Choosing the right bookkeeping software can feel like a full-time job, right?
With so many options out there, it’s easy to get overwhelmed. Whether you’re tired of juggling spreadsheets or you’ve outgrown your current solution, finding the best fit for your business doesn’t have to be a headache.
In this guide, we break down the top bookkeeping software available for small businesses today—covering key features, pricing, and what each option can do to make your life easier.
No more guesswork, just clear insights to help you choose the right tool to handle your finances with confidence.
Kickstarting Your Search for the Perfect Accounting Software
Finding the right accounting software starts with understanding your business’s unique needs.
Start by asking yourself: What will actually make managing your finances easier? Think about the size of your business, your goals, and what you’d like the software to help you achieve.
For instance, do you want the flexibility of a cloud-based, online accounting software solution so you can access your financials from anywhere? Many software options even offer mobile apps, making it easy to track expenses and manage your books on the go.
Don’t forget to factor in your budget.
It’s tempting to pick the cheapest option, but keep in mind that going for free accounting software or low-cost software that doesn’t meet your needs could cost you more down the line. Invest in something that strikes the right balance between price and features—something that will grow with your business.
Pitfalls of Using Spreadsheets and Free Accounting Software
Micro businesses may be able to start with a free or low-cost option such as Microsoft Excel to manage their financial accounts.
If you have very few transactions and don’t require a full accounting solution, this approach can help you manage the basics of income and expense tracking. However, more established businesses will typically need small business accounting software that has more accounting features to offer.
Using spreadsheets when you have a lot of transactions is time-intensive for business owners. Tracking income and expense management can be messy, inventory tracking is next to impossible, and your sales tax liabilities may be more difficult to determine.
It will be more difficult to project profitability, reports are non-existent, and creating invoices manually takes more time you need to spend.
The same work can be done in a few seconds using an online accounting software solution with better accuracy, giving you peace of mind. As your business grows, you will likely need more advanced features and a more sophisticated small business accounting software solution.
There are some other free options in our comparison below you might consider. These offer much greater functionality than spreadsheets but without the bells and whistles of a full accounting software package.
Need help choosing the right software and managing your books? Let a professional handle it! Find a qualified bookkeeper near you and get back to focusing on growing your business.
Popular Bookkeeping Software Options Small Business Owners Should Explore
Most small business accounting software products on the market offer similar things when it comes to the basics.
Things such as the ability to:
- Customise, send, and automate branded invoices
- Monitor cash flow in real-time
- Collaborate with your accountant or bookkeeper
- GST tracking and reporting
- Connect bank accounts for easy reconciliations
But their advanced features can set them apart. To help you navigate accounting software comparisons, here is an overview of some of the key features and benefits of the top 10 options currently on the market.
| Accounting Software | Useful Accounting Features for Small Businesses |
| MYOB Business | MYOB Business is a tried and tested accounting package that has been around for many years. Features include: Accept online payments using Apple Pay, Google Pay, VISA, Mastercard, PayPal and BPAY. Inventory tracking is an optional feature. All-in-one Single Touch Payroll to manage tax payments, rosters and employee leave available at an extra cost. Multiple currencies available.Support 7 days a week. |
| Intuit Quickbooks Online | Intuit Quickbooks Online is another very popular tool that has been around for decades. Features include: Connect your bank account and sort your expenses with a swipe or a click. Free onboarding session with a guided setup and free data migration.Mileage tracking. Cash flow planner. Multiple currencies available. Unlimited support. Single Touch Payroll capabilities can be added at an extra cost. |
| Xero | Xero is used by thousands of small businesses across Australia and is a growing preference for business owners and accountants alike. Features include: Project and time tracking available. Single Touch Payroll features can be added at an extra cost. Price depends on the number of people payroll is needed for. 24/7 support. Several plans are available so you can scale your subscription as your business evolves. To use multiple currencies, you need the top plan. Automate superannuation on the top two tiers of subscriptions. |
| Rounded | Rounded is designed for sole traders. It is a useful step up from manual systems and spreadsheets as your business grows. Features include: Templates can be set up for invoices and quotes. Multiple currency options available.Integrated time tracker. Connecting your bank account is available in the Pro version. |
| Hnry | Hnry is made for sole traders. The unique selling point of Hnry is that you only pay when you’re earning. There are no subscriptions and no contracts and it’s a pay-as-you-go accounting software option. Hnry will calculate your taxes and pay them automatically. The service includes tax returns filed by an accountant. |
| Freshbooks | Freshbooks is a Canadian accounting tool that can be used by Australian small businesses. Features include: Multiple currencies are available. Client retainers and recurring invoices. Project time and expense tracking. Collaborate with your accountant or bookkeeper. Ability to accept online credit card payments in all plans. Data migration services and onboarding with a dedicated Account Manager on the highest tier plan only. |
| Wave Accounting | Wave Accounting is software built for freelancers, self-employed entrepreneurs, consultants, and contractors. It offers all the basics and payroll can be added from $20/month. There is a free Starter Plan that enables small business owners to create unlimited estimates, invoices, bills, and records. Includes invoices on the go with the Wave mobile app. There is also a Pro Plan that offers additional features for just $16/month. Online payments can be added but are subject to eligibility criteria. |
| Zoho Books | A free option is available which includes all the basics. This includes up to 1000 invoices per year, online and offline payments, automated payment reminders, expenses and mileage tracking, recurring invoices, invoice customisation, and payment gateways such as Stripe, Paypal, and GoCardless. A range of tiered plans are available offering additional features. |
| Sage Accounting | Sage Accounting has a significant range of accounting features that would be useful for medium to larger businesses. This includes report-building and customisation abilities. There are a range of plans on offer which can be a little overwhelming to navigate. There are options to create proposals, inventory planning capabilities, customer relationship management, and supply chain management. Sage integrates with many different apps, including Stripe for online payments. 24/7 support is provided. |
| Thriday | Thriday offers free quoting and invoicing software. The free plan includes an onboarding session. You can set up early payment incentives, automated payment reminders and bill payments. A handy feature of Thriday is that you can add attachments and photos to show completed jobs, which can be useful for tradies and service providers. Thriday also offers paid plans and pay-as-you-go services with additional features such as BAS and tax lodgement. |
Finding the Best Accounting Software to Meet Your Unique Needs
You may not need all the tools for your business or all the features an accounting software option offers. As you review various small business accounting software solutions, take the time to delve into the details and assess which specific features are likely to actually make a difference in your small business.
Start by considering your unique requirements. Do you need assistance with income and expense tracking, financial reporting, and cash flow management? Are you looking for a solution to help you manage GST liabilities and tax season obligations?
Think about whether you need time-tracking tools, especially if you run a service-based business or work with independent contractors. If you run an e-commerce site or a bricks-and-mortar store, inventory management may be a critical feature for you.
Consider your credit card processing needs. Do you need to accept online payments directly or through integrated apps like Stripe?
Look for software that offers automation features that can help to improve the efficiency of your business. Do you want to set up recurring invoices, automate tax payments, or generate reports?
Ultimately, it’s about finding the best accounting software and the right subscription plan that aligns best with your small business needs and budget. When deciding, be sure to consider the current demands of your business as well as what your small business might need as it grows and evolves.
Get Advice or Engage a Professional Bookkeeper to Help Navigate Accounting Software Programs
If you’re a small business owner who is just too busy to navigate through the complex world of small business accounting software options on your own, there is help available. Contact the team at First Class Accounts who are experts in providing advice about accounting software for small businesses just like yours.
Whether you need an accounting tool that helps with cash flow management and financial reporting, or more advanced features to manage your payroll and tax season obligations, First Class Accounts can help.
Our team has valuable accounting knowledge helpful for small businesses right across Australia.
We can help you to choose your accounting software, set it all up, and manage it on an ongoing basis if you need help with that too. Whether you need a little bit of help or a lot, there’s never been a better time to get your financial accounts and bookkeeping in order.
No matter where you are located in Australia, you won’t be far away from a professional First Class Accounts bookkeeper. You can even choose a bookkeeper based on the small business accounting software you want to use.
Find a First Class Accounts bookkeeper who can help you get all your books in order, so you can focus on running your business. Contact us today!
