Last editedAug 20222 min read
Accounting is an essential function for any business, whether you’re just starting a new company or running a more established enterprise. However, staying on top of different accounting functions, from filing taxes to managing cash flow, can be a difficult task. Particularly as businesses grow larger, the need for specialised software becomes more evident.
Companies providing Software as a Service (SaaS) are no exception to this. When accounts grow larger and there is more data to deal with, the various accounting processes become much more time consuming and tedious, and there is a larger possibility of errors occurring. Software can help to streamline these processes and save your company both time and money. Keep reading to find out about some of the best accounting software for SaaS companies.
What features are necessary for SaaS accounting?
SaaS companies have certain needs that are difficult to manage with generic accounting software. For example, since SaaS companies generally operate with a subscription model, it’s important to have software that can track monthly recurring revenue. In addition, the best accounting software for SaaS companies should have the following features:
Capabilities for subscription billing and recurring invoices.
Cash flow forecasting.
Integration for payments.
Prebuilt MRR reporting.
Integration with Customer Relationship Management (CRM) systems.
Some of these features are available in most standard account software packages, whereas others can be more difficult to come by. Make sure to look out for these features when you’re assessing which software is best for you.
One of the most common options for accounting software for SaaS is QuickBooks. SaaS companies will benefit from its Recurring Transactions function, which will help you to automate the processes involved in the subscription model.
In addition, the software is easy to set up and has an intuitive interface. It allows you to perform a variety of different tasks from one place, such as keeping track of cash flow and various other data management functions.
On the other hand, despite its popularity, QuickBooks cannot perform MRR calculating and reporting functions. This means that you will have to look for third-party integrations to carry out these tasks.
Sage Intacct is a cloud-based application that advertises itself as an accounting software for SaaS. It has numerous features that makes it suitable for these companies, including native subscription billing and visibility of recurring revenue. What’s more, there is the possibility of add-on features that allow you to integrate with your CRM platform.
The contract management and revenue recognition features take some time to set up initially, but once they are established they will save you a lot of time and resources in the long run.
The downside of Sage Intacct is that it has a steep learning curve and it can be difficult to get to grips with due to limited training materials. Also, the add-on features tend to be expensive and can contribute to the overall expenses of your accounting solution.
FreshBooks is an SaaS accounting software that provides all of the necessary basic features. For instance, it is capable of native recurring payments and invoicing, and also tracks monthly expenses and income. In particular, FreshBooks is known for its excellent invoicing services, making it a great choice if your company has to process a high volume of recurring invoices.
In addition, the dashboard is easy to use and allows for collaboration between different team members. This makes it a great transitional software if you’re just moving from traditional spreadsheets.
However, some users have found that the reporting features are not as well developed. It’s worth thinking about which reports are most relevant to your business and seeing whether FreshBooks supports these before you make any decisions.
We can help
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