Startup - The best accounting softwares for startups
There’s no need for excel sheets when you can track your finances and accounting with top-notch softwares. As a founder, this is one of the first key decisions you’ll make. Lucky for you, we love this stuff and have broken it down so you can make a decision and move onto your next big thing.
In this article, we will do a side by side comparison on QuickBooks Online, Xero and NetSuite, so you can choose the best accounting software that fits your startup's needs. Before we get into it, here’s a checklist of what to keep in mind.
✓ On the cloud
Company cultures are increasingly becoming remote. You need something you can access anytime, anywhere. Just have a Wifi connection and you’re good to go.
✓ Integrates with apps
Integrations save you time and effort, two things you can’t afford to lose with a startup. Most accounting softwares work with common platforms and services like bill.com, gusto, stripe, paypal, etc. But only the best stay on top of improving their connection with services or offer those services in-house.
✓ Adapts to growth
Your needs drastically change from seed to series C. Go the long haul with an accounting software that helps you navigate that change. Make sure you can upgrade.
✓ A one-stop shop
If your accounting data, sales transactions data, payroll data, and financing data are all in one place, you’ll be able to streamline the process. A few extra fees might save you hours of time, which eventually translates to money.
Side-by-side comparison
A deeper dive
QuickBooks is part of Intuit, a well-established fin tech company known for TurboTax and Mint. With 7 million customers globally and 28 years of experience, QuickBooks has become the #1 small business accounting software.
✓ On the cloud
QBO is the cloud version of QuickBooks
✓ Integrates with apps
Amazon business for tracking purchases
Shopkeep to sync all POS sales
Paypal to pay and receive payments
Tsheets to track worked hours
✓ Adapts to growth
Three tiers: Simple Start (2 users), Plus (<5 users + manage projects), and Advanced (25 users + comprehensive financial reporting).
✓ A one-stop shop
QBO offers full-service payroll, bill payments, employee time tracking, mileage tracking, business funding, and now banking too.
Founded in New Zealand, Xero was ranked the #1 company for innovative growth by Forbes in 2014 and 2015. Today it has subscribers in over 180 countries.
✓ On the cloud
Xero has always been a cloud-based accounting software.
✓ Integrates with apps
A2X to import amazon accounting entries
ApprovalMax to manage the approval process for bills
Stripe to sync POS sales
Paypal to sync POS sales
✓ Adapts to growth
Three tiers: Early (20 invoices, 5 bills), Growing (unlimited invoices & bills), Establishes (You can use multiple currencies and track project profitability).
✓ A one-stop shop
Xero offers payroll (i.e. Gusto) and accounting services but not lending, bill payments, or banking.
NetSuite is tailored to medium to large-sized companies. You can customize the software to fit your business but it is the most expensive one of the three.
✓ On the cloud
This is a cloud-native software, it includes many different functions for the back office such as accounting, CRM, business intelligence, analytics, custom reports, etc.
✓ Integrates with apps
NetSuite is a relatively closed system with limited app integrations.
✓ Adapts to growth
Great for mature, established companies. It is the most sophisticated accounting software on the market. Not the best option for those in the early stages.
✓ A one-stop shop
With a focus on data management and financial reporting, services like payroll, lending, banking, etc are not offered.
Narrowing down to your needs
These are the top accounting softwares in the U.S. For startups, QuickBooks Online is our #1 pick. For years it has been simplifying complex accounting workflows and keeps innovating to become the source of truth for businesses. Not to mention its incredible list of app integrations.
Now that QuickBooks offers banking, your entire business can live in one system. That helps keep data accurate and your accounting simpler.
Give QuickBooks a try, and if you have any questions, we’re just a phone call away.
