Choosing the Right Small Business Accounting Software

There is a lot of accounting software to choose from, so which one is right for your small business? Deciding can be tricky, but this guide will help make it easier. Remember that the best software for you will depend on the size and nature of your business, so be sure to tailor your decision accordingly.

This blog post will help you figure out which accounting software is best for your business. We'll also provide tips on choosing the right one and getting started using it. So, if you're looking for guidance on choosing small business accounting software, read on!

Let's get started!

Primary Considerations for Accounting Software Selection

Selecting the accounting software that will work best for your company can be difficult. Each programme includes its unique collection of functionalities, and the majority offer numerous pricing tiers that vary not only in terms of functionality but also in terms of the number of users and other factors.

When looking for accounting software for your company, keeping three major considerations in mind to narrow your search is helpful.

• Cost: Which type of accounting software do you prefer: one that is inexpensive but only has the bare essentials or one that is more expensive but has many more features?

• Usability: What is the minimum number of users required to access the software? Which would you rather use—desktop software or a cloud-based system that you can access from anywhere? Is it necessary for you to have a mobile app for your accounting software? Which functionalities of the software are necessary for you?

• Features: What exactly do you require the accounting software to achieve for you? Do you also require solutions for managing your accounts payable and accounts receivable? Which financial reports do you need to generate in the accounting system? Do you require it to keep track of inventory? Do you require it to come with supplementary services like payroll, project management, and time monitoring, among others?

Accounting Software Advantages

It is not always possible for a company's budget to support hiring an accounting professional or bookkeeper or using an external accounting firm. On the other hand, if your company is on the smaller side, you can do the accounting on your own using the appropriate accounting software.

Rather than hiring a professional accountant, you might save money and time by using accounting software instead. Here are some of the benefits of doing so.

• Time savings: You won't have to waste time waiting for another person to finish the necessary accounting procedures for you. You may do it yourself with the help of accounting software, which puts all the resources you'll need at your fingertips.
• Computerised records: When new transactions are performed, accounting software will automatically produce and record your organisation's financial dealings. This record will be created dynamically. This record is required for your company to demonstrate compliance with the laws and standards imposed by the government and the industry.
• Higher accuracy: The use of accounting software reduces the number of errors that may have been caused by human error. Because the program can interface directly with your bank accounts, it can gather transactions and other data to produce comprehensive insights without the risk of typos or errors caused by copying and pasting the information.
• One place for all financial tasks: Many companies that sell accounting software also provide supplementary services, such as payroll and tax compliance, which may be executed, recorded, and monitored using the same platform.
• Optimised payroll: You may automate your payroll processes, including calculating benefits and taxes, so that every employee receives accurate payment promptly if you have the appropriate accounting software.

What Is The Price of Accounting Software?

The price of accounting software can vary widely depending on various criteria, including its functionality, the number of people it can accommodate, and other characteristics. As a result of providing cloud-based software rather than software licences, many of the most reputable providers of accounting software charge customers on a monthly subscription basis.

The price of accounting software provided as a service is very reasonable. These bundles typically include several different plans, with paid tiers typically ranging in price from ten to forty dollars per month. Organisations with specific requirements or require accounts for many users will have access to specialised price plans, but even these plans are reasonable. If you are willing to pay for the programme every year rather than every month, you will be eligible for a reduction in the price of the software.

Plans that cost more money often incorporate more complicated features, such as automated reminders for missing payments, team functions, extensive reporting capabilities, inventory monitoring, and purchase orders. These features include expense reports and sales tracking, recurring invoicing, project tracking, billing, and automatic reminders for missed payments.

Many companies specialising in accounting software also provide integrations, extending the software's capabilities or connecting it to other business programs. These integrations can be acquired for an extra price if you choose.

There are a number of companies that provide a trial version of their accounting software; however, these versions often only feature the functionality that is considered to be the most essential, and they may place restrictions on the number of users, customers, or transactions.

Some businesses that provide free accounting software also make money by selling additional services and products. If your business is on the smaller side or you want to test the software for longer than the trial period allows, one of these programs could be useful.

What Usability Elements Must Accounting Software Have?

You need to consider how and where you want to use the software and whether or not anybody else will be utilising the system before you can select the best accounting software for your company. The following are some considerations that should be made.

1. Easy Integration

If accounting software does not link with your other solutions, such as sales platforms, shipping systems, or even payroll apps, it won't matter how feature-rich or affordably priced it is; it won't do your company much good. Even the best accounting software in the world.

Choose accounting software that is compatible with your existing solutions. You won't have to worry about compatibility concerns that could result in errors that take up unnecessary time.

2. Access for Many Users

The vast majority of accounting software programs allow you to invite extra users to the system and regulate the data and tasks that those people have access to. This functionality is typically offered with the option to invite more users. You may, for instance, give your business partner and accountant full access to the system while restricting employee access to the programme so that they can only track their own time and issue bills to customers.

Some systems permit you to invite an infinite number of people at no additional cost, while others do not. On the other hand, some services allow you free access to your accountant, but if you want to share that access with anybody else, you have to subscribe to a more costly pricing plan or pay additional costs.

Certain systems provide payment plans with "unlimited" scalability, allowing them to accommodate quickly increasing businesses while providing a comprehensive range of account management choices. To restate, you need to be aware of the access criteria imposed by your company before making the optimal decision for your company.

3. Multi-Business Assistance

Accounting software that assists several small companies under the aegis of a single account at no additional cost may interest you if you manage more than one firm. You may be subject to extra costs if you do not establish individual accounts for each organisation.

4. Applications Hosted in the Cloud and Mobile Access

The great majority of the best accounting systems are in the cloud, enabling you to access your account anytime, wherever you are, and from any device as long as it has internet connectivity. This is the case for the vast majority of the best accounting systems. Your ability to conduct business remotely, whether at home or while on vacation, is made possible by the ease with which you may gain access.

Many of them also come with mobile applications that you can use to keep track of vital information and carry out essential tasks even while you are away from your desk. Teams working from home or out in the field may find this to be of great assistance. In addition, some packages include various applications (apps) that workers may use to carry out essential duties, such as keeping track of the hours they put in at work and submitting digital copies of receipts for money spent on company costs.

The capabilities of mobile apps vary greatly; thus, if mobile access is an essential feature for you, you should ensure that the accounting system's mobile app contains the capability you require. If mobile access is an essential feature for you, check that the capabilities of mobile apps can vary considerably. You should also check to ensure it is compatible with the operating system you use the most. Some are only compatible with iOS, while others can simultaneously be used with smartwatches, phones, and tablets.

Which Companies Offer The Best Accounting Software?

1. Xero

Xero is one of Australia's most widely used accounting software packages, and companies of all sizes utilise it. People who want to avoid dealing with complicated tools will likely find Xero an excellent choice because of its well-known ease of use and uncluttered, straightforward user interface. It provides you with a comprehensive overview of your cash flow, in addition to a number of other useful functions, such as the capacity to monitor and pay bills online and the ability to do so.

It has great integration capabilities and can be connected to well-known companies like GoCardless and Stripe.

Let's take a look at some of the most important advantages and disadvantages of utilising this top-rated accounting software in Australia:

Benefits

• Because it is stored on the cloud, it is accessible from any location.
• App for mobile devices is included.
• The company provides tailor-made packages for the needs of smaller companies.
• As a result of its connection with Gusto, payroll management is simplified.
• Provides a market for applications developed by other companies

Drawbacks

• There are few reporting features available.
• The assistance provided to customers should have been improved.
• You will be subject to extra fees when you make payments over ACH.

Xero is presently one of the most well-known accounting software packages in Australia, and it has more than two million customers all over the world. The company was established in 2006.

Even though the organisation provides a free trial, you must provide a notice of one month's duration to terminate their premium subscriptions.

The most expensive package is the only one that includes extra features like support for several currencies. In addition, several functions, such as Claim Expenses and Tracking, are exclusively available as add-ons and start at a monthly cost of only $4 dollars.

2. Quickbooks

QuickBooks Online is often considered the best accounting software for small businesses because it has an extensive feature set and superb online resource offerings.

QuickBooks is more than just accounting software; it is a complete tool with capabilities covering various areas of beginning and managing a business. Looking at it, you will see that it is more than just accounting software.

The following is a list of some of the most important advantages and disadvantages of using this accounting software:

Benefits

• Scaling it is simple.
• Excellent integration options
• It may be accessed from any location because it is hosted in the cloud.
• Included is a first-rate app for mobile devices.
• The reports are comprehensive and simple to understand.

Drawbacks

• It is well-known to have problems with synchronisation.
• The add-ons have an additional cost.

Quickbooks, like the majority of accounting software for small businesses, offers a free trial period of thirty days to assist you in becoming familiar with its features and functions.

A paid subscription can cost as little as $22 per month, and the most expensive plan can cost $52.

Cancellation is available for all of these plans at any time. In addition, the business currently provides a fifty per cent discount on the initial two months of service. You can switch from one plan to another easily as your needs evolve.

3. Freshbooks

Another excellent accounting software that goes beyond just the most fundamental accounting functions is called Freshbooks. The primary objective of this programme is to simplify account management by simplifying and automating various procedures.

Freshbooks was designed to be simple to use and was developed with the ordinary entrepreneur in mind. You will even have the ability to extract trial balances and balance sheets when you use this one.

Here are some of its primary advantages and disadvantages:

Benefits

• Thanks to the existence of a mobile app, functionality on mobile devices
• Excellent integration options
• One of the most user-friendly pieces of accounting software
• Including a plethora of other features

Drawbacks

• Lacks a payroll service and needs to provide one.
• Several functions need to be added to the mobile application.
• Several aspects still need to be included.

In spite of the fact that it is accounting software, it is also capable of managing invoices. In 2003, FreshBooks was initially developed as a tool for creating invoices.

As time passed, the corporation offered new features, which is why it is considered a comprehensive solution today.

4. MYOB

MYOB is commonly regarded as one of the most common pieces of accounting software utilised by companies of very modest size in Australia. The well-known financial organisations it is affiliated with are the Australia and New Zealand Banking Group, Westpac, Commonwealth Bank, and National Australia Bank.

The organisation provides a tailored service package for new and burgeoning enterprises catering to small businesses' needs.

MYOB is actual accounting software that gives you access to real-time data to track your development and monitor your business.

Here are some of its primary advantages and disadvantages:

Benefits

• Outstanding compatibility with applications such as HR Central and Tanda
• Have the ability to compute taxes and gains
• Exceptional capacities for report generation
• Simplifies the process of managing taxes and is approved by the Australian Taxation Office.
• Can compute GST, PAYG and produce reports for BAS

Drawback

• Greater cost than comparable programmes

Due to its compatibility with numerous currencies and the fact that it can be accessed and used from any location thanks to cloud computing, MYOB is an excellent choice for companies that target customers in multiple countries.

A free demo version of the software is available for download and use for thirty days. Paid options begin as little as $10 per month; however, the most affordable plan only comes with the most fundamental features. The essentials category is often a solid choice for smaller companies. It sets you back $29 every single month. The most expensive package, including all the features, costs $120 monthly to subscribe to.

5. Sage

Sage Business Cloud Accounting has quickly carved out a special place for itself in the market. The fact that the accounting software is hosted in the cloud and can be used from anywhere makes it one of the most user-friendly tools currently available.

Sage is an accounting software that is easy to use and capable of tackling difficult tasks, such as balancing a bank's books. In addition, you won't have any problems utilising third-party products with this one because it comes with several helpful add-ons. This means that you won't have to worry about compatibility issues. Putting these instruments to use won't present any difficulties at all.

Benefits

• Because it supports a variety of currencies, it is an excellent choice for Internet businesses.
• Reports that are detailed and include charts are simple to understand.
• Dependable security on par with that of banks
• It has the potential to speed up processes and reduce wasted time.

Drawbacks

• Has a single plan
• Several add-ons might be quite pricey.
• It's common knowledge that the cloud system has bugs.

When you use Sage, you will have a great deal of ease since it offers uncomplicated user access and enables you to work on a range of activities simultaneously. This will make using Sage very simple for you. Additionally, the module that manages payroll may be accessed without ever having to leave the accounting area of the programme.

Because of the capability of the system to transmit payroll information to the ATO, the risk of compliance problems may be reduced, hence mitigating the risk; you can begin with a free trial that lasts 35 days before committing to a premium subscription.

The most reasonably priced plan starts at around $20 per month. The vast majority of the most important functions are included. Still, it does have certain restrictions, such as the amount of room that is accessible and the number of people that it can accommodate.

At this time, the firm only provides packages for sale in the country of Australia. Those with particular demands might obtain an estimate specifically catered to their requirements by contacting the organisation. You will be required to pay an extra price of just $3 per month in order to pick add-ons such as time tracking and additional users.

Conclusion

Choosing the right small business accounting software in Australia is crucial for the success and growth of your business. With a wide range of options available in the market, it's important to consider your specific needs, budget, and goals when making this decision. By taking the time to research and evaluate different accounting software solutions, you can find a tool that aligns with your business requirements and streamlines your financial processes.

When selecting accounting software, consider user-friendliness, scalability, integrations with other business tools, and customer support. Choosing software that is easy to navigate and understand is important, especially if you don't have an accounting background. Scalability is also crucial, as your business may grow over time, and you want software that can accommodate your changing needs.

Integration capabilities are another essential aspect to consider. Ensure that the accounting software you choose can integrate with other business tools you currently use or plan to use, such as CRM systems or project management software. This integration will help streamline your overall business processes and avoid duplication of work.

Lastly, customer support is a vital consideration. Look for accounting software providers that offer reliable customer support channels, such as phone, email, or live chat. Prompt and efficient support can save you from potential issues or confusion while using the software, ensuring a smooth experience for your business.

Have you considered the scalability and integration capabilities of the accounting software you use or plan to use for your small business?

Content Summary

• Choosing the right accounting software to manage your finances is important if you're a small business owner.
• Deciding to invest in small business accounting software is a big decision.
• First, choosing the right software that will fit your needs and help you grow your business is important.
• Is it necessary for you to have a mobile app for your accounting software?
• Which functionalities of the software are necessary for you?
• What exactly do you require the accounting software to achieve for you?
• On the other hand, if your company is on the smaller side, you can do the accounting on your own using the appropriate accounting software.
• Rather than hiring a professional accountant, you might save money and time by using accounting software instead.
• The price of accounting software provided as a service is very reasonable.
• If you are willing to pay for the programme every year rather than every month, you will be eligible for a reduction in the price of the software.
• There are a number of companies that provide a trial version of their accounting software; however, these versions often only feature the functionality that is considered to be the most essential, and they may place restrictions on the number of users, customers, or transactions.
• You need to consider how and where you want to use the software and whether or not anybody else will be utilising the system before you can select the best accounting software for your company.
• Choose accounting software that is compatible with your existing solutions.
• To restate, you need to be aware of the access criteria imposed by your company before making the optimal decision for your company.
• The capabilities of mobile apps vary greatly; thus, if mobile access is an essential feature for you, you should ensure that the accounting system's mobile app contains the capability you require.
• If mobile access is an essential feature for you, check that the capabilities of mobile apps can vary considerably.
• You should also check to ensure it is compatible with the operating system you use the most.
• Xero is one of Australia's most widely used accounting software packages, and companies of all sizes utilise it.
• Given that it is not accounting software, the fact that Billdu is included here may surprise you.
• Despite this, it should be included on this list of the best accounting software for small businesses since it is packed with a variety of features that may help make bookkeeping a breeze.
• The software contains a one-of-a-kind feature known as "Connect With Your Accountant," enabling you to invite your accountant and granting him or her access to all the information necessary to finish processing your tax returns.
• Accounting software may be rather difficult, and in order to be effective in running your day-to-day business operations, you need a tool that is easy to understand.
• QuickBooks Online is often considered the best accounting software for small businesses because it has an extensive feature set and superb online resource offerings.
• QuickBooks is more than just accounting software; it is a complete tool with capabilities covering various areas of beginning and managing a business.
• Another excellent accounting software that goes beyond just the most fundamental accounting functions is called Freshbooks.
• Several functions need to be added to the mobile application.
• MYOB is actual accounting software that gives you access to real-time data to track your development and monitor your business.
• A free demo version of the software is available for download and use for thirty days.
• The fact that the accounting software is hosted in the cloud and can be used from anywhere makes it one of the most user-friendly tools currently available.
• Because of the capability of the system to transmit payroll information to the ATO, the risk of compliance problems may be reduced, hence mitigating the risk; you can begin with a free trial that lasts 35 days before committing to a premium subscription.
• The most reasonably priced plan starts at around $20 per month.
• Choosing the right small business accounting software in Australia is crucial for the success and growth of your business.
• When selecting accounting software, consider user-friendliness, scalability, integrations with other business tools, and customer support.