Best cloud accounting software: Top solutions for startups

As the market becomes more saturated with options, selecting the right cloud accounting software can seem daunting. We have evaluated various platforms, considering factors such as pricing, features, and customer support. This guide highlights the top choices, helping you make an informed decision for your business needs.

The best cloud accounting software of 2024

Thriday is the top choice for cloud accounting software, ideal for a broad range of needs. Xero excels in environments with multiple users, making collaboration seamless. Zoho Books offers diverse solutions suited for varied requirements. Intuit QuickBooks is tailored for those looking to maximise tax deductions. Wave Accounting remains the best free accounting software. 

1. Thriday

Thriday is a new player in accounting and bookkeeping software that recently expanded into a comprehensive all-in-one banking solution in Australia. This strategic move positions Thriday as a disruptor in the industry, offering businesses a seamless integration of financial management and banking services.

By combining AI accounting and bookkeeping features with banking capabilities, Thriday empowers businesses to streamline their financial operations, gain greater control over their finances, and make more informed decisions. It caters particularly well to small business owners who need to efficiently manage a high volume of expenses and receipts.

Tax-saving features

• Automatically sorts business expenses into the correct tax categories
• Allows users to export crucial documents for tax preparation
• Enables users to snap and store receipts easily
• Calculates taxes automatically to avoid unexpected year-end tax liabilities

Pricing plans

Thriday offers a tiered pricing plan with three options. The Free plan lets you send quotes and invoices, earn interest, and access basic features. The Time-saver plan adds automated financial management, expense tracking, and more for $29.95/month. The BAS + Tax plan includes BAS and tax lodgment services for $119/month. You can start with the Free plan and upgrade as your needs grow.

Pros

• Intuitive and easy to navigate, it is suitable for users with varying levels of accounting experience
• Streamlines tasks and saves time with AI-powered features
• Helps maximise deductions and ensures accurate tax calculation.
• Combines banking, accounting, and bookkeeping in one platform
• Offers competitive pricing, especially appealing to small businesses and startups

Cons

• May have fewer features or integrations compared to established competitors
• As an emerging accounting and bookkeeping solution, its capabilities may still be evolving

2. FreshBooks

FreshBooks stands out due to its user-friendly design, making it ideal for small business owners without an accounting background. It offers a comprehensive suite of features such as creating invoices, project management, expense tracking, time tracking, and tax filing. As a cloud-based solution, FreshBooks is accessible on any device, allowing users to manage their finances from anywhere.

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Key features

• Unlimited invoices: All plans allow sending unlimited invoices
• Recurring Invoices: Automate invoicing for regular clients
• Payment reminders: Send automatic reminders for outstanding invoices
• Online payments: Clients can pay directly through the invoice
• Billable clients: Lite plan supports up to five clients

Pros

• User-friendly interface
• Affordable starting plan
• Unlimited invoicing across all plans

Cons

• Basic plan is limited to five clients
• Not comprehensive enough for accountants
• Extra cost for additional team members

FreshBooks excels in managing invoicing with features like automated payment reminders and support for online payments. This helps businesses get paid quicker and reduces the manual workload. Designed to be intuitive, even users without an accounting background can navigate its features easily. This makes it an ideal option for a wide range of businesses looking for reliable accounting software.

Check our comparison page here.

3. Xero

Xero is an affordable cloud-based accounting tool favoured by small businesses. It's designed to simplify income and expense tracking, even for those without accounting expertise. Every plan allows the creation and sending of invoices, tracking of time and project profitability, expense claims, bulk transaction reconciliation, and acceptance of multiple currencies.

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The pricing starts at $15 per month, but during a current promotion, it's 50 percent off for the first four months. It offers three plans:

• Early plan: Costs $15 per month
• Growing plan: Most popular, aimed at expanding businesses
• Established plan: Designed for well-established businesses

Each of Xero’s plans includes unlimited users at no additional cost, making it ideal for businesses needing multiple team members to access the software. Larger accounting departments or teams benefit significantly from this feature.

Despite its strengths, the Early plan limits users to 20 quotes and invoices per month, along with only five bills, which could be a constraint for growing freelance businesses or entrepreneurs. Additionally, none of the plans include a payroll feature; companies seeking payroll functionality must integrate with Gusto, which costs an extra $40 per month.

Key features

• Unlimited users for all plans
• Simple to use interface
• 30-day free trial
• Limitations on basic plan’s invoices and bills
• Lack of live customer support
• No built-in payroll feature

Key advantages

• Unlimited Users: All plans include this feature, allowing multiple team members to access the system without extra charges.
• User-friendly: Even those without an accounting background can navigate the software with ease.

Disadvantages

• The basic plan's limit on invoicing and billing can be a barrier for small but growing businesses.
• No live support might be a drawback for businesses needing immediate assistance.
• Lack of a built-in payroll feature means additional costs for integrating third-party services.

Xero is an excellent choice for businesses needing accounting software that multiple team members can use. However, freelancers and individual entrepreneurs might find the limitations of the basic plan restrictive.

Check our comparison page here.

4. Zoho Books

Zoho Books is a cloud-based accounting software that is part of a larger suite of business tools. Zoho’s software suite includes over 40 applications designed to enhance sales, marketing, communication, customer service, and more. This makes it a compelling option for businesses looking for an integrated business ecosystem.

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Zoho Books allows users to send customised invoices, link to payment gateways, manage expenses, and generate a wide range of business reports. Additionally, it offers excellent tax calculation capabilities. One notable feature is the Accounting Client Portal, which enables users to share transactions, speed up estimate approvals, gather feedback, and receive bulk payments efficiently.

The software also includes advanced project management features in its higher-tier plans. Users can manage personnel and expenses at the project level. Because it is cloud-based, users have the convenience of downloading the WorkDrive Desktop app, syncing files or folders directly to their device, and working offline.

Pricing and plans

Zoho Books offers six subscription plans, starting at $15 per month and going up to $249 per month. They also have a forever-free plan for businesses with revenue under $50,000 per fiscal year. This free plan allows one user and an accountant to manage up to 1,000 invoices per year, online and offline payment acceptance, a client portal, automatic payment reminders, and more.

Features and capabilities

• Inventory management: Businesses can track stock levels, manage inventory, and generate reports.
• Revenue tracking: Users can monitor revenue streams and generate financial reports.
• Payment processing: Zoho Books supports multiple payment gateways to facilitate quick and secure transactions.
• Automation: Automated workflows help in tasks like sending invoices, tracking payments, and generating reports.
• Multiple currencies: The software supports transactions in multiple currencies, making it ideal for global operations.

User experience

Though Zoho Books' top-tier plans are considered expensive, the pricing is justified by its extensive feature set. The software includes a powerful mobile app, integrating seamlessly into the broader Zoho business ecosystem. However, the number of users per plan is limited, and additional payroll costs are not included in the base price.

5. Intuit QuickBooks

Starting at $30 per month, Intuit QuickBooks offers a versatile and comprehensive cloud-based accounting service. The platform is known for its wide range of features, including accounting, invoicing, payroll, and expense tracking. During a current promotion, the price drops to $9 monthly for the first three months.

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Subscription plans

QuickBooks provides four different subscription plans to ensure users only pay for the features they need.

• Simple Start includes essential features like maximising tax deductions, tracking mileage, creating invoices, processing payments, capturing receipts, calculating sales tax, managing cash flow, sending estimates, running reports, and managing contractors.
• Higher-priced plans offer advanced features like tracking time, managing multiple currencies, tracking inventory, creating budgets, accessing more detailed reports, managing employee expenses, batching invoices, and automating workflows.

‍Pros

• Wide range of features
• Easy implementation
• Unlimited invoicing in all plans‍

Cons

• Expensive subscription
• Limited support
• Single entity only

QuickBooks is suitable for businesses of any size that aim to prioritise maximising tax deductions. The platform's array of features and subscription plans ensures flexibility and cost-efficiency for the users.

Check our comparison page here.

6. Wave

Wave is designed for small businesses, particularly those just getting started. The software provides essential accounting features that are simple and intuitive to use. Its built-in dashboard allows users to access and understand financial information quickly.

Wave's interface supports creating custom invoices, sending automatic payment reminders, and enabling various payment methods, including credit cards, bank payments, and Apple Pay. The platform also offers unlimited tracking of income and expenses and allows an unlimited number of users, including partners, collaborators, or accountants. All these features are available at no cost.

For businesses needing payroll services, Wave offers an add-on for $40 per month plus $6 per active employee. This payroll service allows employers to make direct deposits, access important tax forms, and create portals where employees can view pay stubs and tax documents.

While Wave is quite robust for free software, it does have some limitations. Features such as inventory management, extensive tax services, and time tracking are not included. Additionally, customer support is limited compared to other accounting software options.

Who should use Wave?

• New small businesses are looking for an affordable and easy-to-use accounting solution.
• Businesses needing basic accounting features with the option to add payroll services.

Pros

• Completely free accounting software
• Unlimited expense, invoice, and receipt tracking
• Intuitive and user-friendly interface

Cons

• Limited customer support
• Payroll service costs an extra
• Lacks advanced features like inventory management and time tracking

Check our comparison page here.

‍How To Choose a Cloud Accounting Software

When selecting cloud accounting software, consider cost first. Make sure it fits your budget, including the monthly subscription and any third-party costs for necessary integrations.

Next, think about efficiency. Choose a platform that helps with invoicing, tax information, payments, and time tracking. This is crucial for accountants, freelancers, and small businesses.

Ease of use is also important. Look for intuitive software with a simple dashboard. It should display charts showing your company's finances and have automatic features and easy mobile apps.

Lastly, focus on integration. The software should work well with other business applications. For growing enterprises, seamless integration with project management, banking, and e-commerce software is necessary.

Make sure you select affordable software that's scalable and customisable to fit your business needs. Proper communication and integration features will help your business thrive as it grows.

Frequently asked questions

What is cloud-based accounting software?

Cloud-based accounting software functions similarly to traditional versions, except that its data is stored on remote servers rather than on the user’s local computer. Users can access their information over an internet connection.

Is cloud accounting software protected?

Data stored in cloud accounting software is encrypted, making it extremely hard for cybercriminals to access it. Unlike data kept on hard drives, it is not likely to be lost due to hardware issues.

Can cloud accounting software be used on both Macs and PCs?

Yes, most cloud accounting software is designed to work on both PCs and Macs since it operates over the Internet. However, always verify the software's compatibility with your operating system before making a final choice.

What security features should cloud accounting software have?

Top cloud accounting software offers various security levels. Look for features like two-factor authentication (2FA) or multifactor authentication (MFA), regular updates, intrusion detection, user activity monitoring, data encryption, and privacy protection.