CEO and Founder of Kruze Consulting
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Kruze has worked with hundreds of SaaS startups that have raised billions of dollars from VCs, and we are regarded as one of the top SaaS accountants - our take is that QuickBooks Online (QBO) is a great option, actually the best option, for software as a service startups.
QuickBooks offers a range of features that can be helpful for businesses in the SaaS industry, including invoicing, expense tracking, and reporting. Very importantly, it integrates with other business tools, such as payment processors and CRM systems, which can be useful for a SaaS company and that can automate manual data entry.
Here are several reasons why QBO is the right choice for SaaS companies:
SaaS startups have very different accounting software needs than traditional small businesses. VC-backed businesses, and high-growth software companies, need scalable systems that can keep up with the business’ growth. It’s much, much easier to scale with a system like QBO vs. working with a less automated solution that requires lots of manual data entry, or with a large-enterprise solution like an ERP that requires tens of thousands of dollars of implementation work.
QuickBooks is an industry-standard accounting software that is widely used by accountants and CPAs that serve SaaS companies. This is an important consideration for early-stage SaaS businesses, as they may start by doing their own bookkeeping, then hire an outsourced provider, and eventually bring that work in-house or switch to an enterprise resource planning (ERP) system. SaaS companies should also pick an accounting software that can be picked up by any bookkeeper/accountant - i.e. one that is highly used. QuickBooks is a good choice for early-stage companies because it is a software that can be easily used by anyone, regardless of their level of experience.
It’s important to ensure that your company’s bookkeeping data is stored in a system that you own and can access at all times, regardless of who is doing the bookkeeping work. Some bookkeeping tech companies have their own proprietary accounting software, which means that your data is only accessible within their system. This can be a problem if you decide to switch to a different bookkeeping service or software. You should also be cautious of bookkeeping tech companies that use a large number of proprietary connections between their system and QuickBooks, as this can make it more difficult to switch to a different system in the future. To avoid these issues, it’s best to use QBO, and to work with a CPA who doesn’t hook a lot of proprietary, ‘black-box’ tech into it. You want and need your accounting data to be yours and to be fully portable!
Finally, data matters for early-stage founders. QuickBooks makes it easy for early-stage founders to track and analyze their financial data because it offers a range of built-in reports and allows for customization. With QuickBooks, you can easily track important financial metrics such as burn rate, revenue, and cash flow, and generate standard financial statements like income statements and balance sheets. This can be helpful for early-stage founders who want to closely monitor their company’s financial performance and share key information with venture capital investors. Additionally, QuickBooks allows you to customize reports to fit your specific needs, so you can tailor the information you see to your business and your goals.
The best accounting software for SaaS startups is QBO.
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