Most Y Combinator accounting tools were built before Stripe, Mercury, and the modern fintech stack even existed. They force you into manual reconciliation and spreadsheet math just to answer basic questions about runway. But YC startups move too fast for that. You need native integrations and automated tracking that give you burn rate visibility today, not three weeks from now when the books finally close.
TLDR:
For a typical small business, accounting software is a compliance tool. For a Y Combinator startup, it functions as the engine for tracking burn rate and runway in real-time. Founders in the batch cannot wait weeks for a monthly close; they need immediate visibility to iterate fast.
The velocity here breaks traditional workflows. Startups in the recent batch grew 10% per week. When volume compounds this quickly, you need automated tools that keep pace. YC has backed over 5,000 companies worth $600 billion. These high-growth C-Corporations have specific venture capital reporting requirements that generic tools miss. You need software that handles Delaware C-Corp complexity and generates investor-ready P&Ls automatically.
We prioritized software that handles the high-velocity requirements of YC C-Corps, filtering out generic tools that fail at Series A. Our evaluation focuses on seven core criteria:
Puzzle was built by a Y Combinator founder for the high-velocity demands of the batch. This alignment explains why 20-25% of recent YC companies choose us for their Y Combinator accounting needs. We integrate natively with the standard startup stack—Stripe, Mercury, Ramp, Brex, and Gusto—in minutes. Our AI-native architecture automates up to 98% of transaction categorization, delivering real-time tracking of burn rate, runway, and ARR without the wait for month-end close.
What they offer
Good for: YC startups that need fast, accurate, and automated accounting tightly integrated with the typical batch tech stack, plus always-on visibility into burn, runway, and SaaS metrics.
Limitation: Optimized for venture-backed, software-centric startups; traditional small businesses or non-tech companies may not fully benefit from its startup-specific design and integrations.
Bottom line: Puzzle functions as YC-native accounting software—built by a founder for founders—combining deep fintech integrations, AI-driven automation, and investor-ready reporting to match the pace and expectations of the YC journey.
QuickBooks Online is the default standard for many CPA firms, but it remains a legacy tool retrofitting AI onto decades-old architecture. While it serves general small businesses well, it struggles to keep up with the speed of high-growth startups.
What they offer
Good for: Established businesses with traditional banking relationships and accountants who prefer legacy workflows.
Limitation: The software often breaks when connecting to the modern fintech stack. Integrations with tools like Stripe and Mercury are notoriously brittle, forcing founders to perform manual reconciliation. It also lacks native tracking for critical metrics like burn rate, runway, and ARR.
Bottom line: QuickBooks dominates market share, but YC startups will likely waste hours fixing broken data connections.
Xero is a cloud favorite globally and recently launched JAX, a conversational AI assistant for basic tasks. However, it remains a general ledger tool built for every small business (like flower shops), rather than high-growth US tech startups.
What they offer
Good for: International founders with non-US operations requiring complex multi-currency support.
Limitation: For a standard Delaware C-Corp, Xero creates unnecessary friction. Many US fintech bank feeds break or require third-party connectors to function reliably. It also lacks native tracking for burn rate, runway, and ARR, forcing you back into spreadsheets to report to YC partners.
Bottom line: Xero is solid for international generalists, but lacks the native US integrations and startup metrics YC companies require.
Zoho Books offers an affordable entry point for general small businesses, particularly those already using the broader Zoho ecosystem for CRM or marketing.
What they offer
Good for: General small businesses that prioritize low cost and tight integration with the broader Zoho ecosystem over startup-specific accounting features.
Limitation: Treats accounting as one component of a broad business suite and lacks startup-native features like automated SaaS revenue recognition, burn rate, and runway tracking needed for investor updates.
Bottom line: Zoho Books serves cost-conscious SMBs well, but YC-style, high-growth startups usually require more specialized financial automation and metrics than a generic suite can provide.
Digits focuses on "autonomous accounting," attempting to replace bookkeepers with AI agents. They serve a broad range of SMBs, from retail shops to medical practices, rather than focusing strictly on high-growth startups.
What they offer
Good for: General small businesses looking to fully automate their books without an external firm.
Limitation: Since they target broad SMBs, critical startup accounting tools for tracking burn and runway are missing. Their model also tends to compete with external accounting partners, rather than support them.
Bottom line: Digits automates bookkeeping for Main Street. YC startups need specialized tooling for venture scale, not general autopilot.
Campfire is an AI-native ERP system designed for mid-market companies scaling past the seed stage. It targets organizations that require heavy enterprise infrastructure rather than speed.
What they offer
Good for: Series B+ companies or organizations with roughly 50+ employees and complex, multi-entity operations that need enterprise-level control and compliance.
Limitation: Overkill for most YC and early-stage startups. Implementations are longer, configuration is complex, and it typically requires a dedicated finance owner to manage day to day.
Bottom line: Campfire fits companies that have already reached true mid-market scale, while earlier-stage startups usually need faster setup, automated insights, and lighter-weight tools rather than a full ERP.
Most accounting tools were designed decades before the current fintech stack existed. This forces YC founders to patch together financial visibility using spreadsheets or expensive add-ons. The comparison below outlines which software offers native automation and startup-specific metrics versus those relying on legacy architecture.
| Feature | Puzzle | QuickBooks | Xero | Zoho Books | Digits | Campfire |
|---|---|---|---|---|---|---|
| AI-Native Architecture | Yes | No | No | No | Yes | Yes |
| Native Stripe Integration | Yes | No | No | No | No | Yes |
| Native Mercury Integration | Yes | No | No | No | No | No |
| Burn Rate Tracking | Yes | No | No | No | No | No |
| Runway Calculation | Yes | No | No | No | No | No |
| ARR and MRR Tracking | Yes | No | No | No | No | No |
| Dual-Basis Accounting | Yes | No | No | No | No | Yes |
| Revenue Recognition Automation | Yes | No | No | No | No | Yes |
| Partner-Only Model | Yes | No | No | No | No | No |
| Built for Pre-Seed to Series B | Yes | No | No | No | No | No |
We built Puzzle because we lived the YC experience. Our founder is a YC alum who understands the velocity required during the batch; you need to focus on product-market fit, not administrative compliance. This alignment is why 20-25% of recent YC batches choose Puzzle for their financials.
Unlike generic small business tools, we handle the specific needs of high-growth C-Corps and partner with ecosystem leaders like Fondo. Our AI-native software connects directly to your fintech stack to automate data entry and deliver investor-ready metrics. You get instant visibility into burn rate and traction without waiting weeks for the books to close.
Startup accounting tools should deliver insights, not just data entry. Puzzle connects to your fintech stack and automates categorization so you can see your burn rate in real time. Your accounting firm gets better data, and you get better decisions. Pick software built for how startups actually work.
Puzzle is purpose-built for pre-seed to Series B startups and automates up to 98% of transaction categorization, giving you real-time burn rate and runway tracking without requiring a full-time accountant. QuickBooks may seem cheaper upfront, but you'll spend hours fixing broken integrations with tools like Stripe and Mercury.
AI-native software like Puzzle learns continuously and was built from the ground up for automation, while QuickBooks retrofits AI onto decades-old architecture with static rules. If you're using modern fintech tools (Stripe, Mercury, Ramp) and need real-time metrics for investor updates, AI-native architecture will save you time on manual reconciliation.
Yes, Puzzle tracks burn rate, runway, and ARR/MRR in real-time without waiting for month-end close, giving you the metrics YC partners expect to see. Legacy tools like QuickBooks and Xero lack native tracking for these startup-specific metrics, forcing you back into spreadsheets.
Dual-basis accounting maintains both cash and accrual books simultaneously; cash basis shows your actual bank balance for daily operations, while accrual basis satisfies tax compliance and investor diligence requirements. Puzzle automates this natively, while most tools require manual spreadsheet work or expensive add-ons.
Switch once you raise your first round (typically ~$1M+) or when you're spending more than 5-10 hours monthly on manual categorization and reconciliation. At that point, automated software pays for itself immediately through time savings and prevents costly errors in investor reporting.
