- Software you need from the first sale
- Software you add when a trigger appears
The software a new business needs falls into two groups. From the first sale, you need something for invoicing and getting paid, for recording income and expenses with their receipts, and for email, files and backups, with passwords protected. Add other types only when a specific trigger appears: scheduling when clients book appointments, time tracking when you bill by the hour, point-of-sale and stock software when you sell in person, payroll when you hire, and a CRM or project tool when a spreadsheet or inbox can no longer keep up.
Billed publishes this page, and Billed is invoicing software. No other product is named here, and none is ranked. Every Billed feature here is quoted from a Billed page, checked October 31, 2026.
For a shorter starter list built around four jobs, see best business tools for first-time founders. For the cost side, how to create a business budget shows how to plan it.
Software you need from the first sale
- Invoicing and payments: quotes, invoices, online payment, payment reminders and a list of unpaid invoices.
- Bookkeeping and accounting: every sale and expense in one place, in categories your accountant can use.
- Expense and receipt tracking: each receipt kept with the expense it supports.
- Email, calendar and file storage: an email address at your own domain, a calendar you can share, and files stored with a backup.
- Password manager and two-step sign-in: a separate, strong password for every account, and a second check at sign-in where the tool offers one.
Software you add when a trigger appears
| Type | What it does | Add it when |
|---|---|---|
| Scheduling and booking | Lets clients book a time and sends reminders | Clients book appointments with you |
| Time tracking | Records hours by client and task | You bill by the hour or need to know what jobs take |
| Point of sale (POS) | Takes payments in person and records each sale | You sell at a counter, a market or on site |
| Inventory and stock | Tracks what you hold and what to reorder | You keep goods for sale |
| Payroll | Pays staff and handles payroll tax filings | You hire your first employee |
| CRM | Keeps contacts, leads and follow-ups in one list | Leads and follow-ups no longer fit in a spreadsheet |
| Project and task management | Shows who is doing what, and by when | More than one person works on the same jobs |
| Design and content | Makes graphics, documents and social posts | You produce marketing material regularly |
| Website or online store | Puts your services or products online | Customers look for you or buy from you online |
What the IRS says about business records
In the US, the IRS recordkeeping page (last reviewed or updated May 1, 2026) says: "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses." It adds: "Except in a few cases, the law does not require any special kind of records." On the retention period, the same page (May 1, 2026) says: "You must keep your records as long as needed to prove the income or deductions on a tax return."
Before you choose bookkeeping software, ask your accountant which records they want from you and in what format.
Protecting the data in your software
In the US, the Federal Trade Commission's guide Protecting Personal Information: A Guide for Business (dated October 2016) sets out five principles, beginning: "TAKE STOCK. Know what personal information you have in your files and on your computers." and "SCALE DOWN. Keep only what you need for your business." On access, the guide (October 2016) says: "Consider using multi-factor authentication, such as requiring the use of a password and a code sent by different methods."
When you set up each tool, write down what client information it holds and who can see it.
Questions to ask before you pay for any tool
- What job does it do? If you can't say in one sentence, wait.
- Can you export your data? Check the export format before you enter a year of records.
- Who can sign in, and with what access? Look for separate logins and permissions rather than one shared password.
- Does it offer two-step sign-in?
- What does it cost a year, including extra users, and how do you cancel?
- Does it connect to the tools you already use, or will you copy data between them by hand?
Worked example: software costs for year one
Sample figures, for illustration only; they are not prices quoted from any vendor. A two-person cleaning business plans its software for the first year:
- Email, calendar and file storage: 2 users × $7.00 a month = $14.00 a month.
- Password manager: 2 users × $3.00 a month = $6.00 a month.
- Bookkeeping: $30.00 a month.
- Scheduling, added in month 4 when online booking starts: $20.00 a month for 9 months.
First-year total: ($14.00 + $6.00 + $30.00) × 12 = $600.00, plus $20.00 × 9 = $180.00, so $600.00 + $180.00 = $780.00, or $65.00 a month on average ($780.00 ÷ 12).
Put your own figures into the same sum, and add each new tool only when its trigger appears.
Where Billed fits
Billed's invoice software page says: "Billed keeps invoicing, estimates, expenses, time tracking and reports in one account." Billed's expense tracking page says: "Attach the receipt when you record the expense, and it stays with that entry in your Billed account instead of in a drawer or an inbox." For your accountant, Billed's financial reporting page says: "All reports in Billed can be exported for use with your accountant, bookkeeper, or tax software."
Mistakes to avoid
- Signing up for every type of tool in the first month, before the trigger for it appears.
- Keeping receipts in a drawer or an inbox, apart from the expense they support.
- Sharing one login among everyone in the business.
- Choosing a tool you can't export your data from.
- Paying for annual plans for tools you haven't tried with real work.
When this guide isn't for you
If your business handles health records, card numbers in bulk, or other data with its own rules, check those rules and ask a specialist before you choose software. If you're joining a franchise, the franchisor may set the software you use.
Related Articles
- Best Business Tools for First-Time Founders
- How to Create a Business Budget
- How to Open a Business Bank Account
- Best Free Invoicing Tools for a New Business
Frequently Asked Questions
What software does a new business need first?
Software for invoicing and payments, for bookkeeping and expenses with their receipts, for email, calendar and file storage with backups, and a password manager. Add other types when a trigger appears, such as hiring staff or taking bookings.
Does the IRS require special bookkeeping software?
In the US, the IRS recordkeeping page (last reviewed or updated May 1, 2026) says: "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses." Ask your accountant which records and format they want.
How much should a new business budget for software?
Add up the monthly cost of each tool you need now, multiply by 12, and add the tools you expect to add later for the months you'll use them. The worked example above shows the sum with sample figures.
At what point does a business need a CRM or project tool?
When your contacts and follow-ups no longer fit in a spreadsheet, or when more than one person works on the same jobs and you need to see who is doing what.