This flexibility sets Xero apart from competitors like NetSuite and QuickBooks, making it a popular choice among startups looking for a versatile accounting solution. The decision between NetSuite and QuickBooks often depends on the startup’s growth stage and funding. Startups in the early stages with limited resources may find QuickBooks more suitable, as it provides the essential accounting functionalities at a lower cost.

Actionable financial insights

Xero is one of the best online accounting software for startups that helps streamline essential financial data with finesse. It excels in accounting tasks, such as invoice management and bank reconciliation. Sage 50 is a comprehensive desktop accounting software with cloud connectivity that’s designed for small businesses with in-house bookkeepers. It features cash flow management, bank reconciliation, job costing, payroll, and detailed reporting capabilities. For tech startups looking for a cost-effective accounting solution, Xero might be the perfect fit. With its affordable pricing plans and user-friendly interface, Xero is a popular choice among small businesses, including tech startups.

• One challenge you will face as a business owner will be managing your finances.
• Xero is probably the number one alternative for the smaller company segment.
• NetSuite is an enterprise-level solution with robust features designed for rapidly scaling businesses.
• NetSuite also provides multi-currency support, making it an excellent choice for tech startups with international operations.
• We recommend Zoho Books for small- to medium-sized businesses based on their features, user limits, and pricing.
• It can also achieve this through accurate payment and expense tracking, and with robust financial reporting features.
• With features like automated bookkeeping, expense tracking, multi-currency support, and a mobile app for on-the-go access, QuickBooks provides the tools necessary for efficient business performance tracking.

Free bookkeeping

In this guide, we’ll break down three key features to look for, highlight some of the top accounting tools available in 2025, and provide tips to help you get started. This simplicity is why many startups and established businesses alike endorse QuickBooks as their go-to accounting software. You https://www.citybiz.co/article/785736/the-real-value-of-accounting-services-for-startups/ can follow the step-by-step process provided by QuickBooks to link your bank account securely.

• QuickBooks can connect to inventory tracking apps so you will have real-time visibility of your best sellers and poor performers.
• And, Intuit has made a lot of progress on the APIs, even Kruze like we’ve built a bunch of software internally that automatically categorizes transactions and pulls financial reports automatically.
• As AI continues to transform financial management, businesses should prioritize platforms investing in automation, machine learning, and intelligent analytics.
• Whether you’re working from the office, home, or traveling for business, having access to your financial data at all times ensures that important decisions can be made promptly.
• Presenting clear, professional invoices helps establish trust with clients and speeds up payments.
• Startups in the early stages with limited resources may find QuickBooks more suitable, as it provides the essential accounting functionalities at a lower cost.
• By setting up recurring transactions, you can save time and ensure accuracy in your financial records.

Best for Industry-specific features

Find out how to implement this essential practice in your accounting department. Learn how our spend platform can increase the strategic impact of your finance team and future-proof your company. Whether you’re a fledgling startup or a scaling powerhouse, this article will equip you to make an informed decision that aligns with your specific accounting needs.

Customization options

• Requires a separate QuickBooks Payments account which is subject to eligibility criteria, credit and application approval.
• Unlike the familiar process of opening a personal banking account at your local Chase or Wells Fargo branch, business accounts have different requirements for eligibility.
• Whether you’re paying for employees, supplies, materials, equipment, or space, Freshbooks has you covered with professional and convenient tracking features.
• As a business owner, you may be asking yourself, ‘Do I really need to pay taxes when I haven’t even sold any products yet?
• Limited budgets often force startups to prioritize immediate needs over long-term scalability.
• In this review, we will look at the best accounting software for startups and small businesses.
• If you’re on a tight budget, the Simple Start plan is an entry-level subscription with all the basic features a small business needs to manage their books.

Beyond payments, CRMs, and banking, consider integrations with tax software, payroll systems, e-commerce platforms, and expense management tools. The more connected your financial ecosystem, the easier it is to maintain accurate records and streamline operations as you scale. 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. In addition to basic functionalities accounting services for startups like invoicing and expense tracking, advanced reporting capabilities are vital components of QuickBooks plans suited for startups’ evolving needs. Bookkeeping with QuickBooks is one of the least expensive options, offering a free trial and pricing plans that start from $12.50 per month with robust accounting features.

Stay Compliant with Tax Regulations

These cover a very wide range of costs, starting from £10 + VAT per month, all the way up to £123 + VAT per month. We’d also highlight to users that the bank categorisation feature, while powerful, can be easy to make mistakes with. If you do slip up, it can then be quite tricky to undo this if you don’t know exactly what you’re doing. The AI categorisation suggestions are solid, but it’s still improving.