Choosing accounting software for an Australian business

Choose accounting software by following the transactions your business handles, then checking which plan supports them at a cost you can sustain. Start with invoices, supplier bills, bank transactions and reports, then add payroll, stock, projects or multiple entities where your business needs them.

Use the same requirements to shortlist Xero, MYOB Business and QuickBooks Online rather than choosing from feature lists alone. A demonstration can show whether a payment is recorded twice and whether a reviewer can explain a GST figure.

Set goals and a digital strategy first

Businesses that use digital tools are more likely to grow, respond quickly to change, manage risks and keep running during tough times. Accounting software can send invoices automatically to help you get paid quicker, while inventory software can reduce errors by tracking stock levels.

Set goals that accounting software can support, such as increasing revenue or profit, making better use of assets, improving processes, speeding up tasks or helping staff connect. A digital strategy helps you choose tools, protect customer data and track what is working.

Define the buying brief

Write down who creates each record, who checks it and what happens when something is wrong. Include your busiest month, the people needing access, your bank accounts and the reports used at month end. Ask your accountant which records and reporting outputs you need, then separate requirements into essential now, likely soon and optional.

If you employ people, check each plan's payroll allowance and how payroll results reach the accounts. Also confirm Australian Single Touch Payroll support and how superannuation is handled; do not infer either from a payroll allowance alone.

Xero's plan details list payroll for specified headcounts and automated superannuation. MYOB Business lists payroll options, but the plan details here do not establish its Single Touch Payroll support or superannuation handling; QuickBooks Online's plan details do not state payroll capability or an allowance, so verify these before relying on it for payroll.

For sales from a point-of-sale or ecommerce system, decide which system owns each sale and how refunds, fees and settlements reach the ledger.

Compare the full accounting path

In a short demonstration, trace representative invoice, bill and bank items through matching, GST treatment, approvals and reporting, including whether bank items duplicate records. Check that a report figure can be traced back to its transactions.

Ask what you can retrieve if you leave, including transaction detail, contacts, attachments and reports for earlier periods. Check export options and access after cancellation, and confirm record-retention needs with your accountant.

Key Facts from Australian Accounting Software Providers

Build a shortlist around plan limits

Xero. Consider it if several people need bookkeeping access. Payroll allowances are one person on Ignite, two on Grow, five on Comprehensive and 10 on Ultimate 10; expenses and mileage are limited by plan.

Ignite lists 20 invoices and five bills. Grow, Comprehensive and Ultimate 10 include invoicing and bill tools, but their numerical invoice and bill allowances are not stated in the plan details here, so confirm limits before choosing. Xero plans list bank reconciliation and GST and BAS tools; expenses, multi-currency and projects depend on the plan.

Xero's published prices start at $7.40 per month for Ignite for the first three months, then $37 per month. Grow is $15.60 then $78, Comprehensive $21.40 then $107, and Ultimate 10 $28.60 then $143.

Xero's cashflow forecasts run for 30 days on Ignite, 60 days on Grow, 90 days on Comprehensive and 180 days on Ultimate 10. Online bill payments cost $0.35 each on lower plans, and auto-reconcile is $8 per month on Ignite but included on Grow and above.

MYOB Business. Consider it when payroll or stock shapes the choice. Lite lists GST and BAS tools, inventory and order features, up to two connected bank accounts, and optional payroll for up to two employees at $3 per month per employee. Pro lists unlimited connected bank accounts and optional payroll for unlimited employees at the same per-employee rate.

Check the stock functions and any inventory add-on you need. Business Lite costs $94.50 per year for the first year, then $315 per year; Business Pro costs $21 per month for the first six months, then $70 per month. Lite is quoted yearly and Pro monthly, so compare them over the same period and account for the offer period.

MYOB also offers Solo for sole traders and AccountRight plans; those sit outside this comparison and are covered in our MYOB guide.

QuickBooks Online. Consider it when bill handling, working users, projects or inventory determine the plan. Simple Start lists invoicing, income and expenses, and one user. Essentials adds supplier and bill management, recurring transactions and multi-currency, and lists three users.

Plus adds project management, inventory tracking, budgeting and up to 40 classes and locations, and lists five users. Plus and Advanced both include anomaly detection and resolution. Advanced adds unlimited classes and locations, revenue recognition, fixed assets, automated workflows, custom role permissions, custom reporting fields, data sync with Excel, and backup and restore, and lists 25 users.

Accountant access is separate from those user counts. QuickBooks Online lists Intuit Intelligence and GST AI across plans, and advertises 7 million customers globally and a Capterra review score of 4.3/5.

The QuickBooks Online plan details here do not state payroll capability or a payroll allowance. Its advertised 70% discount for six months is not a dollar price for comparing recurring costs, so confirm the current AUD price and payroll details before choosing it.

If purchasing, warehouse or manufacturing work must be closely connected with finance, evaluate an ERP route as well. A bookkeeping product with suitable integrations may also meet the requirement; test the hand-offs before deciding.

Compare total cost of ownership

Work out the total cost of ownership for each tool: the upfront cost plus running costs over the tool's life span. Review what you already use, cancel subscriptions you do not need, and check for duplicate tools that do the same job.

Compare prices over the same period, including costs after promotional offers and any payroll, inventory or other add-ons you need. Look for open-source software or free plans that meet your needs, and consider whether bundling multiple tools into one subscription costs less than buying them separately.

Make the decision with evidence

Give each provider the same transactions, roles and reports to demonstrate. Record whether a gap needs a setting, a paid tier or add-on, or an ongoing manual check. Include setup, training, integrations and data conversion in the cost comparison instead of relying on a temporary offer.

Have your accountant check the proposed account and GST setup before live use. Choose the option that meets essential requirements, fits expected activity and has a sustainable ongoing cost.