As an entrepreneur, your time and energy are likely directed in different directions.
While you may draw energy from your passion for designing products, marketing planning, and setting up your store, you may not have the same energy when it comes to accounting!
But it is just as important as any other aspect of your business and should be treated as such. In this article, I’ll introduce you to the five best accounting software options for startups to ensure you play by the rules and make a profit.
Do you have little time? Here are the key takeaways
Free Agent: For anyone who wants an affordable and user-friendly platform.
QuickBooks: For those looking for a scalable platform for growing businesses.
Wave: For anyone looking for affordable options.
Zoho books: For anyone looking for software that integrates with other business tools.
Xero: For anyone looking for a highly popular and trustworthy brand.
What decided this list?
But first, I would like to briefly walk you through the criteria I took into account when compiling this list. Finally, there are a lot of articles that spread affiliate links to convince you to choose their preferred options!
That’s why I want to state that all of the suggestions below come from first-hand research and none of these brands have paid for advertising.
Instead, these accounting software options have been carefully selected based on price, ease of use, simplicity and all the unique selling points that ensure they are a good fit for startups and entrepreneurs!
The importance of paying your taxes on time
As a business owner, you may be wondering, “Do I really have to pay taxes if I haven’t even sold any products yet?” and the answer is: yes!
I learned this the hard way when I started my business and ended up with a pretty annoying fine.
But a fine is just one of the problems that can arise when taxes are not paid correctly or on time. In the worst case, you could face far more serious problems, possibly even a prison sentence.
With that in mind, let’s take a look at the five best accounting software you can consider for your new business venture.
Free agent
Link: https://www.freeagent.com/
Prices: $40 per month
Ease of use: 9/10
The first software on this list is FreeAgent as it is my first choice for accounting software. In my experience with the tool, it is extremely easy to track income and expenses and categorize those income and expenses on the go. This way, when taxes are paid at the end of the year, everything is ready to be divided if necessary.
It is ideal for sole proprietors looking for a platform that meets their accounting needs while providing the ability to scale as their business grows.
QuickBooks
Link: https://quickbooks.intuit.com/
Prices: $35 per month
Ease of use: 8/10
Another great option is QuickBooks, which offers all the features you expect from FreeAgent and other leading accounting software brands. One of the great benefits of using QuickBooks is the excellent deals they offer for new customers. In the UK, for example, you can get a whole year for just £35! After your first year, that price increases significantly, but Quickbooks hopes to convince you that it’s easier to stay with them than to move again. These offers also differ depending on which country you are based in.
However, startups looking to save important money for other aspects of their business should keep an eye out for great discounts whenever possible.
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Link: https://www.waveapps.com/
Prices: From free
Ease of use: 8/10
For those who really want to go easy on the wallet, Wave can be an excellent option as the core accounting features are completely free! As you’d expect, the actual features and design aren’t as detailed as the paid versions on this list, but for basic accounting and invoicing it’s a fantastic option.
One thing I love about Wave is that the free plan is truly free! You can create an unlimited number of invoices, and even the paid version with more detailed features only costs $16 per month.
Zoho Books
Link: https://www.zoho.com/books/pricing/
Prices: From $0 per month
Ease of use: 6/10
Zoho Books also offers a free version of its accounting software, although in the form of a free trial rather than a free subscription. However, the paid versions of this platform are still very affordable. One of the biggest advantages I found when looking at Zoho Books is that it is part of the much larger Zoho company, which also offers several other software solutions that could benefit your business.
For some startups, having accounting, CRM, payroll, and more in one place can be a lifesaver.
Xero
Link: https://www.xero.com/
Prices: From $20
Ease of use: 7/10
If you’ve been researching accounting software, you’ve probably heard of Xero! Xero is one of the largest accounting software companies and is a great option for any startup that has made significant investments to start their business and needs a platform that matches the size of their startup.
For small startups, it’s not the easiest application to use, but if you’re a large startup looking to make your mark professionally, this could be a great option for you.
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