As an early-stage startup, your tech stack is more than just tools—it’s the foundation for how you manage your finances efficiently and effectively. Choosing the right solutions early on can save you time, reduce headaches, and ensure you have a solid system in place as your company grows.

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At Startup Accountant, we work with many startups to streamline their financial processes. Based on our experience, here’s the preferred tech stack we recommend for general ledger (GL), payroll, expense management, invoicing, and banking.

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1. General Ledger (GL): QuickBooks Online

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QuickBooks Online is the go-to accounting software for early-stage startups. It’s user-friendly, scalable, and integrates seamlessly with other tools in your tech stack.

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Why we recommend it:

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• Easy-to-use interface that’s ideal for accountants and non-accountants alike.
• Cloud-based access allows your team and accountant to work collaboratively.
• Easy reporting for profit and loss statements, balance sheets, and cash flow tracking.
• Integration with payroll, banking, and expense management tools.

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If you’re bootstrapping, QuickBooks Online’s basic plan is budget-friendly and provides everything you need to track income, expenses, and financial performance.

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2. Payroll: Gusto

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Managing payroll is one of the most critical functions for any startup. Gusto simplifies payroll processing, automates compliance, and integrates well with accounting software like QuickBooks.

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Why we recommend it:

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• Intuitive interface that simplifies onboarding and payroll runs.
• Automatic tax filings and compliance for federal, state, and local taxes.
• Integrated employee benefits options for health insurance, retirement plans, and more.
• Scales with your team as you add more employees or contractors.

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For startups with a small team, Gusto’s automation features reduce administrative burden and ensure payroll accuracy every time.

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3. Expense Management: Divvy (Now Bill.com)

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Tracking expenses can quickly get messy if you don’t have the right system in place. Divvy from BILL, now part of Bill.com, offers a streamlined platform for expense management with built-in budgeting tools.

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Why we recommend it:

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• Issue virtual or physical corporate cards to employees with pre-set budgets.
• Real-time expense tracking and categorization.
• Integration with QuickBooks for seamless accounting.
• Free to use, with no annual fees for cards or software.

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Divvy is particularly helpful for startups looking to stay on top of spending without the need for manual expense reports.

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4. Invoicing: QuickBooks Online or Mercury

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When it comes to invoicing, you have two excellent, budget-friendly options:

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• QuickBooks Online: Best for branded, recurring, or customized invoices. This tool lets you create and send invoices directly from your accounting system, ensuring they’re properly tracked and aligned with your GL.
• Mercury: A free banking platform that includes basic invoicing capabilities. While it’s great for simple needs, branded and recurring invoices require a paid upgrade.

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Why we recommend them:

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• QuickBooks integrates invoicing with your accounting, reducing errors and manual entry.
• Mercury’s invoicing is a lightweight, cost-effective solution for founders who want everything in one place.

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For startups with more complex invoicing needs, QuickBooks is the better choice and you may even need to upgrade to a dedicated invoicing tool.

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5. Banking: Mercury

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Mercury is a modern banking platform designed specifically for startups. It’s a top choice for early-stage companies due to its no-fee structure and features tailored to startup operations.

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Why we recommend it:

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• No minimum balance requirements or monthly fees.
• Built-in invoicing capabilities for basic needs.
• Virtual cards and expense tracking tools.
• Easy integration with QuickBooks and other financial tools.

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Mercury’s startup-friendly features make it an excellent option for founders looking to keep banking simple and cost-effective.

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Choosing the Right Tech Stack for Your Startup

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Selecting the right tools early on saves time, reduces errors, and allows you to focus on what really matters: building your business. By implementing this tech stack, you’ll have a streamlined, integrated financial system that grows with you.

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Need help setting up or managing your startup’s financial tech stack? At Startup Accountant, we specialize in helping startups like yours get the most out of their tools while ensuring financial accuracy. Contact us today to learn how we can help you build a solid financial foundation.