After more than a decade in the SaaS industry and experiencing firsthand financial management challenges, I’ve seen Australian businesses struggle to find the right accounting software.
As co-founder of ProfitBooks, I’ve spent years evaluating and comparing accounting solutions, and I’ve noticed that many business owners feel trapped with Reckon despite its limitations.
In my conversations with hundreds of fellow entrepreneurs, I’ve discovered that what looks good on paper doesn’t always deliver in the real world. I’ve created this comprehensive guide to Reckon alternatives based on user experiences and thorough research.
About Reckon
Reckon began operations back in 1987 in Sydney and has been a significant player in the Australian accounting industry ever since.
With a history spanning over three decades, it remains one of the oldest accounting solutions in the country, reporting approximately 1 million users last year.
While working with various clients over the years, I’ve noticed that Reckon offers comprehensive reporting and analysis features, along with inventory management and payroll capabilities.
But as someone who has seen the evolution of accounting software firsthand, I can tell you there’s a reason why businesses are actively seeking Reckon alternatives.
According to recent market analysis, Reckon’s market share sits at just 0.05% compared to competitors like MYOB at 3.81%, signaling some significant limitations that are worth examining before making your decision.
Let’s dive into what those are.
Why Do We Need Accounting Software for Businesses In Australia?
Before we jump into alternatives, let me share why proper accounting software is critical for Australian businesses today. This is something I learned the hard way when starting my first venture.
When I launched my business years ago, I tried managing finances manually using spreadsheets.
It was a disaster!
I spent countless hours reconciling transactions, missed tax deadlines, and ultimately cost myself thousands in accountant fees fixing my mistakes.
That experience taught me that good accounting software isn’t just nice to have. It’s essential.
The right accounting solution does much more than track numbers.
It transforms your business operations by:
- Reducing overhead costs: You won’t need an extensive accounting team, saving you significant payroll expenses.
- Providing data-driven insights: Beyond basic numbers, you get powerful reports that help you make strategic decisions. I’ve personally used these insights to identify our most profitable service lines and double down on what was working.
- Simplifying GST compliance: Australian tax regulations can be complex, especially with GST requirements. Proper software ensures you’re always compliant with the latest tax laws—a lesson I learned after a particularly stressful ATO audit early in my entrepreneurial journey.
- Protecting financial data: With cyber threats constantly evolving, accounting software offers security features that safeguard your sensitive financial information.
As an entrepreneur who’s experienced both the manual approach and the software-driven one, I can confidently say that the right accounting solution acts as a growth catalyst for your business, not just a record-keeping tool.
Why Do We Need Reckon Alternatives In Australia?
After working with numerous Australian businesses and analyzing user feedback, I’ve identified several recurring issues with Reckon that prompt business owners to seek alternatives:
1) User Interface and Learning Curve
While Reckon’s interface has improved over the years, it still remains less intuitive compared to newer cloud-native platforms. As someone who’s trained teams on various accounting platforms, I’ve noticed that Reckon requires a steeper learning curve for users unfamiliar with accounting software.
My experience shows that this learning curve translates to longer onboarding times and higher training costs—an unnecessary burden on small businesses with limited resources.
2) Limited Automation Capabilities
In today’s automated digital era, automation isn’t a luxury. It has become a necessity.
Recent user reviews on Capterra highlight that Reckon’s automation features for bank reconciliation and invoicing require more manual intervention compared to competitors.
I’ve seen businesses waste valuable hours on tasks that should be fully automated. This is time that could be better spent on growing your business rather than on bookkeeping.
3) Scalability Concerns
Many users have reported scalability issues with Reckon, particularly as their operations expand. According to comparative analysis data, businesses often outgrow Reckon’s capabilities when their financial needs become more complex.
I’ve witnessed this firsthand with several clients who had to undergo painful migrations after their businesses expanded beyond Reckon’s capabilities.
4) Technical Performance Issues
Perhaps most concerning are the persistent reports of system lags and interface glitches.
As noted by user experience researchers, these technical limitations can cause delays in important transactions, potentially damaging client relationships.
When I was evaluating accounting platforms for my own business, these performance issues were a major red flag. I believe financial software needs to be reliable above all else.
5) Limited Integration Ecosystem
In today’s interconnected business environment, your accounting software needs to play well with other systems.
Reckon offers significantly fewer third-party integrations compared to platforms like Xero, which boasts over 1,000 app connections.
From my experience integrating accounting systems with various business tools, this limitation can create significant workflow inefficiencies and data silos.
6) Pricing Volatility
Long-term Reckon users have reported unexpected price hikes of up to 20% without clear communication. As someone who carefully manages business expenses, I find this lack of pricing transparency problematic when planning annual budgets.
Reckon Alternatives In Australia
Now that we understand why businesses are looking beyond Reckon, let’s explore four exceptional alternatives that I’ve personally evaluated and recommended to fellow Australian business owners.
- ProfitBooks
After evaluating countless accounting platforms and helping thousands of businesses streamline their financial processes, I created ProfitBooks to address the specific pain points Australian business owners face.
What sets ProfitBooks apart is its user-friendly design that doesn’t require accounting knowledge.
When I was designing the system, I specifically focused on making complex accounting principles accessible to everyday business owners. Because I was frustrated by how unnecessarily complicated most accounting software felt.
One feature I’m particularly proud of is our inventory management system, which offers real-time tracking while allowing restricted access for enhanced security.
Unlike other platforms that overwhelm you with excessive reports, we’ve taken a focused approach that helps you concentrate on metrics that matter for business growth.
The most significant advantage?
Our lifetime FREE “Startup” plan offers 25 invoices monthly. This is perfect for new businesses watching their costs. You can try it out for free right now!
This isn’t some stripped-down version; it’s a comprehensive solution that I developed specifically for entrepreneurs who need to manage finances without breaking the bank.
For growing businesses, our “SMB” plan at just $20/month provides unlimited features at a fraction of the cost of competitors like Xero ($35/month) or MYOB ($34/month).
The pricing reflects my commitment to making powerful financial tools accessible to businesses of all sizes.
ProfitBooks Pricing Plans
PRICING:
- Startup Plan: FREE for life (includes 25 monthly invoices)
- SMB Plan: $20/month (unlimited invoices, users, and features)
- Xero
Xero dashboard
Xero has established itself as the market leader in Australia, and for good reason. It offers extensive reporting capabilities and excellent integration with third-party apps.
According to market analysis from ValueAdders, Xero’s ecosystem of 800+ integrations makes it particularly valuable for growing businesses with complex needs.
However, this robust functionality comes at a significant price premium.
In my conversations with business owners who’ve switched from Xero to ProfitBooks, pricing is consistently cited as the primary motivation for change.
Xero’s starter plan begins at $35/month, but most businesses quickly outgrow this and move to the $60/month standard plan.
Additionally, Xero’s comprehensive feature set can be overwhelming for small business owners without accounting backgrounds. Several clients have shared with me that they ended up hiring bookkeepers simply to navigate Xero’s complexity.
It’s an added cost that many small businesses can’t justify.
PRICING:
- Starter Plan: $35/month
- Standard Plan: $60/month
- Premium Plan: $75/month
- Ultimate Plan: $110/month
- Rounded
Rounded Accounting Software – Dashboard
While evaluating solutions for freelance clients, I discovered Rounded.
It’s a platform that leverages AI to create personalized user experiences. What impressed me was their intuitive navigation and built-in client communication tools that foster transparency.
Their multicurrency support is particularly valuable for businesses with international clients, a feature that typically costs extra with other providers. The in-app chat functionality also provides excellent support when questions arise.
However, in my assessment, Rounded has limitations around GST management. Their base ‘Starter’ plan lacks GST functionality.
This is a critical oversight for Australian businesses with GST obligations.
Additionally, bank feed connectivity is restricted to their premium plan, limiting real-time financial visibility for users on the basic tier.
PRICING:
- Starter Plan: $19.95/month
- PRO Plan: $24.95/month
- MYOB
With decades in the Australian market, MYOB remains a significant player despite what some critics call its “dinosaur” reputation.
Having worked with numerous MYOB users over the years, I’ve found its strengths lie primarily in tax compliance and payroll management.
MYOB’s separate payroll system adds enhanced security. It’s something I appreciate from a data protection standpoint.
Their banking integration and international business tools also perform well for businesses with complex operations.
The main drawbacks I’ve observed are MYOB’s pricing structure and learning curve.
The platform charges extra fees for additional employees beyond their base plans, which can quickly escalate costs for growing businesses.
The interface, while improved, still feels less intuitive than newer platforms, often requiring specialized training to use effectively.
PRICING:
- Lite Plan: $15/month
- Pro Plan: $27.50/month
- AccountRight Plus: $68/month
- AccountRight Premier: $85/month
How To Choose The Best Suitable Software For Your Accounting Needs?
After helping hundreds of businesses select accounting software, I’ve developed a framework to simplify this critical decision:
- Deployment Method
First, decide between cloud-based or desktop software. In my experience, cloud solutions offer significant advantages for most businesses. This includes automatic backups, remote access, and real-time updates, with the latter being the most valuable.
However, if you operate in areas with unreliable internet or have specific security requirements, desktop options might be more appropriate.
- Security Standards
Never compromise on security. Verify that any solution you consider uses HTTPS for data encryption and partners with reputable cloud hosting services like Amazon AWS or Rackspace. We at ProfitBooks use the best security in the business and make data security our top priority.
When I developed ProfitBooks, security was my top priority. We implemented AES-256 encryption and store all Australian data locally in Australia, unlike some competitors who use overseas servers.
- Feature Requirements
List your essential functions: invoicing, expense tracking, inventory management, bank reconciliation, etc. I recommend creating a simple spreadsheet, scoring each platform on your must-have features. Don’t pay for capabilities you’ll never use.
- Scalability
Choose software that grows with your business. During ProfitBooks’ development, I insisted on a flexible architecture that accommodates businesses from solopreneurs to mid-sized companies without forcing migrations as they grow.
- Data Portability
Always confirm how easily you can export your data if you ever need to switch platforms. Look for CSV or Excel export options that preserve your financial history. This often-overlooked factor saved several of my clients significant headaches during platform transitions.
- Pricing Transparency
Watch for hidden costs such as transaction fees, integration charges, or per-user pricing. The sticker price rarely tells the complete story. I’ve seen businesses shocked by unexpected charges for features they assumed were included.
- Support Quality
Evaluate support quality before committing. Test response times during free trials and read user reviews specifically mentioning support experiences. In my years running ProfitBooks, I’ve found that responsive support is often the difference between a satisfied customer and a churned one.
Business Size Considerations for Software Selection
When advising fellow entrepreneurs on selecting accounting software, I always emphasize that size matters. Based on my years of helping businesses of all sizes, here’s my guidance:
For Sole Traders and Freelancers:
ProfitBooks’ free Startup plan or Rounded’s user-friendly interface are ideal choices. Both offer the essentials without overwhelming features you’ll never use. I’ve worked with numerous freelancers who find ProfitBooks’ invoicing and expense tracking perfectly adequate for their needs, without the learning curve of more complex systems.
For Small Businesses (1-20 employees):
ProfitBooks’ SMB plan offers the best value-to-functionality ratio at $20/month. It provides all essential features (invoicing, expense tracking, GST management, inventory) without unnecessary complexity or hidden costs. Reckon One and QuickBooks are also viable options here, though they are typically more expensive.
For Growing/Mid-sized Businesses:
As your business develops more complex needs, scalability becomes crucial. Xero’s extensive integration ecosystem starts to justify its higher price point, though ProfitBooks’ SMB plan remains competitive with additional users at no extra cost. It’s a significant advantage as your team expands.
For Larger Enterprises:
Solutions like MYOB AccountRight Premier or Sage Intacct become relevant for businesses with multiple entities or complex consolidation requirements. These platforms offer advanced financial management features that justify their premium pricing for larger operations.
Australian-Specific Requirements
Having worked with Australian businesses since founding ProfitBooks, I’ve identified several critical compliance areas that your accounting software must address:
- GST and BAS Compliance: Automated GST calculations and simplified BAS preparation are non-negotiable. ProfitBooks offers transaction-level GST tracking with direct ATO lodgment capabilities, comparable to Xero’s tax compliance tools but at a significantly lower price point.
[Learn more about Australia GST and BAS in Australia] - Single Touch Payroll (STP): This ATO-mandated real-time reporting requirement is supported differently across platforms. ProfitBooks integrates seamlessly with STP systems, while platforms like Reckon restrict this functionality to higher-tier plans.
Employee Payroll Breakup
- Superannuation Management: As an employer, I know how crucial automated superannuation calculation is. ProfitBooks simplifies this process with built-in calculation tools that ensure compliance with current rates and thresholds.
- Local Support: Australian-based support during local business hours is invaluable when urgent issues arise. This was a key factor when establishing our support team. We ensure Australian businesses receive assistance during their working hours, not overseas time zones.
Real-World Comparison: Security & Data Protection
One area that doesn’t receive enough attention is security.
As someone who’s helped businesses recover from data breaches, I can tell you this should be a top consideration.
ProfitBooks uses AES-256 encryption (the same standard used by major banks) and stores all Australian data locally in Australia, providing better data sovereignty compliance.
In contrast, Reckon stores data locally in Australia but has reported system glitches that sometimes affect data integrity.
Xero uses robust encryption but stores data on AWS servers that might not always be in Australia, potentially creating compliance issues for certain industries. MYOB offers strong security with local data storage but at significantly higher cost points.
Frequently Asked Questions
What’s the most affordable Reckon alternative in Australia?
From my analysis, ProfitBooks offers the best value with a free lifetime “Startup” plan and full-featured “SMB” plan at just $20/month. Compared to Reckon ($22/month), Xero ($35/month), and MYOB ($34/month), it provides comparable functionality at a lower cost. As someone who’s built business software, I can confirm that higher prices don’t always indicate better value.
Which accounting software has the best GST/BAS compliance tools?
All major platforms support GST and BAS compliance, but implementation quality varies. ProfitBooks offers transaction-level GST tracking with direct ATO lodgment capabilities, comparable to Xero’s tax compliance tools. Reckon provides similar functionality, but users report occasional calculation discrepancies that require manual correction.
Can I migrate my data easily from Reckon to another platform?
Yes, but the process varies by platform. ProfitBooks offers comprehensive migration assistance, including historical transactions and client data. Reckon itself advertises free migration services when switching to their premium plans, but user reviews indicate the process isn’t always smooth.
Which accounting software best supports Australian payroll requirements?
MYOB has traditionally excelled at payroll, though it charges additional fees for employee management beyond basic plans. ProfitBooks integrates seamlessly with Australian payroll systems at no additional cost, ensuring STP compliance without the premium pricing of competitors.
Is there free accounting software available for Australian businesses?
Yes! ProfitBooks offers a free lifetime “Startup” plan that includes 25 monthly invoices, GST tracking, and basic reporting. It’s perfect for new businesses and solopreneurs. Wave Apps also offers free basic accounting functionality, though with limitations around Australian tax compliance.
How important is mobile functionality in accounting software?
Extremely important in today’s business environment. I often process invoices and check financial metrics while traveling. ProfitBooks offers a responsive mobile interface with receipt-scanning capabilities, while Rounded and Xero provide dedicated mobile apps with varying functionality. Reckon’s mobile experience lags behind competitors, with limited feature parity to desktop versions.
Conclusion
After helping thousands of Australian businesses optimize their financial processes, I’ve found that the right accounting software isn’t necessarily the most expensive or the one with the most features.
It’s the solution that aligns perfectly with your specific business needs while providing room for growth.
While Xero dominates the market with its robust feature set, ProfitBooks offers the best value proposition for most small to medium businesses, combining essential functionality with intuitive design at a fraction of the cost. Rounded serves freelancers well with its personalized approach, while MYOB remains relevant for businesses with complex payroll and multi-entity requirements.
The decision you make today about accounting software will significantly impact your ability to grow and manage finances effectively.
Consider functionality, scalability, support, and security—remembering that your future needs may differ from today’s.
Whether you’re just starting or looking to switch from Reckon to a more suitable alternative, I invite you to try ProfitBooks’ free Startup plan.
Experience firsthand how our streamlined approach to accounting can save you time and money while providing all the financial insights your business needs to thrive.
As someone who’s been in your shoes, building a business while trying to manage finances efficiently.
I created ProfitBooks specifically to address the accounting challenges I faced. Especially the ability to do cloud accounting for free was what drew me towards creating such a robust, yetr easy-to-use software.
I’d love to hear about your experiences with accounting software and answer any questions you might have!
Also Read:
Best Accounting Software in Australia
4 Perfect Quickbooks Alternatives In Australia
4 Trustworthy Myob Alternatives in Australia
