Accounting software for startups isn’t just a necessity; it’s a strategic advantage in navigating the complex financial space and establishing strong customer relationships.
The best part is that these tools offer tailored solutions, scalable to the unique needs and increased growth trajectories of startups.
If you’d love to know the top 16 accounting software for startups in 2024, keep reading. These are the options that, according to our extensive research, can cater specifically to the dynamic needs of startup companies.
Let’s get started!
Accounting software helps startups navigate the complexities of financial management. It offers streamlined solutions to contribute to their success.
We’ve compiled a list of 16 of the best startup accounting software for 2024. The list comprises both paid and free accounting software, ensuring there’s an option for every budget.
When choosing the best accounting software for startups, consider factors like scalability, ease of use, and specific features tailored to your business needs.
Let’s dive in!
Image via Xero
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. It also effortlessly captures bills and receipts.
The best part?
Xero collaborates with Gusto to extend its capabilities. It includes comprehensive payroll services for an additional $40.
While this accounting software for startups excels in meeting the needs of small businesses, larger corporations may not benefit as much. Its features are designed specifically with the needs of startups in mind.
Key Features
Pros
Cons
Pricing
Xero offers three pricing plans. When you choose the Growing and Established plans, you get 75% off for 3 months.
Image via Xero
Usability
Tool Level
Image via QuickBooks
QuickBooks is one of the best accounting software for startups. It combines affordability with a robust set of features.
This tool can handle a wide range of accounting tasks, such as expense tracking, inventory management, and financial reporting.
Despite not having a free plan, QuickBooks remains a preferred accounting software for startups and freelancers. After all, the platform offers cost-effective starter plans with outstanding features.
Features
Pros
Cons
Pricing
QuickBooks currently offers a discount across all pricing plans—$1 per month for 3 months. It also offers a 30-day free trial.
Here are the standard pricing plans:
Image via QuickBooks
Image via FreshBooks
FreshBooks is an easy-to-use startup accounting software with advanced features. It streamlines your financial tasks with an easy-to-use interface.
It covers everything from financial management to invoicing and automating repetitive processes.
Affordability is a key feature as it offers advanced tools without a hefty price tag. Perfect for freelancers and solopreneurs, it’s a single-user solution that grows with your business. FreshBooks also allows unlimited invoicing even on the basic plan.
Features
Pros
Cons
Pricing
FreshBooks offers 60% off for 6 months on all pricing plans, except Select. Here are the standard pricing plans without the discount:
Image via Freshbooks
Usability
Tool Level
Image via Zoho Books
Zoho Books is a versatile accounting software that simplifies financial management for startups.
It provides functionality for essential tasks like invoicing, order and payment management, and credit notes.
With advanced features like inventory management and in-depth analytics, Zoho Books caters to diverse business needs.
The platform’s seamless integration with other Zoho Suite tools ensures a comprehensive and unified solution for efficient business operations.
Features
Pros
Cons
Pricing
Zoho Books offers a free plan for businesses with a yearly revenue of less than $50,000.
Image via Zohobooks
Usability
Tool Level
Image via Oracle NetSuite
NetSuite ERP is a robust cloud accounting software that transcends traditional financial management.
Seamlessly integrating with broader enterprise functionalities, it unifies essential business processes into a centralized platform.
NetSuite ERP streamlines financial operations, offering comprehensive modules for accounting, invoicing, and expense management.
Its real-time analytics empower informed decision-making, while automated workflows enhance efficiency.
Features
Pros
Cons
Pricing
Usability
Tool Level
Image via Wave
Wave is an exceptional cloud accounting software designed for small businesses. It offers a suite of financial management tools with a focus on simplicity and affordability.
This cloud-based platform helps manage recurring invoices, track expenses, and scan receipts to streamline day-to-day financial operations.
Wave also supports payroll processing, allowing businesses to manage employee payments efficiently.
The software’s robust reporting tools provide insights into income, accounting reports, and overall financial health.
What sets Wave apart is its commitment to free access to core accounting features, making it an accessible choice for entrepreneurs and startups looking for comprehensive yet cost-effective solutions to manage their finances.
Features
Pros
Cons
Pricing
Image via Wave
Here are the prices for add-ons:
Usability
Tool Level
Image via Sage
Sage 50 Accounting is a leading cloud-based accounting software, catering to businesses of all sizes with a focus on scalability and financial precision.
This software provides a comprehensive suite for core accounting, invoicing, and expense management. Its real-time reporting and analytics empower users with actionable insights, fostering informed decision-making.
With multi-dimensional capabilities, it adapts to evolving business needs, offering robust project accounting and revenue recognition.
Features
Pros
Cons
Pricing
Sage 50 Accounting has three plans. For the Premium and Quantum plans, the price increases as you add more users. Here is the pricing for 1 user:
Image via Sage
Usability
Tool Level
Image via ZarMoney
ZarMoney is a comprehensive all-in-one accounting software that seamlessly integrates invoicing, inventory management, billing, and payment capabilities.
With a user-friendly interface, it simplifies the creation and customization of invoices, allowing convenient customer payments through a “pay now” option.
The platform’s advanced analytics and reporting features, offering over 40 customizable financial reports, empower businesses with insightful data.
Suited for both small and large enterprises, ZarMoney provides powerful tools while maintaining accessibility.
Features
Pros
Cons
Pricing
Image via ZarMoney
Usability
Tool Level
Image via AccountEdge
AccountEdge is a desktop accounting software designed for small and medium-sized businesses.
Mentioned in the Forbes Best Accounting Software 2024 list, AccountEdge boasts that customers save an average of up to 55% compared to other accounting software for startups.
This desktop-based software streamlines core accounting solutions, including invoicing, expense tracking, and payroll processing.
AccountEdge ensures accuracy with cash management and provides detailed financial statements, providing insights into business performance.
Its multi-user capabilities facilitate collaborative financial management, while inventory tracking and management features enhance control over stock.
Features
Pros
Cons
Pricing
Image via AccountEdge
Usability
Tool Level
Image via OneUp
Boasting a 95% automation rate, OneUp is another stellar bookkeeping software, specifically designed for small businesses seeking streamlined financial operations.
Addressing the challenges of financial accounting for startups, OneUp excels in automation, significantly reducing the time invested in tasks like syncing with business bank accounts and validating entries effortlessly.
It also includes an automated inventory management tool that helps facilitate quick order reviews and seamless communication with suppliers.
Upon vendor shipment, real-time updates across Square and other integrations ensure accuracy.
What sets OneUp apart is that it offers a full set of features at an affordable price, making it an ideal and cost-effective choice for startups.
Features
Pros
Cons
Pricing
OneUp offers a 30-day free trial that includes all features.
Aside from that, here are the pricing plans:
Image via OneUp
Usability
Tool Level
Image via ZipBooks
ZipBooks is a free and user-friendly accounting software designed to streamline financial management for businesses.
With an enduring free plan, users can send unlimited invoices, manage customers seamlessly, access basic reports, and connect to one bank account.
Easily create invoices that are professional and visually appealing. Efficiently track client payments, invoice history, late balances, and taxes.
The platform doesn’t stop at bookkeeping; it provides actionable insights through detailed financial reports and analytics.
Affordable paid plans unlock additional features for enhanced functionality. ZipBooks empowers businesses with the tools they need to manage finances effectively and make informed decisions in their entrepreneurial journey.
Features
Pros
Cons
Pricing
Image via ZipBooks
Usability
Tool Level
Image via Kashoo
Kashoo is a powerful double-entry accounting software that redefines financial management for small businesses.
This cloud-based platform simplifies complex accounting processes, offering features like invoicing and bank reconciliation with ease.
Kashoo’s intuitive interface ensures accessibility for users with varying accounting expertise.
Users can effortlessly create and send professional invoices, track expenses, and reconcile bank transactions for accurate financial reports.
The software’s real-time reporting provides insights into business performance to help startups make informed decisions.
With affordable pricing plans, Kashoo emerges as an ideal solution for businesses seeking efficient, user-friendly accounting tools that seamlessly adapt to their evolving financial needs.
Features
Pros
Cons
Pricing
Image via Kashoo
Usability
Tool Level
Image via Odoo
Odoo, a comprehensive business management suite, extends its prowess to accounting, delivering a seamless financial solution for enterprises.
This all-in-one platform integrates core accounting features, including invoicing, expense tracking, and bank reconciliation.
Odoo’s modular structure allows businesses to customize their accounting setup to ensure scalability and adaptability to diverse financial needs.
The software’s real-time reporting capabilities provide valuable insights for strategic decision-making.
Odoo stands out for its holistic approach, covering not only accounting but also other business aspects. It is ideal for organizations seeking an integrated solution that unifies financial processes with broader operational functionalities.
Features
Pros
Cons
Pricing
Both Standard and Custom plans include all apps for one fee, including sales, marketing, accounting, HR, CRM, inventory, and more.
Image via Odoo
Usability
Tool Level
Image via ClearBooks
ClearBooks is the UK’s leading dynamic accounting software for startups, supporting over 15,000 small businesses. It’s also crafted to streamline financial management for businesses of all sizes.
With a user-friendly cloud-based platform, ClearBooks simplifies complex accounting tasks through invoicing, expense tracking, and bank reconciliation features.
ClearBooks goes beyond standard bookkeeping. It provides real-time reporting for actionable insights into business performance.
Features
Pros
Cons
Pricing
Image via ClearBooks
Usability
Tool Level
Image via Patriot
If you need reliable and easy-to-use accounting software for startups, Patriot is an ideal choice.
With a user-friendly interface, Patriot simplifies accounting and payroll tasks, such as invoicing, expense tracking, bank reconciliation, financial reporting, payroll processing, and ensuring compliance with tax regulations.
True to its innovative nature, Patriot also owns the patent on toggling between accrual and cash-basis accounting.
Although it doesn’t provide a mobile app, Patriot’s 100% cloud-based platform enhances accessibility. It allows users to manage their finances anytime, anywhere.
On top of accounting and payroll, users can add time and attendance tracking and HR features.
Features
Pros
Cons
Pricing
Patriot offers a 30-day free trial.
Image via Patriot
Usability
Tool Level
Image via GnuCash
Licensed under the GNU GPL, GnuCash is another one of the best free accounting software for startups. Compatible with Linux, Solaris, Mac, Microsoft Windows, and various other platforms, Gnucash is a versatile choice.
Its extensive feature set includes core accounting functionalities, invoicing, expense tracking, and financial reporting.
Regularly updated by a dedicated community of developers, GnuCash ensures continuous improvements and adaptability.
While lacking dedicated customer support, its open-source nature fosters a collaborative environment, making it an excellent choice for those who value flexibility and community-driven development in their accounting software.
Features
Pros
Cons
Pricing
GnuCash is completely free.
Usability
Tool Level
Q1. Which accounting tools are best for startups?
The best accounting software for startups varies depending on the company’s specific needs. However, these are our top five picks based on certain criteria.
Q2. What essential features define the best accounting software for startups?
The best startup accounting software should include core accounting and general ledger functionality, invoicing capabilities, bank reconciliation, multi-currency support, expense tracking, and financial reporting features. These features are necessary for almost every startup business.
Q3. Which accounting tools are mostly used by startups?
QuickBooks, Xero, and FreshBooks are frequently embraced by startups for their user-friendly interfaces, robust features, and scalability.
Q4. Is QuickBooks a good accounting tool for startups?
Yes, QuickBooks is a widely used and trusted accounting tool for startups.
Its user-friendly interface, comprehensive features, and scalability make it an excellent choice for managing the financial aspects of a startup business.
Q5. Which accounting software is the easiest to use?
FreshBooks is known for its user-friendly design. Its intuitive interface simplifies accounting tasks, catering to users with varying levels of financial expertise. Even non-accounting experts can easily figure out how to use FreshBooks.
Accounting is one of the most important aspects of the journey of a startup, particularly during the early stages. It ensures financial health, regulation compliance, and strategic decision-making according to reports and analytics.
Startups may not be able to afford an accountant or bookkeeper yet. This is where startup accounting software comes in handy. It can help streamline and simplify this crucial process.
We’ve highlighted the 16 best accounting software for 2024 that we believe offer a diverse range of features catering to the specific needs of startups.
Remember to identify what your startup needs and utilize the free trial before you fully commit to a platform. We wish you luck as you embark on this exciting financial management journey for your startup!
If you run an ecommerce business, maintaining accurate accounting records is crucial to business success.…
Many small businesses often overlook the importance of organized bookkeeping or consider it too overwhelming.…
If you understand what CRM is, you’ll agree that deciding on the best CRM for…
Managing your business finances is an important part of running your financial operations. With the…
QuickBooks Online launched in 1992 as a basic accounting solution. Now, it provides small and…
As a self-employed professional, keeping your books in order is a critical but often overwhelming…