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

If you choose Xero as your accounting tool, be sure to keep an eye on JAX—shorthand for Just Ask Xero. It’s a generative AI assistant that can help you do your accounting. From time to time, Meow Technologies Inc. (“Meow”) may offer a rewards program. This program is not a bank program and is paid by Meow, not Grasshopper Bank, N.A. Rewards are variable, offered at our sole discretion, and subject to change or cancellation at any time. End-to-end federal and state income tax filings designed for US startups. Hiring an accountant can save your company accounting services for startups thousands of dollars in taxes each year.

QuickBooks: Best for Reporting and Analytics

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While many users value the platform’s ability to integrate with third-party tools, some reviewers note that additional costs for certain add-ons can be a consideration as businesses scale.
QuickBooks Online, Xero, Wave, and FreshBooks are some of the best accounting software for startups.
While you might be getting to know HubiFi, it’s quickly making a name for itself with an innovative approach to financial management, especially for high-volume businesses.

The Zeni Business Credit Card is currently available to eligible Zeni customers by invite only. The Zeni Business Credit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Managing equity can be a confusing, overwhelming task for founders unfamiliar with the various processes, paperwork and filings involved.

When should a company upgrade from QuickBooks to Netsuite?

Secondly, the multiple tables are consolidated into one table, for example, Acedoca for finance and Matdoc for goods receipt.”- SAP S/4HANA Cloud Review, Maaz A.
Many businesses also benefit from strong integration capabilities that allow their accounting software to connect seamlessly with other essential tools like ERPs and CRMs.
Wave Accounting is best suited for small service businesses, more like home cleaning businesses, window washing, etc.
I’ve noticed that G2 reviewers often highlight how the ability to access QuickBooks Online from multiple devices, whether at home, the office, or on the go, adds significant flexibility.
Whether you’re a freelancer, startup, or local shop, accounting software for small business helps you stay on top of invoicing, taxes, and cash flow without spending hours in spreadsheets.

Known primarily for business planning software, Upmetrics also offers financial forecasting software powered by artificial intelligence (AI). With the software, startups can easily visualize their company’s financial performance and create projections up to 10 years in the future. QuickBooks’ comprehensive accounting software has been a business favorite for years.

This dramatically cuts down on manual data entry, which, as we know, saves time and reduces the chance of errors.
We focus on making complex financial processes manageable and accurate.
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.
For a start, businesses can create custom reports from scratch with QuickBooks, something FreeAgent and Zoho Books don’t allow.
Note that most of the small business accounting tools in this guide offer a free trial of up to 30 days.
Stampli is a interactive invoice management and accounts payable software tool.

The Accounting Automation Guide For Accounting Professionals

This is something competitor Xero did very well, and it saved us a lot of time. That said, we were able to complete essential tasks, https://ecommercefastlane.com/accounting-services-for-startups/ such as creating bills and expenses, quite easily and, as we’ve noted, we were impressed by the level of detail we could include. QuickBooks’ invoicing tool was particularly easy to use, thanks to its clear, uncluttered layout. A bonus was the fact that we could view previews before sending off an invoice to a client. Lastly, Zoho Books limits the number of invoices you can send per year, with maximum sends ranging from 1,000 to 100,000 depending on the plan. You can also head over to our methodology to find out how we ranked accounting platforms.

Whether you’re looking for advanced financial reporting or simple invoicing, we identify the best option for your organization. Digital accounting tools are all but essential in today’s competitive landscape, with 71% of small business owners now using accounting software to manage their finances. However, with countless options available, it’s challenging to identify the best products and services to meet your needs. QuickBooks, FreshBooks, YNAB, Moneydance, NolaPro, Simplifi, Quicken, Zoho, and Mint are top accounting and budgeting apps that sync with bank accounts for real-time transaction tracking.

What is the best program to run a small business?

This desktop-based software streamlines core accounting solutions, including invoicing, expense tracking, and payroll processing. When choosing the best accounting software for startups, consider factors like scalability, ease of use, and specific features tailored to your business needs. Compared to cash basis accounting, the accrual method provides a more accurate view of the company’s financial position as well as income and expenses. Plus, there are some states that require businesses to use the accrual method for their accounting. By prioritizing these features, you’ll set yourself up for success. The right accounting software won’t just meet your current needs—it’ll make your team more efficient and support your startup’s growth journey.

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Zoho Books and Sage Intacct also offer AI-driven automation for smarter bookkeeping and fraud detection. Nonetheless, users consistently highlight FreshBooks’ ease of use, intuitive design, and strong core functionality, making it a reliable solution for small businesses and freelancers. “Customer support is quite possibly the worst I have ever experienced, and unfortunately, I have had to use it many times. The agents have zero knowledge of the product or a basic understanding of accounting. Most of the time, I have to correct them on how the products function. Lastly, while the customer support team is widely described as knowledgeable and helpful, some reviewers on G2 would like to see quicker response times, particularly when dealing with time-sensitive requests.

Explore Accounting Service Reviews

This capability is seen as a major advantage for teams that must make fast, informed decisions without relying on outdated numbers. One standout capability, according to users, is Xero’s bank integration. I’ve seen multiple reviewers praise how it syncs directly with bank accounts, pulling in transactions for quick reconciliation. The automation through bank rules is a frequent highlight, helping users save time and reduce manual errors.