with Hubdoc
  • Connection with banks
  • Inventory management
  • Sales tax management
• Growing ($37 per month)
  • Ability to send unlimited quotes and invoices online
  • Unlimited bill tracking
  • Bulk transaction reconciliation
• Established ($70 per month)
  • All features in the Early and Growing packages
  • Multi-currency capabilities
  • Project tracking
  • Ability to take photos of receipts
  • Expense monitoring

Xero is best for small businesses where multiple people need to access the accounting software. It's also ideal for businesses that would make use of the lion's share of its well-integrated features, and that need powerful reporting tools.

Who It's Right For

Xero is best suited for less complex businesses, more like your mom and pop shops, one-off restaurants, even Etsy stores. It is great for small business owners needing fewer accounting features.

5. Wave Accounting

Wave Accounting is a fantastic option for small businesses, especially those just starting out. It's free and offers a lot of features that can help you manage your finances without breaking the bank. However, it does have some limitations that you should be aware of.

Wave Accounting is best for small service businesses, like home cleaning or window washing. It lets you track your income and expenses, send unlimited invoices, and connect multiple bank accounts and credit cards. You can even run multiple businesses on a single account.

If you're a small business owner who needs basic accounting features without spending a dime, Wave is a great choice.

Pros

• Free software for small businesses
• Send unlimited free invoices
• Great for tracking income and expenses

Cons

• Limited features compared to paid software
• No live customer support in the free plan
• Doesn't track inventory or cost of goods sold (COGS)

Pricing

Wave offers a free version and a paid plan that costs $16 per month or $170 per year. The paid plan includes additional features like bank feeds and unlimited receipt scanning. There are also add-ons available:

• Wave Payroll: $20-$40 per month plus $6 per employee
• Wave Advisor: $149 per month for bookkeeping support
• Accounting and payroll coaching: $379 per session

Standout Features

• Basic financial reporting: Generate balance sheets, income statements, and more. Reports can be exported to Excel or CSV files.
• Wave ProAdvisors: Get one-on-one accounting, bookkeeping, and tax coaching from trained professionals.
• Sales and income tax: Add sales tax to invoices and transactions, but note that you can't pay your tax liability through Wave.
• Invoicing: Create invoices with your company logo, set up recurring invoices, and view outstanding ones easily.

Wave Accounting is a great tool for startups in their early stages. While it may not scale with your business as you grow, it's a solid choice for getting started.

6. Sage

Sage made our small business accounting list mainly because it offers several great accounting solutions for small businesses. The pricing for these solutions starts low and runs higher depending on the solution you choose.

Why We Love Sage

Sage is a powerhouse when it comes to accounting software. It's especially great for companies that need robust inventory-tracking capabilities. Sage 50 Accounting, also known as Sage Business Cloud Accounting, is a comprehensive tool designed for desktop use. It does more than what many small businesses need.

Key Features

• Double Entry
• All Major A/R, A/P Forms
• Mobile Access
• Time Tracking
• Payroll
• Customer/Vendor Portals
• Tracks Inventory
• Training Available
• Document Management
• CRM Integration
• Multi-Currency
• Live Support

Pricing

Sage offers different pricing plans to fit various needs:

• Pro ($595 per year for one user)
• Premium ($970 per year for one user)
• Quantum ($1,610 per year for one user)

Who Should Use Sage?

Sage is suitable for any size and type of business. For small businesses, Sage offers two cloud-based programs: the basic Sage Accounting software and the more robust cloud-based desktop hybrid accounting Sage 50cloud software. The advanced accounting tools in Sage provide financial and accounting information and insights to management and executives.

Sage is really good for startups, small businesses, solopreneurs, and retail service spaces where you aren’t doing a lot of in-depth inventory management.

Pros and Cons

Pros:

• Great dashboard
• In-depth record and transaction forms
• Advanced inventory management tools
• Voluminous reports
• Microsoft 365 integration

Cons:

• For Windows only
• Resource-heavy
• Some UI elements look dated
• No mobile apps

7. LessAccounting

If you don’t need fancy apps or complex software to manage your business, LessAccounting could be what you’re looking for. With LessAccounting, you log in to your account through their website and record your business transactions.

We like LessAccounting because it is so simple to use. There are no apps to download or software to learn. You simply plug your financials into the LessAccounting website and generate the reports you need.

LessAccounting also offers a four-tier bookkeeping service option as well. They’ll keep the books for you. You pay based on your monthly expenses, and come tax time, you’re ready to pass them off to your accountant.

Pros

• Simple accounting solution for the solopreneur or freelancer
• Great for business owners with basic accounting needs

Cons

• Can’t handle complex accounting situations
• Expensive compared to other options

Pricing & Notable Features

• Lite ($24 per month)
  • Unlimited customer invoices, expense entries, estimates, and team members
  • Automated bank imports
  • Payment acceptance
  • Budget creation
  • Tax reports

LessAccounting is built for small businesses, freelancers, and consultants. This is likely a better solution for small companies rather than large enterprises.

8. NetSuite ERP

NetSuite ERP is a cloud-based accounting software that offers a comprehensive solution for businesses looking to manage their finances efficiently. It's especially great for companies in the growth stage that are ready to move from simple accounting software to more advanced ERP systems.

One of the standout features of NetSuite ERP is its general ledger. This feature includes automated journal-entry approval workflows, ensuring various criteria are met before posting the journal and automating routine calculations. This can save a lot of time and reduce errors.

NetSuite also supports multiple books, allowing you to manage books using different accounting standards. This is possible due to prebuilt mapping capabilities that connect primary and secondary charts of accounts and book-specific functional currencies.

Another key feature is its support for multiple currencies and tax structures. NetSuite helps you keep precise tax records in the currency that your customers and partners use. You can record transactions in local and base currencies and convert currencies using the latest exchange rates.

Additionally, NetSuite ERP offers robust accounts payable features. You can automate all aspects of invoice delivery, payment processing, and collections management. This includes automating review and approval workflows for your accounts payable process.

NetSuite can be integrated with various apps for logistics, point-of-sale, and e-commerce platforms via the NetSuite Connector. Supported integrations include eBay, Magento, Shopify, ShipStation, and more.

NetSuite ERP is a great system for companies in the growth stage that are ready to move from simple accounting software to more advanced ERP.

NetSuite offers quote-based pricing, with an annual fee plus a one-time implementation fee. You can also try out NetSuite ERP with their free trial.

9. AvidXchange

AvidXchange is a top choice for middle-market businesses looking to streamline their accounts payable process. This software helps companies move from manual to digital AP processes, which can save time and reduce errors.

One of the standout features of AvidXchange is its cutting-edge automation tools. These tools include PO automation, paperless invoicing, and B2B payment processing. With AvidInvoice, users can receive, track, and approve invoices using OCR technology, making the process much smoother.

AvidBuy, the purchase order software, helps solve common issues like delays and coding errors. Once your data is exported to your accounting system, the software conducts two-way and three-way matching to ensure accuracy.

AvidPay allows users to make business-to-business payments online. You can set up custom workflows, making transactions within the vendor’s supplier network fast and secure. This reduces the time spent compared to manual check processing.

AvidXchange can be integrated with more than 220 apps, including SAP Concur, Oracle NetSuite, Sage Intacct, Microsoft Dynamics, and QuickBooks.

Key Features

• Invoice Processing: AvidInvoice uses OCR technology for receiving, tracking, and approving invoices.
• Invoice Automation: AvidBuy helps solve PO process issues like delays and coding errors.
• Bill Payments: AvidPay allows for secure online B2B payments and custom workflows.

Pricing

AvidXchange offers a quote-based plan that is available upon request from the vendor.

Pros and Cons

Pros:

• Cutting-edge automation tools
• Integration with over 220 apps
• Secure and fast B2B payments

Cons:

• Pricing is not transparent and requires a quote
• May be too advanced for very small businesses

10. A2X

A2X is a fantastic accounting software designed specifically for ecommerce businesses. It simplifies bookkeeping and ensures accurate financials, making it a great choice for online sellers. Whether you're using eBay, Etsy, Amazon, Shopify, or Walmart, A2X has got you covered.

One of the standout features of A2X is its ability to detect transactions on your ecommerce platform once connected. You can then map these transactions to your chart of accounts and generate custom accounting reports. This saves you a ton of time and effort.

Key Features

1. Product Type Grouping: Group various SKUs into single line items for accounting or taxation purposes. This is especially useful for tracking items by brand for profit and loss reporting.
2. Auto-Post: Automatically post your settlements and payouts after setting up your account and tax configuration. This feature can also be applied to the cost of goods sold.
3. Bulk Actions: Perform actions on up to 50 settlements or payouts at a time. Options include bulk refresh, bulk delete, bulk send sales, and bulk export.

A2X also allows you to send summarized entries for matching with your accounting system, such as Xero, QuickBooks, or Sage. From there, you can easily reconcile your books.

A2X is a game-changer for ecommerce businesses looking to streamline their accounting processes. It not only saves time but also ensures your financials are always accurate.

In terms of pricing, A2X offers various plans depending on the ecommerce channel you use. For example, Amazon users can expect to pay between $19 to $139 per month, while Shopify users will pay between $19 to $69 per month. They also offer a plan for sellers on multiple sales channels, ranging from $79 to $149 per month.

If you're an ecommerce business looking to simplify your accounting, A2X is definitely worth considering. Its advanced features and ease of use make it a top pick for startup success.

Wrapping It Up

Choosing the right accounting software is a big deal for any startup. The right tool can save you time, money, and a lot of headaches. Whether you go with QuickBooks for its all-around capabilities, FreshBooks for service-based businesses, or Wave for a free option, there's something out there for everyone. Don't rush your decision—take advantage of free trials and demos to find the perfect fit for your needs. Remember, the best software is the one that makes your life easier and helps your business grow. Happy accounting!