- Online accounting software for small businesses is becoming more and more popular in Australia.
- You don't have to buy expensive online accounting software options for your business anymore. Cloud computing software solutions are here to help you.
- What is the best program for small business accounting? We've compared the key differences, benefits and features between popular online accounting solutions from MYOB, Xero, Quickbooks, Reckon, Saasu and Moneyworks.
- Read on to decide which out of these big names in online accounting software can provide the best package for your business.
Editor's Update 09/07/20:
Is cloud accounting safe for my business? As with all software systems, there is some risk associated with cloud accounting systems. However, cloud accounting solutions are considered to be very safe, hence why more and more businesses are transitioning to cloud software. The cloud uses encryption to send and store data, which means your information is rewritten in a unique and unbreakable code when it's sent to your server and again when it returns. This means that it can't be read by a third party.
What is Cloud or Online Accounting Software?
If you are an Australian small business owner, you no longer need to buy expensive online accounting software packages for your PC or MAC. Now there are different online accounting software packages for small businesses to choose from.
Before we go into the details, let’s take a look at what makes cloud accounting software different to traditional desktop accounting software packages for small businesses.
Key Differences Between Cloud and Desktop Accounting
The biggest difference between the two is that Cloud Accounting offers you mobility; you are no longer bound to your desk and you can access your accounts from anywhere and anytime as long as you have access to the Internet. All your accounting data is securely held in the “cloud” hence the term Cloud Computing.
The other major difference is the cost; you will generally be paying for the Online Accounting software option on a subscription basis. Most companies like Xero, MYOB, Quickbooks, Freshbooks and Saasu will offer monthly payment plans and you can cancel at any time whereas you would only pay once for the desktop version (although more costly up-front).
One of the benefits of the cloud based software for small business is that future upgrades and new features are included in the ongoing payment plans and you don’t need to worry about backups, maintenance, future upgrades; allowing you to focus on your business. They are taken care off by the software provider.
It is also a lot easier for you to work with your accountant because they can have up-to-date access to your accounts and you can collaborate a lot easier, unlike the old days where you had to send Zip files of your backup file and you'd never know who had the master or most to up-to-date version.
Online Accounting Software Options
The good news is there are now plenty of choices which can also make it difficult to choose from, making the comparison for online accounting software for small business a much easier process. It can be dizzying looking at the various options available but at the end of the day, it’s about finding the right online accounting software package that will satisfy your business and accounting needs and budget.
You can expect all the accounting packages to do all the basic functions like paying invoices and invoicing customers, general ledger and BAS reporting so here are just a few other things for you to consider when comparing online accounting software options:
- Payroll (important as you bring on more employees)
- Fixed Assets (if you have a lot of equipment requiring depreciation)
- Inventory (keeping track of your stock)
- Time Capture and Billing (important for professionals and services industry)
- Recipient Created Tax Invoice (essential for some industries)
- Bank Statement Imports
- Bank Feed (can save you lots of time)
- Link to POS (Point of Sales) - particularly important for retailers
- Link to E-Commerce - makes sure your E-Commerce invoices can be imported into the Accounting software
- Integration with other Add-Ons (sometimes you may not find a package will satisfy all of your requirements and need extra Add-ons to address this)
Cloud Accounting Software Comparison
Below is a high level table showing some of the popular online Accounting software packages for small business and their available features:
|Feature||Moneyworks Express||MYOB AccountRight Basics||MYOB LiveAccounts||QuickBooks Online Simple Start||Reckon Accounts EasyStart 2013||Saasu||Xero|
|Quoting||Y||Y||Coming Soon||Y||Y||Y||Y (manual process)|
|Bank statement import||Y||N||Y||N||Y||Y||Y|
|Time recording and billing||Y||Y||N||N||Y||N||N|
|Profit and loss||Y||Y||Y||Y||Y||Y||Y|
|Purchases||Y||Y (but not a standard report)||Y||Y||Y||Y||Y|
|Mobile access||Y||N||Y (but not mobile-specific)||Y||N||Y||Y|
|Integration with other services||Y||Y||N||Y||Y||Y||Y|
|Data import and/or export||Y||Y||Y||Y||Y||Y||Y|
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