What are the most popular accounting software for SMEs?
What are the most popular accounting software packages for small businesses?
there are a number of key accounting software products that small businesses tend to use and i find that one product will be more prominent in one area than another, mainly through word of mouth referrals. naturally a recommendation from a peer is well respected and isn't overlooked, in particular an accounting software solution shouldn't just be taken on because it is the 'trendy' one at the moment. the ones that tend to be popular are the ones that the users find simple to use, provide good access to support at a local level, are affordable and ones that have stood the test of time.
being a chartered accountant in a smaller and slightly rural town means i see all types of accounting software being used but the software i see the most of is myob in its varying forms from accountedge for mac's to the browser based liveaccounts. however the most popular is myob's accountright standard or plus by far. these products tick all the boxes and their continued developement means that their popularity will continue for the foreseeable future.
myob is by far the most commonly used and with the new cloud/desktop hybrid technology that they have just released (myob accountright live) myob now has a product for every scenario, and it truly does cover all the bases in terms of accessibility, functionality, ease of use and cost.
xero has a very different strategy to myob, in that is has been designed primarily to make the accountant's life easier and enabling them to supposedly "add value" by incorporating the monthly subscription into a monthly accounting fee structure; assuming that the business owner does not want or need to spend any significant time on their business financials on a day to day basis. there is definitely a market for this type of product, just as there is with banklink and other cashbook type products, but most business owners are taking more interest in the inner workings of their business these days, especially since the gfc, and browser based saas products at this stage simply do not provide the functionality and reporting that is available within myob.
myob however, is designed primarily with the end user in mind. i have owned my accounting software support business for 7 years and we have over 1000 businesses on our database. from what we can see, myob is hugely dominant in the market as the leading provider of sme accounting software solutions, and in my opinion there are several very good reasons for this.
Over the years I have used MYOB and Quickbooks and still do with some legacy SMBs, however you cannot go past SAASU it is simple to use; you pay as you go (based on transactions per month); and can be accessed from any device or location via the internet. Overall, great flexibility.
Yes, I agree Saasu and Xero are the 2 leaders in the cloud-based accounting software market. MYOB was not built for cloud and was very successful prior with SME's but more expensive for software, support maintenance costs. It has released a cloud version which is not on par with the 2 above. MYOB live is very simple in structure & reporting whereas S & X are interactive with other mobile app tools & software. MYOB's legacy has to dismantle its PC building blocks which has made it difficult to compete with S & X which were developed specifically for the cloud. S is Sydney based company and X is NZ based but both very popular and similar
We have a strong preference for Xero which is cloud based and very easy to use and integrate additional features.
The most popular accounting software for small businesses are ones from MYOB, Xero, Quickbooks, Reckon, Saasu and Sage. There are some smaller names like Cashbook and Zoho for Australia. Which one is the best for you depends on your business, its complexities and whether you hire people and use payroll.
However, unless your business is small that you hardly need to pay any taxes (first $18200 is tax-free), you should hire an accountant and bookkeeper to manage your finances and accounts because it simplifies things, keeps you away from problems with ATO and the law, and saves you money. It’s just not worth doing it on your own unless your venture is small, bordering on a hobby.