Best Bookkeeping for Startups

Getting your startup off the ground is hard enough—add managing the finances, and it can quickly feel overwhelming. In the podcastFounders & Friends,Leslie Barberfrom QuickBooks highlights why keeping your books in check is essential for success. She explains,"Bookkeeping isn’t just about tracking numbers. It’s about building trust with investors and giving yourself the financial clarity you need to make smart decisions.”As a startup, you can’t afford to make financial missteps. Whether it’s ensuring you have enough cash flow or preparing for a meeting with potential investors, accurate bookkeeping can help you stay ahead. Barber emphasizes that “having your finances in order isn’t just for tax season—it’s a year-round necessity that keeps your business on track and gives you peace of mind.” In this article, we’ll break down the best bookkeeping tools for startups in 2024 so you can streamline your finances, save time, and focus on what matters.
Best Bookkeeping for Startups at a Glance

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1. Sam's List

Sam’s Listis a platform that helps startups connect with vetted accountants, CPAs, and bookkeeping services. It isn't your typical accounting software. It’s more like a personalized service that connects ecommerce businesses with a curated network of top-tier accountants and tax strategists. Recognizing that startups face unique challenges, such as managing cash flow and tax planning, Sam’s List ensures you have access to trusted professionals who understand startups' fast-paced and dynamic nature. What setsSam’s Listapart is its personalized recommendation feature. The platform doesn’t offer generic solutions; instead, it tailors suggestions based on your specific industry, business growth stage, and financial requirements. Sam’s List ensures that the professionals you connect with are equipped to address your immediate and future financial concerns, whether you're just getting started or managing rapid growth. In addition,Sam’s Listhas a robust vetting process to ensure all listed professionals meet the highest standards. Each accountant or CPA on the platform has undergone a thorough screening process, including personal interviews and user recommendations, to guarantee that you work with experienced and trustworthy individuals.
Features
Sam’s List is designed to help startups find thebest bookkeepingand accounting services, offering several key features that make it a go-to platform for entrepreneurs:
Vetted Network of Accountants and Tax Strategists: One of Sam's List's standout features is its commitment to quality. Every accountant and tax professional listed has been carefully vetted through recommendations and interviews. This ensures that the professionals on the platform have proven experience working with startups and can deliver high-quality financial advice and services.
Personalized Matching Service: Sam’s List provides personalized matches based on your business needs. Whether you’re seeking help with complex tax strategies or basic bookkeeping, the platform connects you with experts who fit your situation. This tailored approach saves time and lets you focus on running your startup.
Integrated Scheduling: Some professionals on Sam’s List offer integrated scheduling, allowing you to book consultations directly through the platform. This eliminates the hassle of back-and-forth emails, making setting up meetings at your convenience easy.
Transparent User Reviews and Ratings: Trust and transparency are core values of Sam’s List. The platform allows users to leave reviews and ratings, giving you insight into the experiences of other startup founders. These reviews help you make informed decisions based on real-world feedback.
Independent and Unbiased Recommendations: Unlike other platforms that might favor certain providers for business reasons, Sam's List offers unbiased recommendations. This ensures that the professionals you’re matched with are the best fit for your business without hidden motives influencing the suggestions.
Pricing
Sam’s List prioritizes providing value to startups with transparency and quality recommendations. Here’s how our pricing model works:
Free Access: Sam’s List offersfree accessto its curated recommendations of accountants, CPAs, and bookkeeping professionals, making it cost-effective for startups.
Direct Scheduling: Startups can schedule consultations directly with bookkeeping professionals through the platform’s integrated scheduling tools, streamlining the connection process.
Professional Fees: While Sam’s List itself is free, the actual services provided by the bookkeeping professionals will come at their own fee structures, which are transparent and discussed directly between you and the provider.
No Hidden Costs: There are no additional fees from Sam’s List. Any costs are strictly for the bookkeeping services you choose to engage.
Variety of Options: The platform connects startups with providers that offer a range of pricing models, ensuring you can find a service that matches your budget and financial needs.
Pros of Sam’s List for Startups
Tailored Recommendations: Sam's List delivers personalized recommendations, ensuring the financial help you receive aligns with your startup’s specific needs.
Vetted Professionals: The accountants and CPAs on Sam's List are thoroughly vetted, offering peace of mind that you're working with experienced, trusted experts.
Convenient Scheduling: Integrated scheduling features make it easy to book consultations, saving time and reducing the hassle of back-and-forth communication.
Transparency: User reviews and ratings allow you to make informed decisions based on others' experiences.
Cons of Sam’s List for Startups
Limited Availability of Professionals: Depending on your location or specific needs, the number of available professionals might be limited, especially if you require niche expertise.
Cost: While Sam’s List offers access to top-tier professionals, some services might be more expensive than alternatives, particularly for very early-stage startups with tight budgets.
Reliance on User Reviews: While user reviews can be helpful, they may not always provide a full picture, particularly for complex financial situations that require deeper expertise.
2. QuickBooks Online

QuickBooks Onlineis a widely used cloud-based accounting solution, perfect for startups that need an efficient, scalable way to manage their finances. Developed by Intuit, QuickBooks Online offers many features to automate bookkeeping, track expenses, and help you manage your cash flow. What sets QuickBooks Online apart for startups is its flexibility. As your business evolves, you can start with basic expense tracking and invoicing and then move to more advanced features like project profitability tracking, inventory management, and payroll. Additionally, QuickBooks Online integrates with over 750 third-party apps, including payment processors, CRM systems, and other business tools, making it a central hub for managing your startup’s finances from one platform.
Key Features of QuickBooks Online
Expense Tracking: QuickBooks Online automates recording and categorizing business expenses. You can import transactions directly from bank accounts or credit cards and categorize them with minimal manual input. This reduces human error and provides real-time insights into your financial health.
Invoicing & Payments: Create professional, customizable invoices and send them to clients. You can even set up recurring invoices and automated reminders for late payments. The platform allows clients to pay via credit card or bank transfer directly through the invoice, streamlining payment processes.
Payroll Integration: QuickBooks Online integrates payroll services that can automatically calculate salaries, manage tax withholdings, and file state and federal taxes. This feature reduces the administrative burden for startups with small teams and ensures compliance.
Project Profitability Tracking: Startups that handle multiple projects or clients can benefit from QuickBooks' project profitability feature. It tracks labor costs, expenses, and other job-specific details, giving insights into the most profitable projects.
Inventory Management: QuickBooks Online offers inventory tracking, particularly useful for startups dealing with physical products. It automatically updates inventory levels as sales are made, helping you avoid stockouts or over-purchasing.
Pros and Cons of QuickBooks Online
Pros
User-Friendly Interface: QuickBooks Online is easy to navigate, even for those without a strong accounting background, making it ideal for startups.
Scalability: It offers different pricing tiers, allowing you to upgrade as your business grows without switching platforms.
Automation: With features like automatic invoicing, expense categorization, and payroll, QuickBooks saves time by reducing manual accounting tasks.
Accessibility: Because it is cloud-based, you can access your accounts anytime, anywhere, making it convenient for remote teams or founders who are always on the go.
Robust Integrations: QuickBooks integrates with over 750 apps, meaning it can grow alongside your tech stack as your startup expands.
Cons
Cost: While QuickBooks offers much value, it can become expensive for very small startups, especially if you're looking for more advanced features or using payroll add-ons.
Learning Curve: Some users report that while the interface is user-friendly, the initial setup can be complicated for those unfamiliar with accounting software.
Customer Support: Some users have noted difficulties contacting QuickBooks support, which can be frustrating when resolving urgent issues.
3. Xero

Xerocloud-based accounting software is designed to help small businesses handle everything from invoicing to expense tracking and payroll. One of Xero's biggest draws for startups is itsautomation—itautomatically syncs with your bank accountsand imports transactions, saving you time on manual data entry. Xero also providesreal-time financial data, which is crucial for quickly tracking your startup's cash flow and making informed decisions. Its integration with over 800 third-party apps, like Stripe and Shopify, allows you to expand its functionality and customize it to suit your startup’s needs as it grows.
Key Features of Xero for Startups
Invoicing and Quotes: Xero makes creating professional invoices and quotes easy. You can also automate invoice reminders and set up recurring invoices, which is a huge time-saver for busy startups.
Expense Tracking: Track your spending by scanning receipts with Xero's mobile app, automatically adding details to your accounts. This feature is particularly useful for startups that need to monitor their expenses closely.
Inventory Management: Xero allows you to manage your stock levels in real-time, which is essential for startups selling physical products. You can track which products are selling well and which need reordering.
Multi-Currency Support: If your startup operates internationally, Xero’s multi-currency feature lets you pay and receive payments in over 160 currencies. This feature is a must-have for businesses with global customers.
Payroll with Gusto: Xero integrates seamlessly with Gusto for payroll management, making managing employee payments and tax withholdings easier.
Pros and Cons of Xero
Pros
Unlimited users: Unlike other accounting software, Xero lets you add unlimited users, which is great for startups with growing teams.
Integration with third-party apps: Xero’s capabilities can be extended with popular apps like Stripe, HubSpot, and Shopify, making it a flexible tool for startups.
Real-time updates: Xero gives you real-time visibility into your financials, crucial for making quick decisions in a fast-paced startup environment.
Cons
Steep learning curve: Some users report that Xero’s user interface can be confusing initially, especially for those new to accounting software. You may need some time to get used to it.
Email-only support: While Xero offers 24/7 email support, there’s no direct phone support, which can be frustrating if you need immediate help.
Overall,Xerois an excellent option for startups that need a scalable and feature-rich accounting solution. Its automation, integrations, and multi-currency support make it a valuable tool for businesses looking to grow quickly. However, be prepared for a learning curve, especially if you’re new to accounting software.
4. FreshBooks

FreshBooksis a cloud-based accounting software for small businesses, freelancers, and startups. Known for itseasy-to-use interfaceandstraightforward setup, FreshBooks helps you manage your finances without extensive accounting knowledge. Whether you're invoicing clients, tracking expenses, or managing projects, FreshBooks aims to simplify the entire bookkeeping process. It's particularly suited for startups prioritizing client-based work and needing efficient tools for handling payments, invoicing, and project management. What makes FreshBooks stand out is its focus onservice-based startups. If your business revolves around client work, FreshBooks gives you all the tools to bill clients, track project hours, and organize expenses. Plus, it integrates seamlessly with popular payroll platforms likeStripe, PayPal, andGusto, which can help your startup streamline operations as it grows.
Key Features of FreshBooks
Invoicing & Payment Integration: FreshBooks allows you to easily create professional, customizable invoices. You can also automate reminders for late payments and accept payments directly through the platform via Stripe or PayPal. This feature helps startups get paid faster and more efficiently.
Time Tracking & Project Management: Startups that rely on client work can track billable hours directly within FreshBooks. The platform syncs these hours with your invoices, ensuring accurate billing and easier project management. This is especially useful for service-based startups that need to stay on top of project profitability.
Expense Tracking: FreshBooks simplifies expense tracking by allowing users to upload receipts through its mobile app. You can also link your bank account to import expenses daily, helping you stay on top of your business's financial health without manual data entry.
Mobile-Friendly: FreshBooks offers highly rated mobile apps for iOS and Android, enabling you to manage your finances on the go. If you need to send invoices, track time, or record expenses, you can do it all from your smartphone.
Scalable Pricing Plans: FreshBooks provides various pricing tiers (Lite, Plus, and Premium), allowing startups to choose the best option based on their client base. If you're just beginning, you can start with the Lite plan and upgrade as your business grows.
Pros and Cons of FreshBooks
Pros
User-Friendly Interface: FreshBooks is incredibly easy to use, making it ideal for founders with an accounting background. Its intuitive design ensures a smooth experience for managing invoices, expenses, and reports.
Excellent Invoicing and Payment Features: The platform offers customizable invoices and allows for direct payment processing, a huge advantage for startups looking to improve cash flow.
Built-In Time and Project Tracking: FreshBooks includes native time-tracking features, which allow you to monitor billable hours and project profitability without needing third-party tools.
Cons
Limited Scalability: FreshBooks is better suited for small businesses and startups. As your company grows, you may find the platform's features too limited, especially if you need more complex financial management.
Additional User Fees: Adding team members costs an extra $11 per user per month, which can quickly add up for startups with growing teams.
Basic Inventory Management: FreshBooks offers basic inventory tracking, which might not be sufficient for product-based startups that require more robust inventory management.
5. Bench

Benchis an online bookkeeping service designed for small businesses and startups that want tooffload their bookkeeping tasks to a dedicated team of professionals. You get adedicated bookkeeperwho works with you to categorize your transactions, reconcile your accounts, and deliver monthly financial reports. It’s a great solution for startups that need reliable, expert financial tracking without doing the heavy lifting themselves. One of Bench's unique aspects is that it combines technology with ateamof human bookkeepers, meaning you get the benefits of both automation and professional oversight. The platform is also designed to be simple and easy to use without downloading extra software, allowing you to access your financial information from anywhere.
Key Features of Bench for Startups
Dedicated Bookkeeper: When you sign up, you're assigned a personal bookkeeper who gets to know your business, handles your monthly bookkeeping, and provides detailed financial reports. You can communicate with your bookkeeper anytime to ensure everything stays current.
Tax Support and Filing: Bench goes beyond basic bookkeeping with itsBenchTaxservice, which includes tax preparation and filing. This is especially helpful for startups during tax season, ensuring your books are tax-ready without the usual hassle.
Financial Reporting: Bench offers detailed monthly financial statements, includingprofit and loss statements,balance sheets, andcash flow reports. These reports help you make informed decisions about your business and give you a clear overview of how your startup is performing.
Integrations with Tools: Bench integrates seamlessly with popular services likeStripe,Gustofor payroll, andShopify, which is particularly useful for startups that rely on these platforms to manage operations and revenue. This makes it easy to track financials across different platforms without extra effort.
Pros and Cons of Bench
Pros
Hands-off Bookkeeping: With Bench, your bookkeeper handles most of the heavy lifting, allowing you to focus on running your startup without worrying about the bookkeeping details.
Real-time Financial Tracking: Bench provides regular financial reports and real-time updates on cash flow, helping you manage your financial health without manual intervention.
Easy-to-Use Interface: The platform is designed to be simple and user-friendly, with no extra software needed, making it a great choice for busy founders who don’t want to deal with complex accounting tools.
Tax Season Ready: WithBenchTax, Bench helps you prepare for tax season and even files taxes on your behalf, ensuring you’re always compliant with federal and state regulations.
Cons
Limited Customization: Some users have noted that Bench lacks customization in its financial reports, which can be a drawback if your startup requires more detailed or specific financial breakdowns.
No Android App: While Bench offers a mobile app for iOS users, Android users are left without a mobile option to access their financials on the go.
Not a Complete Accounting Solution: Bench focuses primarily on bookkeeping and financial reports. If you need more comprehensive accounting services, such as invoicing or bill payments, you should supplement Bench with additional tools.
6. Wave

Waveis a standout option for startups seeking a completelyfree accounting solution. Unlike many other platforms, Wave offersunlimited invoicing, expense tracking, and receipt scanning without chargingfor its basic bookkeeping features. This makes it appealing for small businesses and startups operating on tight budgets. With Wave, you can manage your finances without worrying about monthly fees, though optional paid features like payroll and payment processing are available. What makes Wave a great fit for startups is itssimplicity. The platform is user-friendly, meaning you don’t need a background in accounting to navigate it. From sending invoices to tracking expenses,Wave automates many of the tedious tasksthat startups face, allowing you to focus on growing your business.
Key Features of Wave
Free Invoicing and Expense Tracking: With Wave, you can create and send unlimited invoices and track expenses without fees. The platform also integrates Apple Pay, allowing your clients to pay invoices quickly, and it supports recurring billing for businesses that work with regular clients.
Automated Financial Management: Wave’s automation features are ideal for startups that need to save time on bookkeeping. The platform can automatically import transactions from your bank and categorize them while syncing real-time payments and expenses.
Receipts and Reporting: Wave allows you to scan and upload receipts directly through its mobile app. This ensures all your transactions are tracked, and it automatically generates profit and loss statements, balance sheets, and other essential financial reports.
Optional Payroll Services: Wave offers an optional add-on for a small fee to manage payroll. It helps you calculate and manage payroll taxes, track employee payments, and file necessary tax forms.
Pros and Cons of Wave
Pros
Completely Free for Core Features: Wave’s biggest selling point is its free accounting tools, which cover invoicing, expense tracking, and reporting without any usage limits.
User-Friendly: Wave is designed for business owners with no accounting background. The setup process is simple, and the platform’s intuitive interface makes it easy to manage finances.
Unlimited Users and Businesses: You can add multiple businesses to your Wave account and give access to an unlimited number of users, which is ideal for startups with growing teams.
Cons
Limited Integrations: Unlike competitors like QuickBooks, Wave does not offer many direct integrations with other software. The only option for additional integrations is through Zapier, which might not be ideal for more complex setups.
Scalability Issues: While Wave is great for small startups, it lacks advanced features that growing businesses may need. As your startup scales, you may need more robust tools for managing larger operations.
Customer Support Limitations: Wave only offers customer support through live chat and email, which may be inconvenient for startups needing immediate assistance.
7. Pilot

Pilotis a premium bookkeeping service designed specifically for startups and high-growth businesses. It offers more than just bookkeeping—it providesaccrual-basis accounting, tax services, and fractional CFO support, making it one of the best choices for venture-backed startups or those scaling quickly. Pilot integrates seamlessly withQuickBooks Online, helping startups transition their books from other platforms like Xero and setting up automated transaction imports to save time. Pilot is particularly useful for startups that needmonthly financial reportssuch as profit and loss statements, balance sheets, and cash flow statements, as well as more advanced services likeburn-rate calculationsandtax preparation. These features allow founders to monitor their business performance closely, which is critical for investor meetings and growth planning.
Key Features of Pilot for Startups
Dedicated Bookkeeper: Every business is assigned a dedicated bookkeeper to manage their financials, ensuring everything is tracked and reconciled correctly. You can communicate with them directly, making the bookkeeping process more transparent and reliable.
Accrual-Basis Accounting: Unlike many other bookkeeping services that offer only cash-basis accounting, Pilot providesaccrual-basis accounting, which is essential for startups aiming to scale or report more accurately on their financial position.
Custom Financial Reporting: In addition to basic reports, Pilot offers the option forcustom reportingon things like advanced revenue recognition, billable expenses, and inventory tracking, which is valuable for startups handling complex financial transactions.
CFO and Tax Services: Beyond bookkeeping, Pilot provides add-on services for CFO guidance and tax filing, allowing startups to have a full range of financial management in one place. This can include support forR&D tax creditsorstock administrationfor C-Corps.
Pros and Cons of Pilot
Pros
Built for Scaling Startups: Pilot is designed to grow with your business, offering features like revenue recognition, cash flow tracking, and more advanced financial services as your startup scales.
Comprehensive Financial Management: Beyond bookkeeping, Pilot provides tax filing and CFO services, ensuring that your startup has everything it needs in one place.
Monthly Reports & Burn Rate Calculations: Pilot’s detailed monthly reports and focus on burn-rate calculations make it easy for startups to manage cash flow and plan for growth.
Cons
Cost: Pilot is more expensive than other bookkeeping services, with monthly plans starting at $349. This makes it a better fit for startups with a larger budget or those that require more advanced services.
Limited Software Options: Pilot only integrates with QuickBooks Online, which could be a limitation for businesses using other accounting software.
Email-Based Support for Lower Tiers: For startups using the entry-level Core plan, customer support is limited to email, with more responsive support options reserved for higher-tier plans.
8. Sage

Sage Business Cloud Accountingis a versatile, cloud-connected solution for helping startups manage their finances efficiently. Its flexible pricing plans and range of features make it a strong contender for startups that need a reliable tool for tracking cash flow, generating reports, and managing inventory. Sage's ability to handle more complex accounting needs, such as multi-currency transactions, is helpful for startups operating in international markets. Sage'scloud connectivitymeans you can access your financial data from anywhere, making it ideal for startups with remote teams or distributed operations. Withreal-time reportingand customizable dashboards, Sage helps you monitor your business’s financial health, giving you the data you need to make informed decisions as you grow.
Key Features of Sage for Startups
Cash Flow Management: Sage excels in helping startups manage cash flow with tools that track incoming and outgoing cash, predict future needs, and provide insights through "what-if" scenarios to help with planning.
Bank Reconciliation: This feature automates the tedious process of reconciling bank transactions with accounting records. Sage automatically downloads transactions and matches them to outstanding invoices, making it easier to manage your accounts.
Inventory Tracking: Sage offers robust inventory management for startups that sell products. It allows you to monitor stock levels, set up automatic reordering, and track sales—all integrated into your financial system.
Customizable Reporting: Sage provides access to over 150 financial reports, which you can customize based on your business's needs. This helps startups analyze their financial performance and create tailored reports for investors or internal decision-making.
Integration with Microsoft 365: Sage’s integration with Microsoft 365 allows for enhanced reporting via Excel and cloud backups, adding a layer of flexibility and security to your financial data management.
Pros and Cons of Sage
Pros
Cloud Accessibility: Sage's cloud-based system allows you to access your accounts from anywhere, making it ideal for startups with remote or distributed teams.
Inventory and Cash Flow Tracking: The platform offers strong tools for managing cash flow and inventory, which is particularly useful for product-based startups.
Customizable Dashboards: Sage lets you tailor dashboards to different roles within your team, giving employees access to the financial data they need most.
Cons
Learning Curve: Some users report that Sage can be challenging to navigate, especially for those without accounting experience. The system may feel more suited for established accountants rather than beginners.
Customer Support: Sage’s customer service has been noted as somewhat limited. It offers primarily digital support options rather than more direct channels like phone assistance.
Cost: Sage is not the cheapest option on the market, with entry-level plans starting at around $60 per month. Additional features come at higher costs, which may not be ideal for very early-stage startups.

9. A2X Accounting

A2X Accountingis a specialized accounting solution fore-commerce businessesthat sell on platforms likeAmazon, Shopify, Etsy, eBay, Walmart, and BigCommerce. It connects your e-commerce channels and popular accounting platforms likeQuickBooks, Xero, and Sage, automatically reconciling sales transactions, fees, taxes, and refunds. This automation saves time and providesaccurate, GAAP-compliant financial reporting, ensuring a clear picture of your financial health. For startups managing high transaction volumes, A2X significantly reduces the manual effort required to categorize and post-sales data, which would otherwise take hours each week. By providing seamless integrations, A2X transforms disorganized e-commerce data into precise financial records, making it a must-have for startups operating in the e-commerce space.
Key Features of A2X
Automated Reconciliation: A2X pulls in data from your e-commerce platforms, organizes it, and then posts it directly into your accounting software, saving you hours on manual reconciliation.
Accurate Financial Reports: A2X provides detailed, easy-to-understand financial summaries, helping startups keep track ofsales,fees, refunds, and taxes. This is especially valuable during tax season and investor reporting.
Multi-Channel Integration: A2X supports multiple e-commerce platforms, allowing startups to manage transactions from various sales channels in one unified system.
GAAP-Compliant Reports: For venture-backed startups, maintainingGAAP complianceis essential for reporting to investors, and A2X ensures your financial data meets these standards.
Pros and Cons of A2X
Pros
Time-Saving Automation: A2X drastically reduces manual data entry and reconciliation, which is critical for startups handling large volumes of transactions.
Accurate and Detailed Reports: The platform provides granular, reliable financial data, ensuringtransparency and accuracyfor day-to-day operations and long-term financial planning.
E-commerce Focus: A2X is tailored specifically for e-commerce businesses, making it ideal for startups in this sector.
Cons
Price: A2X may be overkill for startups with low transaction volumes. Its pricing is based on the number of monthly sales channels and orders, starting at $29 for smaller businesses but can climb up to $899 for larger operations.
Limited to E-commerce: A2X’s features are designed for e-commerce businesses, so startups outside this niche may find it less useful.

10. Zoho Books

Zoho Booksis a cloud-based platform that provides tools to manage everything from invoicing and expenses to inventory and project management. It’s attractive for startups that needflexibilityandscalability, offering multiple pricing tiers to grow their business. The platform's intuitive design means you don’t need to be an accounting expert to get started. One of Zoho Books's best aspects for startups is itsfree plan, which is ideal for businesses making less than $50,000 in annual revenue. This plan allows one user and includes features such as invoicing, expense tracking, and multi-currency transactions. As your startup scales, Zoho Books offers paid plans with advanced features likeinventory management,custom reports, andproject accounting, ensuring that your financial management grows alongside your business.
Key Features of Zoho Books
Invoicing and Payment Management: Zoho Books offers a highly customizable invoicing system. You can create professional invoices, set up recurring billing, and track billable hours for projects. The platform also allows formulti-currency invoicing, which is especially helpful for startups dealing with international clients.
Inventory Tracking: Zoho Books provides advanced inventory management tools that are available in the higher-tier plans. This allows startups dealing with physical products to track stock levels, set reorder points, and even integrate with e-commerce platforms likeShopify.
Project and Time Tracking: Zoho Books is ideal for startups that rely on project-based work. You can track time spent on tasks and assign it to specific projects, ensuring accurate billing and detailed project profitability reports.
Automated Reporting: Zoho Books can automatically generate financial reports, including profit and loss statements, balance sheets, and cash flow reports. These reports can be scheduled to be sent to you via email, ensuring you're always up to date on your startup's financial health.
Mobile App: The Zoho Books mobile app lets you handle most accounting tasks on the go, including invoicing, expense tracking, and project management. The app is highly rated for its functionality and ease of use.
Pros and Cons of Zoho Books
Pros
Flexible Pricing Plans: Zoho Books offers a range of plans, including a free option for small startups. As your business grows, you can easily upgrade to unlock more advanced features like project management and inventory tracking.
Customizable Workflows: Zoho Books allows for extensive customization, letting you automate workflows and tailor the platform to fit your startup’s unique needs.
Great Mobile App: The mobile app is a huge plus for busy founders, allowing you to manage your finances on the go.
Cons
Steep Learning Curve: While Zoho Books has features, some users find it has a steep learning curve, particularly for beginners unfamiliar with accounting software.
Limited Integrations: Zoho Books works best when used in conjunction with other Zoho products, but it offers fewer integrations with third-party apps than some competitors, which could be limiting for startups relying on non-Zoho tools.
Advanced Features in Higher Tiers: Many more advanced features, such as inventory tracking and budgeting, are only available in the more expensive plans, which may not be ideal for smaller startups on a tight budget.

What Should Startups Look for in a Bookkeeping Service?

When choosing a bookkeeping service, startups need to ensure it meets their unique needs and can scale with the business. Here’s what to look for:
Scalability: As your startup grows, so will your bookkeeping needs. You’ll want a service that can scale alongside you, offering advanced features like inventory management, multi-currency support, and even CFO guidance. For example, platforms likeQuickBooks OnlineandPilotoffer features that grow with your business, ensuring your finances stay in order even as things get more complex. If you're usingSam's List, you can connect with vetted professionals who specialize in helping startups at different growth stages.
Automation and Time Savings: Time is one of the most valuable startup resources. Look for bookkeeping services that offer automated invoicing, expense tracking, and bank reconciliation, allowing you to focus more on your core business activities. Services likeZoho BooksandWaveprovide automation that helps reduce manual work, ensuring accuracy and efficiency in managing your books.
Real-Time Financial Reporting: Your financial decisions depend on up-to-date, accurate information. A good bookkeeping service should offer real-time reporting tools that provide insights into your cash flow, profitability, and expenses. Tools likeXeroandBenchprovide detailed reports that help you stay on top of your finances and present accurate data to investors.
Ease of Use: Startups need easy-to-use platforms, especially without a dedicated finance team. Look for solutions with intuitive designs and user-friendly interfaces.FreshBooksandWaveare known for being simple to navigate, making them popular choices for founders without much accounting knowledge. If you're unsure where to start,Sam's Listcan help you connect with experts who make bookkeeping straightforward and manageable.
Cost and Flexibility: Startups often face budget constraints, so finding an affordable solution is crucial.Waveis a great free option for basic bookkeeping, andZoho Booksoffers a free plan for businesses earning less than $50,000 annually. As your business grows, you can upgrade to paid tiers that offer more features.

How to Choose the Best Bookkeeping for Startups in 2024?

Several key factors will help you make the right decision based on your business's unique needs when choosing the best bookkeeping service for your startup in 2024. Here's a breakdown of what you should focus on:
1. Assess Your Startup’s Specific Needs
Before selecting a bookkeeping service, identify what your startup specifically requires. Are you looking forbasic invoicing and expense tracking, or do you need more advanced featureslike inventory management, tax filing, and accrual accounting? Services likeWaveoffer free basic bookkeeping, ideal for startups with simple needs. In contrast, more comprehensive services likePilotandXerocater to startups that need full-scale accounting support and real-time financial reports.
2. Look for Scalability
Your bookkeeping needs will evolve as your startup grows. Ensure that theservice you choose can scale with your business. Look for platforms that offer various pricing tiers and features that expand your startup’s growth. For example,QuickBooks OnlineandZoho Booksoffer scalable solutions with different pricing plans, including advanced features like inventory management and project tracking as your business grows.Sam's Listalso provides vetted accountants and CPAs who can support your startup through different growth stages, ensuring you're always prepared.
3. Automation and Integration Capabilities
Automating tasks like invoicing, transaction tracking, and reporting can save time and reduce errors, which is crucial for startups juggling multiple responsibilities. Consider platforms likeXero,FreshBooks, andZoho Booksthat offer strong automation features. Additionally,integration with other tools you already use—like e-commerce platforms (e.g., Shopify, Amazon) or payment systems—can be a huge advantage. A2X Accountingis particularly well-suited for e-commerce startups. It seamlessly integrates with platforms like Shopify and Amazon to reconcile sales and fees automatically.
4. User-Friendly Interface
If you don’t have an accounting background, it’s important to select a bookkeeping solution that’s easy to navigate. WaveandFreshBooksare known for their intuitive interfaces, making it easier for non-accountants to manage their finances. This can help you avoid the steep learning curve that some more complex platforms may have.
5. Real-Time Financial Reporting
Up-to-date financial information is crucial for making informed decisions, especially for startups that need to track cash flow and profitability closely. Services likeXero,Bench, andPilotprovide real-time financial reports and detailed insights, which can be invaluable for startups looking to scale or attract investors.
6. Cost-Effectiveness
Budget is a major factor for most startups. Free services likeWaveare great for early-stage startups with simple needs, while paid services likeZoho BooksandQuickBooks Onlineoffer more advanced features at various price points. Be sure to weigh the features offered against the cost to determine if the service is worth the investment for your startup.
7. Support and Expert Help
Finally, ensure the bookkeeping service provides adequate support. Some platforms, likeBench, offer dedicated bookkeepers who handle everything for you, while others, likeZoho Books, offer live chat and phone support to help guide you through issues. If your startup needs more specialized support,Sam's Listcan connect you with accountants and CPAs who understand your industry and growth stage.
Start with Sam’s List

Sam's Listis the ideal place to begin. It provides a curated selection of vetted accountants and CPAs who specialize in working with startups, so you can be confident you're connecting with professionals who understand your unique needs. You can see who has endorsed each accountant and why, andyou'll also gain insights into their expertiseand approach to financial management. WithSam's List, you're in control. You can contact an accountant directly or book an introductory call with them. Plus,you can get matched with accountants based on your specific requirements, ensuring you connect with professionals who are a perfect fit for your business. Starting with Sam’s List is an efficient way to research and compare multiple accountants in one place, saving you time and giving you peace of mind. It's the first step in ensuring your startup's finances are in capable hands, so why not begin your search withSam’s List today?
Best Bookkeeping for Startups: Frequently Asked Questions

What are the benefits of using accounting software for startups?
Accounting software helps startups save time, reduce manual errors, and streamline financial tasks like invoicing, expense tracking, and reporting. It also offers real-time insights into cash flow, which helps founders make informed decisions. Additionally, many platforms offer features like automated tax calculations, integration with payment systems, and scalability as the business grows.
How can startups ensure their bookkeeping is tax compliant?
Startups can ensure tax compliance by using accounting software that automatically tracks and categorizes expenses, generates financial reports, and prepares for tax season. Platforms like Pilot and Bench offer tax-ready bookkeeping, while others like QuickBooks integrate with tax software.
What should startups look for in a bookkeeping service provider?
When choosing a bookkeeping service provider, startups should look for scalability, automation, real-time reporting, and ease of use. Additionally, it's important to find a service that offers integration with other tools (like payment processors and e-commerce platforms) and strong customer support. For example,Sam's Listhelps startups find vetted professionals, ensuring they work with experts who understand their needs.
How can startups streamline their expense tracking process?
Startups can streamline their expense tracking by using accounting software with automation features like bank feed synchronization, automatic categorization, and recurring expense tracking.
What are some best practices for managing accounts receivable in startups?
To manage accounts receivable efficiently, startups should automate invoicing, send reminders for overdue payments, and offer multiple payment options to clients. Platforms like Zoho Books and QuickBooks Online allow for automated invoicing and tracking of unpaid bills.

Best Bookkeeping for Startups

Best Bookkeeping for Startups at a Glance

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1. Sam's List

Features

Pricing

Pros of Sam’s List for Startups

Cons of Sam’s List for Startups

2. QuickBooks Online

Key Features of QuickBooks Online

Pros and Cons of QuickBooks Online

3. Xero

Key Features of Xero for Startups

Pros and Cons of Xero

4. FreshBooks

Key Features of FreshBooks

Pros and Cons of FreshBooks

5. Bench

Key Features of Bench for Startups

Pros and Cons of Bench

6. Wave

Key Features of Wave

Pros and Cons of Wave

7. Pilot

Key Features of Pilot for Startups

Pros and Cons of Pilot

8. Sage

Key Features of Sage for Startups

Pros and Cons of Sage

9. A2X Accounting

Key Features of A2X

Pros and Cons of A2X

10. Zoho Books

Key Features of Zoho Books

Pros and Cons of Zoho Books

What Should Startups Look for in a Bookkeeping Service?

How to Choose the Best Bookkeeping for Startups in 2024?

1. Assess Your Startup’s Specific Needs

2. Look for Scalability

3. Automation and Integration Capabilities

4. User-Friendly Interface

5. Real-Time Financial Reporting

6. Cost-Effectiveness

7. Support and Expert Help

Start with Sam’s List

Best Bookkeeping for Startups: Frequently Asked Questions

What are the benefits of using accounting software for startups?

How can startups ensure their bookkeeping is tax compliant?

What should startups look for in a bookkeeping service provider?

How can startups streamline their expense tracking process?

What are some best practices for managing accounts receivable in startups?

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