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Starting a business is an exciting journey, but one of the most challenging aspects of running a startup is managing its finances. Getting your finances in order from the start is essential, and that is where accounting software comes into play. Accounting software helps you streamline your bookkeeping and accounting tasks, allowing you to focus on growing your business.
But with so many accounting software options available, how do you know which one is best for your startup? In this article, we have compiled and reviewed the top 10 best startup accounting software options for 2021. With our detailed analysis, you’ll be able to make an informed decision that’s best for your business.
Why Your Startup Needs Accounting Software 👨💼
Managing your finances is critical to the success of your business. Without a proper accounting system in place, it’s easy to lose track of expenses and revenues, leading to cash flow problems that can quickly spiral out of control. Here are some of the reasons why your startup needs accounting software:
1. Accurate Financial Reporting
Accounting software helps you track all financial transactions, including expenses, revenues, and payroll. With accurate and up-to-date financial reports, you can make informed decisions about your business’s future.
2. Streamline Bookkeeping
Gone are the days of manual bookkeeping, which was often time-consuming and prone to errors. Accounting software simplifies the bookkeeping process, allowing you to focus on other aspects of your business.
3. Improved Cash Flow Management
Managing cash flow is critical to the survival of any business, and accounting software can help you do just that. With real-time financial reporting, you can quickly identify any cash flow issues and take corrective action before they become a problem.
4. Tax Compliance
Preparing for taxes can be a daunting task, but accounting software makes it easier. With features designed to handle taxes and generate reports, you can ensure that your startup is always compliant with tax laws.
5. Increased Efficiency
Ultimately, accounting software helps you improve efficiency and productivity. With streamlined bookkeeping and accurate financial reporting, you can focus on growing your business and achieving your goals.
The Top 10 Best Startup Accounting Software Options for 2021 🏆
Software |
Pricing |
Key Features |
|---|---|---|
Xero |
$11 – $62/month |
Bank reconciliation, expense tracking, invoicing, payroll, and financial reporting. |
QuickBooks Online |
$25 – $180/month |
Invoicing, expense tracking, bank reconciliation, payroll, and project management. |
Wave |
Free – $35/month |
Invoicing, expense tracking, bank reconciliation, and financial reporting. |
FreshBooks |
$15 – $50/month |
Invoicing, expense tracking, time tracking, project management, and financial reporting. |
Zoho Books |
$9 – $29/month |
Invoicing, expense tracking, project management, bank reconciliation, and financial reporting. |
FreeAgent |
$12 – $24/month |
Invoicing, expense tracking, project management, time tracking, and financial reporting. |
AccountEdge |
$40 – $50/month |
Invoicing, expense tracking, payroll, time billing, and financial reporting. |
OneUp |
$9 – $169/month |
Invoicing, expense tracking, bank reconciliation, inventory management, and financial reporting. |
ZipBooks |
Free – $35/month |
Invoicing, time tracking, expense tracking, project management, and financial reporting. |
Kashoo |
$16 – $30/month |
Invoicing, expense tracking, bank reconciliation, and financial reporting. |
Frequently Asked Questions 🤔
1. What is accounting software?
Accounting software is a type of software designed to automate and streamline accounting and financial management tasks. It helps businesses keep track of their finances, prepare financial reports, and monitor cash flow.
2. How does accounting software work?
Accounting software automates many of the financial tasks that businesses need to perform, such as invoicing, expense tracking, and financial reporting. It usually integrates with a business’s bank accounts and other financial platforms to simplify the process.
3. Is accounting software easy to use?
Most accounting software is designed to be user-friendly and intuitive, even for those with little to no accounting experience. However, some software may require a bit of a learning curve and training to get the hang of.
4. Can I use accounting software for personal finance?
Yes, you can use accounting software for personal finance. However, keep in mind that accounting software is usually designed for businesses, so some of the features may not be relevant to personal finances.
5. How much does accounting software cost?
Accounting software prices vary depending on the software and the features included. Some software options are free, while others can cost hundreds of dollars per month.
6. Can accounting software help me with taxes?
Yes, most accounting software options include tax features that can help you with compliance and generate reports for your tax filings.
7. Can I use accounting software on my mobile device?
Yes, many accounting software options have mobile apps or a mobile-friendly interface that allows you to manage your finances on the go.
8. What are the benefits of using accounting software?
Some of the benefits of using accounting software include improved accuracy, time savings, streamlined bookkeeping, and better cash flow management.
9. Can I integrate accounting software with other business tools?
Yes, many accounting software options offer integrations with other business tools such as CRM, project management, and payroll software.
10. How do I choose the right accounting software for my startup?
When choosing accounting software, consider your business’s needs, size, and budget. Look for software that offers the features you need and has a user-friendly interface.
11. Do I need accounting software if I hire an accountant?
While hiring an accountant can be beneficial, accounting software can still be helpful in streamlining your finances and providing accurate financial reporting.
12. What are the key features to look for in accounting software?
Some of the key features to look for in accounting software include invoicing, expense tracking, financial reporting, bank reconciliation, payroll, and project management.
13. Can accounting software help me manage my cash flow?
Yes, accounting software can help you manage your cash flow by providing real-time financial reporting and identifying any cash flow issues that need to be addressed.
Conclusion: Choose the Best Accounting Software for Your Startup Today 🔍
Starting a business can be challenging, but choosing the right accounting software can make managing your finances a lot easier. With our top 10 best startup accounting software options for 2021, you’ll be able to find the software that’s right for your business.
From Xero to QuickBooks Online, FreshBooks to FreeAgent, there’s a software option for every budget and need. Consider your business’s needs, size, and budget when choosing the right software for you.
Don’t let finances hold your startup back—choose the best accounting software today.
Ready to streamline your startup’s finances? Explore our top 10 best startup accounting software options for 2021 today.
Disclaimer
The information provided in this article is for general informational purposes only. It is not intended to provide accounting, financial, or tax advice, and you should not rely on it to make financial decisions. Always consult with a qualified accounting professional before making any financial decisions.
