Top 8 Accounting Softwares for startups in 2025 : How to choose the right accounting software for your business

Yes, venture-backed high-growth businesses should have as close to GAAP financials as possible. Of course, having the right systems set up can dramatically lower the amount of effort required; we’ll get to those systems in a moment. You can produce an unlimited amount of invoices, and even the paid version with more detailed features is just $16 per month.

Finance management: Zeni

Accounting for startups involves keeping accurate records of financial transactions and examining your finances to identify opportunities for growth and improvement. Most are the type that any small business owner could customize, generate, and understand. Here are answers to some frequently asked questions I’ve received about accounting software for startups. Below is a list of additional accounting software for startups that I shortlisted.

Separate Personal and Business Finances

This ensures you bookkeeping and payroll services maintain accurate financial records, comply with regulations, and make informed decisions. We’ll examine key features to look for in accounting software, analyze top options in the market, and address common challenges faced by startup finance teams. 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.

Creative Professionals

• This means meticulously tracking all income and expenses, backed up by supporting documentation like receipts, bank statements, invoices, and bills.
• This software offers a suite of free accounting tools that cover invoicing, expense tracking, and basic bookkeeping.
• As CPAs, we have a deep knowledge of the unique needs of startup companies and we understand the latest AI and accounting automation tools.
• In this example, the accounts affected will be the rent expense account and cash account.
• Better yet, Freshbooks offers a variety of plans dedicated to businesses at every stage of their startup journey.
• In this review, we will look at the best accounting software for startups and small businesses.
• The foundation of any good accounting software lies in its core features.

However, traditional accounting software falls short of addressing the unique challenges faced by high-grow brands like startups. Brex revolutionizes the expense approval process with its workflow automations. Gone are the days of chasing down managers for signatures or going line by line through every expense report. With Brex, you can set up multi-level approval chains that automatically route contribution margin expenses to the appropriate decision-makers.

Its extensive feature set includes core accounting functionalities, invoicing, expense tracking, and financial reporting. Although it doesn’t provide a mobile app, Patriot’s 100% cloud-based platform enhances accessibility. This all-in-one platform integrates core accounting features, including invoicing, expense tracking, and bank reconciliation. With affordable pricing plans, Kashoo emerges as an ideal solution for businesses seeking efficient, user-friendly accounting tools that seamlessly adapt to their evolving financial needs. ZarMoney is a comprehensive all-in-one accounting software that seamlessly integrates invoicing, inventory management, billing, and payment capabilities. The software’s robust reporting tools provide insights into income, accounting reports, and overall financial health.

• These tools provide essential features without the hefty price tag, helping you manage your finances effectively from day one.
• Continue reading our full review of the best accounting solutions below.
• Whether you’re just starting out or scaling up, this guide will help you find the perfect solution to keep your finances in check.
• First, you should assign them a category, such as office expenses, travel, and utilities.
• As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software.
• Regularly reviewing your financial reports is like checking the vital signs of your business.
• Zoho Books offers a wide range of plan options totaling six, including their free plan.

Does my startup need an accountant?

If you’re unsure where to start, consider exploring FinOptimal’s resources on financial management and automation. For more in-depth information on accounting for startups, check out this helpful guide. QuickBooks Online is a popular choice, known for its comprehensive features and robust reporting capabilities. Xero is another strong contender, offering a user-friendly interface and excellent collaboration tools. Zoho Books, FreshBooks, and Wave are also worth exploring, each with different pricing structures and feature sets.

We’ve tested more than 2,000 tools for different finance and accounting use cases and written over 1,000 comprehensive software reviews. Staying informed about these developments will help you maximize your accounting software and give your business a competitive edge. Your accounting software accounting services for startups should play well with other tools in your tech stack. Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email.