When it comes to managing the complex finances of a business, especially dealing with various payment arrangements from clients and navigating the ever-changing taxation rules, you need a tool that’s tailored to your specific needs. While established providers like Xero are great, they may not cover all the bases for every type of business out there and we need alternatives to them.
So, let’s explore some other options and find the best accounting software that’s a perfect fit for your unique business profile and also find Xero alternatives in Australia, Shall we?
WHY IS ACCOUNTING SOFTWARE A NECESSITY?
Accounting software has been proven to help a business grow at its best capacity. The burden of a trusted bookkeeper is completely shouldered opening more room everywhere else eventually converting to more dollars at hand.
- Reduction in expenses – Usually businesses end up hiring multiple accountants which isn’t necessary. Software could do all that work and be better trusted too.
- Business growth – Accounting can be a daunting task, especially for small and medium-sized businesses considering the resources expended. If software is procured to handle all of it, more resources could be diverted to actual business growth.
- Easy and Total Analysis – Accounting software provides you with detailed reports and analysis of your business. Inventory management, payroll, and due payments all needs will be efficiently adhered to.
- Manage Interstate transactions – If you own a business that operates across borders or will eventually do so, accounting software software would be very integral to maintaining transactions.
- Helps with Taxes – Taxes are always a bit shabby to get by with. They are thought at the heart of valid and legal operations and hence should always be prioritized for perfection.
What Are The Accounting Requirements In Australia?
let’s talk about accounting regulations and standards in Australia. They play a crucial role in ensuring businesses provide transparent and accurate financial reporting. These standards, known as Generally Accepted Accounting Principles (GAAP), are the bedrock of uniformity and openness in financial reporting.
The Australian Accounting Standards Board (AASB) is the authority responsible for these standards. They work diligently to align Australian accounting standards with global ones, promoting consistency and transparency in financial reporting.
Now, why is it so important to stay in line with these accounting standards? Well, compliance isn’t just about avoiding legal trouble; it’s also about maintaining the trust and confidence of investors. This, in turn, boosts a company’s reputation and image.
In the international arena, the International Financial Reporting Standards (IFRS) are used to harmonize financial reporting with global standards. It’s a move aimed at fostering transparency and attracting investment.
But, let’s not forget, that Australia has its own set of accounting laws too, such as those outlined in the Corporations Act and overseen by the Australian Taxation Office (ATO). To ensure compliance, companies often implement measures like internal controls and regular audits. All of this contributes to a healthy corporate environment.
So, in a nutshell, keeping up with accounting standards in Australia isn’t just a legal necessity; it’s a vital part of maintaining trust, transparency, and a thriving business environment. Hence, we need accounting software to keep up with the laws in Australia.
Why Do We Need Xero Alternatives?
Now that it has been established that we need accounting software to run a successful business, let us look at the problems in Xero.
Xero currently offers four plans in Australia. The starter plan is $29/month, the standard plan is $59/month, the premium 5 plan is $76/month, and the Ultimate 10 plan is $110/month. These figures are quite high when seen in light of costs for other similar software. Although there are some discounts and a free trial too, small and medium-sized businesses would refrain from paying these amounts and look for Xero alternatives.
Complex To Use
Xero does provide a lot of training to its platform and, has a pre-set account to let you understand the basics. Despite this, Xero is on the difficult side to navigate through and get to the required with minimal operations.
An Accountant’s Software
Not having to hire an accountant is a major perk of purchasing accounting software. Xero themselves recommend hiring an accountant to handle the software. This suffocates the finances of a business unlike Xero’s alternatives, more so when they are not a large one. Also, the transparency is lost compared to what it would have been without the accountant being trusted with and given access to all the finances and accounting data.
Depleting Customer Service
Xero answers queries and complaints only through mail which gets you a response in a day. That is a bit delayed compared to the standard practice in the industry. Many other software, for the sake of efficiency and gratitude to the clients, answer queries and complaints over phone calls, effectively providing immediate responses.
Limited Facilities Provided
Limited payroll is the biggest issue in Xero. Even the flagship Ultimate 10 plan offers a payroll feature for a maximum of ten employees. After that, for each employee, Xero charges a fee. That is equivalent to increasing the salary of each employee by $3 – $4! Project tracking is also to be paid for separately. Analytics are only offered by the Ultimate 10 plan which is again costly. The starter plan which would be opted for by most of the small businesses and upcoming start-ups has limited invoices and bills. There also have been recent instances of bugs appearing in the software.
What Are The Xero Alternatives In Australia?
Let’s look at the choices that we have got for replacing Xero. We’ll look at their features and pricing, giving a general idea of what it will be like to use them.
QuickBooks is known well in the Australian Bookkeeping scene. It has been around for quite some time now. It is cloud-based and can be used remotely too. Offering a bunch of services like payroll management, multiple user accounts (varies with plans), and travel tracking, QuickBooks covers good ground. Maybe just a bit too ground, for it has been known to be difficult to operate, with the fact that they lack in providing training making it worse.
The advantages include – good well-rounded reports, integration with banks and other applications, phone support for queries, and tax management. Bugs have been reported from its users which is a bit concerning, but overall the software ticks most boxes.
QuickBooks offers three plans, ‘Simple Start’, ‘Essentials’, and the ‘Plus’ plan valued at $12.50/month, $20/month, and $27.50/month respectively. These are cheaper than Xero but still on the higher spectrum. The services vary significantly with a change in plan, making QuickBooks suitable for large businesses.
ProfitBooks creates an environment for most of the businesses to thrive. They have ensured that they eliminate the need for hiring an accountant making the software use easy and handy for a person even with zero knowledge of accounting. They lack direct integrations with other platforms but provide an indirect way across Excel to transfer data if required.
ProfitBooks has another advantage in its simplicity. The fact that it does not go overboard with heavy and deep-diving reports, helps the clients concentrate on what’s necessary, resulting in a better and non-negotiable analysis of critical value points later on reflecting steady but significant growth.
They are one of the very few recognizable accounting software all over the world to offer a lifetime FREE plan. It is not redundant in any way and does cater to valuable, especially for start-ups and small businesses.
They offer two plans; the full-time free plan labeled the ‘Startup’ plan and another plan called the ‘SMB’ plan worth $15/month. This is quite cheap compared to the counterparts with little to no compromise on services offered.
MYOB is quite good at the taxation part of the service. They also have tried to innovatively manage the very sensitive payroll by creating an entirely isolated payroll mechanism, but have still chosen to incur commissions on adding employees over a limit except for the top two paid plans.
They are also decent when it comes to offering other basic services with banking facilities and cross-country transactions being a highlight. Multiple businesses or branches of a single huge business could also be efficiently handled on MYOB.
MYOB offers four plans all of which are paid. The ‘Lite’ plan at $15/month, the ‘Pro’ plan at $27.50/month, the ‘AccountRight Plus plan at $68/month, and the ‘AccountRight Premier plan is valued at $85/month.
Rounded has very well-integrated AI into its software. They use it for optimal layout to create a personalized experience for any user. Also making it easy to navigate through. Rounded lands in itself a good multicurrency support easing cross-border transactions. Rounded also serves as a more than decent mobile application.
What is unique about Rounded is its feature of well-maintained in-app chat and communication support. It helps businesses communicate effectively over business transactions and reports on the platform itself also amounting to good accountability and transparency for later reference.
Rounded is not great at taxes and does not offer GST services on one of its two plans. Your bank account could also not be kept up with through this plan, as it cannot be connected.
Two plans. $19.95/ month for the ‘Starter’ plan and $24.95/month for the ‘PRO’ plan. The plans differ in GST valuation, Bank account connection, and unlimited availability of templates.
How To Choose The Best Accounting Software For Your Accounting Needs in Australia?
It takes careful consideration of various important elements to choose the ideal accounting software for your company. First, choose between desktop-based and cloud-based software. The benefits of cloud-based software like data synchronization, automatic backups, and ease of accessibility from anywhere, make it a popular option. For companies without dependable internet connectivity or those who require swift in-person transactions, offline software might be a good option.
Data security is integral to any accounting software. For secure data transfer, ensure your provider uses HTTPS, and ask about their security precautions. Choosing reliable cloud hosting companies like Amazon or Rackspace is a good idea.
Decide which key functions you require, such as invoicing, expense monitoring, inventory management, and bank reconciliation. As you choose software for your organization, take scalability into account.
The ability to readily export your data is essential for exit options. Be aware of any hidden fees, such as transaction costs or integration fees, and be aware of any restrictions in free trial versions.
Post-purchase support is crucial, too. Verify the availability of numerous support channels, prompt responses, knowledge, resources, and software updates.
Ultimately, you may choose accounting software with confidence by taking these variables into account and matching them with your company’s demands and objectives. ProfitBooks is an illustration of a complete accounting software choice that is suited for small and medium-sized businesses looking for a dependable accounting solution. It offers user-friendly features, scalability, inexpensive price, outstanding support, and transparency in expenses.
So, we looked at multiple options to get Xero off of our desks and also got a good insight into what accounting software does. We also took care of the consuming task of selecting an accounting software backing our reasons with quality opinions.
From my research of this article, it is very clear that more than the software it becomes more about the requirements of your business. The way you want to handle your accounts is where the ideal software resides, consider it as a priority.
In the end, when you’re picking your accounting software, just remember these things and match them up with what your company needs and wants. One option to consider is ProfitBooks. It’s great for small and medium-sized businesses, with user-friendly features, room to grow, a reasonable price, excellent support, and clear expenses.
I hope you enjoyed reading this while enlightening yourself on all your queries. Until next time then, Happy learning!