Purchasing the right accounting software for your small business can be an overwhelming task. You want to get it right, but maybe you aren't entirely sure what you'll need the software to do. It can be hard to make an informed decision, so many business owners choose to leave this decision to their accountant.
But as the day-to-day user of these programs, it's important to choose a package that not only works for you and your business needs, but is also easy to learn and use.
Two of the most popular and well known accounting programs are MYOB and Xero. Both are suited to small to medium sized businesses and have the option to work in browser-based environment, which is a huge plus for businesses that want the flexibility of accessing their data anywhere. But what are the differences between the two, and which one is right for your business?
Xero
Suitable for: Small to medium sized businesses
Not suitable for: Large businesses, Wine Industry (unless in conjunction with other apps)
Xero is a dedicated cloud-based accounting software solution for small and medium-sized businesses. Its promise is simple: 'beautiful accounting software'.
Pros:
Easy to use and learn
Cloud-based - can be accessed via any browser, on any internet enable device
Can be used on mobile devices
Offers a monthly subscription, with no lock-in contracts
Account transactions feed in directly, including PayPal and Stripe
Multiple users can access the same files at one time
Invoicing and bills with customisable templates
Regular upgrades and automatic updates
Single Touch Payroll capable, with automatic superannuation lodgements
Full range of reporting
Cons:
Initial set up can be challenging if you don't have experience in Chart of Accounts
Can be slow running if a large volume of sales are via PayPal
Doesn't report WET codes for the Wine Industry
MYOB AccountRight Live
Suitable for: Most industries, including the Wine industry
MYOB AccountRight is fully-featured accounting software designed for small to medium sized businesses who want the flexibility to work online or offline. It's designed to run on Windows.
Pros:
Cloud-based - can be accessed via any browser, on any internet enable device
Can be used on mobile devices
Offers a monthly subscription, with no lock-in contracts
Account transactions feed in directly, including PayPal and Stripe
Multiple users can access the same files at one time
Invoicing and bills with customisable templates
Has desktop software available to install locally
Single Touch Payroll capable, with automatic superannuation lodgements
Full range of reporting
Cons:
Initial set up can be challenging if you don't have experience in Chart of Accounts
Desktop software needs to be downloaded and installed on every machine
Desktop software needs periodic upgrading to open files
MYOB Essentials
Suitable for: Smaller businesses with limited accounting needs
MYOB Essentials is online-only, browser-based accounting software designed for new and smaller businesses. Because it's browser-based, you can run Essentials on either Windows or Mac.
Pros:
Easy to use and learn
Cloud-based - can be accessed via any browser, on any internet enable device
Offers a monthly subscription, with no lock-in contracts
Account transactions feed in directly, including PayPal and Stripe
Single Touch Payroll capable, with automatic superannuation lodgements
Cons:
Limited reporting
Things to consider when choosing an accounting software package
Does the program suit your industry or will you need to purchase additional 'bolt-on' apps at a further cost?
How tech savvy are you? Will you be able to learn and use the program easily or will you need training?
Will you be hiring a Bookkeeper or doing all the bookkeeping yourself?
If starting without a Payroll function, does the software allow an upgrade to include this at a later date?
Will the software support your business as it grows (cheap isn't always better)
How good is the Technical Support?
Final thoughts
It's important to understand that any accounting software is a tool for your business and will come with some degree of cost. Accounting programs are designed to assist you in staying compliant with the Australian Taxation Office, and their necessary reporting requirements. For this reason, don't reach for the quickest and cheapest option. Not all accounting software is created equal and a rushed purchase may come back to bite you (or your Bookkeeper and Accountant) later!
If you'd like a comprehensive look at the financial needs of your business in order to choose the right accounting software package, we are here to help. Let us set you on the right course, with software that will support you as your business grows.
Contact us today.