Top 10 Accounting Software for Startups in UAE

Starting a business in the UAE is exciting but managing your financial records, VAT compliance, billing, and cash flow can quickly become overwhelming. Startups need accounting software that helps automate tasks, track expenses, generate VAT-ready invoices, and give real-time clarity into business performance.

Whether you’re a founder, finance lead, or running a lean team, the right cloud accounting tool can save hours of manual work, reduce mistakes, and help you stay compliant with VAT regulations.

In this blog, we explore the top 10 accounting software for startups in the UAE solutions that are cloud-ready, easy to use, and built to support growing businesses.

Why Startups in the UAE Need Cloud Accounting Software

The UAE introduced VAT in 2018, and since then, compliance and reporting have become critical parts of business operations. Startups today struggle with:

• Generating VAT-compliant invoices

• Tracking expenses and purchases accurately

• Reconciling bank transactions

• Keeping financial records audit-ready

• Monitoring cash flow and profitability

Cloud accounting software helps startups manage all of these from one place with access on desktop or mobile, anytime, anywhere.

What Startups Should Look for in Accounting Software

Before choosing software, UAE startups should consider the following features:

VAT-Ready Invoicing

Invoices generated must be compliant with the UAE’s VAT regulations.

Cloud Access

Work from the office, home, or on the go.

Easy Billing & Expense Tracking

Quick invoice creation and simple purchase/expense entry.

Real-Time Reports

Instant visibility into cash flow, profit & loss, outstanding, and VAT summaries.

Simplicity & Usability

Easy to adopt even for founders without an accounting background.

Scalability

The software should grow with your startup, not restrict you.

Top 10 Accounting Software for Startups in UAE

Here’s a breakdown of the most popular and effective accounting software used by startups across the UAE:

1. hisabkitab – Best Overall Cloud Accounting for UAE Startups

hisabkitab combines simplicity with powerful features, making it a great choice for startups.

Why startups love it:
VAT-ready invoicing automatically included
Cloud access with multi-user support
AI-assisted expense and bill entry
Clear dashboards for cashflow, profit, and outstanding payments
Easy for non-accountants to use

Best for: Small and medium startups looking for simple cloud accounting with local compliance support.

2. QuickBooks Online – Trusted Cloud Accounting

QuickBooks Online is among the most widely used cloud accounting software globally.

What it offers:
Automated bank feeds
VAT-ready invoicing (configurable)
Advanced financial reports

Challenges:
VAT configuration may require setup
Slightly higher pricing

Best for: Growing startups with accountants or finance teams.

3. Xero – Cloud Accounting with Collaboration

Xero is a strong choice for collaborative teams and startups working remotely.

Advantages:
Unlimited user roles
Real-time reconciliation
Smart reporting

Limitations:
VAT configuration needs manual setup
Premium pricing

Best for: Startups with distributed teams or external accountants.

4. Zoho Books – Integrated Business Accounting

Zoho Books fits well into the wider Zoho ecosystem (CRM, Projects, Inventory), making it useful for startups needing integration.

Benefits:
Recurring invoices and automation
Client portals
Multi-team use

Cons:
Slight learning curve
Advanced features on higher tiers

Best for: Startups already using Zoho products.

5. Sage Business Cloud – Simple Cloud Accounting

Sage offers an easy-to-use cloud accounting interface suitable for startups and small businesses.

Pros:
Quick invoicing
Automated billing
Dashboard reports

Cons:
Limited advanced integrations

Best for: Smaller startups needing straightforward accounting.

6. ERPNext – Full Business & Accounting Suite

ERPNext offers accounting as part of a full ERP platform.

Advantages:
Integrated modules (accounts, inventory, HR)
Multi-branch handling
Strong customisation

Disadvantages:
Setup and onboarding require time
Best suited for larger startups

Best for: Mid-size startups with diverse business functions.

7. FreshBooks – Easy Billing & Expense Tracking

FreshBooks is known for its simplicity and professional invoice templates.

Pros:
Easy time & expense tracking
Simple invoice management
Great UI

Cons:
Limited VAT support for UAE
Best for service-based startups

Best for: Freelancers and consultants affiliated with startups.

8. Wave Accounting – Free Cloud Accounting

Wave offers free basic accounting features for small startups.

Pros:
No subscription cost
Basic invoicing & expense tracking

Cons:
Lacks advanced VAT reporting
Not ideal for scaling

Best for: Micro startups or side hustles.

9. myBillBook – Quick Invoicing & Accounting

myBillBook focuses on fast billing and basic financial tracking.

Benefits:
Quick invoice generation
Expense tracking
Mobile support

Limitations:
Limited financial reporting
Not full accounting suite

Best for: Early-stage startups with simple needs.

10. Busy Cloud – Cloud Accounting for Traders

Busy Cloud integrates billing and accounting features, with strong inventory support.

Pros:
Inventory tracking + accounts
VAT reporting
Multi-location setups

Cons:
Slightly complex interface

Best for: Startups with inventory and trading operations.

How to Choose the Right Accounting Software in UAE

Here’s a quick checklist UAE startups can use to compare options:

VAT-Ready Invoicing: Must generate compliant VAT invoices
Cloud Access: Work from anywhere without server dependency
Expense & Purchase Tracking: Easy entry and categorisation
Real-Time Dashboards: Cashflow & profit clarity at a glance
Integrations: Bank feeds, payment gateways, project tools
Ease of Use: Should require little to no accounting knowledge

Why Startups in UAE Prefer hisabkitab

hisabkitab is emerging as a popular choice among UAE startups because it combines simplicity with practical compliance features:

• VAT-ready invoices out of the box

• Cloud access with multi-device support

• AI-assisted data entry reduces manual work

• Real-time insights into income, expenses, and tax details

• Built for modern startups, not accountants only

This makes hisabkitab ideal for startups that want simple day-to-day accounting without complexity.

Conclusion

Accounting is more than a compliance requirement it’s the foundation of good financial decisions. For startups in the UAE, choosing the right cloud accounting software can save time, reduce errors, and provide clarity into business performance.

From powerful platforms like QuickBooks Online and Xero to simple, startup-friendly tools like hisabkitab, there is a solution for every need and budget.

Ready to Simplify Startup Accounting in UAE?

Try hisabkitab VAT-ready, cloud-based accounting that’s easy to use, and built for modern businesses.
Manage invoices, track expenses, and get real-time financial insights all in one place.

Book a free demo and experience accounting that works for your startup.