Teardown Time: Why Thriday surpasses Hnry
With the average small business owner spending over 6 hours a week on banking, accounting and tax, there is a massive chunk of time to be saved if you pick the right platform to keep on top of your financial admin. In addition, having the right financial tools will help you keep track of your spending, allowing you to make more informed decisions about your business. In this blog, we'll compare Thriday, a new platform that uses AI to automate financial admin tasks, with Hnry, which provides accounting services to support sole traders.
What is Thriday?
Thriday is a new all-in-one financial management platform that automates banking, accounting and tax using artificial intelligence. Thriday is a 4th generation platform that is unique in that it offers an integrated bank account* and Visa Debit card* that tracks all your incoming and outgoings automatically.
Once you sign up for Thriday, as you earn income and spend money, all your bookkeeping, accounting and tax are taken care of, so you don't need to lift a finger. Thriday uses AI or artificial intelligence to categorise your transactions, determine if GST was incurred, and what taxes you owe. This means you know exactly where you stand in real-time and never need to worry about financial admin or taxes again.
In addition, Thriday provides a comprehensive quoting and invoicing platform so you can get paid on time. You can also generate detailed management reports to ensure you know the detail behind your business performance. Thriday is perfect for small business owners who want to focus on their craft rather than dealing with a bookkeeper or accountant.
What is Hnry?
Hnry is a New Zealand-based startup that aims to help sole traders with accounting services. Hnry has a team of virtual accountants that will review your income and expenses and advise you on what you can claim from a tax perspective. Hnry is different to Thriday in that it does not offer any banking or Visa debit card services which means you need to keep a manual log of your income and expenses and upload them into the Hnry platform.
Hnry's platform is not powered by advanced automation or AI like Thriday. Instead, it provides human accounting support similar to H&R Block or other regular business accounting firms. When signing up to Hnry, you get issued a Hnry trust account which Monoova provides. This trust account is set up to receive invoice payments and store tax payments. Hnry provides a model whereby they hold up to 55% of the income you earn in a trust account on your behalf. This can make it challenging from a cash flow perspective as you can only utilise a small portion of your income throughout the financial year.
What is the benefit of storing money in a bank account versus a trust account?
Thriday has partnered with Regional Australia bank to provide business bank accounts that are fully government insured. You can access these funds any time, and it's your money, held directly by your business. When you sign up for Thriday, you will get issued a bank account and Visa Debit card* that you can use to automate your accounting and bookkeeping. With Thriday and Regional Australia Bank, all funds are protected under the Financial Claims Scheme (FCS), which ensures you have a safety net for deposits of up to $250,000 per account holder per ADI. It is important to always have your funds in an FCS-protected account, such as with Thriday and Regional Australia bank, so that you can sleep easily at night.
Hnry, on the other hand, stores your funds in a trust account. A trust account is a business bank account used by a public accountant to hold funds on behalf of clients. When you sign up with Hnry, you agree to a legal arrangement where Hnry holds your business assets on behalf of your business. Under this arrangement, there are ethical requirements as detailed by the Accounting Professional & Ethical Standards Board around the handling of 'Client Monies' (APES310). It is important to be aware of this when registering for Hnry, and we encourage you to seek legal advice on whether this arrangement suits your business needs.
"Hnry, on the other hand, stores your funds in a trust account. A trust account is a business bank account used by a public accountant to hold funds on behalf of clients."
In the unlikely event of Hnry ceasing business operations or going into insolvency, liquidation or bankruptcy, you must make a valid claim to receive the funds from your trust account.
How do you access funds held in a Hnry trust account?
Once funds are stored in a Hnry trust account, your business becomes a beneficiary to that account, and this means that to access the funds held in that account, you'll need someone at Hnry to transfer the funds out. In short, you do not have day-to-day or real-time access to these funds, and this can be tricky if you need the funds at short notice or have a temporary cash flow challenge you need to address.
When funds are held in trust, there can be challenges in getting access to your funds if the business that has the funds goes bankrupt or ceases to operate. In the event of bankruptcy, once creditors come in, there can be legal ambiguity regarding the disbursement of these funds. You can read more here about complying with trust accounts obligations.
What are the key features that make Thriday more streamlined than Hnry?
One of the key advantages of using Thriday is that everything is integrated into one single platform, and there is no need to set up separate apps or do anything manually. Thriday customers have reported spending an average of 6 hours a week on financial admin before using Thriday. Once they started using Thriday, this dropped to only 30 minutes.
"One of the key advantages of using Thriday is that everything is integrated into one single platform, and there is no need to set up separate apps or do anything manually"
For example, when using Hnry, if you incur an expense for your business, you need to manually upload and enter the details of a receipt for a Hnry accountant to review. This is time-consuming, prone to human error and tedious to remember to do every time. With Thriday, you just need to take a photo, upload or forward a receipt and this makes your life so much easier and saves you time.
This is the same when it comes to bookkeeping, accounting and tax. With Hnry, you have to rely on an accountant being available to review your details and make the correct claims manually. Thriday has built this natively into the system, so it all happens seamlessly and without human intervention. In essence, Thriday is the Chat GPT of accounting, whilst Hnry is a person. Would you rather use a supercomputer with hundreds of thousands of data points or a single person dealing with multiple clients?
What is the Hnry tax?
Hnry charges a fee that is 1% of all the income you earn. This is very steep when you consider that the average small business in Australia generates about $100,000 in revenue. This means that if you earn $100,000 a year, you will get a bill of $1,000 for using Hnry. On top of this, Hnry holds up to 55% of your income in a trust account, meaning that you will only have access to a portion of the money you make during the year. When you factor in the additional cost of using human accountants versus doing automated accounting like Thriday, it's easy to see why Hnry needs to charge a lot more for its service. Because Thriday has automated its platform, it can offer more features and charge a much cheaper flat fee of $29.95 a month. The choice is pretty easy, do you want to pay $1,000 a year or $29.95 a month? In addition, you have full access to all your funds stored in your bank account*, and you can see exactly how your business is always positioned from a tax and cash flow perspective.
Is Thriday tax deductible?
You should be eligible to claim any subscription fees you paid for Thriday in the prior 12 months as a tax deduction. You can read further details on eligible tax deductions from the ATO here.
Check your business performance at a glance with Thriday
Thriday offers a range of advanced features that can help small business owners understand how their business is performing. Here are some ways Thriday can help you gain insights into your business performance that Hnry does not provide:
- Financial Reports: Thriday generates a range of financial reports, such as balance sheets, profit and loss statements, and cash flow statements. These reports provide an overview of your business's financial health, including revenue, expenses, and profits. By analysing these reports, you can identify trends, track progress, and make informed decisions.
- Expense Tracking: Thriday's expense tracking feature allows you to categorise and track expenses. You can see how much money you spend on different categories, such as rent, utilities, and marketing. This can help you identify areas where you can cut costs or invest more resources.
- Invoicing: Thriday's invoicing feature lets you create professional-looking invoices and track payments. You can see which invoices are outstanding, which have been paid, and which are overdue. This can help you manage your cash flow and ensure you're getting paid for your work.
- Sub-accounts: If you love the Profit First method, then Thriday is the official software partner for Profit First Australia. With Thriday, you can set up your Profit First accounts in minutes and quickly move funds between your accounts when funds come in.
- Real-time Data: Thriday's cloud-based system allows you to access your financial information in real time from anywhere. This means you can see how your business is performing at any given moment, which can help you make quick decisions and take action when needed.
- Tax Predictions: Thriday provides tax estimates that help you determine how much tax you will have to pay at the end of the financial year. You can then set up a sub-account for tax time and set funds aside.
Thriday offers a range of features to help small business owners gain insights into their business performance. You can make informed decisions about your business and drive growth by tracking expenses, invoicing, managing inventory, and generating financial reports.
A beautiful user experience that makes it easy to get stuff done
Whilst terms like banking, accounting and tax are not commonly associated with good design, let's be frank when checking out the numbers; it's much better to use something pleasing to the eye. From the moment you sign up with Thriday, it's easy to see that the platform is easy to use and designed for modern business owners. This is evidenced by app store ratings, where the Thriday platform is the clear winner with an average app store rating of 5.0 versus 3.7 for Hnry. In terms of aesthetics and design, the Hnry product has an elementary look and feel, and it has some complex features that make it hard for people who need to be tech-savvy to use it effectively.
Bank-grade information security and data handling
Because Hnry is an accounting practice, they do not achieve the same level of information security standards as Thriday. For example, in the Hnry app, there is no two-factor authentication, which means if your login details are stolen, a fraudster will have full access without a backup to protect you. Hnry also requires only one form of ID (a Driver licence) to sign up, whilst Thriday requires two forms of ID (either a Passport, Driver licence or Medicare card). This reduces the risk of someone fraudulently creating an account in your name. Thriday is also ISO27001 compliant, the leading global standard for Information Security. Thriday undergoes regular penetration testing undertaken by Crest-certified providers and is an official partner of Microsoft.
Stick with your existing accountant and Thriday
When you sign up with Hnry, they mandate that you move accountants to them. This is required so that they can create a trust account to hold your funds and then update the ATO on your income and expenses. There is no need to change accountant with Thriday, unlike with Hnry. Once you sign up for Thriday, you can use Thriday's automated solutions or export data for your current accountant at the end of the financial year.
Switch from Hnry to Thriday
If you want to switch to Thriday from Hnry, it's really straightforward. Just fill out this form, and one of our friendly team will help you do it. To find out how much time you could save by switching to Thriday, fill out our time saver quiz.
Thriday - A 4th generation accounting platform
In many respects, Hnry is very similar to a regular accountant such as H&R Block that you could use. Because they have a team of accountants that manually review your details and expenses, they better reflect a 1st generation accounting system. Thriday, on the other hand, represents the first 4th generation accounting platform in the market - always on, real-time and automated. All you need to do with Thriday is earn money, spend money, and everything else is taken care of.
Thriday is the preferred all-in-one platform among small businesses due to its low price, powerful features, and easy-to-use interface. The platform's capacity to automate repetitive tasks like receipt scanning and invoicing frees business owners to concentrate on business expansion instead of administrative tasks. Additionally, Thriday's cloud-based system allows business owners to access their financial information from anywhere, making it ideal for business owners constantly on the go. Thriday provides critical insights into business performance with its comprehensive reporting and analytics tools, allowing small business owners to make informed decisions. With its excellent customer service, Thriday is an ideal accounting app for small businesses looking to streamline their financial management processes.