SaaS businesses need unique and upgraded ways to solve their finance-related issues and access the multi-tenant cloud deployment to prepare their financial statements online.
This article is about different solutions for SaaS businesses to use any of the best software for their business and maintain their income statement, balance sheet, and cash in-flow statement. However, you must carefully select a solution that will suit your business.
SaaS accounting software tools should have features specifically beneficial to SaaS businesses, such as subscription management, revenue recognition, and integration capabilities. By considering the detailed discussion about the top 8 SaaS business software, you can choose the best one for your business type.
Why use accounting software for a SaaS company?
Accounting software is essential for a SaaS company as it automates financial processes, provides real-time reporting, enhances accuracy, improves customer satisfaction, and supports the scalability of your business.
Benefits of Accounting Software for SaaS Companies
- Financial Process Becomes Easier
Accounting software helps SaaS companies manage their finances better. It does more than calculate numbers – it improves the entire financial process, from creating invoices to preparing taxes. Here are the key benefits of using accounting software for your SaaS company:
- Automates Financial Tasks
By automating tasks like billing and invoicing that happen regularly, accounting software can save a lot of time spent on manually entering data. It also reduces mistakes caused by humans, ensuring that your financial records are accurate and up-to-date.
- Real-Time Financial Reporting
You can get an instant overview of your company’s financial health with real-time reporting. Since you can generate reports whenever needed, you can make informed decisions quickly and proactively manage cash flow to keep your business on track.
With advanced features like reconciling bank statements and validating data, accounting software not only speeds up processes but also increases the accuracy of your financial data, giving you peace of mind during tax season.
- Improves Customer Satisfaction
Efficient and error-free invoicing with the help of accounting software can lead to faster payments and ultimately, happier customers.
- Scales with Your Business
As your SaaS company grows, your accounting needs will change. The right software can scale with your business, accommodating increased transaction volume and new accounting demands.
What to Look for in Accounting Software?
Not all accounting software is the same. When choosing a tool for your SaaS company, it’s important to consider the following key features:
In today’s digital world, having a cloud-based accounting solution is a must. Cloud software allows for remote access, collaboration, and automatic updates, keeping your financial data secure and accessible from anywhere.
The best accounting software integrates seamlessly with other essential tools, such as payment processors, CRM, and tax software, to create a cohesive and efficient ecosystem.
An intuitive user interface is essential for the entire team to easily adapt to and use the accounting software, without requiring extensive training.
The ability to encrypt data and deploy robust security measures to protect sensitive financial information is critical. Look for software that complies with industry-standard security protocols and regulations.
From forecasting and budgeting tools to multi-currency support, the software should offer advanced features that cater to the specific needs of SaaS companies.
Let’s discuss the Top 8 Best Accounting Software Tools For SaaS Companies
OverviewÂ
Saga Intacct is cloud-based software that promises to provide tailored features for SaaS businesses. Native subscription billing and recurring revenue visibility are the features of Saga Intacct. It also offers add-on integration with your CRM. SaaS metrics include:
- Customers churn
- Revenue Churn
- Payback in Months
- Customer Renewal
- New Customer
- Average New Customers CMRR( Contracted Monthly Recurring Revenue)
Features
- (ASC 606) Revenue Recognition
- Subscription billing
- Dimensional Reporting
- SaaS Metrics and Project Tracking
- Core Financials
Pros
- Excellent contract management and revenue recognition capabilities
- Automated Routine Processes
- Making Revenue Recognition Far less taxing on your time and resources
- Integrations with CRMs
- Frequent Pro for businesses
Cons
- Extra cost associated with various add-on capabilities
- Lack of training materials
- The upfront investment is required to be set up correctly.
Overview
FreshBooks provides the necessary foundations for SaaS businesses. It’s an excellent transition software for maintaining spreadsheet-based bookkeeping in a comprehensive and user-friendly system. Due to its simplicity and functionality, it is the best software for SaaS companies to provide invoicing, time tracking, expense management, and project accounting capabilities.
Features
- Monthly Income and Expenses Tracking
- Native Recurring Payment and Invoicing
- Excellent transition software
- Robust features
- Accurate billing with time-tracking functionality
Pros
- User Friendly interface
- Professional and customizable invoice creation
- Automated payment Reminder
- Time Tracking Functionality
- Best for small businesses to add a bank account
Cons
- Low Reporting is Rated
- Before the purchase of software, check that it is providing results that are relevant to your business.
Overview
Tipalti is a payable solution for SaaS businesses that automates all accounts payable and workflows in one cloud platform. It is designed to manage all the business-related global payable operations by streamlining its processes.
It reduces the manual system of entering data and saves time and cost. It works with many EPR systems and helps companies achieve their goals and future-to-used strategies.
Features
- Enterprise-grade financial controls
- Supplier onboarding and vetting
- Real-time payment reconciliation
- Enterprise-grade financial controls
- Integrated with any ERP and accounting system
- Employee expense reimbursement with a spend management solution
- Tax reporting
Pros
- Reduced AP workload by up to 80%
- Strengthen financial and compliance control
- Above all, it is very user-friendly, providing users a great and painless experience.
- Having one payment run for international and domestic payments reduces time and costs.
Cons
- No smooth Implementation
- Lack of details on error reports
- Occasional payments need more clarity on the reasoning.
- If a vendor is not payable, it can sometimes be challenging to understand the cause.
Overview
Netsuite EpR is a highly scaled platform for all SaaS business companies that provides them with a long list of features. It is designed to cater to expanding organizations and large enterprises.
It facilitates billing, inventory, revenue, order, financial management, and other office tasks. It provides a performance indicator for all small and large business enterprises.
Features
- Tax management
- Fixed Assets Management
- Flexible Depreciation Management
- Integrated Financial Reporting
- Fraud Prevention
- Flexible Payment Processing
- Demand Planning
- Demand Planning Engine
- Gross Requirements Inquiry
- Supply Chain Intelligence with MRP
Pros
- Free of charge
- Large user network
- Forecasting for accounting and finance
- Inventory management
- One world for multi-entity businesses
Cons
- Premium support required
- May cost higher
Overview
QuickBooks is a popular SaaS business software because of its comprehensive features. It offers various functionality like invoicing, expense tracking, financial reporting, and tax management.
QuickBooks also integrates with other business tools like payment processors and CRM systems, making it a good choice for SaaS companies.
Features
- Robust Capabilities and Scalability
- Multi-user Access and collaboration among team
- Slow to resolve tech issues
- PO and Invoice Customization
- Comprehensive features make it convenient for SaaS companies.
Pros
- Invoices.
- Recording expenses.
- Reports, such as P&L.
- Integration with banking transactions has been good
Cons
- lack of calculator buttons in fields where they are needed
- Invoice customization
- PO customization
- Slow to resolve tech issues (VAT payment).
Overview
Xero is another excellent software for SaaS businesses that cater to their needs. It is a cloud-based software with comprehensive features like invoicing, bank reconciliation, expense tracking, and project accounting. It is best known for its robust automation and integration.
It can automatically import bank transactions, reconcile accounts, and generate financial reports. Its integration with other third-party apps enables excellent CRM, payroll, and inventory management.
Features
- User-Friendly Interface
- Efficient and Flexible Accounting Software
- Management of CRM, Payroll, and inventory
- Best known for automation and integration
Pros
- Integration software to add accounting functionality, including SaaSOptics and ChargeBee.
- Best accounting software for small businesses.
- Cloud-based convenience
- Cost Effective Solutions
- User-Friendly Interface
Cons
- Performance Issues
- Customer services
- Not supported for Exchange Traded Products
- Limitations on Certain Features
- Pricing Changes
Overview
Maxio is the best choice for companies that prefer subscription and SaaS-based business designs. It offers customer management, recurring billing, feedback, and financial reporting.
It allows SaaS companies to manage recurring revenue streams by giving them a comprehensive view of subscription metrics. It is best for those businesses that want the most advanced SaaS software.
Features
- Offers Management
- Recurring Billing
- Subscription Relationship Management
- Revenue Retention
- Subscription Analytics and Insights
- Handle complex pricing Model
- SaaS metrics
- On-time renewals
- Accept any customer payments.
Pros
- Advanced Saas software
- Valuable tool with subscription analytics and revenue management
- Easy to control
Cons
- It is a complex and frustrating learning system; several months are required to understand it before starting work.
Overview
It is one of the best accounting software for SaaS companies. It offers a unique and upgraded combination of expense management, corporate cards, and accounting functionalities within a unified platform.
It provides the facility to monitor expenses by tracking all costs. It offers features like automated invoice creation, reimbursement management, and integration with popular platforms like Xero and Quickbooks.
Top Features
- Popular among all businesses.
- Automated invoice Creation And Reimbursement Management.
- Integration with other business platforms.
- All-in-one solution for SaaS Companies.
- A unified platform that offers expense management, corporate cards, and accounting functionalities.
Pros
- Responsive and Efficient
- Amazing Customer Support
- Tracking Money is very good
Cons
- Unable to use for tap and pay
- Cad setup
Frequently Asked Questions