Searching for the best bookkeeping program for your small business in Australia? View our professional guide to the top 3 choices today.
What is the best bookkeeping software for Australian small businesses?
All successful businesses today rely on good bookkeeping practices to remain viable and competitive.
Finding the best online bookkeeping software for your business is key to its success, particularly if you fall into the category of a small business and you want to see growth into the future.
Choosing the right bookkeeping software can make all the difference to how effectively you handle accounts receivable and payable, prepare for the tax season, manage payroll, work with your bookkeeper, accountant and clients, work within government compliance and guidelines, and ultimately monitor your profitability.
Let’s face it, in the fast-paced world of business today, keeping everything at your fingertips, will simply help you sleep better at night.
So, the question stands, ‘What is the top bookkeeping software in Australia for small businesses?’ But first, let’s look at how bookkeeping software works.
How Does Bookkeeping Software Work?
Online bookkeeping software is a cloud-based application that allows businesses to track, record, and manage their financial transactions in a single platform. Bookkeeping software can perform numerous functions including:
- Generating financial reports.
- Tracking due dates and payments.
- Managing payroll.
- Accounts payable and receivable.
- Integration with financial institutions.
- Tracking inventory.
- Project management.
Online bookkeeping software is designed to be user-friendly and intuitive, providing businesses with an easy-to-use platform that doesn’t require special technical skills or training.
Users can access their financial data anytime, anywhere from their devices as long as they have an active internet connection. It also allows for a seamless connection between the business owner, their bookkeeper, the business accountant, staff, banking institutions, and also with the business’s clients. This means that online bookkeeping software applications are ideal for small to medium businesses that operate remotely, have teams working near and far, use the services of a bookkeeper or accountant and need a smooth integration with financial institutions.
To use online bookkeeping software, businesses must first set up an account with their chosen provider.
From there, they will be required to fill out essential information, including their company name, contact information, and any relevant financial data.
Once the account is set up, businesses can begin managing their financial data by inputting transactions, invoices, and expenses. Some bookkeeping software will allow users to sync their transactions automatically with their bank account, thereby simplifying the entire process further. The software will then automatically generate financial reports, such as profit and loss, expenses, and cash flows, based on the data entered. All making for a seamless preparation of the quarterly BAS statement.
In a nutshell, online bookkeeping software takes the worry out of running your small business.
Top 3 Bookkeeping Software options in Australia
What is the best bookkeeping software for Australian small to medium businesses? Let’s look at our pick for the top 3 bookkeeping software options. While some bookkeeping software packages in Australia offer variations, depending on the size of your business, our top 3 Australian bookkeeping software picks for small businesses are:
The following breakdown of each of these, will help you determine the right online bookkeeping software for you.
1. Xero
Xero is one of the most popular cloud-based bookkeeping software available in the market, particularly for Australian small businesses. Indeed, it was developed in New Zealand in 2006 and has found a strong foothold around the globe with availability in Australia, UK, US, Canada and South East Asia.
Xero is a double-entry online bookkeeping software that supports a range of tasks, and meets the needs of most small to medium size businesses in Australia because of its accessibility, customisability, and security.
Included in Xero are the following features:
- Invoicing.
- Accounts payable and receivable.
- Payroll management.
- Bank reconciliation.
- BAS and STP reporting.
- Expense tracking.
Xero also provides a range of reports that can help business owners make informed decisions about their finances, thus projecting their business into the future.
One of the key features of Xero is its ease of use and accessibility. Because it is a cloud-based bookkeeping software, it can be accessed from any device with an internet connection, allowing business owners to manage their finances from anywhere.
Additionally, Xero integrates with a range of third-party apps that can enhance its functionality, such as:
- Payment gateways.
- Project management tools.
- CRM software.
Another advantage of Xero is its customisability. Business owners can tailor the bookkeeping software to their specific needs, from customising invoice templates to setting up automated payment reminders for customers.
Xero also provides robust security features, ensuring that all financial data is protected from unauthorised access. It uses bank-grade encryption to protect sensitive data, and regularly updates its security protocols to stay ahead of emerging threats.
Overall, Xero bookkeeping software provides a powerful yet user-friendly tool for Australian small businesses by managing finances, streamlining bookkeeping processes, and making informed business decisions.
Pros:
- User-friendly interface: Xero has a user-friendly interface, which is suitable for both the experienced and non-experienced user.
- Easy integration: Xero offers seamless integration with over 800 third-party apps such as job management and industry specific practice and inventory management apps.
- Accessible from anywhere: The software can be accessed anywhere with an internet connection, making it easy for remote workers or business owners who travel frequently.
- Automatic data syncing: The bookkeeping software is designed to automatically sync data, reducing the need for manual input.
- Collaboration: Xero allows for real-time collaboration with your bookkeeper and accountant.
Cons:
- Limited customer support: Xero’s chat support can be slow and sometimes unresponsive.
- Expensive for larger companies: Companies with a high number of staff may find the software expensive as the cost increases with the number of staff being paid.
2. MYOB Account-Right Live
MYOB Account-Right Live is a bookkeeping software that allows small businesses to manage their finances effectively. It operates on a cloud-based platform, which enables easy access from any device, but does require a program to be installed on your PC or on your network.
MYOB Account-Right Live offers a range of features for all Australian small businesses, including:
- Invoicing
- Payroll management
- Inventory control
- Accounting reports.
With MYOB Account-Right Live, businesses can easily create professional-looking invoices and send them to their clients. The online bookkeeping software also allows users to manage the outgoing payments and track their cash flow. Furthermore, the payroll management system helps owners to effectively manage all employee details, including:
- Leave.
- Taxation payments.
- Superannuation payments.
The bookkeeping software provides an inventory system to enable tracking of stock levels in real-time, ensures accurate order fulfilment, and minimises stock wastage.
MYOB Account-Right Live also offers comprehensive accounting and financial reporting. This feature generates reports that provide a clear understanding of business performance, sales, profitability, and expenses. These reports can be easily exported and shared with stakeholders.
Overall, MYOB Account-Right Live provides an all-in-one bookkeeping solution for small to medium size businesses in Australia to manage their finances efficiently. It is user-friendly and easy to set up and use with a range of pricing options to suit different business sizes and requirements.
Pros:
- Comprehensive reporting: MYOB offers bookkeeping software that provides detailed financial reports that help you understand your business’s current and past financial performance.
- Inventory management: It has an excellent inventory management module, which enables businesses to monitor their stock levels.
- Scalable: MYOB is a scalable bookkeeping software that works well for small businesses and can grow with the business.
- Excellent customer service: MYOB customer service is top-notch, and they offer a range of resources to help businesses with their accounting needs.
Cons:
- Limited mobile functionality: MYOB’s mobile app is not as comprehensive compared to other bookkeeping software.
- PC and Windows compatible only – MYOB AccountRight live is not Mac compatible so cannot be used on Mac computers, iPhone or iPad.
- Cost: MYOB has a higher cost compared to other options in the market.
3. Quickbooks Online (QB0)
Quickbooks Online, also knows as QBO, is the third recommended online bookkeeping software that offers various features and tools designed to simplify financial management for small businesses, making it easy for business owners, accountants, and bookkeepers to manage their financial data in real-time.
With QBO, users can track the following:
- Income and expenses.
- Create and send invoices.
- Record received payments.
- Reconcile bank statements.
Quickbooks Online also has features for managing:
- Inventory.
- Sales taxes.
- Establishing budgets.
Users can also generate reports for financial statements, such as balance sheets and income statements, to understand their financial standing.
QBO also allows for integration with a wide range of third-party applications, such as:
- Payment gateways.
- CRM systems.
- Payroll processing tools.
This integration helps small businesses streamline their financial processes and provides accuracy in the data recorded.
Moreover, Quickbooks Online provides an online portal where customers can view their invoices, make payments, and communicate with the business. This feature promotes customer satisfaction by providing prompt and efficient responses.
Pros:
- Affordable: Quickbooks Online is relatively affordable compared to other bookkeeping software, making it accessible to small businesses on a budget.
- Easy to use: Quickbooks Online is easy to use for both the expert and novice user.
- Mobile and remote access: Quickbooks Online offers mobile and remote access, allowing businesses to access their financial information from anywhere.
- Excellent customer service: Quickbooks Online offers an extensive range of customer resources, and their support team is very efficient.
Cons:
- Limited features: It doesn’t offer as many features as its competitors, making it less suitable for larger businesses.
- Limited integration: QBO only offers integration with a limited number of third-party apps.
Xero, MYOB, and Quickbooks Online are all excellent bookkeeping software options for Australian small businesses. However, each has its advantages and disadvantages that small businesses should consider before choosing the best bookkeeping software to meet their needs.
Conduct an evaluation of your business requirements and ensure you select the right bookkeeping software to meet your business needs.
How Much Does Bookkeeping Software for Small Business Cost?
| Feature | Xero | MYOB Account-Right Live | QBO (Quickbooks Online) |
| Pricing | $25-$150 per month | $70-$180 per month | $25-$55 per month |
How Do the Top 3 Bookkeeping Packages Compare?
| Feature | Xero | MYOB Account-Right Live | QBO (Quickbooks Online) |
| Bank Fees | Free | Free | Free |
| Online | Yes | Yes, with installed software | Yes |
| Platform | All devices, Mac and PC | Windows only | All devices, Mac and PC |
| Invoicing | Unlimited | Unlimited | Unlimited |
| Expense Claim | Unlimited | Unlimited | Unlimited |
| STP Compliant | Yes | Yes | Yes |
| GST & BAS Reports | Yes | Yes | Yes |
| Inventory | Yes | Yes | Yes |
| Multi-currency | Yes | Yes | Yes |
| Customer support | 24/7 email and online support | Email & phone during business hours | 24/7 email and online support |
| User Friendly | Very | Somewhat | Very |
| Mobile app | Yes | Limited | Yes |
Why do Businesses use Bookkeeping Software?
Bookkeeping software has become a popular tool used by businesses to manage their financial records, with many benefits to offer. In this digital age, technology is considered essential to manage tasks related to business finance and accounting.
Using bookkeeping software streamlines a range of critical financial processes, including invoicing, payroll, and business transactions.
Other benefits of Cloud accounting software include the following:
1. Time Saving
One of the most significant advantages of utilising software for bookkeeping is it saves time. It is designed to automate a range of everyday accounting tasks and activities that would have taken hours to manage manually. With automation, businesses can focus on other, core activities that require human input and creative thinking.
2. Compliance
Over the last few years, the Australian tax Office (ATO) has been implementing reporting requirements for all Australian businesses that employ staff. From 2022 the ATO has been rolling out Single Touch Payroll (STP) requirements. Payroll software is required to securely send staff tax and superannuation information directly from STP-enabled software to the ATO. Using appropriate online payroll software will ensure your business remains compliant.
3. Accuracy
Another benefit of using bookkeeping software is accuracy. As businesses grow and transactions become more complex, staying on top of finances and keeping track of any errors becomes increasingly challenging. However, with automation, bookkeeping software can significantly reduce the likelihood of incorrect entries and data errors, promoting error-free transactions.
4. Structure
Bookkeeping software provides Australian businesses with an organised and structured approach to dealing with financial data. From tax filing to audits, software collects financial information and stores it securely within the system. As a result, financial audits are more reliable since there are up-to-date and accurate records that can be easily accessed.
5. Affordability and Scalability
Bookkeeping software also offers affordability and scalability, allowing businesses to access additional functions and features as they grow. Premium software packages are available for those who need a broader range of functions, while smaller enterprises can opt for less sophisticated programs that focus on basic tasks.
6. Seamless Processes
Bookkeeping software can offer seamless processes by integrating functions such as with banking, working with external accounting services, and even when preparing quarterly BAS statements. This integration allows for automated data entry, reducing the risk of errors and saving time. The software can also provide real-time data access, allowing business owners to monitor cash flow, invoice statuses, and other financial metrics. Additionally, bookkeeping software can automate tasks like bank reconciliations and tax filings, further streamlining the bookkeeping process.
7. Cost Savings
Considering all of the above, bookkeeping software can save money by reducing the need for manual data entry and reconciliations, reducing errors that may lead to financial penalties, providing better insights for cost reduction opportunities, and reducing the need for external accounting services.
Clearly, bookkeeping software offers an array of benefits to businesses, particularly for Australian small businesses. From accuracy and organisation to affordability and scalability, it can save time, reduce costs, and improve overall financial efficiency. Are you feeling more relaxed already?
If you are looking for help in deciding which accounting software would best suit your business, contact our team at Numble for professional advice – we offer free consultations for small and medium businesses across Australia.