When deciding on the best startup accounting software for your business, consider an inexpensive solution that offers the option to scale with your operations. During the early stages, look for basic features, like banking and A/R and A/P management. As your business grows, consider whether the software can accommodate advanced accounting needs, like inventory management and project accounting.
That said, here are our six best accounting software for startups:
- QuickBooks Online: Best overall accounting software for startups
- Zoho Books: Best mobile accounting app for startups
- Xero: Best accounting software for scaling to unlimited users
- AccountEdge: Best desktop accounting software for startups
- FreshBooks: Best for service-based startups
- Wave: Best free accounting software for startups
I evaluated each retail accounting system based on how well it supports real retail workflows, including inventory tracking, sales activity, and day-to-day financial management. I focused on what actually works in practice — how transactions flow, how inventory connects to accounting, and how easy it is to manage operations without extra tools.
- General features: I reviewed how each system handles core accounting tasks like general ledger, banking, accounts receivable, accounts payable, sales tax, and financial reporting. I gave more weight to platforms that deliver reliable, complete accounting without requiring workarounds.
- Retail-specific features: I examined tools that directly support retail operations, including inventory management, sales tax tracking, and POS integration. I prioritized systems that keep inventory and financial data aligned in real time.
- Pricing: I compared monthly costs, user limits, and feature availability across plans. I looked closely at whether key retail features are included in entry-level tiers or locked behind upgrades.
- Ease of use: I assessed how quickly a non-accountant can complete common tasks like invoicing, expense tracking, and reporting. I focused on navigation clarity and how much setup is required to get started.
- Customer support: I reviewed available support channels, including phone, chat, email, and help documentation, to see how easily users can get assistance when needed.
- User reviews: I analyzed average ratings from trusted review platforms to understand how each system performs in real-world use.
- Best Startup Accounting Software: Quick Comparison
- QuickBooks Online: Best Overall Accounting Software for Startups
- Zoho Books: Best Mobile Accounting Software App for Startups
- Xero: Best Accounting Software for Scaling to Unlimited Users
- AccountEdge: Best Desktop Accounting Software for Startups
- FreshBooks: Best Accounting Software for Service-based Startups
- Wave: Best Free Accounting Software for Startups
- Frequently Asked Questions (FAQs)
- Bottom Line
Best Startup Accounting Software: Quick Comparison
| Monthly Pricing | Number of Users | Free Plan | ScalabilityNot part of our case study; rated based on the number of users allowed without additional fees, the flexibility of plans, and the overall adaptability of the software to handle complex accounting needs | |
|---|---|---|---|---|
 | $38 to $275 | 1 to 25 | ✕ | 5★ |
 | FREE to $275 | 1 to 15$3 per user, per month | <$50,000 in revenue | 4.5★ |
 | $20 to $80 | Unlimited | ✕ | 5★ |
 | $20 to $50 | 1 or 2The hosted version can have unlimited users for $50 per user. | ✕ | 3.5★ |
| Visit AccountEdge | ||||
 | $23 to $70 | 1$11 per user, per month | ✕ | 3.5★ |
 | FREE or $16 | 1 or unlimited | 1 user | 2.5★ |
QuickBooks Online: Best Overall Accounting Software for Startups
| Free Trial | 30 days; no credit card required |
|---|---|
| Discount | 50% off for three months, unless you choose the 30-day trial |
| Payroll | QuickBooks Workforce; starts at $50, plus $6 per employee, per month (read our review of QuickBooks Workforce) |
| Customer Support | Telephone support (callback unless you upgrade to Advanced), live chat, chatbot, and self-help resources |
| Average User Review Rating | 4.3 out of 5; explore users’ feedback in our QuickBooks Online review |
Zoho Books: Best Mobile Accounting Software App for Startups
| Free Trial | 14 days for all paid plans |
|---|---|
| Discount | ✕ |
| Payroll | Zoho PayrollAvailable in select states: CA, FL, GA, IL, KS, MN, MT, NV, NH, NJ, NY, NC, SC, SD, TN, TX, UT, VA, WA, WI, and WY ; $19 per month plus $3 per employee, per month |
| Customer Support | Telephone support, live chat, email support, self-help resources |
| Average User Review Rating | 4.4 out of 5; explore users’ comments in our Zoho Books review |
Xero: Best Accounting Software for Scaling to Unlimited Users
| Free Trial | 30 days; no credit card required |
|---|---|
| Discount | ✕ |
| Payroll | Via Gusto integration; starts at $49 per month + $6 per person per month (read our review of Gusto) |
| Customer Support | Chatbot, email, and self-help resources |
| Average User Review Rating | 4.4 out of 5; explore users’ sentiments in our Xero review |
AccountEdge: Best Desktop Accounting Software for Startups
| Free Trial | 30 days |
|---|---|
| Discount | ✕ |
| Payroll | Additional $20 per month for unlimited employees |
| Customer Support | Email support and online self-help resources; can add phone support for $10 per month |
| Average User Review Rating | 4.3 out of 5; see users’ feedback in our AccountEdge review |
FreshBooks: Best Accounting Software for Service-based Startups
| Free Trial | 30 days for Lite, Plus, and Premium plans |
|---|---|
| Discount | ✕ |
| Payroll | Via Gusto integration; starts at $49 per month + $6 per person per month (read our review of Gusto) |
| Customer Support | Self-help library, phone number, chatbot, live chat, and community page |
| Average User Review Rating | 4.5 out of 5; learn from users’ insights in our FreshBooks review |
Wave: Best Free Accounting Software for Startups
| Free Trial (Paid Plan) | ✕ |
|---|---|
| Discount | ✕ |
| Payroll | Wave Payroll; ranges from $20 to $40 per month depending on your state, plus $6 per employee, per month (read our review of Wave Payroll) |
| Customer Support | Starter: Self-help resources; get access to live chat and email support when you purchase a paid add-on like Wave Payroll Pro: Live chat and email support included |
| Average User Review Rating | 4.4 out of 5; read users’ comments in our Wave review |
How We Evaluated the Best Startup Accounting Software
We rated the best startup accounting software based on the scoring rubric below, which is a condensed version of our internal case study. If you want to see a detailed breakdown of the feature category, then you might want to check out our case study.
Software is rated based on its price for various levels of users, including one, three, and five users. It is also awarded points if it offers a free trial or discount for new users and if monthly vs annual plans are available.
General: General features include being able to add basic company information, record a fiscal year-end, close the books for prior periods, and restrict the rights of additional users. Banking: Important features within banking include the ability to connect a bank account so that the transactions transfer automatically and to reconcile accounts. A/P: The main criteria in A/P is that you can manage vendor names, track unpaid bills, and then record the payment when made. A/R: Software should be able to email and print invoices that are customizable with the option to add a company logo. Inventory: Good bookkeeping software must keep track of both the cost of inventory on hand as well as the COGS. Project accounting: Ideally, the software should allow the company to produce estimated costs for a project and then assign actual costs to the project for comparison. Tax: Users should be able to designate which items on an invoice are subject to sales tax, track the sales tax liability, and then record a sales tax payment. Reporting: Most importantly, software should produce a balance sheet and income statement that compare current period numbers to prior period numbers. Additionally, points are awarded for a list of 13 reports we think are important. Integrations: We look for easy-to-use two-way integrations for processing payroll, tracking time, receiving payments electronically, and paying your bills electronically from within the bookkeeping software.
Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email. Companies also receive points based on other resources available, such as self-help articles and user community. Finally, companies are awarded points based on the ease with which users will find assistance from independent bookkeepers with expertise in the software.
A good mobile app should be able to perform all the same functions as the computer interface.
Ease of setup: This requires the software to allow users transitioning from other bookkeeping software to import their chart of accounts (COA), vendors, customers, service items, and inventory items. Ideally, there will be a wizard to walk the user through the import process. Ease of use: This includes the layout of the dashboard and if new transactions can be initiated from the dashboard, rather than having to navigate to a particular module. Other factors considered are user reviews specific to ease of use and a subjective evaluation by our expert of both the UI and general ease of use.
We include the average user review score for each software collected from large third-party websites dedicated to the collection of user reviews, such as Software Advice, SourceForge, and G2.
Frequently Asked Questions (FAQs)
Accounting software helps startups manage their financial transactions, track expenses, generate invoices, and maintain accurate records. It streamlines financial processes, ensures compliance, and provides insights for better decision-making.
Accounting software helps startups create and manage budgets by tracking income and expenses, providing insights into spending patterns, and generating reports that aid in budget analysis and adjustments.
There is no one-size-fits-all answer as it depends on various factors like tax implications, regulatory requirements, nature of operations, and investor and lender preferences. Cash-basis accounting offers simplicity and can provide short-term tax advantages, especially if the startup has a lot of expenses. Meanwhile, accrual-basis accounting provides better financial visibility and a more comprehensive view of profitability by aligning revenues with the associated costs. To learn more, see our guide on cash-basis vs accrual-basis accounting.
Yes, QuickBooks is often considered a good choice for startups, and it’s a popular accounting software solution for businesses of various sizes. It offers a range of features that can be beneficial for startups in managing their finances efficiently. These include ease of use, scalability, integration with other tools, tax compliance, and available support.
Bottom Line
There are many excellent accounting software for startups, depending on the particular needs of your business. QuickBooks Online is a scalable solution if your company plans to become a midsize or large enterprise. If you often work remotely and need a strong mobile app, consider Zoho Books. Xero is best for startups with many users.
If you’re a service-based startup that intends to stay small, FreshBooks is worth looking at. If your company is in its organizational state and you’re looking to save money while also having access to unlimited users, Wave is a strong choice. If you prefer a desktop software, go with AccountEdge.
