8 Best Cloud Accounting Software of 2025

Xero is a superb choice for small to medium-sized SaaS companies seeking an intuitive, cloud-based accounting solution. Its https://dimensionzen.com/streamline-your-finances-with-expert-accounting-services-for-startups/ emphasis on user experience and a broad feature set makes it suitable for SaaS firms that may not have dedicated accounting teams but need comprehensive financial management tools. Larger SaaS businesses with more intricate needs might need to evaluate if Xero’s features align with their requirements. Overall, for its ease of use, accessibility, and focus on modern business needs, Xero stands out as a strong contender in the accounting software arena for smaller SaaS businesses. Running a SaaS company comes with its own unique set of accounting challenges.

• The software’s real-time reporting capabilities provide valuable insights for strategic decision-making.
• It’s important for SaaS companies because it helps them understand the average value of a customer contract and predict future revenue.
• Additionally, like FreshBooks competitors, recurring tasks like invoicing, payrolling, and other admin tasks can be done easily with this tool.
• QuickBooks, for instance, makes it easy to generate the reports needed for filings, freeing you to focus on running the business—not gathering documents.
• Navigating these differences can be quite a challenge, especially with each jurisdiction imposing unique rules.

Set Up a Chart of Accounts

It allows you to automate revenue recognition for Stripe (or any other platform) subscriptions and handle subscription changes, refunds, custom billing and so much more in your QuickBooks with ease. Synder RevRec gives you complete support for IFRS 15 and ASC 606, recognition of discounts, multicurrency support, a granular view of subscriptions and accurate reports. Our choice of best accounting solutions for startups is based on the features that they provide and their user reviews on G2, the world’s largest tech marketplace. Integrated analytics tools provide real-time insights into customer behavior and profitability, helping businesses improve retention strategies and demonstrate financial health to investors.

TaxJar

The more connected your financial ecosystem, the easier it is to maintain accurate records and streamline operations as you scale. FreshBooks is an excellent accounting services for startups choice for small to medium-sized SaaS startups or companies that are in the early to mid-stages of growth. Its simplicity and ease of use make it a valuable tool for businesses that might not have a dedicated accounting team but need to stay on top of their finances.

What do customers like about Zoho Books?

Users find Sage Intacct’s report design challenging due to the lack of a data dictionary and duplicate field names. Security settings can be unclear, and the learning curve is steep for new users. The starter plan is priced at $29/month and is limited to 20 invoices and quotes and 5 billings. Linking banks takes longer time than usual with limited bank options as compared to other competitors in the market.

Why does good accounting matter for SaaS companies?

The platform offers features such as live chat, video conferencing, and breakout rooms to make networking more engaging. There are also options for those who want to host events that are entirely online or in-person. Keboola is a cloud-based platform that helps companies manage, collaborate, and automate data projects. Users are able to either create projects on the platform themselves or leverage a network of experts to help expedite the process.

• Plus, you’ll want the standard outputs like Income Statements and Balance Sheets for your venture capital investors.
• A comprehensive accounting software helps startups with accurate financial projections, streamlines efficiency, and helps them stay compliant with taxes and other industry regulations.
• To help you find the best cloud accounting software for your needs, Forbes Advisor reviewed and tested the top platforms based on pricing, features, support, reputation and overall value.
• For example, the software can be limited in terms of its accounting capabilities and doesn’t handle more complex revenue recognition and financial reporting scenarios well.
• If you can’t confidently answer how much revenue you truly earned last month, if you dread the thought of an audit, or if your team spends days instead of hours closing the books, it’s time.

Payroll and benefits can be complicated and easy to mess up, especially when you’re managing a mix of full-time employees and contractors in the earliest days of building your business. Selecting a banking partner for your startup is not as straightforward as it may sound. Unlike the familiar process of opening a personal banking account at your local Chase or Wells Fargo branch, business accounts have different requirements for eligibility. And, depending on the type of business you have, finding a banking partner that is willing to work with you can be challenging. You can read our article on if an upgrade to an ERP system from your accounting software makes sense.

• While this comprehensive accounting software for startups excels in meeting the needs of small businesses, larger corporations may not benefit as much.
• Manually tracking this for hundreds or thousands of customers is a recipe for errors and a huge time sink.
• Companies recognize revenue when the service is actually delivered to the client.
• Tipalti shines when it comes to automating your financial operations, especially for mid-sized companies.
• Its strong integration with other Microsoft products—like Office 365 and Power BI—means you can enjoy seamless data sharing and insightful analytics.
• More than 29 million small business clients and over 80% of the accounting software market share are held by Intuit’s QuickBooks.
• Choosing the right tools and systems is not just a matter of preference but a critical investment that can shape the trajectory of the business.

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She is a former CFO for fast-growing tech companies with Deloitte audit experience. Barbara has an MBA from The University of Texas and an active CPA license. When she’s not writing, Barbara likes to research public companies and play Pickleball, Texas Hold ‘em poker, bridge, and Mah Jongg. In addition to security audits, there is financial, security and data privacy compliance that SaaS startups must comply with. Good accounting software can help with FP&A in a variety of ways, from budgeting and scenario analysis to forecasting and data visualization. While teams with simpler operations may prefer more of a plug-and-play approach, teams with more complex operations need a solution that is custom-fit to their needs.