The 5 Best Finance Tools for Startup Founders
May 29, 2024
For startup founders, properly managing their company finances is critical to success of the business, but if not done properly it can quickly become a distraction from building product and talking to customers.
Below are five of the best finance tools that can help startup founders stay on top of their finances and stay focussed on building a great product:
1. Yucca: All your startup's bank accounts in one place
Yucca helps startup founders manage and monitor their company's finances by providing visibility into all bank accounts and currencies in one place. Just connect your bank accounts and Yucca calculates and monitors your total cash, burn rate, runway and spend.
Yucca automatically categorises and monitors your spend across all accounts and detects intercompany transfers and large one-off transactions, all powered by AI.
2. Xero: Accounting Software
Xero is a popular choice among startups for accounting, known for its ease of use and extensive marketplace of apps and add-ons.
It's widely used and supported by accountants and offers comprehensive multi-currency support. However, founders report that multi-entity reporting is not natively supported and it may be necessary to use other tools to get real-time cash based metrics.
3. Revolut: Business Banking
Revolut offers a great business bank account product with quick setup and best-in-class foreign exchange rates.
Revolut includes expense management, physical and virtual cards, accounting sync and an extensive marketplace of add-ons and integrations
It serves well as an all-in-one bank account for early-stage startups despite the customer support having room for improvement.
4. Caribou: Multi-Entity Compliance Management
Caribou takes the headache out of managing inter-company compliance, tax and monitoring for multi-entity startups.
They can get your entity structure set up and compliant much faster, accurately and more affordably than your accountant or tax consultant.
They're backed by Y Combinator and have an impressive customer base of high-growth startups.
5. Stripe: Payment Processing
Stripe is widely used for its straightforward payment processing capabilities and its plug-and-play support for multiple currencies. While it doesn't have the best fees, it’s an effective tool for startups that need to get setup with card and invoice payments quickly, though its MRR/ARR reporting features are limited.
These 5 tools provide a great starting point for most startups who need to get setup and back to building product and talking to customers quickly, but you should always evaluate each of these individually to make sure they're covering your needs.