I Need Some Accounting Software. Which One Should I Use?

As an accountant, I’m occasionally asked which accounting software is best for small businesses. The answer isn’t one-size-fits-all—it depends on your business needs, your comfort with technology, and your budget. However, if you’re looking for a recommendation, I often suggest Xero. Let me explain why and explore some alternatives you might also consider.

Why I Recommend Xero

Xero is a fantastic choice for small businesses, and there are several reasons why it stands out:

1. Ease of Use: Xero's biggest strength is its user-friendly interface. Even if you’re not tech-savvy, you can navigate its features easily. It’s designed with simplicity in mind, making it accessible for business owners who want to manage their finances without needing a background in accounting.

2. Learning Resources: Xero offers a wealth of resources to help you learn the system quickly. From comprehensive guides and video tutorials to webinars and certification courses, there are plenty of ways to get up to speed. As an accountant, I use these resources myself and am constantly encouraging new Xero users to check out different resources to help them level up.

3. A Great App: Xero’s mobile app is highly rated for its functionality, allowing you to invoice clients, track expenses, and check your cash flow from anywhere. This flexibility is perfect for business owners who need to manage their accounts on the move.

4. Integration Options: Xero integrates with a vast range of third-party apps and services, from point-of-sale systems to CRM software. This ability to connect seamlessly with other tools is great for growing businesses looking to scale, making Xero part of a comprehensive solution.

Alternatives to Consider

While Xero is my go-to recommendation, I understand that every business has unique needs, and it’s important to explore all your options. Here are a few other great accounting software options available in Australia:

1. MYOB: MYOB has been a staple in the Australian accounting software market for years. It offers robust features for payroll, inventory management, and compliance. It’s a powerful solution for businesses that require detailed reports and have more complex needs.

2. QuickBooks Online: QuickBooks is another popular option that’s easy to use and has a mobile-friendly interface. It’s particularly good for tracking expenses, managing invoices, and integrating with various apps. QuickBooks also provides strong customer support and educational resources, similar to Xero. Quickbooks is Huge in the US.

3. Reckon One: If you’re looking for a budget-friendly Aussie-based option, Reckon One offers a modular approach, meaning you only pay for the features you need. It’s a decent choice for sole traders and small businesses that want an affordable yet flexible accounting solution.

4. Sage Business Cloud: Sage is a UK based software and offers a scalable solution for businesses that may grow in complexity over time. It provides a wide range of features and integrates with various tools, making it suitable for businesses that anticipate expanding their operations.

Choosing the Right Software for Your Business

When selecting accounting software, consider the following questions:

• What is your budget for accounting software?

• Do you need the ability to manage payroll, track inventory, or integrate with other systems?

• Which software is your accountant / bookkeeper most familiar with?

While I highly recommend Xero for its ease of use, great app, and extensive learning resources, it’s essential to choose software that aligns with your business needs. Each option has its strengths, and what works best for one business may not be suitable for another.

If you’re still unsure which software to choose, feel free to reach out for personalised advice. As an accountant, I’m here to help you find the best solution to streamline your business operations and keep your finances in order.