Scalability: Most SaaS businesses are growth-oriented, which means you need accounting software that can keep up with your business.
Automating: SaaS is a rapidly changing industry. No one wants to spend all of their time doing bookkeeping, so you need a solution that is as high-tech as the service you provide. Automation lets you focus less on your books and more on your business.
Multi-company support: SaaS encompasses a wide range of business types. Your software should provide a solution that can take this into account.
One of the best options for the best accounting software for SaaS businesses is QuickBooks Online.
You’ll be hard-pressed to find a platform as scalable as QuickBooks Online: the software offers different levels of support that meet the evolving needs of your business as it grows. In addition, the configuration is simple and the accounting is intuitive.
Specifically, there are several reasons why QuickBooks Online is such a good option for SaaS businesses:
1. QuickBooks Online does not require manual data entry
We had the chance to chat with Scott Snyder, Founder and CEO of Sellution, about how he chose accounting software for his SaaS company. Snyder says the most important deciding factor was manual data entry.
“Ultimately, I want to create a data highway between my business and the accounting platform,” Snyder says. “When I start to think about what this looks like, I immediately worry about whether or not I’m going to go beyond the solution.”
Snyder says another deciding factor in finding Sellution’s SaaS accounting software was how well the software could integrate with other platforms. “I also had to identify the limitations of the program’s API framework and determine whether or not we could build a seamless integration between them,” he says.
Fortunately, QuickBooks Online offers an open API, which means you can connect your software directly to the platform to effortlessly push and extract data.
2. QuickBooks Online grows with your business
Finding an accounting software platform that will evolve as your business grows is another major consideration that you should take into account as a SaaS business (and, quite frankly, as a business owner. in any sector).
If your accounting program cannot grow as your business grows, sooner or later you will be forced to migrate to another platform. It’s a huge business, but you can avoid this headache by finding the right accounting platform from the start.
QuickBooks Online provides a seamless experience to meet your needs as your business grows. When you are starting out, you can use the basic level, Simple Start, to record your start-up expenses. As you prepare to launch, you can upgrade to Essentials or Plus, depending on your needs.
3. QuickBooks Online makes it easier to keep track of your financial health
Another major consideration when choosing the best accounting software for your SaaS business is to easily generate personalized financial reports.
You will want (otherwise need to) keep tabs on your financial health weekly, monthly and quarterly, and that means digging deep into your books to make sure everything is going well. QuickBooks Online shines in this regard, as it supports fully customizable reports. Their intuitive interface shows you the information you need with minimal hassle.
4. QuickBooks Online has a useful virtual community
While the software itself is top of the line, what also stands out in QuickBooks Online as SaaS accounting software is QuickBooks Online’s strong user community.
Most of these users are active in online forums and they are more than willing to answer questions about reports, integrations, and general help in navigating the platform.
In fact, there’s a QuickBooks Online forum for just about any question – all you have to do is figure out where to ask them. There’s even a ProAdvisor community for particularly tricky questions. Plus, QuickBooks ProAdvisors are accountants, consultants, CPAs, and other tax preparers with certification on the platform, which means they can go the extra mile to help you set up and to manage the accounting of your company.
So if you’re having trouble with your SaaS accounting software, help is just a click away.
Best Accounting Software for SaaS Businesses: Alternatives
While SaaS businesses can work very well with QuickBooks, if you’d rather explore your options, we recommend two additional products.
FreshBooks is designed especially for small businesses, so if your SaaS business is still in its infancy, this might be a good option. FreshBooks offers three different small business accounting solutions: Lite, Plus, and Premium. Each option is designed for businesses at different stages of growth, with the Lite plan being the cheapest and the Premium plan the most expensive.
The features you get with FreshBooks depend on the plan you sign up for, but all plans come with the following features, which are essential for SaaS accounting:
Invoicing (including recurring invoices and late payment reminders).
Automated expense tracking.
Collaborative tools (file sharing, centralized product conversations).
Reporting (P&L statements, aging of accounts).
FreshBooks is available at a price comparable to QuickBooks and offers very similar accounting features. This makes it a great alternative to consider for those looking for SaaS accounting. For a limited time, FreshBooks is offering 60% off for six months on Lite, Plus, and Premium plans when new users skip the 30-day free trial period and choose to buy now.
Xero is another popular option. Like FreshBooks, you can choose from three different Xero plans – Xero Early, Xero Growing, and Xero Established – each suitable for businesses of different sizes. The features you can expect with all plans include the ability to:
Invite collaborators to work on your Xero account.
Create a variety of business financial statements.
Synchronize all business bank accounts.
Extend the functionality of your service through the Xero App Store.
Contact customer support 24/7.
Xero also offers a 30-day free trial. We recommend that you give it a try. If that’s not right for you, switch to QuickBooks or FreshBooks for your SaaS accounting needs.
Choosing the best SaaS accounting platform for your business
Whether you’re building your SaaS business, or you’ve just started to achieve your goal and need a seamless way to manage your finances, QuickBooks Online offers a robust way to manage your business money. from top to bottom.
In particular, we recommend QuickBooks Online as the best accounting software for SaaS businesses because:
Its cloud-based API lets you enter and update your data effortlessly.
The platform adapts perfectly to your business.
Its intuitive interface makes it easy to visualize, analyze and report on the financial health of your business.
An active community of QuickBooks Online users is available to answer your questions 24/7.
A version of this article first appeared on Fundera, a subsidiary of UKTN.