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How to Create a SaaS Accounting Software

Before we get to the point, let’s start by answering the most important question: what does SaaS mean in accounting? 

SaaS accounting software is a cloud-based solution that simplifies financial management for businesses. There's no need to download or install anything – everything is accessed through your browser. It handles revenue tracking, expenses, invoicing, and tax compliance, all while keeping your data synchronized in real time. Updates happen automatically in the cloud, ensuring you always have the latest features without any extra effort. It’s a scalable and efficient way to manage finances with modern convenience.

Let’s take a quick look at how things change with SaaS accounting software. 

Meet – let’s say – Sandra, a small business owner juggling sales, inventory, and employee management. Her finances are a total mess. Every month, she needs to sit down with a pile of receipts, spreadsheets scattered across her desktop, and an outdated accounting program that needs constant updates. She dreads tax season because finding missing invoices and reconciling accounts takes hours of her time and just drives her mad. Imagine the panic of losing data whenever her computer decided to crash!

Then Sarah makes the leap to SaaS accounting software. Now, her finances are in one place, neatly organized and accessible from anywhere. Need to send an invoice? She can do it in minutes, even from her phone. Automatic updates ensure she’s always using the latest features, and real-time syncing keeps her records accurate and up to date. Tax season? It’s no longer a nightmare because her reports are ready with just a click. And she’s calm and happy.

The difference is night and day. Without SaaS, Sarah spent hours every week stressing over numbers. With SaaS, she’s freed up time to focus on growing her business and enjoy her weekends with family and friends.

Well, that was just a glimpse into the benefits of SaaS accounting software. We’ll uncover this in more detail later in the article. So read on.

SaaS accounting software can be divided into various types depending on two aspects:

• By the target audience (for personal use, for SMBs, for large enterprises);
• By the development model (custom-built, off-the-shelf).

According to the target audience, we can distinguish between such types of accounting software:

1. SaaS accounting software for personal use. This is designed for people who need to track personal finances. It’s simple, intuitive, and focuses on budgeting, expense tracking, and basic reporting.
2. SaaS accounting software for small to medium-sized businesses. These tools are tailored for growing businesses and offer features like invoicing, payroll, and tax management. They’re easy to use but still provide the functionality needed for daily business operations.
3. SaaS accounting software for enterprise-level companies. These solutions, tailored for large organizations with complex financial needs, include advanced features like multi-currency support, detailed reporting, and smooth integration with other enterprise systems.

By the development model, there are:

1. Custom-built solutions. This is tailor-made software that fits the unique needs of your business. Custom solutions offer flexibility and scalability, ensuring the software grows with your company. With a robust architecture, they can handle large volumes of business financial data and high traffic. You can also install advanced security measures to adequately protect confidential data. 
2. Off-the-shelf solutions. These are pre-built, ready-to-use software products. They’re quick to implement and often more affordable, but they can come with limitations or unnecessary features, making them difficult to adapt to your business needs. Additionally, working with third-party systems can create challenges in staff training, ultimately slowing down business processes.

Building your own SaaS accounting solution comes with several key benefits, especially if you're looking to create a system that fits your unique business needs. Here’s why it can be worth the investment:

• When you build your own software, you can design it specifically to match your workflows and processes. Whether it's custom invoicing, specialized reporting, or unique tax requirements, the solution can be created to fit exactly what your business needs, without the hassle of unnecessary features.
• As your business grows, so will your accounting needs. A custom-built solution can easily scale with you, adding new features or handling larger volumes of data as required. You won’t have to worry about outgrowing the system or relying on third-party updates that may not align with your evolving needs.
• With a custom solution, you have full control over your data and security. You can implement the latest security protocols to keep your financial information safe and make adjustments whenever necessary. This level of control is crucial, especially when dealing with sensitive business financial data.
• Custom solutions can integrate seamlessly with the tools you’re already using – whether it's your CRM, inventory management system, or e-commerce platform. This reduces manual work and ensures all your systems work together smoothly.
• Although building your own solution requires a significant upfront investment, it pays off in the long run. Over time, you’ll save on subscription fees for off-the-shelf solutions and avoid the costs associated with adapting external software to your business. Plus, the system will grow with your business, so you won’t have to worry about switching platforms as your needs change.

Curious about a real-world success story? Discover how we helped Sprinkle, Thailand’s largest water delivery service, by migrating their CRM from SAP to a custom solution, automating their call center, and enhancing their order management system. Read the full case study here.

Before diving into building your custom SaaS accounting product, it’s important to pause and think about the key factors that will shape its success:

1. Is there enough customer demand? Ensure there’s a real need for your solution. Take the time to understand your target audience and their pain points. Building something no one needs is a recipe for wasted resources.
2. Is my software architecture sufficiently reliable? The backbone of your software needs to be strong. A reliable architecture ensures your product can handle high traffic, large amounts of data, and perform well over time. No one wants a system that crashes when it’s needed the most.
3. Do I have a strong feature set? The features you include must truly add value. Focus on the core functionalities that will benefit your users the most, and don’t overcomplicate things. A lean, powerful feature set is better than a bloated one.
4. Have I implemented thorough Quality Assurance? Testing is essential. Ensure your product operates smoothly, is free of bugs, and meets its promises. Users expect a flawless experience, so investing in comprehensive QA will lead to higher satisfaction and greater retention.
5. Is the user experience intuitive? Make sure the user journey is straightforward, and that even someone with limited technical expertise can easily use the product. A seamless user experience helps ensure higher adoption rates and reduces the likelihood of frustration.
6. Is my software secure and compliant? Especially in accounting, you’ll be dealing with sensitive financial data. Ensuring robust security (like encryption and regular security audits) and compliance with regulations (like GDPR or financial reporting standards) is a must. 

Finding the right accounting software for your SaaS business means looking for features that align with your workflows. Here’s the list of accounting software features to keep an eye on:

1. Invoice processing. Your software should handle everything from creating and sending invoices to tracking payments and setting up recurring billing for subscriptions.
2. E-payments. Integrated e-payment features support multiple payment methods, such as credit cards, bank transfers, and PayPal, for a seamless transaction experience.
3. Expense tracking. Reliable software will categorize and monitor expenses, providing insights into where your money is going and helping you control costs.
4. Payroll management. If you’re managing a team, SaaS accounting software will calculate salaries, deductions, and taxes, and even handle employee payslips to save you time and reduce errors.
5. VAT calculations. If your SaaS business operates internationally, this is a significant feature for you. Good accounting software calculates VAT based on location, so you stay compliant without extra effort.
6. Bank account linking. This feature simplifies reconciliation, letting you match transactions with your records and identify discrepancies quickly.
7. Forecasting. Accurate forecasting tools let you predict cash flow, plan for growth, and be ready for potential financial challenges.
8. Tax management. This will help you organize and calculate your tax obligations to ensure timely filings.

Apart from this, it would be great if your SaaS accounting software could offer:

• Recurring payments management to automate subscription billing;
• Mobile access for managing finances on the go;
• Multi-currency support to handle global transactions easily;
• Project dashboards for tracking expenses by project;
• Customization options to tailor the software to your needs;
• Compliance tools for adhering to financial regulations;
• 3d-party API access for seamless integrations.

If you decide to develop your own solution or prefer to use a ready-made one, below there are some nice accounting software examples to consider regardless of your choice.

QuickBooks

QuickBooks is a versatile accounting software designed for small to medium-sized businesses. It offers tools for invoicing, expense tracking, payroll, and tax preparation, all within an easy-to-use interface.

Zoho Books

Zoho Books is a cost-effective solution with robust features like automated workflows, multi-currency support, and integration with other Zoho tools, making it ideal for growing businesses.

Microsoft Dynamics 365

Microsoft Dynamics 365 provides enterprise-level accounting features, including financial reporting, project management, and AI-powered insights, tailored for large organizations.

ChargeBee

ChargeBee specializes in subscription billing and recurring payments, offering advanced features like dunning management and analytics, perfect for SaaS companies with subscription models.

Everything is easier when you have a clear plan and guidelines. So, follow the step-by-step process we provide below if you decide to build SaaS accounting software.

Step 1. Start by exploring what other service providers include in their software. Identify which features your perfect solution should have based on this analysis.

Step 2. Next, prepare a plan that will cover timelines, the desired functionality, and budget. For a more precise estimate, we recommend contacting a SaaS accounting software development company.

Step 3. Now it’s time to explore design trends and find references for your future solution. This will help UX/UI designers create wireframes that will then be turned into clickable prototypes.

Step 4. Then, you will need to build an MVP that will include the key features identified during the planning stage.

Step 5. Before using the app, you need to thoroughly test it to ensure everything works as planned and is safe and secure.

Step 6. Congrats, you’re now all set to launch your app and get the first feedback from real users – your employees. Do not overlook this step since it will help you find and fix any issues before the solution is exposed to a broader audience.

Pro tip: develop a strategy for regular updates and technical support to ensure your software remains up-to-date, secure, and competitive in the market. Also, gather feedback regularly to refine your software before scaling up.

Check out our article on How to Create an Investment Platform to explore the key steps and considerations for developing robust financial solutions.

As with any solution, there is no one-size-fits-all answer when it comes to the timelines and costs of developing SaaS accounting software. Still, you can take a look at the factors influencing accounting software development costs and timeframes. They are as follows:

1. Software complexity. Complex software with advanced functionalities (like multi-currency support, AI-powered analytics, or predictive forecasting) requires more development time and effort. The more intricate the solution, the higher the cost and the longer the timeline.
2. Feature set. A robust feature set adds to both the cost and the development time. Building a lean MVP with only core features can help reduce upfront costs and timelines.
3. Integrations. If your software needs to work seamlessly with other tools, such as CRMs, payment gateways, or HR platforms, it will require additional effort. Integrating third-party APIs can be challenging, especially if custom solutions or legacy systems are involved.
4. UI/UX design requirements. Creating a user-friendly and visually appealing interface requires collaboration with skilled designers. Investing in design adds to upfront costs but can save time later by reducing the need for reworks due to usability issues.
5. Testing and QA. Rigorous QA ensures your software is bug-free and secure. The time and resources allocated to testing will directly influence both the development timeline and costs. Skimping on QA might save money initially but can lead to higher expenses down the line if issues arise after launch.

With the right planning, features, and development team, you can create a solution that perfectly fits your business needs. If you're ready to bring your vision to life, don’t hesitate to reach out to SapientPro for professional custom SaaS development services. Let’s discuss how we can help you build the ideal accounting software for your business.