Accounting has quietly become one of the fastest-evolving parts of business infrastructure. The spreadsheets, reconciliations, and month-end rituals that once defined finance teams are now being replaced by automation, embedded data, and AI-driven insights.
From Europe to India to the U.S., startups are rebuilding accounting from the ground up — integrating banking, payroll, tax, and analytics into unified systems. These companies aren’t just building software; they’re rebuilding how businesses think about money movement, compliance, and visibility.
Here’s a look at the Top 10 Accounting Startups in 2025, their founders, investors, and what they’re building next.
1. Pennylane (France) — “All-in-one accounting meets real-time finance”
What they do: Pennylane combines accounting, invoicing, and financial insights for SMEs and accountants on one platform.
Founders: Arthur Waller, Félix Desmaison, and Quentin de Metz.
Funding / Investors: Raised €40 million Series B led by Sequoia Capital and Partech Ventures.
Why it matters: It bridges the gap between business owners and accountants, offering real-time collaboration and automation for every transaction.
Next moves: Expanding to new European markets and integrating payroll + AI-based forecasting.
2. Pilot (USA) — “The accountant that scales with startups”
What they do: Pilot provides bookkeeping, tax, and CFO services powered by automation and human experts, tailored for startups.
Founders: Waseem Daher, Jessica McKellar, and Jeff Arnold.
Funding / Investors: Raised $100M Series C, led by Jeff Bezos’ Bezos Expeditions and Index Ventures.
Why it matters: It’s the finance backbone for many Y Combinator startups, giving small teams CFO-level oversight from day one.
Next moves: Deepen integrations with payroll, fundraising tools, and revenue recognition software.
3. Tally (India) — “India’s accounting backbone goes digital-first”
What they do: Tally automates accounting and GST compliance for millions of Indian SMBs and enterprises.
Founders: Bharat Goenka and Shyam Sunder Goenka.
Funding / Investors: Privately held; backed through internal growth and ecosystem partnerships.
Why it matters: One of India’s longest-standing accounting solutions, now evolving into a cloud-native platform for a post-GST world.
Next moves: Cloud-first platform, SME banking integrations, and AI-based audit assistance.
4. FreshBooks (Canada) — “Simple, elegant accounting for self-employed professionals”
What they do: Cloud-based invoicing and accounting platform tailored to freelancers and small business owners.
Founders: Mike McDerment, Joe Sawada, Levi Cooperman.
Funding / Investors: Over $200 million raised, backed by JP Morgan Chase, Oak Investment Partners, and Accomplice.
Why it matters: FreshBooks focuses on usability and customer experience — simplifying accounting for non-accountants.
Next moves: Expanding enterprise integrations, AI bookkeeping assistance, and smart expense categorization.
5. FloQast (USA) — “Closing books with speed and accuracy”
What they do: Automates the month-end close process for accounting teams, ensuring accuracy, compliance, and collaboration.
Founders: Mike Whitmire, Cullen Zandstra, and Chris Sluty.
Funding / Investors: Raised $110 million Series D led by Iconiq Growth; valued at over $1.2 billion.
Why it matters: Used by over 2,500 mid-to-large companies — FloQast is the unseen engine behind faster, cleaner financial closes.
Next moves: AI-based anomaly detection, audit-ready automation, and expansion into Europe and APAC.
6. Fyle (India/USA) — “Expense management that integrates where you work”
What they do: Fyle automates expense reporting directly inside email and card systems (Gmail, Outlook, Visa, Mastercard).
Founders: Yashwanth Madhusudan and Siva Narayanan.
Funding / Investors: Raised $14 million led by Steadview Capital and Tiger Global.
Why it matters: Turns expense reporting into a background process instead of a chore — a plug-and-play tool for modern finance teams.
Next moves: Scale integrations across ERP systems and introduce corporate card management.
7. Pennant AI (UK) — “AI-powered accounting intelligence for firms”
What they do: Builds AI tools that automate reconciliation, transaction categorization, and anomaly detection for accounting firms.
Founders: Sarah Dyer and Tom Haldane.
Funding / Investors: Raised $8 million Series A from Balderton Capital and Northzone.
Why it matters: Focused on reducing manual workloads and increasing accuracy — enabling firms to serve more clients efficiently.
Next moves: Expanding into APAC, building integrations with Xero and QuickBooks.
8. ZipBooks (USA) — “Free accounting with pro-level automation”
What they do: A free accounting and invoicing solution offering smart categorization, bank syncing, and payment tracking.
Founders: Tim Chaves and Marc Christensen.
Funding / Investors: Raised $6 million led by Signal Peak Ventures.
Why it matters: Democratizing accounting automation for freelancers and early-stage startups.
Next moves: Launching AI insights for business health and expanding integrations with banking platforms.
9. Cledara (UK) — “Controlling SaaS spend, one subscription at a time”
What they do: Helps finance teams manage, pay for, and account for SaaS subscriptions across the company.
Founders: Cristina Vila Vives and Brad van Leeuwen.
Funding / Investors: Raised $20 million Series A from CommerzVentures and Nauta Capital.
Why it matters: Bridges procurement, payments, and accounting — preventing shadow spend in SaaS-heavy teams.
Next moves: Expanding U.S. operations and launching advanced forecasting tools.
10. Zeni (USA/India) — “Finance-as-a-service for startups”
What they do: Offers bookkeeping, accounting, and CFO insights powered by AI and a human-in-the-loop finance team.
Founders: Snehal Shinde and Swapnil Shinde.
Funding / Investors: Raised $34 million Series B led by Elevation Capital and Think Investments.
Why it matters: Helps fast-growing startups manage cash flow, burn rate, and finance automation under one platform.
Next moves: Scaling globally with deeper AI automation and startup ecosystem partnerships.
How These Startups Are Changing Finance
- Automation is the new baseline: Manual entry and reconciliations are being replaced by real-time, API-driven integrations.
- AI enters accounting: Tools like Pennant AI and Zeni are merging accounting data with predictive analytics.
- SME-first design: The new generation of accounting platforms is built for accessibility — not accountants only.
- Global compliance as a service: Startups like Pennylane and Tally are embedding compliance and tax layers into everyday workflows.
- Integration, not isolation: The winners are the ones connecting banks, payment gateways, CRMs, and payroll systems seamlessly.
Final Thoughts — Where McArrows Fits
Every accounting startup listed here has one shared challenge after funding: building the bridge from product to adoption.
They’ve solved the tech — but scaling requires precise positioning, sharp storytelling, and growth-focused execution.
At McArrows, we help these companies translate complex technology into compelling growth — through product marketing, outbound systems, and investor-aligned go-to-market frameworks.
If you’re an accounting tech founder or investor looking to shape your growth phase — McArrows can help align your product, marketing, and growth playbook into one strong motion.
