Startups require various financial tools to manage their business finances. Core tools include accounting software to track income and expenses, budgeting tools to plan and monitor spending, and reporting tools to gain insights into financial health. As startups grow, they may need additional tools like financial forecasting and projection software to evaluate scenarios, as well as tools to manage cap tables and investor relations. When choosing financial tools, startups should consider their current and future needs, as well as factors like ease of use, integration with other software, pricing, and level of support. With the right financial tools in place, startups can gain control and oversight of cash flow and make smarter financial decisions to support growth.

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Top 10 Financial Tools For Startups

There are numerous financial tools available for fintech startups, and the top 10 can vary based on a startup’s needs and preferences. The top 10 tools are as follows 

QuickBooks

QuickBooks is an accounting software tool developed by Intuit. It was first introduced in 1983 by Scott Cook and Tom Proulx. QuickBooks products mainly focus on small and medium-sized businesses. Upon its initial release, it was launched as a DOS version that was based on the Quicken codebase. Subsequently, by 2000, Intuit developed Basic and Pro versions of the software. Later it also started offering specific versions. QuickBooks versions are also available in international markets.

Features

• Supports unique tax calculation.
• Has remote access capabilities, remote payroll assistance and outsourcing, electronic payment functions, and online banking.  

Gusto 

Gusto is a cloud-based payroll and HR software designed for small businesses. It offers features such as payroll management, benefits administration, compliance support, time tracking, and HR tools. Additionally, Gusto provides HR tools such as employee onboarding, time-off management, and employee surveys to help businesses manage their employees effectively.

Feature 

• Offers benefits administration services, such as health insurance and retirement plans,
• Allows businesses to manage employee payroll, including calculating and filing payroll taxes, generating pay stubs, and providing direct deposit options

Bill.com

Bill is a cloud-based platform designed to streamline accounts payable and receivable processes for small and medium-sized businesses. Additionally, Bill.com integrates with popular accounting software such as QuickBooks and Xero, allowing businesses to streamline their financial processes and avoid duplicating data entry.

Features 

• Aims to simplify financial processes for businesses, allowing them to save time and improve their bottom line.
• Automated accounts payable functionality, such as receiving and approving invoices, tracking payments, and managing vendors.

Xero

Xero is a cloud-based accounting software designed for small and medium-sized businesses. It was founded in New Zealand in 2006 and has since expanded globally, with a significant user base in the USA. Xero app helps in expense tracking, invoicing, and bank reconciliation, making it an excellent tool for businesses with employees who travel frequently or work remotely. 

Features 

• Xero also offers a mobile app that allows businesses to manage their finances on the go.
• Allow businesses to manage their finances effectively, including invoicing, bank reconciliation, expense tracking, payroll, and financial reporting.

FreshBooks

FreshBooks is a cloud-based accounting software designed for small and medium-sized businesses. The platform integrates with various third-party applications such as Stripe, PayPal, and Trello, which can help businesses streamline their operations and save time. FreshBooks is known for its intuitive interface, ease of use, and customer support, making it a popular choice for startups and small businesses in the USA.

Features

• FreshBooks allows users to create professional-looking invoices quickly and easily, set up automatic payment reminders, and accept online payments.
• Provides users with financial reporting tools, allowing them to generate reports such as profit and loss statements, expense reports, and accounts receivable aging reports. 

Expensify

Expensify is a cloud-based expense management software designed to simplify the expense reporting process for businesses. Additionally, Expensify offers a range of customizable approval workflows, allowing businesses to automate their expense approval processes and ensure compliance with company policies. Expensify aims to save businesses time and money by automating expense management tasks and reducing the risk of errors.

Features

• Automatic expense-tracking functionality. 
• Expensify’s receipt scanning feature enables users to capture and upload receipts quickly and easily, eliminating the need for manual data entry. 

Bench

Bench is a cloud-based bookkeeping software designed for small businesses. Bench aims to simplify bookkeeping for businesses, allowing them to focus on their core operations and growth. Bench provides tax preparation services, which can help businesses save time and reduce the risk of errors when preparing and filing their taxes. This makes it an affordable choice for startups and small businesses 

Features 

• Professional bookkeeping service. 
• Offers financial reporting tools, enabling businesses to generate reports such as balance sheets, profit and loss statements, and cash flow statements.

Carta

Carta is a cloud-based equity management platform designed to help companies manage their cap tables, valuations, and equity plans. The platform provides features such as equity issuance and management, compliance tracking, and reporting. Cap table Management helps businesses make informed decisions about their equity plans and ensure compliance with regulatory requirements.

Features 

• Cap table management functionality. 
• Provides compliance tracking tools, allowing businesses to stay on top of regulatory changes and maintain compliance with securities laws. 

Plaid

Plaid is a platform used to connect financial accounts and data to applications. Their API (Application Programming Interface) allows developers to access financial information from various banks and other financial institutions. This enables users to manage their finances and access financial services more easily and securely.

Features 

• Useful for a wide range of applications including personal finance management, investment tracking, and lending.
• Plaid’s customers include a variety of financial institutions, consumer apps, and fintech companies. 

Stripe

Stripe is a technology company that provides a platform for online payment processing. Their software allows businesses to accept payments from customers around the world, including credit cards, debit cards, and digital wallets like Apple Pay and Google Pay. Stripe also offers a suite of tools for managing payments, including subscription billing, fraud detection, and invoicing.

Features

• Developer-friendly, with robust APIs and easy integration into websites and mobile apps.
• Allows businesses to create and manage marketplaces, and Stripe Radar, which uses machine learning to detect and prevent fraud.

In the end, Managing finances is critical for the success of any startup. With the numerous financial tools available, startups can manage their finances effectively and make informed financial decisions. Budgeting tools, accounting software, invoicing and payment tools, payroll management tools, tax filing tools, investment management tools, financial planning tools, risk management tools, and cybersecurity tools are some of the essential financial tools that startups can use. Using financial tools for startups can minimize risks, reduce errors, save time and money, and increase their chances of success.

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