Running a SaaS company is a thrill ride! But between building your product and keeping customers happy, finances can fall by the wayside. Choosing the right Saas accounting software can save you a ton of headaches (and maybe even some cash).
In this article, we’ll break down key tips to help you find the perfect Saas accounting software for your business. From features to future-proofing, we’ve got you covered!
What is Saas Accounting Software?
Imagine you run a company that sells software online, a so-called Software as a Service (SaaS) business. SaaS companies typically receive subscription fees from their customers on a monthly or annual basis. Keeping track of these incoming payments, along with expenses and other financial data, can be a challenge.
This is where SaaS accounting software comes in.
A Saas accounting software is a special type of accounting software designed to meet the specific needs of SaaS businesses.
SaaS accounting software automates many bookkeeping tasks, such as generating invoices, tracking subscriptions, and reconciling bank statements. This frees up valuable time for you to focus on growing your business.
However, for a Saas business, choosing the right tool which is also affordable or even free, is crucial. ProfitBooks is an accounting software, best suited for Saas companies.
With ProfitBooks, you can raise invoices for your international clients using our multi-currency feature, track all your business expenses, manage employee payroll and more.
The best part?
It’s 100% FREE to use. Get you free account now, and start solving complex business problems with ease!
And trust us, you do need an easy-to-use software which is feature packed. Why?
Let’s say your SaaS company offers a design tool. Your SaaS accounting software would automatically send invoices to your customers each month, track how much revenue you generate from different subscription plans, and ensure all your financial records are up-to-date.
This gives you a clear picture of the financial health of your business so you can make smart decisions about the future.
Now let’s get introduced to what Saas Accounting & Financial Management means.
An Introduction To Finance Management In Saas Accounting
For Saas companies, regular accounting might not quite work for you because you don’t do one-time sales. Instead, you get paid a set fee each month from your customers, like a gym membership. This is where SaaS accounting comes in.
SaaS accounting is basically keeping track of your money with this special system designed for subscription businesses.
Since your income comes in every month, it can be trickier to understand your cash flow than with a traditional store. The good news is that SaaS businesses typically don’t have a lot of costs to make the product itself, so your profits tend to be higher.
The downside is that because income comes in bits and pieces, it can be a little bumpy month to month depending on how many people pay annually or monthly.
SaaS accounting helps you smooth things out and understand the bigger picture of your money.
Choosing A Cloud Software Is Better
A cloud accounting software is always better in today’s digital world than an installable version. This is our opinion, and backed by facts and stats. ProfitBooks cloud accounting software is probably the best option you will find online, as it is completely free and feature-packed.
Why should you choose a cloud software over an installable one? Let’s explore.
Cloud technology is a game-changer for accounting software.
magine finding a program that perfectly fits your business, whether you’re a tiny startup or a giant hotel chain. Cloud options like SaaS (Software as a Service) cater to all industries and growth plans. Sounds too good to be true?
Well, there’s a catch.
The market is flooded with choices, making it tough to pick the right one. It’s like navigating a crowded mall – you need a plan! First, figure out what your business will need in the future. Then, brace yourself for some research because there are tons of vendors out there.
Here’s the good news: You’re no longer stuck with clunky, one-size-fits-all software. Think of it as the “modern era” of accounting software – no more giant, complicated programs! This freedom lets you choose a platform that makes your life easier. For example, a hotel could find a cloud program specifically designed for their industry, saving them tons of time.
The golden rules of choosing a vendor still apply. Will they answer your questions quickly and solve your problems?
Do they constantly improve their software to keep up with the times?
Since many programs work with existing software like ProfitBooks, make sure they play well together.
The bottom line?
Don’t be fooled by flashy promises. Research thoroughly before you commit. By understanding your needs and being choosy, you’ll find the perfect accounting software to navigate the exciting, but overwhelming, world of cloud options.
What Saas Companies Should Consider Before Getting A Accounting Software
Thinking about using cloud-based accounting software for your business? Great idea! But hold on a sec – picking the right one can feel overwhelming. Here’s what to consider:
- Size Matters: A tiny startup won’t need the same bells and whistles as a giant corporation. Think about who will use the software too. If it’s just the finance whiz in your small team, a powerful program might be perfect. But for a bigger team with less tech experience, user-friendliness is key.
- Budgeting Basics: Most SaaS software won’t break the bank, but keep your budget in mind. Don’t just look at the monthly price – factor in setup costs, training, and data transfer fees. Some vendors offer hand-holding services, while others might be more DIY.
- Industry Matters (Maybe): Big accounting tools can handle anything, but smaller players might be industry experts. For instance, there’s software designed specifically for online stores or B2B companies. If you plan to stay in your niche, a specialized tool could be a good fit. Otherwise, a general solution might be more versatile.
- Future-Proofing: Your business will (hopefully!) grow. Accounting can get trickier as things scale up. The last thing you want is to have to switch software later. Choose a platform that can grow with you and adapt to your future needs.
By considering these points, you’ll be well on your way to finding the perfect SaaS accounting software to navigate the exciting world of cloud accounting!
Primary Features To Look For In A Saas Accounting Software
Running a SaaS company means your accounting needs are unique. Here’s what to look for in your software:
- Automation on the cloud: SaaS accounting can be a beast. Don’t waste time on repetitive tasks! Choose software that automates things on the cloud. Imagine – your software sucks in data from payment processors and online stores, saving you tons of time and reducing errors. Plus, it can handle complex stuff like sales tax calculations. Cloud software like ProfitBooks is optimal for this.
- Growing with You: As your SaaS company scales, your accounting needs will too. Thinking about raising funds? You’ll need fancy reports and squeaky clean compliance. Adding a ton of employees? Your software needs to handle payroll for that many people. Going global? Look for software that handles multiple currencies and international accounting practices. But don’t get stuck overpaying! Make sure the software you choose offers the features you’ll need in the future at a price that won’t break the bank.
- Making Friends with Your Tech Stack:
Imagine your Saas accounting software being a hermit in your tech world – no problem! It needs to connect with your CRM, sales tax tools, subscription software, and anything else you use to run your business smoothly. So, how good is the software at playing with others? Here are some key connections to consider:
– Payment integration is king. Manually entering payment info is a time-suck you can avoid. Plus, it allows for real-time tracking of your cash flow and monthly recurring revenue (MRR).
– Sales tax automation is a must. The software should calculate sales tax at checkout and include it on all invoices automatically.
– And lastly, pick a platform that makes switching from your current system (spreadsheets or another Saas accounting software) a breeze! - Reports that Tell Your Story:
Your accounting software should be like a financial crystal ball. It needs to provide reports and insights that give you a real-time picture of your company’s health. Here are some basic reports you’ll need to generate monthly for compliance:
– Profit & Loss (income statement)
– Balance Sheet
– Cash flow statementWith ProfitBooks’ 45+ filterable reports, Saas companies can track all their financial movements at one glance!
But some SaaS accounting software go beyond the basics, allowing you to track key SaaS metrics like bookings (signed contract value), billings (amount invoiced), MRR (monthly recurring revenue – and make sure it’s recognized revenue!), churn rate, and customer lifetime value (CLV).
Top 5 Saas Accounting Software
When it comes to Saas accounting software, businesses need a tool that is not only feature-packed, but also follows all legal compliances. If you can get it all for free, that’s even better.
The Saas accounting software that we have mentioned here have all the features that you will need as a Saas company. Let’s explore them all one by one.
1. ProfitBooks – #1 Saas Accounting Software
ProfitBooks creates a pretty welcoming environment for businesses to thrive. What’s good about them is they’ve made it super user-friendly, so you don’t even need to hire an accountant. I mean, even if you’re clueless about accounting, you can handle it with ease.
They’re not big on direct integrations with other platforms, but they’ve got a workaround using Excel to move data around if you ever need it.
One more thing that sets ProfitBooks apart is its simplicity.
They don’t overwhelm you with super complicated reports. Instead, they keep it focused on what matters. It helps you concentrate on the essentials, which later leads to a more solid and non-negotiable analysis of crucial points, resulting in steady but significant growth.
They’re one of the very few Saas accounting software providers worldwide that offer a lifetime FREE plan. It’s not some stripped-down version either; it’s quite valuable, especially for startups and small businesses.
Pricing:
- Startup Plan (Free):
– Full-time free plan
– Comprehensive features included - SMB Plan ($15/month):
– Affordable at $15 per month
– Robust set of services
– Comparable or superior to competitors in the same price range
2. Xero
Xero has very good functionalities and it is confirmed by every decent source that I researched. It has a huge set of reports and analyses. Xero mingles well with other APIs and software. Large and medium-sized businesses could look forward to Xero as their Saas accounting software.
Xero also seems to be an accountant’s software provided its complexity. It may lead to the necessity of an accountant.
Despite this Xero is recommended as a Saas accounting software if you think your business needs a very robust and complexly functional software.
PRICING:
Xero currently offers four plans.
- The starter plan at $29/month,
- the standard plan at $59/month,
- the premium 5 plan at $76/month,
- and the Ultimate 10 plan at $110/month.
3. Quickbooks
Quickbooks is not restricted to a particular range of business models or industries. It is utilized by every kind of company imaginable. They’ve done well by releasing several versions of their software to the demands of the industry.
The primary market for Quickbooks desktops is business and professional services. Professional service companies and independent freelancers are increasingly using Quickbooks online.
Contractors, manufacturers and distributors, lawyers, and even retail and restaurant enterprises are among the target markets for Quickbooks Enterprise. This means that QuickBooks appears to be effective and useful in nearly every industry.
Evaluate various Saas accounting software to determine the one that aligns best with your business requirements and preferences.
Pricing:
QuickBooks Pricing Plans:
– Simple Start: $9/month
– Essentials: $13.50/month
– Plus: $19/month
4. Zohobooks
ZohoBooks is a game-changer in the accounting software arena, seamlessly blending user-friendly design with robust functionality. It goes beyond traditional bookkeeping, offering a comprehensive suite for small to medium-sized businesses.
Managing invoices is a breeze with customizable templates, and the expense tracking feature simplifies financial management. ZohoBooks also facilitates easy collaboration with your team, allowing for real-time updates and efficient project tracking. What sets it apart is its integration prowess—syncing effortlessly with other Zoho apps and third-party tools, ensuring a holistic business solution.
With intuitive dashboards and insightful reports, ZohoBooks empowers businesses to make informed financial decisions, making accounting a stress-free experience.
Pricing:
- Basic Plan: $9/month for 2 users, 50 contacts, and 2 automated workflows.
- Standard Plan: $19/month for 3 users, 500 contacts, and 5 automated workflows.
- Professional Plan: $29/month for 10 users, unlimited contacts, and 10 automated workflows.
- Premium Plan: $39/month for 10 users, unlimited contacts, and 10 automated workflows, with additional features like vendor credits and purchase approval.
5. Freshbooks
Over 24 million people use FreshBooks, a popular accounting program, across more than 160 countries. One of the most popular Saas accounting software, both small and large businesses, as well as independent contractors, can use it.
Invoicing, expense management, and time tracking are important features. The platform provides easily navigable invoice templates that can be customized.
However, the $15 to $50 monthly price range can be viewed as somewhat expensive. Although it offers seamless third-party app integration and support for international payments, some users complain that it lacks advanced accounting features.
There is no 24/7 hotline, but there is a Help Center, online chat, and phone support available at certain times.
Customizable invoices, expense management, project collaboration, custom estimates, accounting reports, mileage tracking, and multi-currency support are just a few of the accounting features available. It integrates with Gusto for payroll needs even though it doesn’t have internal payroll.
Pricing:
Lite Plan: USD 17.00 per month
– Essential features for invoicing
Plus Plan: USD 30.00 per month
– Includes automatic expense tracking
– Suitable for businesses with additional needs
Premium Plan: USD 55.00 per month
– Enhanced customization features
– Tailored for more advanced users
Select Plan:
– Personalized pricing
– Customized solution for specific business requirements
The Importance of Choosing The Right Saas Accounting Software
Imagine running a subscription-based software company. Keeping track of all those customer payments, your own expenses, and everything else money-related can be a nightmare. That’s where accounting software comes in – it’s like a super-powered spreadsheet that automates a bunch of tasks and lets you see exactly how your business is doing financially.
Choosing the right Saas accounting software is key, because it can make a big difference to your bottom line. Think of it like picking the perfect tool for the job.
Accounting software can help you stay on top of your finances, make smarter decisions with your money, and free up time you can spend growing your business.
There are tons of options out there, so it’s important to find one that fits your specific needs. Don’t settle for something that just looks flashy – make sure it has the features you need and will actually help your business run smoothly.
With the right Saas accounting software in your corner, you can save time, save money, and stay on top of your finances, all at the same time.
Conclusion: Streamline All Your Finances With ProfitBooks
Sure, Saas accounting software helps, but SaaS businesses deserve more. ProfitBooks understands that! That’s why we offer a powerful suite of features designed to supercharge your accounting and streamline everything.
Effortless Operations, Powered by ProfitBooks:
- Automated Billing: Ditch the manual work! ProfitBooks automates quote generation, sends payment reminders, and processes payments – all on autopilot. Complex billing cycles? No problem!
- Granular Invoicing: Track product usage, taxes, and additional charges with pinpoint accuracy. ProfitBooks ensures your invoices are precise and efficient.
- Flexible Recurring Payments: Handle even the most intricate billing structures with ease. Set up recurring payments by day, usage, or any timeframe you need. Plus, accept payments in over 100 currencies for a truly global reach!
- Seamless Integration: ProfitBooks integrates with over 30+ leading payment providers. Create a secure, customized checkout experience for your customers – all with a single line of code.
Compliance with Confidence:
Forget the stress of revenue recognition! ProfitBooks automates calculations and schedules, keeping you GAAP compliant effortlessly. This level of automation sets us apart from traditional SaaS accounting software.
Actionable Insights at Your Fingertips:
ProfitBooks goes beyond basic reports. We provide in-depth analytics specifically designed for SaaS companies. Track revenue, customer acquisition, churn, and other key metrics to gain valuable insights and optimize your business for success.
Don’t settle for just any Saas accounting software. ProfitBooks is the all-in-one solution you need to streamline operations, ensure compliance, and empower you with the data-driven insights to dominate the market!
Also Read:
Saas Accounting Challenges & How To Solve Them