Best accounting software for startups 2025 Guide

While many startup founders choose to hire an accountant, it is possible to do accounting yourself or by using accounting services. Choose based on your business model, growth trajectory, and budget. The best accounting software is the one that meets your specific needs without forcing compromises on features that matter to your operations.

Startup Accounting 101

In that case, check if it offers APIs or third-party connectors like Zapier, which can help bridge the gap. Otherwise, a lack of integration with essential tools could be a red flag, leading to more manual work and data silos. Many startups outsource their financial reporting and management functions, both to save money and to get professional accounting and finance services that would be difficult to locate and hire. As the company grows, management eventually hires the appropriate personnel and brings these financial functions in-house.

• Odoo’s modular structure allows businesses to customize their accounting setup to ensure scalability and adaptability to diverse financial needs.
• VC-backed businesses typically choose to outsource their bookkeeping and tax preparation/compliance to experienced CPA firms.
• Finally, and very importantly for early-stage, VC-backed companies is that acquirers and investors will want to see GAAP financials.
• We’d be remiss to not include our own services in the overview of the ultimate finance stack for startups.
• The best startups use a cloud-based accounting software like QuickBooks Online to do basic bookkeeping, which includes tracking income, expenses, and other financial transactions.
• Project management tools are the backbone of a well-organized startup, ensuring that every task, project, and deadline is tracked and managed efficiently.

Key features:

Google’s position enables it to gather extensive website visit data, and it can integrate that data with other Google tools (e.g. Google Adwords, Google Search Console). Not many web analytics programs for small businesses offer more data in as understandable a form, and even fewer have an informative free version that small businesses can use. At TRUiC, we aim to provide the most advanced and reliable tools available to help your small business grow.

Xero

Plus, they offer customized use cases for a variety of industries such as food and beverage, chemical, and distribution — helping you make the most of the platform. Oracle NetSuite’s ERP solution is an all-in-one software for businesses looking to efficiently manage and automate processes. Built for domestic and global businesses alike, the software is a powerful tool for any business looking to take control of its operations. Shopify is an ecommerce platform used by millions of merchants across the globe. The platform is robust, providing everything ecommerce businesses need to launch, sell, https://ecommercefastlane.com/accounting-services-for-startups/ market, and manage their businesses both in person and online. Mailchimp is a popular email marketing platform helping businesses increase revenue through targeted, automated, and effective email and SMS marketing.

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. Startup failure due to cash flow problems isn’t just a statistic — it’s a harsh reality for 82% of failed ventures. Proper accounting is more than Accounting Services for Startups: Strengthen Your Financial Management balancing books; it’s the backbone of your startup’s survival and growth.

• Of course, the service forwards all physical and digital mail appropriately.
• The more connected your financial ecosystem, the easier it is to maintain accurate records and streamline operations as you scale.
• With built-in, robust tracking and reporting features as well as data integration from any source, Salesforce’s platform is a powerful tool for sales, marketing, service, and commerce.
• You’ll have to refer to the (very complete) documentation section to get up to speed on how everything works.
• The affordability and simplicity of Pipedrive make it an excellent choice for startups looking to establish a solid sales foundation without extensive resources.
• Small businesses, freelancers, and entrepreneurs seeking straightforward accounting solutions without the complexity and steep learning curve of more comprehensive systems.

The biggest mistake founders make is choosing software for where they are today instead of where they’ll be in 18 months. Starting with overly complex tools wastes money on unused features. Reputable platforms use bank-level encryption and maintain SOC 2 compliance.

• Email marketing is an effective but laborious process for businesses and marketing teams.
• The Customer 360 platform also includes built-in AI features that assess data as well as Slack interactions to automate repeatable tasks and save teams time.
• But it is not only popular between new businesses, companies such as Uber, Google, PayPal, and Facebook were also using this tool to increase effectiveness within project management.
• Tailor Brands is a platform that helps with business formation, branding, and website building.
• Calendly is the best free software for startups that can do all the dirty work for you.
• The offering of Foundersuit will help you set a structure and efficiency in terms of investor management.
• Although the setup is DIY in order to keep costs low, a guide makes it easy enough to set up your business’s phones in just a few minutes.

However, there are several accounting software options available to help you manage your startup finances whether or not you choose to hire an accountant. Today’s successful founders rely on cloud-based accounting software that automates tax prep, manages invoices, and integrates with payroll, banking, and CRM tools. Product businesses need inventory management, which not all platforms provide. Some platforms like ProfitBooks handle both; others specialize in one area. Service businesses often overlook inventory tracking until they add products or merchandise. Understanding which platforms include inventory management versus requiring third-party apps matters for long-term planning.