What Financial Software Should I Choose For My Startup?
Start-ups think big from the beginning. They have to in order to make it in such a competitive market. As a Founder, you have a vision and are passionate about your products, services, customers and people as you are building a great company. The choice of where you incorporate your legal entity and which financial resources you leverage will be critical to your long term cash and tax optimization. Many startups choose to start their headquarters in the US, with an LLC or C corporation which are very popular and great options. Everything is quite simple when you are focused on domestic US business, but if you plan to have international activities, there are many other options you have to think about for your headquarters and future subsidiaries.
In the short term, the accounting/finance software for many is Quickbooks, Dynamics and Netsuite. They all work well for starting in the US, but as your business starts to grow, you’ll quickly realize that the accounting software you used to get by just won’t cut it anymore. You need something with more features that can help you manage your finances on a global scale.
We’ve put together a list of the best cloud-based accounting software for startups looking to scale up their operation. We’ll compare the subscription costs, user-friendliness, and global reach of Quickbooks, Dynamics, Netsuite, Xero & Odoo.
US based QuickBooks is one of the most popular accounting software programs for small businesses. It’s simple to use and has a variety of features that can help you manage your finances. The subscription cost is $17 per month for a simple start, $26 per month for the essentials version, and $36 for advanced plus. 50% discount is available for the first 3 months.
Although QuickBooks is a good choice for startups, there have been some complaints about its syncing abilities with banks and credit cards. Some users have reported that their transactions haven’t been updating correctly, which can cause problems down the road. Quickbooks integrates well with its own payroll solution and have a lot of interfaces for US payroll and tax reporting. If you stay in the US and stay small, it’s ideal with the value for money.
US based Dynamics is a cloud-based accounting software program from Microsoft. It offers a variety of features that can help businesses manage their finances, including invoicing, expense tracking, and inventory management. The subscription cost starts from $70 per month.
Although Dynamics is more expensive than QuickBooks, it offers a lot of great features for businesses that are looking to scale up their operation. One of the great things about Dynamics is that it integrates with other Microsoft products, such as Office 365 and CRM. This can make it easier for businesses to manage their finances across multiple platforms.
Dynamics is praised for its ease of use and flexibility. However, some users have complained that they cannot get in touch with customer service via telephone. Additionally, its subscription cost is on the higher end, and finding consultants can be challenging and expensive, which may not be ideal for startups that are working with a tight budget. It is also challenging to learn and use but once you get the hang of it, it can be a powerful tool for businesses that are looking to scale up their operation.
New Zealand -based accounting software Xero is one of the most popular cloud-based accounting tools. It offers a variety of features, such as invoicing, expense tracking, and inventory management. The subscription cost starts from $22 per month and goes up to $47 per month for the premium plan.
Xero’s free trial is one of the most appealing aspects of it. You may test out Xero for free before committing to a subscription, and its customer service has been praised by many users as being quick and helpful (which I would expect from the amazing country of New Zealand). Its multi-currency feature is also an excellent choice for firms with global ambitions.
However, some people have complained that the program is difficult to use and has a high learning curve. If you’re a business owner shopping around for accounting software and customer service is important to you, then Xero is definitely worth considering.
US based Netsuite (Oracle) is another cloud-based enterprise resource planning (ERP) software suite that offers a variety of features, such as invoicing, expense tracking, and inventory management. It also offers customer relationship management (CRM) and eCommerce capabilities. The subscription cost starts at $99 per month and goes up to $999 per month for the premium plan.
It is not that user-friendly and has a very high learning curve. The software have also been known to be buggy and glitchy. Customers have complained about its customer service, which is said to be unhelpful and difficult to reach.
Overall, Netsuite is a good choice for businesses that are looking for ERP software with a variety of features. However, its high subscription cost and lack of user-friendliness may not make it the best choice for small businesses or startups. If the business grows to an exponential level, then it is a potential great option as it can handle global complexities of multi-currencies, group consolidation. Additionally, a lot of private equity and venture capitalists are quite familiar with it, so the reporting aspects could be beneficial to your outside investors.
Belgian based Odoo. You might not have heard of Odoo before, but it’s actually one of the most popular open-source ERP software programs on the market. It offers a variety of features, such as invoicing, expense tracking, and inventory management. The software also offers CRM, e-commerce, and project management capabilities. It starts at 6$ per month. However, think of Odoo like an Iphone with a bunch of apps, you can get an app for each module you want so it’s very good in the sense that you can customize it and it’s all on one system.
Odoo’s user interface is complex and difficult to use to, which are among the most frequent complaints about the software. Another problem is its pricing structure: after using a single module, moving to one additional program incurs extra costs on top of the $30/month fee for a single user. As a result, Odoo’s overall price tag keeps going up. To address this pricing problem, Odoo offers purchasing plans where you can choose the apps ahead of time.
When it comes to choosing accounting software for your startup, there are a few things you need to keep in mind. The first thing is the price — most of these software packages have different subscription costs, so make sure you pick one that’s affordable. The second thing is usability — the software should be easy to use and navigate, especially if you’re not familiar with accounting concepts. And finally, think about scalability — can the software grow with your business as it expands?
In our opinion, Quickbooks is the best option for startups who will stay US based with a limited domestic focus and not grow too big. If you are ready to go big, take a hard look at Netsuite, XERO or Odoo, think they will all give you better global scalability with it comes to group consolidation, multi-currency, intercompany, VAT and a variety of other complex international areas.