Accounting software is a computer program designed to make financial tasks easier by doing them automatically. It helps businesses manage and record transactions, generate financial statements, track expenses, and maintain accurate records.
That’s why, if you’re running a startup, using accounting software is a smart move. It lets you ditch the manual work and challenges of handling accounting tasks. The software helps with preparing and sorting out your financial information. In turn, this boosts your business efficiency, reduces mistakes, and gives you important insights into your finances.
However, to choose the best accounting software for your startup, there are a couple of factors you need to consider. In this guide, you’ll learn about the top accounting software as well as how to choose the perfect one for your business.
Table of Contents
Why Do Businesses Need Accounting Software?
In Nigeria, many startups shut down before their fifth year of existence because of financial problems. Unfortunately, these money issues arise from poor financial recording and management.
While this remains a challenge, the good news is that there are accounting software business owners can use to resolve this. Very soon, you’ll discover some of the best accounting software that can help boost your startup’s profitability and growth.
Read also: Top 6 Analytics Tools to Track Your Business Growth
4 Factors to Consider When Choosing Accounting Software for Startups
Using accounting software can make financial recording easier. However, it’s crucial to pick the right one for your business needs. As a startup owner, before you select accounting software for your organization you need to consider the following:
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Cost-effectiveness and budget-friendliness
When businesses choose accounting software for their finances, they need to think about their budget. Thus, as a business manager, you need to choose the one that is friendly to your budget. This way, you don’t have to use up all your limited funds while trying to effectively manage your money.
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User-friendly interface and ease of use
Usability is also a factor to take into perspective when choosing accounting software for your business. You should ask yourself this question. Is it easy to use? Or does it have a simple design?
When the answers to those questions are yes, it makes it easier for accounting personnel to handle money tasks. And ultimately to keep things running smoothly.
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Scalability and growth potential
When you’re picking accounting software for your startup, you can ask yourself this question. Can it easily meet your company’s needs as it gets bigger? If you answer “yes” to this question, you can handle growing finances and keep your startup operations smooth.
For instance, think about an online retail business in Nigeria. They started with basic accounting software for their transactions. But as it expanded with more sales, customers, and locations, it adopted a cloud-based accounting software. This type of software handles global purchases and sales, aiding with reports for effective management.
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Compliance with legal frameworks
When choosing accounting software for your startup, ensure it can easily adjust to your company’s growing needs. By doing so, you can manage finances better, handle complexity, and ensure smooth operations without errors in the long run.
9 Best Accounting Software for Startups in Nigeria
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QuickBooks online
QuickBooks Online is a proprietary accounting software developed by Intuit Inc, an American business software company. It operates on a cloud-based platform and is accessible across all devices without the need for any downloads.
All you need is a subscription and an internet connection. You can make payments with major credit and debit cards such as Visa and MasterCard. Also, you can shift between QuickBooks online plans at any point because of its flexibility. It presents three versions with both monthly and annual pricing options.
That said, the cost varies by country. However, you can refer to the QuickBooks online pricing section latest pricing details for each product. Prices may differ during promotional periods, occasionally offering discounts of up to 70%.
Here are what QuickBooks online offer:
- Essential bookkeeping features.
- Simple upgrades without losing any data.
- Works with over 650 tools.
- Easy-to-use interface.
- Trusted by finance professionals.
- Accessibility from anywhere.
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ZohoBooks
As you already know, there are many accounting software for startups out there. So the question is, why should you choose ZohoBooks for your startup? Read along.
ZohoBooks assist you in handling financial tasks, from making deals to sending invoices. This lets you focus on your business and allows you to work together easily with your team. You can also add colleagues and your accountant to access reports and manage accounts.
As your business grows, you can use more features on the ZohoBooks app. This helps you handle everything from anywhere. ZohoBooks has different plans like Standard, Professional, etc.
Through its key features, ZohoBooks allows you:
- Keep track of your payables while you manage your business bills and expenses easily.
- Keep track of your receivables to ensure you get paid on time. Through it, you can send invoices and reminders, as well as offer online payment options.
- Manage your inventory (your list of your goods and services).
- Keep track of your banking transactions.
- Evaluate the efficient use of time by capturing your work hours for accurate billing.
- Store and manage customer and supplier contacts.
- Access various reports to understand your business better.
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Wave accounting
Another accounting software for startups is wave accounting. It is a helpful tool for small businesses to manage their money. On top of that, it’s easy to use and offers many features for free.
Wave accounting lets you make invoices, monitor earnings, expenses, and access business financial reports. It’s great because you don’t have to pay to use it. Also, it’s simple to understand even if you’re not an expert in accounting. There are some downsides, though.
Support is via email and certain features, such as payroll, have restrictions in accessibility. Overall, it’s a good choice for small businesses that want to save money and keep their finances organized.
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Xero online
This is a simple accounting software for Nigerian startups to manage their finances online. With this software, you can keep everything in one place online, say your bills, contacts, money, and accounts.
Also, you can connect your bank easily to it. You can even invite accounting staff to work on your accounts online, anytime. That’s not all. You can also customize the software by adding other apps.
That said, bear in mind that this app operates with Xero charges per month upon your subscriptions. They’ll send you an email with a link to pay using your Visa, Mastercard or direct debit. Also, note that you can change your plan after 30 days, or cancel with one month’s notice.
Xero online has plans for different types of businesses, even basic ones from accounting partners. No hidden fees. Everything’s clear. Moreover, you can pick the plan that fits your Nigerian startup once you’ve tried Xero free for 30 days.
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SAGE business cloud accounting
This is a helpful accounting software for startups to manage their finances. Below are its features:
- Debtors manager: As an accounting software, SAGE helps you remind people to pay you and gives you info about who owes you money. This way, you can get paid on time and not worry about money problems.
- Making invoices: You can quickly create bills and send them to your customers. You can also turn price quotes into bills, keep track of money owed, and take payments.
- Stock management: If you sell things, you can use this software to keep track of what you have in stock. This way, you won’t run out of things to sell.
- Advanced inventory: This feature allows your business to ensure its stock and money records are always up to date. It’s like having a helper that counts everything for you, so you know how much things cost and what you’ve sold.
Moreover, with SAGE business cloud accounting, you can pay online using sage pay, monitor business progress, and manage specific areas using a project tracker. The two packages of this software available for Nigerian startups include:
- Accounting Start ($11/month) and,
- Accounting ($22/month), taxes included.
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AccountEdge
AccountEdge helps startups manage their finances effectively. It is a money management solution for Mac computers. AccountEdge supports various currencies, tax calculations, and tax form reporting.
With this software, your accounting team will be happy because they get a free copy to look at. Besides, there are dedicated sections to assist with various aspects of your business. These aspects include sales, purchases, and inventory tracking.
If you need more help or personalized support, you can visit their online support page or website. AccountEdge can manage your business finances, sales, purchases, time, and communication, providing comprehensive business oversight.
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Kashoo
Kashoo is an accounting software that helps small business owners in Nigeria with money management. It’s not hard to use but you need the internet to use it. You can control it yourself and make it work just the way you want.
It’s good for you if you don’t want to use complicated software for your business. With Kashoo, you can attend to your business from anywhere, even on your phone. You can make bills quickly, get paid safely online, check your money records, and look at your money information whenever you want.
Moreover, with Kashoo, you can enable multiple users to access and control each user’s permissions and tasks. This way, you and your team can collaborate in handling financial tasks. Accountants can also access money information, aiding comprehensive business finance management.
Read also: How to Become a Business Intelligence Analyst in Nigeria
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Odoo
Odoo is another accounting software that you can use to manage your finances easily. It’s modern and handles tasks such as creating invoices and matching payments. In other words, it helps you handle payments efficiently, gives you mobile access, and connects with your bank.
With Odoo software, you create invoices with ease using different choice offerings. Moreover, you can use different payment approaches, streamline drafts, and receive digital payments. You can as well access precise reports and client hubs for updates.
What’s more? Using this accounting software allows you to easily monitor business expenses and get real-time insights. It also allows you to manage taxes. Compliance is hassle-free. It can automate subscriptions, and renewals, and integrates seamlessly.
Odoo can be an ideal pick for your business to enhance its financial control. Prominent Nigerian firms like NAFDAC, Glovo Nigeria, Chams PLC, Golden Guinea Breweries, and AIICO Multishield Ltd use Odoo software.
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FreshBooks
FreshBooks provides Nigerian startup accounting solutions. This software makes it simple for business owners to manage billing, payments, time tracking, and basic accounting.
Through this accounting software, businesses communicate with their clients with ease. However, it’s great for industries like marketing, creative work, IT, legal, and more. That said, Freshbooks provides various plans, Lite, Plus, Premium, and Select, all of which include access to their mobile app.
Beyond that, as a startup owner, you can collaborate with up to 10 accountants using Freshbooks. Ultimately, this software takes care of tasks ranging from sending invoices to monitoring expenses.
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How Nigerian Startups Benefit from Accounting Software
Nigerian startups can gain a lot by employing accounting software in their business. Here are some of the benefits they enjoy:
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Easy money management
No doubt, accounting software for startups can be a helpful tool for growth. It keeps track of your income, sends out bills, and keeps a record of your expenses. Consequently, this helps to reduce mistakes and keeps your financial records accurate.
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Paying taxes on time
Most accounting software can remind startups of tax deadlines and rules—an interesting and helpful feature. This help to prevent any fines or potential legal problems.
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Choices with data
Most accounting software for startups shows your current financial information. This helps your startup choose what to do and plan for growth.
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More time
Accounting software handles repetitive money tasks automatically. This gives startup owners extra time to improve and get more creative with their businesses.
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Easy to use
Accounting software is designed for startups who aren’t familiar with complex money matters. You can use it without necessarily being a financial expert. The benefits of using this software are just so immense. An example of a tech startup that leveraged accounting software is Paystack.
The startup team used this software to run their financial tasks better. That helped them track transactions easily and show earnings correctly. This didn’t just make their work smoother but also made them more reliable and clear. That’s why a large global tech company ended up buying Paystack.
Conclusion
You’ve learned about the best accounting software for startups in Nigeria. Picking the right software is important for your startup to do well. When the software fits just right, it makes managing your business finances efficient.
It also saves time while minimising business mistakes. In summary, accounting software can help with bookkeeping and taxes tasks, giving your startup the confidence to grow and innovate.
Edited by Priscilla Ajayi.
About Author
- Degreat is an expert SEO content writer, self-published author and founder of Greatcrackers.com. With over 5 years of experience in a variety of content writing, he helps struggling small business owners create result-driven web copies that sell their brand stories.
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