The 5 best accounting software & tools for startups in 2026

There are a few accounting software options that live within a suite of products created by one company. If you are looking to streamline your processes, it is important to consider accounting software that will integrate seamlessly with your current tech stack. Startups are all about scale, and their accounting software should be, too.

Integration capabilities

However, there are plenty of reasons why some companies choose to keep their accounting operations on their premises, including ownership and control over financial data and access to systems when internet links fail. However, some users criticize the lack of functionality in the FreshBooks mobile app. They also point to its high price for growing businesses and report difficulties with mileage tracking, integrations and other features. Some are disappointed with the poor responsiveness of its customer service, as well as frequent payment processing delays and technical glitches. If you’re not ready to commit to a monthly subscription, you like the vibe of open source software, and you don’t need lots of advanced features, Manager is a great choice for simple accounting software. It has all the core bookkeeping features, including projects, time tracking (not timer-based), and a wide variety of useful modules.

ZipBooks: best free accounting app for unlimited contacts and payments

Once you sync your bank account and credit cards to your accounting program, the software automatically imports your financial transactions. This ensures you’re always working with the most up-to-date numbers as you’re making crucial business decisions. Xero offers fantastic accounting features at a reasonable starting price, but the best accounting software option for you depends on your business’s unique needs and budget. Finding the best online accounting software for your small business can seriously transform your working life. With less time spent on data entry, you have more time for the things you like most about small-business ownership, whether that’s getting to know customers or making products you’re proud of. Yes, cloud-based accounting software options are ideal for startups because they offer flexibility, remote access, and automatic updates.

What’s the difference between bookkeeping software and accounting software?

Another nice thing about Xero is that you can try it before you buy it. Your company needs accounting and bookkeeping software with third-party integrations that can efficiently achieve SaaS billing, SaaS metrics, and reporting and handle other aspects of business accounting. These other integrated software applications include AP Automation or Mass Payments to process, approve, and pay worldwide supplier or partner invoices. Using these types of financial automation software will lessen pain points for your CFO and Controller’s team, improve cash flow in your business, and help you close the books sooner.

When should a company upgrade from QuickBooks to Netsuite?

Less Accounting also offers a four-tier bookkeeping service option as well. You pay based on your monthly expenses, and come tax time, you’re ready to pass them off to your accountant. We like Xero as our fourth choice for the best accounting software for small business because of its simplicity and ease of use. Xero’s cloud-based accounting software does what you would expect, like record transitions, calculate tax, and track both inventory and financial data. Plus, you can easily integrate with Gusto Payroll for an additional fee. In this review, we will look at the best accounting software for startups and small businesses.

• Striven’s interface is intuitive and easy to navigate, although some users find it initially overwhelming due to its extensive features.
• But cheaper software that may not accommodate future growth, potentially resulting in costly migrations down the line.
• We like the dedicated accounting nature of this service, so business owners of non-accounting firms will want to look elsewhere.
• If you’re a busy business owner looking for the best small business accounting software right now, here are our top picks so you can make a quick, informed decision.
• Focusing on core activities becomes challenging when you’re bogged down with manual accounting tasks.

But the real value is in the internal customization that lets you fine-tune everything from invoice templates and dashboard layouts to tracking categories and the chart of accounts. Even better, I accounting for startups never felt like I had to sacrifice simplicity just to scale. Xero gives you room to grow without locking you into someone else’s version of how your business should run. We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review.

What to Consider When Choosing a Bookkeeping Service for Your Startup

• In short, invoices are an important part of how small businesses make money.
• 1-800Accountant handles all bookkeeping and accounting for busy on-the-go self-employed professionals.
• Quickbooks Online is another popular online accounting software providing users with the services they need to maintain a financially healthy business.
• Sage integrates with 31 additional apps in the Sage marketplace, including Stripe, CRM solutions, time tracking tools, and payroll platforms.
• Continue reading our full review of the best accounting solutions below.
• Barbara has an MBA from The University of Texas and an active CPA license.

Wave provides a free, intuitive accounting solution for startups with straightforward needs. While https://www.citybiz.co/article/785736/the-real-value-of-accounting-services-for-startups/ it lacks some advanced features, it’s an excellent choice for budget-conscious entrepreneurs. 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. Modern accounting platforms offer intuitive designs that require minimal training for users unfamiliar with finance software.

Features of Great Accounting Apps

NetSuite is an enterprise-level solution with robust features designed for rapidly scaling businesses. Though it requires a steeper learning curve and investment, its scalability and customization options make it worth considering for high-growth startups. Zoho Books is part of the Zoho ecosystem, offering a cost-effective solution for startups already using Zoho’s other business tools. Its integration capabilities and affordability make it an attractive option for small teams.

Compare the Best Cloud Accounting Software of 2025

These challenges can hinder their growth and increase the risk of failure. Startups must comply with various regulations related to taxes and financial reporting, which can be overwhelming without the right tools. Staying informed about local tax laws is crucial; using accounting software ensures that you’re prepared for audits by maintaining organized records throughout the year. As a startup owner, managing numerous tasks often leaves little time for bookkeeping and financial analysis. Focusing on core activities becomes challenging when you’re bogged down with manual accounting tasks.