If you are starting a business in Australia and looking to manage your own bookkeeping, then you will need a quality accounting software.
Accounting software is a computer program designed to manage financial transactions, track income and expenses, and generate financial reports. It can automate repetitive tasks and help businesses make informed financial decisions.
Some common features of accounting software include:
- invoicing
- payroll management
- inventory tracking
- and tax preparation such as quarterly BAS statements.
Benefits of using accounting software
Using accounting software can bring several benefits to businesses, such as:
Increased efficiency
Automation of repetitive tasks can save time and reduce errors.
Improved accuracy
Accounting software can help reduce errors and ensure accurate financial reporting.
Real-time data access
Business owners and managers can access up-to-date financial data to make informed decisions.
Better financial planning
Access to accurate and up-to-date financial data can help businesses plan for the future.
Cost savings
Using accounting software can reduce the need for manual labor and paper-based record-keeping, leading to cost savings.
How to choose the best accounting software
When choosing accounting software, it’s important to consider the specific needs of your business. Some factors to consider include:
Budget
Consider the cost of the software and any additional fees, such as support or training. When choosing accounting software, it’s important to consider the overall cost of the software and any additional fees that may be associated with it. This includes not only the initial purchase or subscription cost, but also ongoing costs such as support and training fees. It’s important to factor in these costs to ensure that the software remains within your budget.
Some accounting software options offer different pricing tiers or plans, so it’s important to choose a plan that aligns with your budget and business needs. Additionally, some software options may offer discounts for annual subscriptions or longer-term commitments. It’s important to carefully review the pricing and fee structure of different software options to make an informed decision.
Software Features
Consider the features that are most important to your business, such as invoicing, payroll management, or tax preparation. Another important consideration when choosing accounting software is the features that are most important to your business. Different businesses may have different needs when it comes to accounting software, depending on factors such as the size of the business, the industry, and the types of financial transactions that are being managed.
Some common features that businesses may want to consider when choosing accounting software include invoicing, payroll management, inventory tracking, tax preparation, and financial reporting. It’s important to choose software that offers the features that are most important to your business, while also avoiding paying for unnecessary features that won’t be used.
Integration
Consider whether the software integrates with other tools your business uses, such as point-of-sale systems or inventory management software. Integration is another important consideration when choosing accounting software. Businesses may use a variety of different tools and systems to manage different aspects of their operations, and it’s important to choose accounting software that can integrate with these other tools to streamline processes and avoid duplication of effort.
Some common tools that businesses may want to integrate with accounting software include point-of-sale systems, inventory management software, and customer relationship management (CRM) software. It’s important to choose software that offers integration with the tools that are most important to your business, to ensure smooth and efficient operations.
Scalability
Consider whether the software can grow with your business and accommodate any future needs. Scalability is an important consideration for businesses that are growing or anticipate growth in the future. When choosing accounting software, it’s important to choose software that can accommodate the needs of a growing business, including increased transaction volumes and more complex financial management needs.
It’s important to consider not only the current needs of the business, but also future needs as the business grows and evolves. Some accounting software options offer different pricing plans or feature sets that are designed to accommodate different stages of business growth, so it’s important to choose software that can scale with the business over time.
User-friendliness
Consider the ease of use of the software and whether it requires any specialized training. Finally, user-friendliness is an important consideration when choosing accounting software. It’s important to choose software that is easy to use and doesn’t require specialized training or expertise, as this can save time and reduce the risk of errors.
Some accounting software options offer intuitive user interfaces and simple workflows, while others may require more specialized knowledge or training. It’s important to choose software that aligns with the skill level and expertise of the team that will be using it, to ensure that it can be used effectively and efficiently.
Best accounting software in Australia
There are several accounting software options available in Australia, including:
Xero
Website: www.xero.com.au
Xero is a cloud-based accounting software that has been gaining popularity in Australia due to its user-friendly interface and wide range of features. It offers features such as invoicing, payroll management, and inventory tracking, making it a great option for small and medium-sized businesses. Xero’s integration with over 800 third-party apps is a major advantage for businesses looking to streamline their accounting process. The software also offers excellent customer support, which is essential for small businesses that may need guidance in using the software effectively.
Pros:
- Cloud-based software, allowing for access from anywhere with an internet connection
- Offers a wide range of features including invoicing, payroll management, and inventory tracking
- User-friendly interface and easy navigation
- Integration with over 800 third-party apps
- Excellent customer support
Cons:
- Limited customisability options
- Some users have reported issues with bank feeds not syncing properly
- Higher pricing plans can be expensive for small businesses
MYOB
Website: www.myob.com.au
MYOB is a long-standing accounting software provider in Australia, with both desktop and cloud-based options available. It offers features such as invoicing, payroll management, and tax preparation, making it a popular choice for businesses of all sizes. MYOB’s customizability and scalability are also major advantages, allowing businesses to adapt the software to their specific needs and grow with the software. MYOB’s customer support is also highly regarded, offering assistance to businesses whenever they may need it.
Pros:
- Offers both desktop and cloud-based options, allowing for flexibility in usage
- Offers a wide range of features including invoicing, payroll management, and tax preparation
- User-friendly interface and easy navigation
- Customizable and scalable to accommodate business growth
- Excellent customer support
Cons:
- Desktop software requires manual updates and backups
- Limited integration options compared to some other software options
- Higher pricing plans can be expensive for small businesses
QuickBooks Online
Website: www.quickbooks.com.au
QuickBooks is a cloud-based accounting software that is widely used in many countries, including Australia. It offers features such as invoicing, payroll management, and inventory tracking, making it a great option for businesses that require a wide range of features. QuickBooks’ integration with over 650 third-party apps is also a major advantage, allowing businesses to integrate the software with other tools they may be using. The software’s user-friendly interface and ease of use are also key features that make it appealing to many businesses.
Pros:
- Cloud-based software, allowing for access from anywhere with an internet connection
- Offers a wide range of features including invoicing, payroll management, and inventory tracking
- User-friendly interface and easy navigation
- Integration with over 650 third-party apps
- Good customer support
Cons:
- Limited customizability options compared to some other software options
- Some users have reported issues with bank feeds not syncing properly
- Higher pricing plans can be expensive for small businesses
FreshBooks
Website: www.freshbooks.com
FreshBooks is a cloud-based accounting software that is popular among freelancers and small businesses due to its invoicing and time tracking features. While FreshBooks may not offer the same range of accounting features as other software options, it does excel in its simplicity and ease of use. FreshBooks’ customer support is also highly regarded, offering assistance to businesses whenever they may need it.
Pros:
- Cloud-based software, allowing for access from anywhere with an internet connection
- Offers a wide range of features including invoicing, time tracking, and project management
- User-friendly interface and easy navigation
- Excellent customer support
- Offers a free trial period
Cons:
- Limited customizability options compared to some other software options
- Limited accounting features compared to some other software options
- Higher pricing plans can be expensive for small businesses
Reckon
Website: www.reckon.com
Reckon is a desktop and cloud-based accounting software that offers features such as invoicing, payroll management, and tax preparation. Reckon’s strong bank feeds and reconciliation capabilities make it a great option for businesses looking for a software that can handle these tasks effectively. While Reckon’s interface may be less intuitive than some other software options, it is customisable and scalable to accommodate business growth. Reckon’s customer support is also highly regarded, offering assistance to businesses whenever they may need it.
Pros:
- Offers both desktop and cloud-based options, allowing for flexibility in usage
- Offers a wide range of features including invoicing, payroll management, and tax preparation
- Customizable and scalable to accommodate business growth
- Good customer support
- Strong bank feeds and reconciliation capabilities
Cons:
- Desktop software requires manual updates and backups
- Limited integration options compared to some other software options
- Interface can be less intuitive than some other software options
Each of these accounting software options has its own strengths and weaknesses, and the best option for your business will depend on your specific needs and preferences. It’s important to research and compare different options before making a decision.