Accounting Software: How To Choose The Right Option For Your Business

As a small business owner, you have a lot of things on your plate. You likely don't have time to research and compare every accounting software option.  

So, what's the best way to choose the right option for your business? This post will break down what you need to consider when making your decision. We'll also recommend some of our favourite accounting software programs for small businesses.

Choosing the right accounting software for your business can be a daunting task. There are so many options available, and each one has its own set of features and benefits. So how do you know which option is right for your business? 

In this blog post, we'll explore the different types of accounting software available, and we'll provide tips on how to choose the right option for your business. We'll also discuss some of the benefits of using accounting software. 

So if you're considering upgrading your accounting system or just starting and haven't yet chosen a system, read on! We'll help make the process easier for you.

If you don't have the right software to help you manage your finances, it can be not easy to keep track of everything and stay organized. So, how do you know which accounting software is right for your business? Keep reading for some tips on how to choose the right option.

Let's get started!

Why Should I Buy Accounting Software?

Accounting software designed specifically for small businesses is not a luxury but a need. It completely simplifies the way in which your company conducts its accounting operations. Therefore, selecting the appropriate platform is potentially the most important factor in the development of a thriving firm.

However, why should you consider purchasing accounting software?

To put it another way, it simplifies the accounting process. In addition to this, it is beneficial to streamline and standardise your accounting procedures across the board.

Every reliable software platform will, as part of a unified and comprehensive offering, include all of the elements essential to the operation and management of your company, including its financial matters.

However, there are a great number of them in the world nowadays. Each offers a unique approach that provides you with enhanced flexibility, more in-depth analysis, and robust reporting capabilities.

Therefore, it is necessary to search for the appropriate accounting software platform that is suitable for your company and possesses features that are up to your standards.

Do You Require Accounting Software for Your Small Business?

If you want to keep track of your accounting data using a spreadsheet programme like Excel or Google Sheets, you will need to enter all of your data by hand. For instance, you would need to keep track of all money coming into and going out of your business, and you will have to prepare all of your financial statements manually.

It's no surprise that you don't have time for keeping the books! When multiple individuals are working on the same data at the same time, using a spreadsheet not only takes up a lot of time, but it may also result in confusion and mayhem. One simple error can throw the entire operation off, which can be catastrophic for a tiny company operating on a limited budget.

You and other authorised parties are able to readily access information as well as real-time modifications and updates when using bookkeeping and accounting software that is hosted in the cloud. Because it is connected to the financial accounts associated with your company, much of the information will be pre-populated for you. While simplifying and streamlining the process of information transfer and communication, this software also gives you a greater understanding of the state of your company's finances.

How to Research Accounting Software: Questions to Ask

When it comes to purchasing accounting software for your company, there are a few questions that can help you narrow down your options. Here are some of the most important ones.

• Where do we need to make improvements to our accounting procedures? What is it that's stopping us? Consider undertakings such as reporting, payroll, PAYG withholding, invoicing and billing, and similar endeavours. If you find that you spend a significant amount of time on activities like these throughout the day, it is extremely likely that accounting software could help you streamline your procedures.

• Which essential aspects of accounting are included in our daily routine? Your new accounting software should be able to fulfil all of your company's needs. If you want to stay inside your budget, you shouldn't merely choose the choice that's the least expensive. Determine the specific tasks that need to be completed, and then base your decision on this information.

• How many people are now employed by the company? Some platforms are more suited to the needs of smaller organisations, while others can accommodate the needs of companies with more than 100 employees.

• What is the size of my company? Is it trying to expand its reach? Then, you need to make sure that the platform you select is one that is built to facilitate growth and expansion as your company does.

• How much money are we ready to spend to get our accounting processes more streamlined? Understanding the pricing is also a significant factor, and it is closely related to being familiar with the primary functionalities of your software. When doing a cost analysis, it's important to remember that you shouldn't only look at things at face value. Instead, you should give some thought to how much time and money you could save in the long run by streamlining the operations you do.

What You Should Look For In Accounting Software For Your Business

The features that are appropriate are those that assist your company in improving the way that you handle your accounting. Nevertheless, when selecting the accounting software for your company, there are a few important factors for you to take into mind.

1. Cloud capabilities

If your accounting software has cloud capabilities, you will be able to access it through a browser window on any computer running any operating system. As a direct consequence of this, you are not restricted to using a certain software or intranet.

Software-as-a-Service solutions often include all of the basic capabilities of an accounting software package; however, they also offer the convenience of being accessible "anytime, anywhere" and make it simple for new users to get started. This implies that you can carry out your accounting tasks anywhere, at any time, as long as you have access to the internet. This makes your accounting significantly easier.

2. Cost

In the end, the decision that your company makes needs to be sensible from a financial standpoint. The encouraging news is that the majority of platforms for accounting software offer a variety of pricing options. These can range from a fixed monthly fee to a rate that is calculated on a per-user basis, which means that there is sure to be a cost that is appropriate for your company.

3. Standalone platform / Add-ons

Does the accounting platform come in a single bundle that handles everything? Or does it require you to acquire more packages or add-ons in order to access each functionality? The majority of widely used accounting software platforms have tight integration with a number of other important software solutions.

However, the benefit of an independent and scalable accounting software solution is something that should be taken into consideration. When opposed to a fundamental software package that comes with a variety of purpose-built add-ons, independent systems are typically more inflexible and complicated, despite the fact that they are simpler to subscribe to and manage.

4. Reporting and analysis

In-depth reporting and analysis capabilities are an important aspect that you should search for. This enables you to have a deeper understanding of every aspect of your company as well as a comprehensive view of it, allowing you to make decisions that are more informed.

5. Chart of Accounts / General Ledger

It is essential to have a list that is both clear and complete of all of the accounts with which your company interacts. You should be able to get an overview of all the assets, liabilities, revenue, and expenses that are associated with this account from a reliable accounting software.

6. AP/AR functionality

Your company will experience significant time savings as a result of the streamlined operation of AP and AR. Any excellent accounting software will have a feature that can help you simplify this process, which is almost enough to justify the cost of the software on its own.

7. Automation

Automation should be considered one of the most important things to search for. It is possible for you to reduce the amount of manual processing and eliminate any duplicated entries or discrepancies, which will result in a significant reduction in the amount of time it takes to complete your daily accounting activities.

8. Multi-currency

As your company expands, you will probably do business with customers or suppliers located in other countries. Consequently, check to see that the accounting software you use incorporates support for many currencies.

9. Time and expense management

You are able to centralise your staff timesheets, project monitoring, and company expenditure by utilising the capabilities of an expense and time management system that you have integrated into your firm.

10. Budget and forecasting

If you have gathered all of your accounting data in one location, then the accounting software you use need to be able to transform this information into an understandable budget. Additionally, it should be able to generate precise projections, which are necessary for making decisions with a long-term focus.

There are dozens of different accounting software systems available to pick from, each of which offers a different set of capabilities and can cost anywhere from zero dollars to several hundred dollars each month.

The size of your company will undoubtedly play a role in determining the features that you'll need, and seeing as how you're presumably working within a certain financial constraint, you won't want to pay for too many additional features. The following are some considerations that can assist you in knowing what to search for:

• How many individuals are expected to access the information? If only a few people of your team will be accessing the platform at any given time, you will need to select an option that operates in the cloud and provides the required level of user authorisation.

• Do you require a specialised application for the retail sector, the manufacturing industry, or restaurants?

• What is your spending limit like? There are free solutions that have a limited set of features, as well as paid options that are more specialised but cost more money. However, the majority of small businesses are able to locate a solution that is available at a more affordable price and contains the functionality they require.

• Why do you feel the need to use accounting software? The creation of financial statements, payroll, accounts payable and receivable, and inventory management are typically additional functions that can be purchased separately or are included in more expensive systems. Nevertheless, if you have a use for them, purchasing them might be an investment that pays off.

Create a list of features that are "must-haves" for your accounting software and a list of features that are "good to have" for your software so that you can more easily narrow down your alternatives when you conduct research on them.

Pick a plan that gives you the most bang for your buck while still meeting your present requirements, and as your company expands, you can always upgrade to a more expensive one if necessary.

Do some research first before committing to a certain piece of accounting software. Have conversations with proprietors of other small businesses to learn what they utilise and how they locate it.

The next step is to take advantage of any free trials that are available and choose which features are most important to you. These features can include software that is supported by a mobile app or banking reconciliation.

Accounting Software That Is Best Suited For Your Company In Australia

1. Xero

Xero is an online accounting software solution that is established in New Zealand. Australia is home to the software's largest user base. It is a provider of cloud-based accounting solutions that offers a diverse selection of subscription options to cater to a wide variety of businesses operating in a variety of sectors.

One of the most common choices for accounting software among small businesses is Xero. Tools for managing payroll, invoicing, cash flow, payments, quotations, costs, inventories, and bank reconciliation are included in its feature set. In addition, it is guarded by multiple layers of protection and supported by mobile applications, reporting, and customer care that is available around the clock.

Xero is a cloud-based accounting software that is user-friendly and has an intuitive graphical interface. There are three distinct plans available: Starter, Standard, and Premium 5. The features included in each plan become increasingly more advanced as the plan level increases. They also provide first-time consumers with a free trial that lasts for thirty days.

Xero's Starter pack can be purchased for a month-to-month fee of $25, while the Standard pack can be purchased for a month-to-month fee of $50, and the Premium line can be purchased for a month-to-month fee of $65. There is also the option of purchasing a custom plan, which grants you access to additional services after paying an additional fee.

Inventory management and payroll administration are two of the fundamental elements that are included with every plan. In addition, the provider provides a free trial period of thirty days that you can use to evaluate the functionality of the product.

2. Moon Invoice

Moon Invoice is a cloud-based accounting software system that has won multiple awards and makes it simple to generate invoices, submit them, and manage their status. It is uncomplicated and straightforward to use, making it an excellent choice for sole proprietorships and other small enterprises.

Invoicing and billing, tracking payments, and gaining insights and reporting are some of the most important functions offered by Moon Invoice. In addition, there is a mobile version of the software that gives you the ability to create invoices using your iPhone or Android device.

The accounting solutions provided by Moon Invoice are available in a wide variety of options, with monthly rates beginning at $2.50. In addition to this, it provides offline access, improved security, and a money-back guarantee for the first ninety days.

3. MYOB

MYOB is a clear accounting system that is simple and easy to use, and it is extensively used in Australia. It gives you access to a wide variety of functions that improve your ability to manage your finances, including cash management, billing and invoicing, and bookkeeping.

MYOB is one of the players who has been around for a long time in the market for accounting software. It is used by more than 1.2 million organisations. Their small business plans are slightly more expensive than those offered by competitors, with the Essentials plan beginning at $35 (for one person on payroll) and $45 (for unlimited payroll), and their AccountRight Plus plan beginning at $85 a month. This company caters to businesses ranging in size from very small to very large.

Tools for tracking inventory, spending, sales, bank feeds, payroll, and the capacity to compute and manage GST are included in each and every one of our plans as standard features. In addition, MYOB comes with in-depth reporting capabilities as well as customer assistance and a mobile app for support on the go. They also provide a free trial that lasts for thirty days.

Keeping track of expenses and managing payroll are a couple of the other functions. MYOB has also taken steps to empower businesses in Australia and New Zealand through a number of its programmes.

The programme is offered in three different packages, with the Essentials Payroll plan beginning at $10 per month, the Essentials package beginning at $13.50 per month, and the AccountRight package beginning at $35 per month. A free trial version of MYOB is also available.

4. Reckon

Reckon is a system for managing invoices that enables you to optimise your payroll, accounts receivable, and bookkeeping activities. Reckon is available to you online. It comes equipped with a comprehensive set of capabilities, such as budgeting, report generating, SSL encryption, and bank reconciliation, among others.

Reckon, which is one of the most cost-effective accounting software alternatives now available, was developed specifically with the financial management needs of small business owners in mind. Reckon's most fundamental package gives proprietors of small businesses access to a range of useful features, including real-time cash flow and planning capabilities, as well as BAS and GST reports.

Their business strategy permits add-ons to be purchased on top, such as bank connections and employee expense claims. This enables small business owners to adapt their packages to meet the requirements of their companies at any given time.

There are four different subscription options that can be purchased from Reckon. The Basics plan begins at $7 per month, the Essentials plan begins at $17 per month, the Pro plan begins at $24 per month, and the Premium plan begins at $36 per month. In addition to that, it provides a free trial period of thirty days that can be terminated at any moment.

5. Wave

Wave is another well-known and commonly utilised accounting and bookkeeping system in the Australian market. It is a straightforward billing system that works well for freelancers, solo entrepreneurs, and small organisations.

Wave is a fantastic, cost-free choice for solo proprietors, small business owners, and independent contractors.

Accounting, invoicing, payments, payroll, and receipts are all covered by Wave's integrated software and tools, which are all cloud-based and can be accessed from anywhere.

Wave was designed for for companies that have nine or fewer employees. It has been validated by accountants and provides a wide variety of free functions, all of which can be used without limit.

The software has a streamlined and uncluttered interface, which makes it very simple to understand and operate. Additionally, there is a mobile application available for both the iOS and Android operating systems. In addition to this, Wave provides a free version of their software that contains all of the essential functions.

6. Saasu

Saasu is a mobile app for iOS and Windows smartphones that creates invoices and receipts, with a primary focus on meeting the needs of micro, small, and medium-sized enterprises in Australia. More than 80,000 people are currently utilising the software, which includes all of the functionality required for accounting and payroll management. In addition to that, it enables an infinite number of users, provides first-rate assistance to customers, and has an incredible collection of integrations.

There are three different subscription options that can be purchased for Saasu: the Small plan costs $15 per month, the Medium plan costs $40 per month, and the Large plan costs $70 per month. A free trial period of 30 days is included in each of the programmes.

7. Rounded

Rounded was developed expressly to meet the needs of its users by sole proprietors and freelancers who were frustrated with accounting software that was both confusing and expensive. Invoicing, expense monitoring, including the ability to import your bank transactions, time tracking, reporting for tax and BAS, and income reports are some of the functions that are included with it.

In addition, they provide a free trial period of thirty days as well as two tiers of plans: starter plans for $11.95 per month (for those who have fewer than three customers), and an unlimited plan for $19.95 per month (no limitation on clients).

8. Sage

You may create an invoice on your iPhone using Sage, which is a system for managing invoices that is hosted in the cloud and is extensively used. It provides a comprehensive set of capabilities, such as cost management, core accounting, project accounting, and compliance management, amongst others.

It makes it easier for you to handle all of the payment operations involved in running a business, such as creating invoices, statements, estimates, and pricing quotes. Additionally, Sage interfaces with all of Australia's main financial institutions, making it simple for you to import all of your payment transactions.

You are able to maintain complete control over your outstanding payments and cash flow thanks to the user-friendly interface. And because your accounts are stored in the cloud, you have access to them regardless of where you are or when you log in. The cheapest Sage subscription plan costs $20 per month, and the company also offers a free trial that lasts for 35 days.

9. ProfitBooks

ProfitBooks is an online accounting software solution that is straightforward and easy to use, and it enables you to keep track of the day-to-day costs associated with running your business. In addition to that, it gives you the ability to manage your inventory and produce detailed invoices.

The intuitive operation of ProfitBooks is regarded as one of the program's chief advantages. In addition to this, it was developed with non-accountants in mind, which means that you may make use of it even if your team is lacking in experienced accountants.

In addition to this, the solution supports many currencies, which paves the way for you to conduct business in a variety of nations. Payroll administration and financial report generation are two of the additional functions offered by ProfitBooks. ProfitBooks provides a free version of their software that contains all of the essential features.

10. QuickBooks

For many years, QuickBooks has been a trusted brand in the fields of accounting and invoice management. It provides a vast array of bookkeeping functions that are tailored to the requirements of a variety of business kinds and sizes.

QuickBooks is another programme that is widely used by small businesses. They offer three different programmes, the cheapest of which is called Simple Start, while the others are called Essentials and Plus.

These subscriptions give users the ability to monitor their income, expenses, and profits; issue an unlimited number of bids and invoices; record and download bank transactions; handle their BAS and GST duties; and cover the payroll costs for up to ten employees.

When you upgrade from the basic plan, you get access to additional services such as the ability to pay and manage invoices, add more than one user, utilise other currencies, and monitor your sales and profitability in comparison to trends in the industry.

QuickBooks provides free data imports from Xero and MYOB in addition to a free 30-day trial and is accessible via your desktop computer, tablet, or smartphone. It is also supported by apps.

There are two distinct versions of Quickbooks offered to consumers: QuickBooks Online and QuickBooks Self-Employed. The Online version is a cloud-based invoicing management solution that makes it simple for micro, small, and medium-sized businesses to create invoices.

The Self-Employed version is perfect for sole proprietors and other types of independent business owners. It is a software that makes invoices and receipts, and it is compatible with Windows and iOS devices. Using this programme, you can manage your finances from either your mobile device or your desktop.

QuickBooks provides a diverse selection of pricing choices. For instance, the Self-Employed plan has a starting price of $10 per month, whereas QuickBooks Online options have a starting price of $20 per month. There is also a free trial that lasts for thirty days.

Bringing in a Third Party to Handle Your Bookkeeping and Accounting

It is possible that hiring a specialist small company accountant to handle your bookkeeping and accounting software needs can save you both time and money in comparison to the alternative of battling with these activities on your own.

They are able to give you with information that is more precise. However, in addition to this, they are able to assist you with the generation of financial statements, such as a profit and loss statement, as well as the identification of deductions applicable to your taxes.

You will save time by outsourcing your bookkeeping and accounting, which will enable you to concentrate on expanding your company and enhancing its operations while having the peace of mind that your financial records are accurate and up to date.

Wrapping Up

Because there are so many different solutions to choose from, it can be difficult to choose one that is appropriate for your needs and goals.

In addition, the requirements of each and every organisation are distinctive in their own right. Before choosing a system for managing your invoices, it is essential to first articulate your requirements and establish a financial limit.