Accounting software (sometimes referred to as a general ledger system) is the backbone of your accounting function.  It is used to help keep track of the economic transactions that your business engages in on a daily basis. Though the use of accounting software is not always required, we generally recommend that you should set up a basic accounting system as soon as you have raised funding from any outside investors.  As soon as you take on investment capital, you have a fiduciary duty to those investors and should be able to regularly produce accurate financial statements to them. Each of the accounting software platforms mentioned below is cloud-based, easy to use and allows businesses to collaborate with independent accountants, which are the biggest requirements to look for.

QuickBooks Online

QuickBooks Online is a web-based subscription platform available on desktop and mobile devices which requires neither previous accounting knowledge nor any software installations. It consolidates supplier, internal and customer data, making it easy to track sales, expenses and manage invoices. The platform also helps manage sales tax requirements while allowing different users predefined access levels from multiple locations.

Xero

With 1.3 million subscribers as of 2018 compared to QuickBooks Online’s 4.5 million worldwide in 2019, Xero may not be as widely subscribed as QuickBooks, but it is used in 180 different countries. The SaaS platform features near real-time cash reconciliation with over 200 banks and other financial institutions and has integrations with hundreds of third-party applications. This software also runs on mobile platforms such as Android and iOS.

Wave Apps

Wave is a free platform which offers accounting, receipting, and invoicing functionality, including on mobile platforms. As well as the ability to integrate unlimited bank accounts and cards, Wave has a handy dashboard which provides a snapshot of the organization’s financial position. However, the software has limited inventory management systems. Additional functionality like online payments and payroll are on a per-transaction and subscription model, respectively.

Conclusion

All of these software tools are a good option, offering accounting, invoicing, project, and inventory features along with many other solutions. Connecting your clients bank, reconcile transactions, automatically classify entries, and manage it all in your ledger.

Leaving your accounting to chance is never something you want to do. Invest in the right software early on, and know when it’s time to upgrade, outsource, or find a solution that better fits your company’s needs as you grow.

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Curt Mastio
Post by Curt Mastio
May 15, 2024 11:49:41 AM
Curt Mastio started Founder’s CPA in 2017 and currently serves as the Managing Partner of the firm. After obtaining both his Bachelor’s and Master’s degrees in accounting from the University of Illinois in Urbana-Champaign Curt started his career in Big Four public accounting. Shortly thereafter Curt served as the Chief Financial Officer of Storage Squad began his stint as an Adjunct Instructor at Northwestern University’s Farley Center for Entrepreneurship and has been teaching Accounting & Finance to undergraduate students for 6+ years. In his current role Curt oversees strategy, operations, and business development at Founder’s CPA. Further, Curt has experience working directly with 200+ startups and small businesses providing accounting, tax, and outsourced CFO services. His industry expertise lies in the SaaS, Blockchain, Marketplace, and Fintech industries. He has served as a key advisor working directly with startups that range from pre-revenue to companies generating over $30 million dollars a year in revenue. Lastly, he serves a key role working directly with the firm’s clients that have collectively raised over $200 million in venture capital funding to date. Curt is also an active advisor, mentor, and investor in the startup ecosystem. He has facilitated numerous workshops, webinars, and presentations to incubators and other startup-centric organizations. He is also an active mentor for Techstars in both Chicago and Iowa. Outside of his daily professional duties Curt is actively involved with Beat the Streets Chicago and was a founding member of its Young Professionals Board. His efforts in both leadership and community involvement were recognized when he was awarded the Illinois CPA Society’s Outstanding Young Professional Leadership Award in 2020. He was also a panelist at their annual conference in 2022 where he spoke about his experiences starting and operating a public accounting firm. He maintains an active Certified Public Accountant designation that he obtained in 2014. Outside of work, Curt can be found spending time with his friends & family including his dog Rufus. His hobbies include golf, boating, cooking, reading, and attending sporting events & concerts.