Beyond standard accounting functions, software as a service (SaaS) companies require additional functionality from their accounting software that enables them to track contracts users have committed to for the service (called bookings), invoices sent to customers to collect payment for the service (billings), and recognized revenue. Additional features to help SaaS business owners manage customers and their subscriptions are also a benefit.
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Here are our top picks for SaaS accounting software.
Best Accounting Software for SaaS Businesses From Our Partners
Product | Promotion | Learn more | ||
|---|---|---|---|---|
QuickBooks Online Learn more on QuickBooks Online's secure website | 5.0/5 Best for Overall SaaS accounting software | $35/month Additional pricing tiers (per month): $65, $99, $235. | 50% off for first three months or free 30-day trial. | Learn more on QuickBooks Online's secure website |
Xero Learn more on Xero's secure website | 5.0/5 Best for Revenue recognition software integrations | $15/month Additional pricing tiers (per month): $47, $80. | 30-day free trial or monthly discount (terms vary). | Learn more on Xero's secure website |
FreshBooks Learn more on FreshBooks' secure website | 4.5/5 Best for Subscription and client management | $19/month Additional pricing tiers (per month): $33, $60, custom. | 30-day free trial or monthly discount (terms vary). | Learn more on FreshBooks' secure website |
Our pick for
Overall SaaS accounting software
QuickBooks Online
Learn more
on QuickBooks Online's secure website
Starting at
$35/month
Additional pricing tiers (per month): $65, $99, $235.
Promotion
50% off
for first three months or free 30-day trial.
QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set, scalability and ability to accommodate small businesses with more complex financial needs. With millions of users worldwide, your accountant will likely be familiar with it.
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations.
- Robust feature set includes record-keeping, reporting, invoicing and inventory management, plus a capable mobile app.
- Chat and phone support available Monday through Saturday in all plans.
Cons
- Expensive compared with the competition.
- Frequent price increases and a tendency toward upselling.
- Limited account users with each plan.
Our pick for
Revenue recognition software integrations
Xero
Learn more
on Xero's secure website
Starting at
$15/month
Additional pricing tiers (per month): $47, $80.
Promotion
30-day free trial
or monthly discount (terms vary).
Xero allows unlimited users at every subscription tier, a valuable feature for businesses where several users may need at least limited access to the system to run reports or analyze performance. Xero also has a customizable analytics dashboard that lets each user rearrange or hide panels.
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No phone number for customer support listed.
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Our pick for
Subscription and client management
FreshBooks
Learn more
on FreshBooks' secure website
Starting at
$19/month
Additional pricing tiers (per month): $33, $60, custom.
Promotion
30-day free trial
or monthly discount (terms vary).
FreshBooks is a simple and affordable option for freelancers and very small businesses that don’t require many users and prioritize being able to operate on the go via mobile app. It’s an especially inexpensive choice for those who can work within lower-tier plans’ billable client limits, and all plans include time tracking.
Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Lacks features that quickly growing companies need, like audit trails for accountants to review.
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Our picks for the best SaaS accounting software
QuickBooks Online: Best overall SaaS accounting software
Price:
- $35 per month for the Simple Start plan.
- $65 per month for the Essentials plan.
- $99 per month for the Plus plan.
- $235 per month for the Advanced plan.
Why we like it: QuickBooks Online is one of the strongest accounting platforms on the market. Setup is easy, the user experience is intuitive, most accountants are sure to be well-versed in using it, and the company offers different levels of support that accommodate your company’s evolving needs as it expands. QuickBooks Online is a good option for SaaS companies, in particular, because the software automates data entry and it grows with your business. Of particular interest to SaaS businesses, QuickBooks Online handles revenue recognition (offered with the Advanced plan only), and it integrates with more than 700 outside applications — including a handful of tools to help you automate and report on revenue recognition.
When it comes to tracking the financial health of your business, QuickBooks Online empowers you with fully customizable reports. There is also a helpful virtual community of QuickBooks users who are active on online forums and more than willing to help answer questions about reporting, integrations and general help with navigating the platform. Read our QuickBooks Online review.
Xero: Best for revenue recognition software integrations
Price:
- $15 per month for the Early plan.
- $42 per month for the Growing plan.
- $78 per month for the Established plan.
Why we like it: Xero is another popular accounting software option for SaaS companies. The company offers three plan options, each suited for businesses of different sizes. All plans include the ability to invite collaborators to work on your Xero account (think team members and your accountant), create a variety of business financial statements, sync all business bank accounts and automatically reconcile transactions. Xero also offers a full-featured mobile app.
You can extend the functionality of your SaaS accounting via the Xero app store, which features an entire library of third-party software integrations. You can search by popular categories, featured apps and industries. Notably, Xero offers a number of revenue recognition software integrations — including a highly rated integration with Flowrev — as well as more than a dozen apps for SaaS businesses.
Since Xero offers a 30-day free trial, we recommend giving it a test run. Read our Xero Accounting review.
» MORE: Top alternatives to Xero
FreshBooks: Best for subscription and client management
Price:
- $19 per month for the Lite plan.
- $33 per month for the Plus plan.
- $60 per month for the Premium plan.
- Custom pricing for the Select plan.
Why we like it: FreshBooks is designed specifically for small businesses — from solopreneurs to small businesses with contractors or full-time employees. If your SaaS company is still in its early stages, this could be a good option for your SaaS accounting needs. FreshBooks offers four plans designed for businesses in different stages of growth. All plans, however, come with invoicing (including recurring invoices and late payment reminders), automated expense tracking, time tracking, payment processing and reporting (profit and loss statements, accounts aging).
Since the typical pricing model of a SaaS company is subscription-based, you may want to choose an accounting product that’s strong on subscription management. FreshBooks has well-built tools for both subscription and client management. The software includes a client management portal where you can create subscription-based profiles for your customers and manage those relationships along with automating recurring billing for subscriptions. Read our FreshBooks review.
» MORE: Best FreshBooks alternatives
Stacy Kildal contributed to an earlier version of this article, which was first published on Fundera, a subsidiary of NerdWallet.
Last updated on June 18, 2024
Methodology
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
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