The accounting landscape is changing rapidly. Between 2019 and 2021, more than 300,000 accountants and auditors left their jobs, creating a significant talent gap that is forcing firms to do more with fewer resources. At the same time, technological innovation is reshaping the industry, but its adoption remains inconsistent.
For instance, one survey found 98% of accountants and bookkeepers report integrating AI into their workflows, yet another survey shows 52% claim they don’t use AI at all.
Meanwhile, 87% of accounting professionals are satisfied with their current dated tech stack, despite the fact that technology-mature firms see a 39% revenue increase per employee. And the benefits of modernizing are clear: firms with high technology acceptance experience 75% fewer financial errors, reducing risk and improving efficiency.
These contradictions highlight both the challenges and opportunities in the accounting space. Even so, the importance of accounting cannot be understated. The profession faces a growing talent shortage, increasing regulatory complexity, and rising client demands. Yet startups are stepping in with AI-driven automation, embedded financial tools, and real-time insights to make accounting more efficient, accurate, and scalable.
This new wave of accounting startups is reshaping how businesses handle their finances. From fully automated bookkeeping to industry-specific solutions, these innovators are tackling long-standing pain points, creating new efficiencies, and even making accounting more appealing to the next generation of professionals.
In this post, we’ll explore the rise of accounting startups, how they’re solving today’s biggest challenges, and which young companies are making waves in the industry today.
What is an accounting startup?
An accounting startup is a company that develops innovative financial technology solutions aimed at modernizing bookkeeping, tax compliance, audits, and financial management. These startups leverage AI, automation, and cloud-based infrastructure to simplify and enhance financial workflows for businesses of all sizes.
While some accounting startups focus on automating bookkeeping and reconciliation, others tackle industry-specific accounting needs, such as e-commerce financial tracking, carbon accounting, or AI-driven fraud detection. The goal is the same though—to make accounting less of a burden and more of a strategic advantage for businesses.
Accounting startups are good for startup accounting
When it comes to accounting for startups, founders need more than just basic bookkeeping software—they need tools that scale with their business, integrate seamlessly with operations, and provide real-time financial insights. Accounting startups are reinventing financial management by offering automated, AI-powered solutions that adapt to the fast-paced, ever-changing needs of early-stage and high-growth companies.
How are accounting startups tackling today's challenges?
The accounting industry is undergoing a major transformation, driven by the increasing complexity of financial regulations, a shortage of skilled professionals, and the demand for real-time insights. Here are solutions being addressed today.
1. Automating manual processes
One of the biggest bottlenecks in accounting has always been repetitive, time-consuming tasks such as transaction entry, reconciliation, and financial close processes.
Startups are addressing this by building AI agents and AI-driven automation tools that handle these tasks in real time, reducing errors and freeing up professionals to focus on strategic financial analysis instead of data entry.
2. Integrating accounting into business operations
Modern accounting startups understand that financial data should no longer live in a silo. They are embedding real-time financial insights directly into business platforms. This allows companies to track cash flow, profitability, and tax obligations alongside their core operations.
For small and mid-sized businesses that need actionable insights without the complexity of traditional accounting software, this shift is especially important.
3. Addressing the talent shortage with AI
The accounting profession is facing a severe talent shortage, with declining enrollment in accounting degree programs and a growing workload on existing professionals. AI-powered accounting platforms are helping firms do more with fewer resources by handling routine audits, categorizing transactions, and even providing automated financial insights.
4. Making compliance effortless
Regulatory complexity continues to grow, whether in taxation, sustainability reporting, or financial audits. Startups are developing platforms that automate compliance checks, generate audit-ready reports, and simplify tax filings. AI-powered systems can detect anomalies in financial records, flag potential fraud, and ensure businesses meet reporting standards without manual intervention.
5. Expanding access to financial expertise
For many small businesses, hiring a full-time accountant or CFO is not financially viable. Startups are democratizing financial expertise by offering AI-powered advisory tools that provide real-time suggestions on cash flow management, expense optimization, and tax strategy. Some even offer on-demand bookkeeping and CFO services, making high-level financial guidance accessible to businesses of all sizes.
6. Bringing accounting into industry-specific workflows
Accounting is not one-size-fits-all. Instead of forcing businesses to adapt to traditional general-purpose software, startups are building industry-specific accounting solutions. These tailored solutions are making accounting more accessible, intuitive, and effective.
7. Enabling real-time financial decision-making
Gone are the days when businesses waited for monthly or quarterly financial reports to make decisions. Real-time financial tracking powered by cloud-based accounting platforms is now the standard. Companies can access up-to-the-minute profitability data, forecast future cash flow, and adjust strategies instantly based on accurate insights—something that was previously only available to large enterprises with dedicated finance teams.
10 young accounting startups making waves
So who are these startups tackling today’s challenges? Well here’s a few.
1. Stacks
Year founded: 2024
Location: Amsterdam, Netherlands
Funds raised: $10 million
Stacks is redefining how finance teams close their books, leveraging AI to eliminate inefficiencies in traditional accounting workflows. The platform integrates seamlessly with Enterprise Resource Planning (ERP) systems, as well as key data tools like Excel and Slack, allowing businesses to streamline their month-end close with minimal setup time.
Since launching, Stacks has rapidly gained traction. Which makes sense when customers are reporting a 47% reduction in close time, a 97% decrease in manual reconciliations, and a 33% faster audit cycle.
What makes this startup special:
AI-powered close automation reduces manual accounting tasks
Seamless integration with existing ERP and finance tools
Rapid adoption with companies reporting significant time savings
Led by experienced product and fintech leaders
2. Basis
Year founded: 2023
Location: New York, USA
Funds raised: $34 million
Accounting firms and finance teams are increasingly turning to Basis to reduce manual data entry and streamline financial workflows. This AI-powered platform functions as an autonomous accounting assistant, automating transaction entry, reconciliation, and bookkeeping tasks. Designed to integrate effortlessly with QuickBooks, Xero, and other leading ledger systems, Basis helps firms cut costs and improve accuracy while addressing the ongoing accounting labor shortage.
What makes this startup special:
AI-powered automation for transaction entry and categorization
Advanced reconciliation tools to detect discrepancies and improve accuracy
Seamless integration with industry-standard accounting platforms
Designed as a self-operating AI assistant, reducing human workload
Strong backing from top investors in AI and technology
3. Briefcase
Year founded: 2023
Location: London, UK
Funds raised: $3 million
Briefcase is bringing AI-native automation to accounting, aiming to transform how firms handle bookkeeping and month-end closing. Unlike previous innovations that simply moved accounting software to the cloud, Briefcase leverages multimodal AI, agentic workflows, and advanced embedding technologies to automate traditionally manual processes.
Currently in its pre-launch phase, Briefcase is working closely with UK accounting firms in a beta programme, refining its product through real-world testing. The goal? To free accountants from repetitive tasks and allow them to focus on higher-value advisory services.
What makes this startup special:
AI-native automation built from the ground up for accounting
Agentic workflows that execute tasks without human input
Direct integration with Xero and QuickBooks for seamless functionality
Beta testing with UK accounting firms to validate real-world impact
4. Liveflow
Year founded: 2021
Location: California, USA
Funds raised: $17.1 million
Addressing the growing talent shortage in accounting, LiveFlow is helping firms modernize their operations through automation. With the profession struggling to attract new graduates, LiveFlow aims to eliminate tedious manual work, allowing accountants to focus on high-value financial advisory.
The company’s latest offering, LiveFlow Next, provides firms with AI-driven transaction categorization, intelligent forecasting, and real-time client dashboards. Already trusted by major firms like BDO and KLR, as well as brands like Wendy’s and Crumbl Cookies, LiveFlow is redefining what accounting teams can achieve.
What makes this startup special:
AI-powered automation that eliminates repetitive accounting tasks
Custom financial dashboards and forecasting tools for accountants
Trusted by global firms and major consumer brands
5. Febi.ai
Year founded: 2022
Location: Gurgaon, India
Funds raised: $2 million
With a focus on automating accounting and tax compliance, Febi.ai is helping businesses eliminate manual data entry, reduce errors, and streamline financial workflows. By leveraging AI, the platform automates invoice verification, documentation management, and tax reporting, providing real-time insights that empower entrepreneurs to make informed financial decisions.
What makes this startup special:
AI-driven accounting and tax automation
Real-time financial insights for better decision-making
Founded by finance and accounting experts
6. Mika
Year founded: 2023
Location: Berlin, Germany
Funds raised: $865k
mika is making tax and accounting effortless for small businesses with its AI-powered automation platform. By handling bookkeeping, tax filings, and financial planning, the startup helps SMEs navigate complex regulations and reduce administrative burdens.
With €800k in pre-seed funding from investors like Keen Venture Partners and Slimmer AI, mika is set to expand beyond Germany into other European markets.
What makes this startup special:
AI-driven automation for accounting and tax compliance
Designed to help SMEs reduce bureaucracy and focus on growth
Part of Earlybird Venture Capital’s Vision Lab for migrant founders
7. Sumday
Year founded: 2021
Location: Tasmania, Australia
Funds raised: $3.45 million
Sumday is tackling one of the biggest challenges in climate-conscious finance—greenhouse gas (GHG) accounting. By equipping accountants and bookkeepers with an easy-to-use carbon accounting tool, the platform helps businesses track and report emissions, particularly Scope 3 supply chain emissions, with audit-ready accuracy.
Founded in rural Tasmania, the company is scaling its mission to make sustainability reporting accessible to all businesses.
What makes this startup special:
Designed for accounting firms looking to offer carbon reporting services
Helps businesses comply with evolving sustainability regulations
Global expansion into the US, UK, and EU
Supported by leading climate tech and fintech investors
8. Finaloop
Year founded: 2019
Location: New York, USA
Funds raised: $35 million
E-commerce brands no longer have to struggle with outdated accounting tools—Finaloop is bringing real-time, fully automated bookkeeping to online retailers. Integrating directly with platforms like Amazon, Shopify, Walmart, and TikTok, allows the platform to eliminate manual data entry and gives businesses instant financial insights to stay ahead. Finaloop is positioning itself as a one-stop accounting solution that combines financial tracking, bookkeeping, and inventory forecasting into a single system.
What makes this startup special:
Automates accounting and bookkeeping for e-commerce businesses
Seamless integrations with major online retail platforms
Real-time financial insights for better decision-making
9. Teal
Year founded: 2023
Location: Vancouver, Canada
Funds raised: $8 million
Teal is bringing embedded accounting infrastructure to Vertical SaaS companies. It is allowing them to integrate custom-built financial services directly into their platforms. Instead of relying on standalone accounting software, businesses can use Teal’s APIs and pre-built tools to offer real-time cash flow tracking, profitability analysis, and automated tax filing for their small business customers.The company positions itself as the “Stripe for accounting,” enabling SaaS businesses to launch fully integrated accounting products in just weeks.
What makes this startup special:
Provides plug-and-play accounting infrastructure for SaaS companies
Helps SMBs access real-time financial insights within existing platforms
Led by fintech veterans with deep industry expertise
Offers white-label bookkeeping and tax services for hands-off accounting
10. FieldGuide
Year founded: 2020
Location: California, USA
Funds raised: $30 million
Audit and advisory firms are turning to AI to combat the industry’s talent shortage, and Fieldguide is leading the charge. Designed to automate tedious audit processes, the platform helps firms cut engagement hours by up to 50%, freeing up practitioners to focus on high-value advisory work. Already trusted by firms like Wipfli, Mazars, and Aprio, the platform is shaping the future of advisory services with automated workflows, fraud detection, and regulatory compliance tools.
What makes this startup special:
AI-powered automation for audit and advisory engagements
Cuts engagement hours by half, boosting efficiency and margins
Used by Top 100 CPA and consulting firms
Backed by top-tier investors in SaaS and AI
3 accounting startup business ideas
Considering what’s happening and what can still be done, here are some accounting services startup ideas for those wanting to jump into the frey.
1. Automated multi-entity accounting platform
Managing the finances of multi-entity businesses—such as franchise chains, global subsidiaries, or real estate portfolios—is a nightmare. Traditional accounting tools require manual consolidation, making it time-consuming and error-prone to track financial performance across multiple entities. Accountants must juggle different currencies, tax regulations, and financial reporting standards, leading to inefficiencies and compliance risks.
Solution: A cloud-based, AI-powered multi-entity accounting platform that automates intercompany transactions, real-time consolidation, and regulatory compliance. This tool would integrate seamlessly with QuickBooks, Xero, and ERP systems, providing a single dashboard for financial oversight across all entities. AI-driven reconciliation ensures accuracy, while automated currency conversion and localized tax compliance make global accounting effortless.
2. AI-driven tax optimization for freelancers & gig workers
Freelancers, content creators, and gig workers struggle with tax compliance due to irregular income, multiple revenue streams, and complex deductions. Many don’t track expenses properly or know how to maximize their tax savings. Traditional tax software is built for either salaried employees or businesses, leaving this growing segment underserved.
Solution: A mobile-first AI-powered tax optimization platform that automatically categorizes transactions, tracks mileage, and suggests deductions in real-time. By integrating with bank accounts, payment platforms like PayPal & Stripe, and gig economy apps like Uber and Etsy, the platform provides real-time tax estimates, quarterly filing assistance, and automated tax-saving strategies.
3. AI-first forensic accounting & fraud detection tool
Small and mid-sized businesses lose billions annually to fraud, yet forensic accounting tools are often complex, expensive, and reactive—used only after fraud is suspected. Many businesses lack the resources to continuously monitor transactions for suspicious activity.
Solution: An AI-powered forensic accounting and fraud detection platform that automatically scans financial records for anomalies, duplicate transactions, and suspicious patterns in real-time. Using machine learning, the tool continuously improves its fraud-detection capabilities and integrates with accounting software like NetSuite and QuickBooks. The platform would alert business owners and accountants to potential fraud risks before they escalate, while also offering AI-generated audit reports to streamline investigations.
Thinking of starting an accounting SaaS startup?
The accounting industry is ripe for innovation, with businesses demanding smarter, faster, and more automated financial tools. Whether you're building a solution for bookkeeping automation, AI-driven tax compliance, or real-time financial insights, success depends on solid product execution and seamless user experience.
The challenge is designing intuitive workflows, integrating with existing financial platforms, and ensuring regulatory compliance from day one.
Bringing an accounting SaaS product to market requires the right development strategy, an agile approach, and a deep understanding of user pain points. Instead of getting bogged down in technical complexities, focus on delivering a high-quality MVP that meets real business needs.
At DevSquad, that's what we do. If you're looking for a team that understands the nuances of fintech, automation, and enterprise-grade security, partner with experienced developers that can help you accelerate your roadmap and build a product that scales.
Building an accounting SaaS product? Learn more about our SaaS development process.
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