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Best Accounting Software for SaaS Businesses

Software as a service (SaaS) businesses typically bill on a subscription basis, so SaaS accounting software needs to be able to accurately track and report on revenue recognition to remain compliant with standard accounting practices.
By Karrin Sehmbi
Last updated on May 14, 2024
Edited bySally Lauckner
Fact checked and reviewed

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Beyond standard accounting functions, software as a service (SaaS) companies require additional functionality from their accounting software that enables them to track contracts users have committed to for the service (called bookings), invoices sent to customers to collect payment for the service (billings), and recognized revenue. Additional features to help SaaS business owners manage customers and their subscriptions are also a benefit.
Here are our top picks for SaaS accounting software.

Best Accounting Software for SaaS Businesses From Our Partners

Product
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QuickBooks Online

Learn more

on QuickBooks Online's secure website

5.0/5

Best for Overall SaaS accounting software

$30/month

Additional pricing tiers (per month): $60, $90, $200.

50% off

for first three months or free 30-day trial.

Learn more

on QuickBooks Online's secure website

Xero

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on Xero's secure website

5.0/5

Best for Revenue recognition software integrations

$15/month

Additional pricing tiers (per month): $42, $78.

30-day free trial

or monthly discount (terms vary).

Learn more

on Xero's secure website

FreshBooks

Learn more

on FreshBooks' secure website

4.5/5

Best for Subscription and client management

$19/month

Additional pricing tiers (per month): $33, $60, custom.

30-day free trial

or monthly discount (terms vary).

Learn more

on FreshBooks' secure website

Our pick for

Overall SaaS accounting software

QuickBooks Online

Learn more

on QuickBooks Online's secure website

Starting at
$30/month

Additional pricing tiers (per month): $60, $90, $200.

Promotion
50% off

for first three months or free 30-day trial.

Our pick for

Revenue recognition software integrations

Learn more

on Xero's secure website

Starting at
$15/month

Additional pricing tiers (per month): $42, $78.

Promotion
30-day free trial

or monthly discount (terms vary).

Our pick for

Subscription and client management

FreshBooks

Learn more

on FreshBooks' secure website

Starting at
$19/month

Additional pricing tiers (per month): $33, $60, custom.

Promotion
30-day free trial

or monthly discount (terms vary).

Our picks for the best SaaS accounting software

QuickBooks Online: Best overall SaaS accounting software

Price:
  • $30 per month for the Simple Start plan.
  • $60 per month for the Essentials plan.
  • $90 per month for the Plus plan.
  • $200 per month for the Advanced plan.
Why we like it: QuickBooks Online is one of the strongest accounting platforms on the market. Setup is easy, the user experience is intuitive, most accountants are sure to be well-versed in using it, and the company offers different levels of support that accommodate your company’s evolving needs as it expands. QuickBooks Online is a good option for SaaS companies, in particular, because the software automates data entry and it grows with your business. Of particular interest to SaaS businesses, QuickBooks Online handles revenue recognition (offered with the Advanced plan only), and it integrates with more than 700 outside applications — including a handful of tools to help you automate and report on revenue recognition.
When it comes to tracking the financial health of your business, QuickBooks Online empowers you with fully customizable reports. There is also a helpful virtual community of QuickBooks users who are active on online forums and more than willing to help answer questions about reporting, integrations and general help with navigating the platform. Read our QuickBooks Online review.

Xero: Best for revenue recognition software integrations

Price:
  • $15 per month for the Early plan.
  • $42 per month for the Growing plan.
  • $78 per month for the Established plan.
Why we like it: Xero is another popular accounting software option for SaaS companies. The company offers three plan options, each suited for businesses of different sizes. All plans include the ability to invite collaborators to work on your Xero account (think team members and your accountant), create a variety of business financial statements, sync all business bank accounts and automatically reconcile transactions. Xero also offers a full-featured mobile app.
You can extend the functionality of your SaaS accounting via the Xero app store, which features an entire library of third-party software integrations. You can search by popular categories, featured apps and industries. Notably, Xero offers a number of revenue recognition software integrations — including a highly rated integration with Flowrev — as well as more than a dozen apps for SaaS businesses.
Since Xero offers a 30-day free trial, we recommend giving it a test run. Read our Xero Accounting review.

FreshBooks: Best for subscription and client management

Price:
  • $19 per month for the Lite plan.
  • $33 per month for the Plus plan.
  • $60 per month for the Premium plan.
  • Custom pricing for the Select plan.
Why we like it: FreshBooks is designed specifically for small businesses — from solopreneurs to small businesses with contractors or full-time employees. If your SaaS company is still in its early stages, this could be a good option for your SaaS accounting needs. FreshBooks offers four plans designed for businesses in different stages of growth. All plans, however, come with invoicing (including recurring invoices and late payment reminders), automated expense tracking, time tracking, payment processing and reporting (profit and loss statements, accounts aging).
Since the typical pricing model of a SaaS company is subscription-based, you may want to choose an accounting product that’s strong on subscription management. FreshBooks has well-built tools for both subscription and client management. The software includes a client management portal where you can create subscription-based profiles for your customers and manage those relationships along with automating recurring billing for subscriptions. Read our FreshBooks review.
Stacy Kildal contributed to an earlier version of this article, which was first published on Fundera, a subsidiary of NerdWallet.
Last updated on May 14, 2024

Methodology

NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
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