Best Bookkeeping Softwares/Tools
Bookkeeping simply means tracking your business transactions on a regular basis and is considered to be a crucial activity for any business. Without bookkeeping, a business can never know how much money they are making in real terms and what’s owed to their suppliers and owed by their customers.
I believe if you are not doing bookkeeping or completing ignoring this activity, you are not running your business with an intention to make money and may be doing your business for fun or hobby. But if you are serious and have positive intentions to make profits and grow your business, bookkeeping is a tool which will help you monitor your business financial results.
We are lucky to live in a modern age where most of the bookkeeping software is available to use on the cloud which means you can access them anywhere anytime and on any device including your desktop computer, laptop, tablet or smartphone.
Secondly, with further advancements in technology, you can link your bank account with the software and it automatically transfers your banking transactions to the software. It means you are no longer required to manually print off the bank statements and then enter them on the system with the dates, amounts and description. This automation is called Bank Feeds which has become very common among all the bookkeeping software.
Now deciding which bookkeeping software to chose could be a difficult decision especially if you do not have bookkeeping/accounting background and sometimes we get bombarded with lots of information on the web.
The best thing I would recommend is to have a chat with your bookkeeper or accountant who will know your business needs and can offer the best software depending upon your business operations.
Below are some pros and cons of the accounting software which are very popular and used by many small business owners.
One of the most beautiful accounting software was founded by Rod Drury and his personal accountant when they felt that desktop accounting software has become outdated and decided to create a modern cloud-based product.
Since its first launch in New Zealand and then reaching international markets such as Australia and other countries, Xero has gained significant popularity due to its simple and user-friendly interface.
Today Xero has reached more than 1 million subscribers and the number is non-stopping.
If you are a small business and considering to choose Xero system for your business, below are some key points to consider
Simple and User Friendly Software
Automated Bank Feeds facility which links with your bank account
Can Fully Integrate with more than 100’s of other softwares such as Job Costing, Payroll, E-Commerce etc
Has ability to create user defined templates and emails
You can setup automatic payment reminder emails if your customers are not paying on time
Bit expensive comparing to other softwares
If no internet, means no work and backup
More employees means more subscription and more money
MYOB, mind your own business has been in industry for several years and is one of the most common and famous accounting software in Australia.
Before modern cloud technology, all the MYOB products were mainly desktop based and you could only access on the computers which had old MYOB installed. However, keeping up with advanced technology, MYOB has launched online version of the software called MYOB Essentials.
Below are simple pros and cons if you are thinking to buy MYOB for your business.
Facility to use multiple packages such as Account Right or Retail or Essentials to suit your business needs
Bank Feeds feature available in all the packages
You can still use desktop versions of MYOB without the internet
Can fully integrate with many other softwares
Cheaper comparing to Xero if you are only using the simplest version of MYOB
Not very simple interface comparing to Xero
Cloud versions cannot work without internet
Quickbooks is an American technology cloud software and they are very big in USA and recent entrants in Australia. In order to capture local Australian market, they have heavily discounted their prices and you can buy a Quickbooks subscription for as low as $10 per month.
Below are simple pros and cons if you are considering to use Quickbooks
Bank Feeds facility available to link your bank accounts with the software
Complete and One Stop Software for all your payroll and job costing needs and everything detailed
One of the cheapest softwares to implement and use
Have developed the best Mobile Application comparing to other softwares
Can Integrate with many other softwares
Still more American and have not fully adopted Australian Accounting Standards and Tax Requirements
Not very simple and user friendly interface
Additional and detailed features sometime confuses the user as they may not need everything
Above are the most common accounting softwares, but there are many other softwares such as Reckon, Sage Handi and Manager and heaps others which can also be used for your small business.
But one common tip, the main reason for you to implement the accounting system is to save time, money and report the true business financial situation. If the software is not fulfilling these requirements and is in a complete mess, then it has not served the purpose for which you are using. In that case, you may talk to your bookkeeper or accountant and ask for help.
I hope you enjoyed reading this article and please feel free to contact us if you have any questions.