How to Choose Accounting Software for Your Small Business

May 28, 2024
5
minutes to read
by
Justin Bohlmann
Table of Contents

Choosing the right accounting software can be a game-changer for the health of your small business. In today's digital landscape, understanding and selecting the optimal software can be the difference between hours of frustration and streamlined financial management. The market, while vast, presents standout solutions, especially if you know what to prioritise. This detailed guide examines these key areas, helping you navigate the software selection journey with confidence to eliminate financial admin and get back your precious time.

Choosing the Right Accounting Software for Your Small Business

What to consider when choosing between software?

Navigating the expansive landscape of accounting software to find the right fit for your small business can feel overwhelming. However, you can simplify the decision-making process by focusing on a few key factors:

  • Understanding Your Business Size and Structure: Not all businesses are created equal. A sole trader's needs will be different to a business with 50 employees. Ensure the software you choose can handle your business size and adapt as your business evolves.
  • Industry-Specific Requirements: Some industries have different accounting needs. For instance, a retail company may have dedicated shipping and storage rental categories, while a service-based business might want to prioritise invoicing features.
  • Future Growth and Scalability: Your business may not always be the size it is now. Opt for software that can scale with you, accommodating more clients, features, or accounts as needed.
  • Usability and Access Needs: Consider who'll be using the software and their tech-savviness. User-friendly software can save you countless hours of frustration and make tax time a breeze. 
  • Cloud-based vs. Desktop Software: Cloud solutions can offer easy accessibility to your business data anytime, anywhere, on any device. Bulky and complicated desktop software is no longer the only option. 

At Thriday, we have listened to our users' key considerations and built the ultimate all-in-one financial management platform, leveraging the power of AI to eliminate your financial admin, no matter the shape or size of your business. 

Accessible on any device, our user-friendly app uses cutting-edge technology to accurately categorise all incoming and outgoing transactions in any industry, handling all your bookkeeping and tax obligations automatically. 

With Thriday's integrated business bank accounts, you can run your business as usual and the platform will take care of the rest. Analysis of your income, expenses and critical business report generation is fully automated so that you can stay on top of your accounting and tax obligations without lifting a finger.

Don't just take it from us; Hear from our happy customers here!

Thriday feature set
Thriday is an all-in-one financial management platform designed to automate and eliminate financial admin for small business owners

What are the Benefits of Modern Accounting Software?

In today's fast-paced business environment, leveraging technology is not just an advantage—it's a necessity. Modern accounting software stands at the forefront of this technological revolution, offering many benefits tailored to streamline operations and enhance financial management. Here's how:

  • Time Savings and Efficiency: Remember those days of manually inputting data and chasing lost receipts? Thankfully, they're history. Features like Thriday's automatic receipt reconciliation can streamline tasks, turning hours of work into mere moments. Instant invoicing and automated expense tracking mean you can hang up your calculator and focus on what you do best: running your business.
  • Accuracy and Error Reduction: A small oversight can lead to a significant hiccup in the business world. But with the power of industry-leading AI technology at your disposal, those mistakes can become a distant memory. Thriday's rule-based automated accounting system makes sure that your calculations are precise, kept up-to-date in real-time, and every piece of data is in sync. 
  • Comprehensive Financial Insights: Beyond the basics, today's software offers a crystal-clear view of your financial landscape. With intuitive dashboards and in-depth financial reports built for you in the Thriday app, you're equipped with insights that show where you're thriving and where there's room to grow. It's like having a bird's-eye view of your business's financial health anytime you need it.
  • Scalability and Flexibility: Modern accounting software also offers adaptive features that grow with your business, which can be a game-changer for enterprises aiming to expand without constantly switching tools. With multiple bank account integrations and robust reporting, Thriday is built to handle any direction you want to take your business.
  • Real-time Collaboration and Accessibility: Another noteworthy advantage is cloud-based functionality. Thriday enables you to remotely access your data in real-time from anywhere, helping you make faster and more informed decision-making on the go.

Presenting a breakthrough in modern accounting software, Thriday offers all this and more to simplify bookkeeping, tax preparation and planning.

By combining the tools you need to manage your money in one place, Thriday intelligently automates the tedious admin that sucks away your valuable time so that you can get back to spending your Sunday nights on what’s really important.

Thriday customer
Thriday customer

Top Accounting Software Providers 

Today's accounting software arena is brimming with noteworthy contenders, both old and new. Let's explore the main choices winning the hearts of Australian small businesses and sole traders:

Thriday: The Complete Solution for Small Business

Thriday is an all-in-one financial management platform that automates your bookkeeping, calculates taxes and shows the health of your business in real-time. With built-in business transaction accounts and a Visa Debit card, banking happens in the same platform as your accounting - enabling everything to be automatically organised and eliminating the need for financial admin.

Not just another accounting software, the platform is a game-changer for businesses keen on optimising their financial processes. Here’s why:

  • Tireless Transacting: With all your transactions integrated in one place, the platform uses AI to automatically reconcile and categorise all your transactions to create every accounting report your small business needs to thrive. Providing easy access to real-time cash flow and tax forecasts, chart of accounts, income statements, balance sheets and more - Thriday does the heavy lifting to save you the headache, time and money on accounting. Discover the power of Tireless Transacting here.
  • Instant Invoicing: Instant Invoicing to help you get paid fast! With mobile or web apps, you can create and send professional invoices in seconds. You can also easily offer discounts and follow up with payment reminders. Learn more about Instant Invoicing here.
  • Receipt Reconciliation: Scan, send and save receipts on the go with Thriday. Take a photo of your receipts and the platform will automatically reconcile and store them so they’re never lost come tax season for those precious deductions. 
  • Quick Quotes: Use the app to send professional quotes via email or SMS from wherever you are. Easily add new and saved billable items with custom units of measure. With the Thriday app, quoting new and existing clients is as easy as it should be.
  • Automated Allocations: When you earn income, you can set up automated allocations so that a percentage of your earnings get distributed to a bank account of your choice. This can be used to automate your Profit First distributions, or can be used to send a percentage of your earnings to your Super account.
  • Lightning Lodgment: Thriday shows you when new lodgments are scheduled, available, due or overdue and automatically generates the report to be lodged within the platform. Easily lodge your BAS to the ATO in minutes within the app.

No longer do you need to waste time setting up bank feeds, or managing multiple spreadsheets, applications and integrations.

Simply use your integrated business transaction accounts to cover income and expenses and Thriday does the rest - automatically reconciling transactions to accurately calculate your tax and financial reports so that you never have to worry about financial admin again!

Thriday's all-in-one platform
Thriday's all-in-one financial management platform

Quickbooks

Developed in the USA by Intuit, QuickBooks is an accounting software tailored for small to medium-sized businesses. Users can manually import transactions into the software and then complete tasks like bookkeeping, invoicing, time tracking, and sales tax management, eliminating manual data entry. The software offers comprehensive financial solutions, including payroll, inventory management, and more. Compare Quickbooks to Thriday here.

HNRY

HNRY allows you to have your business income deposited into a bank account managed by HNRY, where taxes and financial reports are pre-calculated, and the rest of your income is passed on to you minus any estimated tax expenses. Unlike other software with flat fee structures, HNRY charges a fee of 1% of the self-employed income earned by their clients, capped at a maximum of $1,500 per year. Compare HNRY to Thriday here.

XERO

Similar to Quickbooks, XERO is a cloud-based accounting software tailored for small businesses that provides tools for invoicing, bank reconciliation, inventory management, and more. Users can manage files, attach documents like receipts and invoices to transactions and create necessary accounting requirements in the platform. Compare Xero to Thriday here.

Result

While Quickbooks, Xero and HNRY offer partial solutions to the accounting headache; the lack of integration means users are stuck between either prematurely giving up control and access to their finances or needing to put the time in themselves to gather and consolidate transaction data.

With Thriday, you don't have to worry about either; absolutely everything is done for you automatically. Data analysis, personalised deductions and real-time-updates built for you with total control of your finances at all times. Don't settle for anything less!

The Importance of Professional Advice

We understand that running a small business in Australia can be tricky. However, sometimes chatting with a professional can make all the difference and help guarantee you peace of mind. Accountants can help with:

  • Financial Strategy and Growth: Beyond mere number-crunching, accountants offer strategic insights tailored to your business model. They can identify growth opportunities, manage cash flows, and offer advice on investments, ensuring your business remains financially healthy and poised for expansion.
  • Risk Management: Every business venture comes with risks. Accountants help identify potential financial pitfalls, advise on insurance needs, and ensure your business's financial foundation is solid.
  • Localised Expertise: Operating in Australia means understanding local market dynamics, regulations, and opportunities. Local accountants bring this expertise to the table, ensuring your business is in tune with the nuances of the Australian market.
  • Navigating Complex Taxation: Australia's taxation system, while robust, is intricate. Proper accounting software and professional advice can ensure that your business remains compliant with ever-evolving tax laws, helping you avoid potential penalties and make the most of available tax breaks.

Thriday's system is kept up-to-date with new and existing tax information from the ATO so that you never need to worry about navigating complex taxation laws alone. 

However, if you ever feel like you need a helping hand with any aspect of your business, Thriday a registered tax agent; should you want further advice or assistance, we can help. 

Making the Right Choice

Selecting the perfect accounting software for your small business is pivotal. It's not just about numbers; it's about aligning with your business's heartbeat.

  • Reassess Your Needs: Reflect on your business's essentials, from size to industry nuances and budget. The right software should resonate with these needs, laying the groundwork for robust financial health.
  • Stay Current: Accounting software is ever-evolving which makes it important to stay updated with the latest features and innovations. Thriday sits at the forefront of new technology, offering far and away the most powerful yet user-friendly accounting software on the market that is constantly updated to stay that way! 

Thriday streamlines financial tasks with user-friendly features, industry-leading automation, and robust reporting - making it the best choice for small businesses that don't have time to spare. Make the right choice and take advantage of the latest in AI to automate your banking, accounting and tax with Thriday. 

Here's to smart choices, thriving businesses, and never worrying about financial admin again!

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360  AFSL 241167 (Regional Australia Bank).  Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you.

Why waste time on financial admin when Thriday can do it for you?

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