Most startup owners wonder how they can handle their business finances while staying on top of their operations, long-term goals, and investor expectations. This is particularly true if accounting isn’t their forte or have never been responsible for company financials before. In this case, accounting software is your best option. That said, with hundreds of software options, finding the best accounting software for tech startups is not so simple.
4 Best Accounting Software For Tech Startups
So, we take the initiative and created this list of the best accounting software you can find today.
In terms of accounting software, QuickBooks is among the most popular name. And there’s a reason why it took the first place on our list. Intuit has taken the time to build the QuickBooks software for almost every kind of startup including tech businesses.
This solution is user-friendly and feature-rich for professionals of any kind including startup owners, CPAs, CFOs, and bookkeepers. Perhaps the most valuable aspect of this software is its scalability. Each plan of this software includes photo receipt capture, hundreds of handy integration with 3rd party software, and customer support.
The online version is super easy enough to intuitively navigate. It also has its own Android or iOS mobile app that gives you access to your accounting and finances from anywhere and anytime. All plans allow seamless integration with various 3rd party apps such as PayPal or Stripe.
FreshBooks is a solid competitor of QuickBooks. This software allows entrepreneurs to put their business finances and accounting on autopilot.
FreshBooks is a cloud-based accounting solution with consistently high ratings from clients for its robust features, intuitive user interface, and easy navigation. Also, it covers the basics of invoicing, double-entry accounting, estimates, time tracking, expense tracking, online payment processing, and project management. Unlike most accounting software, FreshBooks offers both iOS and Android mobile apps, allowing you to work anytime and anywhere.
This accounting software is mainly aimed at startups or small business owners, freelancers, and other self-employed individuals. With your upgrade plans, you get access to more features such as automated payment reminders, client retainers, and unlimited proposals as well as more billable clients.
The Netsuite is a powerful enterprise resource planning (ERP) system that’s designed to help businesses streamline and unify their overall operations. This platform goes far beyond business accounting and provides tech startups a true one-stop-shop for managing their business finance and reaching their growth goals.
Netsuite is a powerful cloud accounting tool that combines the accounting features that tech startups expect with advanced features and functions such as in-depth compliance management. With this solution, you can tap and review real-time accounting data insights for each step of your operations, from buy order to shipment.
In addition, Netsuite makes it super easy to generate financial reports such as balance sheets and profit and loss statements. As your startup expands and evolves, you can also add on modules for the project, billing, supply chain, revenue, and inventory management.
Xero is suitable accounting software for both late- and early-stage startups, helping them say goodbye to the risky manual data entry as well as the time-consuming administrative work. This is one of the least expensive cloud software solutions that does not sacrifice much of its features.
With this software, you can send online invoices, reconcile transactions, record receipts and bills from your mobile device and computer, and allows access platform on Android, iOS, PC, and Mac devices.
Xero offers tech startups three subscription plans. The lowest tier has a limited number of quotes, invoices, and billing that you can process. However, for the upper-tier plans, these restrictions are removed and even come with an add-on feature such as projects and expenses. Not only that, but you also get multiple currency access that is more suitable for global and large businesses.
That said, regardless of what you choose, the Xero accounting software allows integrations with over 600 applications, including HR software, online marketplaces, bookkeeping, and project management software.
Do I really need accounting software for my startup?
This will depend on how much time you wish to spend working the numbers manually or how adept you are at working on spreadsheets.
However, accounting software is a must-have even for the smallest ad newest businesses, particularly in this increasingly competitive world. For one, the right accounting software can help reduce human errors. It also helps you stay compliant with your taxes.
Also, with accounting taxes becoming more and more complex as your business evolves, you can save the headache earlier on.
What to consider when choosing accounting software?
This will depend on your business’s needs. However, as a tech startup, the first thing you need to consider is your budget. If money is a concern, then you need to consider how many employees will need access to the software.
Also, some solutions charge based on the number of billable clients or the number of invoices. You also need to consider how much experience you have with bookkeeping or accounting. If you’re expecting your business to grow rapidly, then you also need to consider how scalable it will be.
Is accounting software easy to use?
This will depend on the software you have. In general, though, accounting software providers know that their clients are not an accountant but business owners looking to simplify their accounting needs.
So, they make their accounting software as easy as possible. That said, you still need to have basic knowledge of accounting in order to use modern accounting solutions more effectively.
For the month-old tech business or just about any type of startup today, the right accounting software is a must-have tool early on. The best accounting software for tech startups can help you track your expenses and income, automate the tedious tasks, get updated business financing insights and simplify your tax filing every year.
We hope that the above list has helped speed up your search and find the right one suitable for your tech company.