10 Best Accounting Software for SaaS Companies 2025

They offer an on-premise and a cloud-based version (called Quickbooks Online). We’ve highlighted the 17 best accounting software for startups in 2025 that we believe offer a diverse range of features catering to the specific needs of startups. The best accounting software for startups varies depending on the company’s specific needs. Users can effortlessly create and send professional invoices, track expenses, and reconcile bank transactions for accurate financial reports.

• The resulting percentage represents the percentage of revenue that a company retains after deducting the direct costs of producing its products or services.
• These companies have raised a lot of money in recent years, and they show no signs of slowing down.
• Financial tracking lets you easily monitor every dollar coming in and going out.
• FastSpring handles international indirect tax, payment processing, digital invoicing, subscription management, dunning, and much more for you.
• Your business likely runs on a variety of tools, from your CRM and payment processor to your ERP.
• As the business scales and accounting requirements become more intricate, companies might need to consider a more comprehensive solution.
• Take the time to migrate your historical data correctly and configure the software to align with your specific revenue recognition models and billing cycles.

What do customers dislike about FreshBooks?

• They serve multiple industries including technology, construction, accounting and more.
• That’s why we built Maxio—Maxio makes it easy for finance and accounting teams to recognize complex revenue, generate financial reports, and view SaaS metrics and analytics dashboards all in one place.
• However, as the business expands, they may need to upgrade to a paid plan to unlock advanced features, such as payroll processing and inventory management.
• They aren’t built to handle the complexities of subscription revenue, so you’ll find yourself relying on complicated spreadsheets and manual workarounds to track things like deferred revenue and churn.
• It’s basically, it’s mostly, it started its life as an invoicing solution.

When it comes to data security, which is often a crucial factor when choosing the best SaaS accounting software, Wave ensures your financial data is encrypted. You can also get help from Intuit’s bookkeeping experts if you’re new to QuickBooks Online. The monthly invoice limit and restricted access to advanced features in lower-tier plans can be limiting. Additionally, customer support response times are often slow and need improvement.

• A reliable accounting solution is a fundamental component of the modern tech stack.
• Following proper subscription accounting practices from the start ensures your reporting is accurate and your business insights are reliable.
• It is ideal for organizations seeking an integrated solution that unifies financial processes with broader operational functionalities.
• It doesn’t just handle invoicing and expense tracking, it wraps in tax tools, project tracking, receipt capture, mileage logging, time tracking, sales tax reporting and even customizable workflow automations.
• It’s a good metric for evaluating the financial health and growth potential because the metric takes into account both gross margins/profit and sales and marketing expenses.
• It’s an excellent option if you have a small team but high transaction volume, as you won’t overpay for user seats you don’t need.
• It simplifies financial management, expense tracking, and cash flow monitoring.

SaaS and venture funding – why good SaaS accounting matters

Xero offers a reliable accounting solution tailored to the unique needs of SaaS companies. Recognizing that every resource is precious for a startup, effective financial management ensures careful allocation of funds. It serves as the key to maintaining a healthy cash flow, making strategic investments, and successfully navigating the initial growth phases of your business. You really can’t downplay the importance of the right solution when it comes to streamlining operations and ensuring scalability.

Build Your Own SaaS Accounting Solution

However, you can access advanced features like accepting customer payments and running payroll at a fee. The experts automate financial management, reconcile accounts, and review reports, ensuring you start strong with the best SaaS accounting software options and run your business confidently. Owned by Intuit, QuickBooks Online is an industry-standard accounting software for businesses of all sizes. It’s one of the best SaaS accounting software around, meaning it’s comprehensive, allowing you to track income and expenses, generate financial reports, and more. For example, if invoicing is a challenge, prioritize tools that streamline recurring billing. Or if you are struggling with data entry, then go for tools that practice real-time accounting.

What features are important for accounting software?

This ensures your financial reports are accurate and compliant with accounting standards like ASC 606. It’s the key to having financial statements you can actually trust to make decisions. Tools like QuickBooks and Xero are fantastic for getting your basic bookkeeping in order when you’re just starting out. They aren’t built to handle the complexities of subscription revenue, so you’ll find yourself relying on complicated spreadsheets and manual workarounds accounting for startups to track things like deferred revenue and churn. It’s a great first step, but be prepared to move to a more specialized system once manual tracking starts taking up more time than strategic planning.

Stay Compliant with Tax Regulations

Don’t get swayed by a low entry price if the plan is missing a critical function, like multi-currency support or specific integrations. This ensures you get the tools you need without overpaying for advanced features you won’t use. As a small business owner, you must know how to go about opening your bank account and managing your finances through business banking. What makes Odoo one of the best SaaS accounting software is its seamless integration with a wide range of apps across software categories like sales, HR, and productivity.

• Billing platforms connect product usage to invoices, so finance teams trust the numbers.
• An easy-to-use, automated sales process speeds up transactions, and just one person can complete an entire vehicle transaction from start to finish.
• It’s an investment, but for enterprises with extensive needs, it’s often the right one.
• Some other key benefits of NetSuite include advanced accounting features, including project management, inventory management and CRM.
• It also has a huge ecosystem of other pieces of software that integrate into QuickBooks.
• Its interface is so clean and intuitive that even the least tech-savvy team member can start using it without a learning curve.

However, FreshBook’s niche use case doesn’t make it a logical choice for B2B SaaS businesses. 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. QuickBooks is a solid choice for SaaS companies of almost any size – from startups to well-established enterprises. For both small and large SaaS businesses that value ease of access and are okay with a subscription pricing model, QuickBooks Online would be the ideal pick. Those https://www.citybiz.co/article/785736/the-real-value-of-accounting-services-for-startups/ who prefer a one-time software purchase might lean towards QuickBooks Desktop. However, that product appears to have a limited time left in the market.