10 best accounting software for startups 2025 guide

Quality automation software scans each receipt and extracts the data using optical character recognition (OCR) technology, ensuring the receipt is properly categorized and stored. Since the software can require a receipt with every transaction, you can be sure that every expense has the documentation it needs. Choosing the right accounting automation platform can determine your finance team’s efficiency. Growing companies with lean teams need software that adapts quickly to changing requirements while delivering accurate financial data when decisions matter most.

With limited resources and staff, entrepreneurs need startup accounting systems that are affordable, easy to use, and provide the necessary features to manage their finances. As a financial controller, I’ve seen what happens when companies, small and large, pick the wrong platform. That’s why I used my experience in financial management to help you cut through the noise and find the right accounting software for startups. Using these time and financial savings as a benchmark, finance teams can build business cases for adding accounting automation to their financial stack and establish expectations for their software. Selecting the ideal accounting software for your business is a crucial decision that can significantly impact your financial management and overall operations.

Wave Accounting

This is not an offer to, or implied offer, or a solicitation to, buy or sell any securities. The latest statement of financial condition for Brex Treasury LLC is available here. Customization options allow you to tailor the software to your unique business needs. Look for flexibility in creating custom fields, reports, and workflows. This adaptability ensures the software works for you, not the other way around.

What does Zoho Books do best?

By the end of our comparison, you’ll be able to choose which one is right for your venture. Note that most of the small business accounting tools in this guide offer a free trial of up to 30 days. If you have two favorites but aren’t sure which to choose, consider signing-up for both and deciding which you prefer. Feel free to dive into our reviews for more information or accounting software for startups visit their websites directly.

Zoho Books for accounting

Business owners can also track and monitor their expenses to make informed decisions. This cloud accounting software provides comprehensive reports that help you extract insights and analyze financial status for strategic decision-making. It also streamlines business tax management, automates GST computations, and facilitates easy return filing.

For example, if your team consistently codes Uber rides as ground transportation rather than general travel expenses, the AI will learn from this preference and apply it to future transactions. The wrong tool selection can waste precious time, drain limited resources, and create bottlenecks that slow business growth. Meanwhile, the right platform can become a competitive advantage, freeing teams from repetitive tasks to focus on strategic analysis and business partnerships. Whether you’re meeting clients, traveling to conferences, or working from a café, mobile access isn’t optional—it’s essential. Look for apps that offer full functionality, not just viewing capabilities. 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.

Sage

Once you’ve identified what you need, compare different software options based on features, pricing, and customer support. Look for solutions that offer scalability so they can grow alongside your business. Evaluate the ease of integration with other tools you’re already using or plan to use in the future. Odoo’s flexibility is its biggest strength, allowing tech-savvy startups to tailor the platform to their specific needs.

• Setting up a system early helps prevent future headaches and keeps your finances organized as you grow.
• Its mobile app allows you to manage finances, send invoices, and track expenses on the go.
• You can benefit from FreeAgent’s invoicing, expense tracking, and project management tools.
• Before choosing a service, ensure that there are plans available to grow alongside your business as you reach your goals.
• That’s why I developed this summary chart—to give you the pricing and trial info, upfront.

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. It replaces manual spreadsheets with structured systems, automations, and real-time reports. Brex’s power is amplified by its ability to connect effortlessly with the most popular financial tools and software. Native integrations with top accounting platforms like QuickBooks Online and Xero ensure real-time data syncing, eliminating the need for manual data transfer and reducing errors. The platform extends beyond just accounting, integrating with productivity tools like Slack for fast approval notifications for lightning-fast reviews.

The most effective accounting automation platforms consider these limitations by incorporating intelligent exception handling workflows. When the software encounters transactions it can’t confidently categorize, it automatically routes them for manual review which prevents errors. Unlike solutions that force you to upgrade as you grow, Sage provides advanced features from day one—at a price point that respects your bootstrap budget. The platform’s intelligent automation handles complex workflows while maintaining the simplicity entrepreneurs need. Starting and scaling a business requires laser focus on what matters most—building your product, serving customers, and driving growth. Yet entrepreneurs spend countless hours wrestling with spreadsheets, chasing invoices, and scrambling through receipts come tax time.

• Wave is an exceptional cloud accounting software designed for startups.
• This cloud-based platform helps manage recurring invoices, track expenses, and scan receipts to streamline day-to-day financial operations.
• It is great for small business owners needing fewer accounting features.
• Starting a business is thrilling, but without a solid accounting foundation, it can quickly become overwhelming.
• From comparing top options and exploring free solutions to understanding essential features and best practices, we’ve got you covered.
• Features include a full suite of accounting tools such as invoicing, expense tracking, payroll management, and inventory control.

And then most importantly, you just don’t have those glitches, like data disappearing or numbers disappearing or things like that. Sometimes we’ll have startup founders come to us using a free accounting software or something that’s not standard. By now, it should be clear that we are big fans of QuickBooks Online, and think that it is the best accounting software for VC backed startups. But, if want to consider other solutions, our COO, Scott Orn, breaks down the alternatives. Keeping tabs on your startup’s finances can feel like a juggling act, but knowing what to track simplifies the process.

Kashoo is a powerful double-entry accounting software that redefines financial management for small businesses. 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 to unlock their growth potential. Its multi-user capabilities facilitate collaborative financial management, while inventory tracking and management features enhance control over stock. AccountEdge is a desktop accounting software designed for startups and small to medium-sized businesses.

Accounting tools automate manual accounting tasks and give you a clear picture of your business’s financial health in real time. Sage is a UK-based software company that builds payroll, enterprise, and accounting tools for businesses of all sizes—from freelancers to large enterprises. FreshBooks is an affordable option for businesses that are just getting started, and need reliable software at a fair price. FreshBooks also provides a chatbot that you can access at any time of the day or night, which could be really helpful for new enterprises that need a lot of support. The detailed end-of-year reports can also help you get a clear view of your finances, and streamline your operation.