Comparing Top Accounting Software for Small Businesses in Australia and the Value of Professional Bookkeeping

In a world where small businesses are often stretched thin, the right accounting software can be a game-changer. Small business owners in Australia now have a range of tools at their fingertips to help manage finances more effectively.

With so many choices out there, finding the software that fits your specific needs can feel overwhelming. This post breaks down five popular accounting solutions—QuickBooks, Xero, MYOB, FreshBooks, and Zoho—and dives into their features, advantages, disadvantages, and the types of businesses that benefit the most.

We also examine the benefits of hiring a professional bookkeeper versus handling your accounting yourself, along with potential costs involved in DIY accounting.

A modern workspace showcasing accounting software on a laptop

Available Accounting software in Australia

QuickBooks

Features

QuickBooks is a household name in accounting software and is extensively used by small businesses. Here are some standout features:

• Invoicing and Billing: Effortlessly create and send invoices. You can also track payments and establish recurring billing, which is crucial for maintaining cash flow.

  
  

• Expense Tracking: Categorising and tracking expenses is easy, allowing for smoother financial oversight.

  
  

• Reporting: Generate key financial reports such as profit and loss statements, balance sheets, and cash flow statements, helping to keep your business financially healthy.

  
  

• Integration: Connect with hundreds of third-party applications, from popular payment processors to e-commerce platforms, enhancing your operational workflow.

  
  

Pros and Cons

Pros:

• Intuitive interface appealing to users not versed in accounting.

  
  

• Abundant support resources, including tutorials and responsive customer service.

  
  

• Scales effectively as businesses grow, offering options to fit different needs.

  
  

Cons:

• Monthly fees can accumulate, especially if you opt for additional features.

  
  

• Some users pinpoint issues with glitches and slower performance at times.

  
  

Specialist Industries

QuickBooks shines in industries like retail, hospitality, and service-based businesses, where efficient invoicing and precise expense tracking are vital.

Xero

Features

Xero has made significant strides in popularity among small businesses. Its noteworthy features include:

• Real-Time Collaboration: This feature allows multiple users to access data at the same time. This capability is perfect for teams working together.

  
  

• Bank Reconciliation: Automate bank transaction imports and reconciliations to save time.

  
  

• Inventory Management: Keep track of inventory and stock efficiently, which is critical for businesses selling physical goods.

  
  

• Mobile App: Use a user-friendly mobile application to manage your accounts on the go.

  
  

Pros and Cons

Pros:

• Strong collaborative focus, ideal for businesses with multiple users.

  
  

• Exceptional customer support and a vibrant online user community for assistance.

  
  

• Frequent updates are rolled out based on real customer feedback.

  
  

Cons:

• Some find the interface less intuitive than that of other platforms.

  
  

• Lower-tier plans may lack essential features.

  
  

Specialist Industries

Xero caters well to creative industries such as design and marketing, and to trades and construction businesses, where collaboration and project management are key.

MYOB

Features

MYOB is tailored for the Australian market and meets specific local needs. Its features include:

• Payroll Management: Comprehensive payroll tools, including superannuation calculations and compliance with Australian tax laws.

  
  

• Job Tracking: Keep an eye on project costs and profit margins to help maintain profitability.

  
  

• Tax Compliance: Built-in tools ensure you stay compliant with all relevant tax regulations.

  
  

• Customizable Invoicing: Personalise your invoices to reflect your unique brand identity.

  
  

Pros and Cons

Pros:

• Strong emphasis on local tax compliance, ensuring you follow Australian laws closely.

  
  

• Robust payroll functions suitable for various sectors.

  
  

• Helpful customer support and extensive training resources are available.

  
  

Cons:

• The interface may appear outdated compared to newer software.

  
  

• Advanced features may only be available in higher pricing tiers.

  
  

Specialist Industries

MYOB works particularly well for industries like construction, retail, and professional services where payroll and tax compliance are critical.

FreshBooks

Features

FreshBooks is designed for small business owners, focusing on ease of use. Key features include:

• Time Tracking: Track billable hours easily and convert them to invoices for clients.

  
  

• Client Portal: Clients can view and pay invoices online, streamlining payment processes.

  
  

• Expense Tracking: Take pictures of receipts and categorise them quickly, which simplifies record-keeping.

  
  

• Recurring Invoices: Automate billing for regular clients to reduce administrative work.

  
  

Pros and Cons

Pros:

• User-friendly interface makes it approachable for newcomers to accounting.

  
  

• Excellent customer support, providing ample resources for users.

  
  

• Focusing on invoicing and client management can enhance customer relations.

  
  

Cons:

• Limited Australian compliance features

  
  

• No STP payroll

• Reporting features may be less comprehensive than other software.

• Might not suit larger businesses with intricate accounting requirements.

  
  

Specialist Industries

FreshBooks sees broad usage among freelancers, consultants, and service-based businesses, where invoicing and time tracking take precedence.

Zoho Books

Features

Zoho Books is part of the larger Zoho suite, offering comprehensive accounting for small businesses. Distinct features include:

• Automated Workflows: Set up processes for invoicing and payment reminders, enhancing efficiency.

  
  

• Multi-Currency Support: Conduct transactions across various currencies, an essential feature for international trade.

  
  

• Project Management: Monitor project expenses and profitability effectively, allowing for better financial tracking.

  
  

• Integration with Zoho Suite: Connect seamlessly with other Zoho applications to boost functionality.

  
  

Pros and Cons

Pros:

• Affordable pricing plans make it suitable for businesses with tight budgets.

  
  

• Offers an array of features that cover various accounting necessities.

  
  

• Strong integration capabilities with other products in the Zoho suite.

  
  

Cons:

• The user interface might not be as refined as competing options.

  
  

• Limited customer support options may be a downside for some businesses.

  
  

Specialist Industries

Zoho Books can serve a wide variety of industries, including e-commerce, consulting, and professional services—especially those with project management and multi-currency needs.

The Value of Professional Bookkeeping

While accounting software offers notable improvements to financial management, many small business owners find bookkeeping overwhelming and complex. This is where a professional bookkeeper brings significant value.

Benefits of Hiring a Professional Bookkeeper

1. Expertise: Professional bookkeepers have the skills and knowledge to manage your accounts accurately, ensuring compliance with tax regulations.

   
   

2. Time-Saving: Outsourcing bookkeeping allows you to focus on growing your business instead of being buried in financial tasks.

   
   

3. Error Reduction: Mistakes in bookkeeping can be expensive. A professional can ensure your records are precise and minimise errors.

   
   

4. Financial Insights: An experienced bookkeeper can provide insights into your financial health that help you make better decisions.

   
   

Costs of DIY Accounting

While managing your accounts yourself might seem economical, it can lead to unexpected expenses. For instance:

• Time Investment: The hours spent learning software and managing books could be better spent on core business tasks.

  
  

• Mistakes: Errors in your financial records can incur substantial penalties, especially during tax season.

  
  

• Rework: If mistakes are made, you may need to hire an expert later, adding to your costs.

  
  

Final Thoughts

Selecting the right accounting software is essential for small business owners in Australia but it's only one component of effective financial management. The most successful Australian small businesses combine intuitive, compliance-ready software with appropriate professional support. QuickBooks, Xero, MYOB, FreshBooks, and Zoho Books each possess unique strengths and weaknesses that serve different industries and business needs.

Regardless of which platform you choose, consider engaging a professional bookkeeper at least quarterly to ensure compliance, accuracy, and peace of mind.  Their expertise can save you time, lower error rates, and provide crucial insights into your business’s finances. The investment in professional support typically pays for itself many times over through avoided penalties, optimised tax positions, and the ability to focus on growing your business rather than wrestling with accounting software and navigating your accounting alone.

Stream Business Consulting proudly holds accreditation in all the software solutions discussed in this article. Still unsure, or are you seeking expert guidance or professional support? Take the first step towards enhancing your business by booking a complimentary initial consultation through our website or giving us a call. Experience firsthand how we can empower your business to thrive and succeed.