Last editedDec 20212 min read
If you’re providing software as a service, it’s also important that you use the right software yourself. While keeping track of accounts is simple when you’re dealing with just a few clients, as your business grows it becomes much more complicated to keep track of the various streams of incoming and outgoing finances.
You can make life easier for yourself by choosing the right accounting software for SaaS companies. Through using this kind of software, you can seamlessly create invoices and collect payments, as well as record these for taxation purposes and your company’s own bookkeeping. There are a number of different options available that suit different companies, so keep reading to learn about some of the best accounting software for SaaS companies.
GoCardless is perfect for collecting the subscription payments involved in SaaS companies. This is because payments are made through the ACH network, which means that they are automated. Clients simply provide payment details and authorization one time, and then payments will automatically be taken on a pre-agreed date.
This means that you don’t have to worry about late payments any more, leaving you free to focus on improving software rather than chasing up your clients.
Xero is a great choice of accounting software for SaaS companies, offering easy integration with GoCardless services so that you can effortlessly send invoices, as well as collect and reconcile payments automatically. Xero offers a number of great features that are perfect for SaaS companies.
Xero offers automatic bank and credit card feeds and has invoicing capabilities. What’s more, it allows for integration with over 350 different apps, including GoCardless. A big selling point is the free API which helps you to integrate with these external apps. There are a number of different pricing options that you can choose according to the specific needs of your business.
QuickBooks Online is a very popular choice of accounting software for SaaS companies. One of the main draws of QuickBooks Online is how scalable it is, growing with you as the needs of your company develop.
In addition, QuickBooks Online removes the need for manual data entry. They offer an open API that you can use to connect your software directly to the platform, meaning that data is automatically input without any extra work on your part.
Some of the negative points of QuickBooks Online include the fact that there is a lack of industry-specific features, such as eCommerce or barcode scanning features. There are also restrictions on the number of users, and invoice design tools are limited.
FreshBooks is a similar service to QuickBooks Online, with an emphasis on ease of use. The system is incredibly simple to learn, focusing on just two aspects: the income that is collected from invoices, and any expenses that are leaving the account. This makes it a great option for those that aren’t familiar with using accounting software for SaaS companies.
FreshBooks is great for small businesses and freelancers, but it might not be appropriate for larger companies with more complex needs. For example, there is no functionality for double-entry accounting, no accounts payable feature, and if you want to make a balance sheet then you will have to do this yourself.
Receipt Bank offers an interesting concept that makes it a good choice for bookkeepers and accountants. When recording expenses, you simply need to take a photo of the receipt and upload it through the app. The data will be automatically extracted and transferred to your accounts, removing the need for manual data entry.
Their simple concept makes it easy for you to catalogue receipts and access these when it comes to reporting your company’s expenses.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.