7 Finest SaaS Accounting Software program Options: In-Depth Information

Estimated learn time: 13 minutes, 7 seconds

SaaS accounting software program may help you automate:

• Recurring invoicing.
• Cost processing.
• Remitting taxes. 
• Cost reconciliation.
• Cost reminders.
• Subscription administration.
• Reporting.
• Expense monitoring.
• Payroll.
• And extra …

Nonetheless, it’s virtually not possible to seek out one accounting software program resolution that satisfies all of your wants as a SaaS firm. Even software program that advertises SaaS-specific options is never an entire resolution. 

For instance, many accounting software program provide a solution to acquire funds, nonetheless, it’s usually just for United States funds, not worldwide funds. If you wish to acquire worldwide funds, you’ll doubtless want an extra cost resolution that makes a speciality of world cost processing. 

That’s why most SaaS firms find yourself layering a number of level options on prime of generic accounting software program to construct the answer they want.

On this information, we examine seven accounting software program choices by overlaying what every one can and might’t do. Particularly, we begin with an in-depth look into the options our platform, FastSpring, gives and the way we tackle transaction and gross sales tax legal responsibility for you. 

Desk of Contents

FastSpring is an end-to-end cost resolution for firms promoting digital merchandise and software-as-a-service. We enable you collect and remit oblique tax (e.g., gross sales tax, VAT, GST), stability month-to-month transactions, ship recurring invoices and acquire funds, and way more. To see how we may help you rapidly increase globally, join a free account or request a demo immediately. 

FastSpring: Gross sales Tax, Transaction Reconciliation, Cost Processing, and Extra for Software program Corporations

FastSpring gives options for:

• Gathering and remitting U.S. gross sales tax and worldwide VAT and GST.
• International cost processing.
• Sending invoices and cost reminders.
• Reconciling transactions with achievement.
• Reporting.
• Way more …

However FastSpring does extra than simply present software program for a number of features of accounting — we’re Service provider of Report (MoR) for SaaS firms. 

As your MoR, we deal with all of those duties for you. Plus, we tackle transaction legal responsibility and the accountability of calculating, gathering, and remitting gross sales tax, VAT, and GST.

Within the following sections, we dig deeper into how FastSpring helps SaaS firms increase globally whereas simplifying accounting duties. 

Word: You will have extra accounting software program for payroll, earnings tax, inner stability sheets, and so on. FastSpring simply integrates with different options (e.g., QuickBooks) by way of extensions, webhooks, and an API. 

“One of many key components [for switching to FastSpring] was the truth that FastSpring was easing our administrative burden concerning world tax and VAT administration, and the variety of invoices that we would have liked to register.” 
– Ovi Negrean, Co-founder and Chief Government Officer

Totally Managed Gross sales Tax, VAT, and GST

SaaS firms didn’t all the time must pay gross sales tax, VAT, and GST, nonetheless, that’s not the case. Increasingly nations are passing legal guidelines that require non-resident SaaS firms to collect and remit some type of oblique tax. Should you don’t, you might face heavy fines and/or be banned from transacting in that jurisdiction. 

Most accounting software program will enable you add gross sales tax (assuming you’ve configured the choices and settings accurately) to invoices and generate reviews for remitting gross sales tax. Nonetheless, accounting software program is usually insufficient for:

• Calculating and amassing VAT or GST. If you wish to transact exterior of the U.S., you’ll be fully by yourself to calculate and remit VAT, GST, and different types of oblique tax.
• Including gross sales tax to purchases in your web site. Some accounting software program will provide a cost portal the place clients can settle invoices. Nonetheless, that is completely separate from any checkout you will have in your web site, which suggests you’ll want totally different software program for amassing oblique tax in your web site (which suggests further price and additional work).

Plus, you’re in the end held liable for all tax legal responsibility. Sustaining tax compliance is commonly extra difficult than merely amassing and remitting the right amount (and kind) of oblique tax on the proper instances. 

For instance:

• Nations equivalent to Serbia, the UK, Taiwan, and others require digital invoicing (from resident and non-resident firms alike), which may price firms $2k-$5k per yr. Word: E-invoicing mandates are growing at an alarming price — the EU is rolling out common digital invoicing necessities by 2028.
• Nations equivalent to India, Indonesia, Japan, and others require your account to be “pre-funded” that means you must predict the quantity of tax you’ll owe and hold that cash in your account till it’s time to remit the funds (usually as much as three months prematurely).
• Nations equivalent to Colombia, Japan, Mexico, Serbia, and others require native illustration. This implies somebody with a bodily presence (normally a lawyer or accountant) in that nation must be liable for your tax legal responsibility, which may price wherever from $5k to $15k per yr.
• Nations equivalent to Taiwan, Indonesia, Nigeria, Vietnam, and others require you to file an earnings or income tax return when you begin amassing oblique tax, which may add as much as $5-$10k per yr. 

That’s why most SaaS firms find yourself hiring full-time tax accountants and specialists to deal with oblique tax. 

FastSpring simplifies the whole course of and makes it very easy so as to add all types of oblique tax to invoices (and acquire it at checkout) by dealing with it for you.

With over 20 years of expertise submitting 1,200+ tax returns annually in 100+ jurisdictions, our workforce ensures the right amount (and kind) of oblique tax is collected (we even deal with tax-exempt transactions within the U.S. and 0% reverse costs when relevant). 

Then, our workforce remits these taxes for you and ensures all the required procedures are in place to remain compliant. We’ve got long-standing relationships with tax specialists globally to remain present on regulation modifications, enforcement updates (typically particular industries are focused), and developments they’re seeing with different software program firms.

If a rustic or state approaches you about tax compliance, our workforce will usually give you copy-and-paste responses. 

Quote Administration and Recurring Invoicing

With most accounting software program, you’ll be able to simply handle B2B subscriptions in your web site, however not B2C transactions — which is why many firms find yourself with two totally different options. Which means double the fee and double the work. 

With FastSpring, you’ll be able to handle B2B and B2C transactions from one platform.

FastSpring gives a number of choices for establishing totally different subscription fashions equivalent to: 

• Fastened, per seat, metered, tiered, and bundled billing.
• Prorated billing to accommodate upgrades and downgrades mid-cycle.
• Automated or handbook renewal.
• Upsells, cross-sells, one-time charges, reductions, and items.
• And way more …

Then, you may make these merchandise accessible in your web site:

Alternatively, you’ll be able to add the merchandise to quotes and invoices utilizing FastSpring’s Digital Invoicing software. With Digital Invoicing, your workforce can create and handle quotes and invoices (e.g., add reductions and tags, set the expiration date, depart notes for the shopper, observe the acquisition course of). 

It’s also possible to provide a self-serve portal the place clients can generate their very own quotes or invoices primarily based on gadgets of their cart. 

Worldwide Cost Processing

Most accounting software program will provide easy cost processing for transactions within the U.S., nonetheless, most solely assist a number of cost varieties (e.g., Mastercard, Visa, ACH) and hardly any of them present cost processing for worldwide cost strategies or currencies. To just accept worldwide funds, you’d must combine with and handle extra cost processors. 

FastSpring makes it very easy to simply accept tons of most popular cost strategies world wide (by way of checkout or bill) by:

• Managing a number of cost gateways for you. Every cost gateway has particular nations, cost strategies, and currencies that they assist. For instance, a cost processor could assist Amazon Pay in america however they received’t course of funds from Brazil. With FastSpring, you’ll mechanically have entry to a number of cost gateways specializing in worldwide transactions (and transactions in america).
• Offering foreign money conversions at checkout and on invoices. You possibly can set the value for every product in every foreign money or let FastSpring make the conversions for you. It’s also possible to let your clients select their most popular foreign money (and language) or let FastSpring select the suitable one primarily based on their location. 

“Having many cost strategies which can be all the time related to every totally different area world wide has helped us obtain vital progress worldwide.”

– Ovi Negrean, Co-founder and Chief Government Officer

To pay an bill, clients merely click on on the ‘Pay Now’ button on the backside of the bill (as proven beneath). 

This can take clients to both a popup checkout or an online storefront hosted by FastSpring, relying on what you select. Both one may be very customizable when it comes to the appear and feel of the checkout. 

Word: You should use this similar checkout in your web site, and also you’ll have the choice to embed the checkout in your webpage, in case you want. Plus, you need to use FastSpring’s Retailer Builder Library to customise the client journey main as much as checkout (e.g., cross-sells, upsells).

Lastly, you’ll be able to configure FastSpring to ship out cost reminders two, 5, seven, fourteen, and twenty-one days after a cost technique fails. In our expertise, sending out a number of cost reminders is one of the simplest ways to make sure ongoing cost.  

Simplified Transaction and Achievement Reconciliation

Most accounting software program will enable you automate the method of creating certain the funds you obtain match the orders being stuffed. Though it’s automated, it may be an enormous process to confirm that the automation labored accurately and to repair any imbalances. 

Plus, worldwide transactions make it extra difficult as a result of you will have funds coming in by totally different gateways (and subsequently totally different software program suppliers) and into a number of service provider accounts. 

As MoR, FastSpring simplifies transaction reconciliation by dealing with it for you. We take the entire transactions along with your purchasers and bundle them into one or two lump sum funds which we ship to you a couple of times monthly. 

As a substitute of spending hours balancing a whole bunch or hundreds of transactions every month, you spend only a few minutes balancing one or two transactions from FastSpring. 

You continue to have full management over your product (i.e., the way it’s bundled, the pricing mannequin, how a lot is offered, the place you wish to promote it, achievement, and so on.).

Detailed Reporting for SaaS KPIs

FastSpring presents a built-in reporting function that can assist you discover the data you must create widespread accounting reviews (e.g., breakeven report or stability sheet). Most reviews will be discovered within the Income Overview dashboard or the Subscription Overview dashboard, however you can too create and save customized reviews. 

Should you don’t see the precise report you want, you’ll be able to attain out to our workforce and we’ll enable you discover (or construct) the required reviews.

Any report will be seen in your dashboard or downloaded as a CSV, PNG, or XLSX file. It’s also possible to combine our Analytics and Reporting function with third-party software program to tug in or ship out knowledge. 

Easy Flat-Charge Pricing

All features of FastSpring can be found for one flat-rate value primarily based on the quantity of transactions you progress by our platform. And, there aren’t any upfront costs — you’ll solely be charged when a transaction takes place. 

“We had been centered on not solely discovering an ecommerce platform that labored but in addition on constructing a relationship and partnership, which I imagine is essential. You don’t wish to purchase one thing after which be alone. You want a very good partnership. Ultimately, we picked FastSpring as a result of they confirmed us they needed to be a real associate.” 

– Frederic Linfjärd, Digital Business Supervisor at Seize One

FastSpring is extra than simply software program for some features of accounting — we’re your Service provider of Report. To see how we may help you rapidly increase globally, join a free account or request a demo immediately. 

Construct Your Personal SaaS Accounting Answer

Along with FastSpring, you’ll want software program to handle issues like payroll and earnings tax. Subsequent, we’ll cowl six extra choices that present options for these areas.

6 Different Accounting Software program

1. Maxio (Previously SaaSOptics)

SaaSOptics is without doubt one of the most well-known instruments for monitoring SaaS metrics (e.g., month-to-month recurring income), SaaS income recognition, and SaaS expense monitoring. They not too long ago merged with Chargify (a subscription administration platform) to type Maxio.

Whereas Maxio has lots to supply SaaS firms, they don’t tackle transaction or oblique tax legal responsibility for you. Plus, you’ll want extra software program for issues like accepting most popular cost strategies world wide. (They do work with Avatax that can assist you acquire gross sales tax and VAT, however the performance is restricted). 

Maxio presents options for: 

• Recurring billing.
• Income administration.
• Expense amortization.
• Integrating with cost gateways.
• Analytics, reporting, and forecasting.

2. Oracle NetSuite

Oracle NetSuite is a enterprise administration suite that gives options for accounting, B2B and B2C ecommerce, ERP, CRM, and way more. They serve many various industries together with software program firms. Additionally they assist all sizes of companies from SaaS startups to enterprises. 

Word: NetSuite gives single-seat entry to streamline communication between your organization and your CPA.

NetSuite contains options for: 

• Monetary reporting.
• Income recognition.
• Automated common ledger spreadsheets.
• Tax reporting.
• Income administration.
• Undertaking planning and budgeting.

3. QuickBooks

QuickBooks by Intuit is a well-liked accounting resolution for small to midsize companies and startups. They provide an on-premise and a cloud-based model (known as Quickbooks On-line). 

QuickBooks wasn’t particularly designed for SaaS firms. As a substitute, QuickBooks recommends SaaS firms combine with SaaSOptics to get the metrics and functionalities they want.

QuickBooks presents:

• Payroll administration instruments.
• Accounts receivable and payable instruments.
• Time monitoring instruments.
• Instruments for maximizing tax deductions.
• Digital bookkeepers that may enable you with easy accounting duties.
• Cost processing on-line or in particular person for some debit and bank cards, ACH, Apple Pay, PayPal and Venmo.
• Actual-time enterprise reviews (e.g., revenue and loss statements, money circulate statements)

4. FreshBooks

FreshBooks presents accounting instruments to freelancers and firms with a number of staff or contractors. They serve a number of industries together with know-how, development, accounting and extra. They cost you primarily based on what number of billing purchasers you’ve gotten that month beginning with 5 billing purchasers as much as limitless purchasers. 

Freshbooks presents: 

• Cost processing for MasterCard, Visa, Apple Pay, Uncover and ACH.
• Undertaking estimations and administration.
• Mileage and time monitoring.
• Payroll.
• Bookkeeping.
• Invoicing.
• Reporting.

5. Stripe

Stripe is a cost processor that may be built-in along with your accounting software program options that can assist you settle for and handle funds. Though their platform focuses on getting buyer funds into your checking account, they do provide a number of accounting-related providers equivalent to income recognition. 

Stripe serves many various industries, together with SaaS, at many various phases of progress, together with early-stage startups. Nonetheless, on this article on Stripe alternate options, we talk about why Stripe will not be the only option for SaaS firms. In brief, firms that select Stripe as their cost platform usually find yourself with a big software program stack to handle. 

Stripe gives options for: 

• Your web site checkout.
• Gathering gross sales tax at checkout.
• Fraud and danger administration.
• Recurring invoicing and subscriptions.
• Information warehouse administration. 
• In-person funds.

6. Xero

Xero is an accounting system for small companies, accountants, and bookkeepers. Xero is one other software program that doesn’t straight serve SaaS companies, and as a substitute presents an integration with SaaSOptics. 

Xero’s options embrace:

• Accounts payable and money circulate automation.
• Spend administration and reimbursements.
• A number of checking account integrations.
• On-line invoicing and funds.
• Payroll.
• Undertaking administration.

FastSpring handles worldwide oblique tax, cost processing, digital invoicing, subscription administration, dunning, and way more for you. Join a free account or request a demo immediately.