If you’re looking for the best accounting software for tech startups, you’ve come to the right place. Choosing the right accounting solution is a critical step for any startup, even more so for a tech startup. As a business in the technology industry, you know how important it is to use the right solutions to help streamline your processes.
Also, since business accounting can be quite troublesome, choosing the best accounting software for tech startups can help you track and manage your finances and reconcile your accounts.
Accounting Software For Tech Startups
That said, choosing from the numerous solutions available to you can be daunting and confusing. Thus, we took the initiative and created a list of the best accounting software for tech startups to help narrow down your options.
1. FreshBooks
When talking about accounting software, FreshBooks is often one of the most popular names you’ll hear. FreshBooks is a cloud-based accounting solution that is equipped with useful features, including tracking time, project management, and tracking profit and loss. Tech startups will find these features useful and valuable to streamline their accounting process.
In general, FreshBooks boasts a general ledger-based double-entry accounting platform that is simple and easy to understand. Its intuitive and clean dashboard offers startups a central location to see their expenses and income quickly.
Capturing your financial movement is also easy using their mobile apps. So, instead of manually entering receipt data, its transaction download feature automatically pulls in the expense data. Thus, you can simply take a picture of the receipts using your mobile device, and the software will record it right away.
In addition, FreshBooks also offers a variety of reports, from basic balance sheets to more detailed and complex ones, such as payroll and sales tax summaries. In terms of pricing, FreshBooks uses a tiered subscription pricing model. Each tier differs in the functionality to which the user has access as well as the number of allowed users.
2. QuickBooks
QuickBooks is a strong competitor of FreshBooks and also one of the best accounting software for tech startups you should consider. The main reason why you should try this software is that it handles well. Also, due to its user-friendliness, most accountants are already familiar with how it works. This makes sense if you’re hiring an accountant to handle your business’s financials.
Designed with bookkeepers in mind, QuickBooks is simple accounting software that’s packed with functionality, including full-fledged accounts payable as well as bank, feeds with automated reconciliations, and AI-powered categorizations.
Tech startups will love how QuickBooks allows users to create and manage project income and expenses. Furthermore, QuickBooks also comes with a robust reporting capability, even with its cheapest subscription plan. All reports can be customized within the software and exported to Excel for deeper analysis.
3. Zoho Books
Zoho Books offers a complete solution for tech startups as well as growing businesses to handle their finances and stay on top of their cash flows. It’s the pioneering product of Zoho that allows you to record your offline payments, pull off invoices, or even associate those to selected invoices and projects.
Featuring an invoice template, Zoho Books also allows you to easily create professional invoices and personalize them with your brand. You can keep a record online of all your invoices, estimates, credits, and recurring invoices. In a single click.
In addition, you can also reconcile all types of transactions, manage inventory, process online payments, handle Pos and sales orders, track business expenses and facilitate tax compliance. Furthermore, this solution is built to manage your finances per project, allowing you to assign tasks and follow up via a mobile device.
4. Xero
Like QuickBooks, Xero is a web-based accounting solution ideal for small tech startups or any industry. This easy-to-use application can help manage your billing, banking, and cash flow analysis. Perhaps its biggest advantage is that it has an unmatched variety of integration, making it one of the most comprehensive and flexible solutions available.
The user-friendliness of Xero is an appealing feature for newbie entrepreneurs, particularly those just starting to get their business off the ground. You don’t have to be an accounting expert to use Xero since it uses translates standard accounting language to layman’s terms. It also offers an easy-to-read chart as part of its accounting module to get a visual representation of its status.
It also comes with a Sales module that facilitates accounts receivable. Furthermore, it comes with an accounts payable functionality for scheduling bill payments. And with its 800+ integrations, you get limitless options for customizations, scalability, and flexibility.
FAQ’s
The best SAP for accountants is…
The most often used module for financials as well as accounting is SAP FI. SAP ERP solutions handle a variety of accounting functions automatically, including keeping ledgers, balance sheets, profit and loss statements, etc. SAP FI modules provide enterprise asset management.
Is it simple to learn QuickBooks?
For someone who is familiar with accounting principles and understands how this accounting software for tech startups functions, learning on using QuickBooks is simple, but it might be challenging for someone who lacks technical expertise or has no prior experience in bookkeeping. Although the maker of QuickBooks, Intuit, promotes the software as being ready to use, the final user is ultimately responsible.
Conclusion
And there you have it! These are just some of the best accounting software for tech startups available today. All solutions listed above are rich in features and should be able to help manage your business finances and accounts. That said, the right one will still depend on your business-specific priority. Make sure to compare these solutions more closely to find the best one for your needs.
Please do not hesitate to share your ideas about accounting software for tech startups too. Leave your opinion in the comment section below. Have a good one.