Without proper accounting for startups, you risk losing control over your cash flow, which can quickly lead to failure. In fact, 38% of startups fail because they run out of money, according to CB Insights. Despite these limitations, Wave can be a suitable choice for startups in certain scenarios.

Business Checking

Plus, they require less expensive on-premise hardware, making them cost-effective for small companies. With its user-friendly interface and robust features, FreeAgent has become an industry standard accounting software for startups and small businesses. It’s particularly popular among accounting firms and freelancers who need a reliable solution to manage their client base efficiently. A user-friendly platform, ClearBooks allows users to enjoy the benefits of cloud-based accounting, simplifying complex accounting tasks through invoicing, expense tracking, and bank reconciliation features. ClearBooks is the UK’s leading dynamic accounting software for startups, supporting over 15,000 small businesses.

Best accounting software for startups (2025 guide)

• Regularly tracking the basics helps ensure financial stability and informed decision-making.
• Accounting software refers to digital tools designed to help startups organize and manage their finances, tracking revenue, expenses, bank activity, invoices, and other essential data.
• Brightpearl is an omnichannel retail management platform for inventory management, order processing and fulfilment, contact relationship management, and accounting automation.
• †2% average savings are based on an average estimated fee rate of 3% for foreign currency conversion fee charged by Visa and most issuing banks.
• Accrual accounting involves recording revenue when a sale is made, not necessarily when cash is received, and expenses when they are incurred, not necessarily when paid.
• Let’s start with an at-a-glance comparison of each provider in terms of what really matters to your business.

There’s still a setup checklist that you can follow to learn more about how to use all the tools here, or you can schedule a call with the team and ask all the questions that you need. FreshBooks is known as easy-to-use accounting and invoicing software for small businesses, sole traders and freelancers. The higher your plan tier, the more accounting for startups features you get – including things like managing/submitting CIS, cash flow forecasting, automated receipt capture and multi-currency invoicing. If you’re working with an accountant or looking for one to help you grow, it’s a great idea to talk to them and find out what software they recommend. They may not only have insights into what works for your business but could also have a stack of software that syncs with a certain platform to make your life easier.

• 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.
• These tools are great to start with—but as soon as you start generating revenue or preparing for fundraising, you’ll likely outgrow them.
• Outsourced firms bring a wide range of expertise and resources that small companies might not afford otherwise.
• Cloud-based accounting software offers SMBs many advantages, such as faster and less expensive implementation and reduced hardware costs.
• As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries.

Why Do We Recommend Freshbooks?

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. I want my bookkeeping done as accurately, quickly, and efficiently as possible so that I can spend my time on higher “value add” activities. That’s why we use QuickBooks Online for pretty much 100% of our 750+ startup clients. It’s also important to us an online accounting software so you don’t need a bookkeeper to come to  your offices every month https://www.theclintoncourier.net/2025/12/19/main-advantages-of-accounting-services-for-startups/ to do your books.

Time management

We put dozens of accounting software products through their paces to identify the best option in 10 categories. Whether you’re looking for advanced financial reporting or simple invoicing, we identify the best option for your organization. FreshBooks is a leading small business accounting software firm that offers an assortment of invoicing and bookkeeping tools. FreshBooks’ accounting software accounts for every business transaction, whether online or offline.

They praise its integration and inventory management capabilities, which are especially useful for small businesses. All Zoho Books plans, including the free version, support automated bank reconciliation that identifies and matches transactions from your bank statements to your accounting records. Businesses can view the status of all their accounts in a single window and retrieve statements from banks and creditors on a set schedule using third-party services.

Pricing Structures and Scalability

Even non-accounting experts can easily figure out how to use FreshBooks. Wave also supports payroll processing, allowing businesses to uphold payroll best practices and manage employee payments efficiently. QuickBooks currently offers a discount across all pricing plans—$1 per month for 3 months.

• QuickBooks users appreciate the product’s intuitive interface and ability to automate accounting tasks.
• NetSuite ERP streamlines financial operations, offering comprehensive modules for accounting, invoicing, and expense management.
• Xero tends to be ideal for smaller startups, while QuickBooks is popular for all types of startup sizes.
• What-if analysis is a strategic decision-making tool used in financial planning to evaluate the impact of various hypothetical scenarios on …
• Its intuitive interface simplifies accounting tasks, catering to users with varying levels of financial expertise.
• Intuitive interfaces accelerate training and reduce errors, enabling startup teams without extensive accounting backgrounds to manage finances confidently.

Integrations

On the other hand, outsourcing accounting services can be a cost-effective solution, especially for early-stage startups. Outsourced firms bring a wide range of expertise and resources that small companies might not afford otherwise. You benefit from specialized knowledge while only paying for the needed services, making it a scalable solution as your business grows. Accounting is crucial for startups because it gives you a clear picture of your finances.