Running a business means keeping your numbers in check. That’s where accounting software comes in — it helps you stay on top of income, expenses, payroll, invoices, and more. But with so many options out there, where do you start? Let’s break it down.

Why Do Businesses Need Accounting Software?

Accounting software makes life easier. It helps you:

Whether you're a sole trader, a small business, or a growing team — software keeps your financials organised and ready when you need them.

Three Popular Accounting Software Options

Here are three well-known accounting tools used by businesses in Australia and around the world:

1. Xero

Best for: Small to medium businesses, especially those working with accountants

Cloud-based (works anywhere with internet)

Easy to connect with your accountant

Handles invoicing, payroll, bank feeds, BAS, and more

User-friendly dashboard

2. MYOB

Best for: More complex businesses or those needing inventory/payroll features

Local and cloud-based options

Strong payroll and inventory tracking

Good for businesses needing advanced features

Can be used offline (if needed)

3. QuickBooks Online

Best for: Small businesses or sole traders who want something easy and affordable

Cloud-based

Clean interface and simple setup

Good reporting and budgeting tools

Cheaper than some others

Do You Still Need Accounting Software If You Have an Accountant?

Yes — and no. It depends on how your business runs:

If your accountant handles everything (like bookkeeping, payroll, invoicing, BAS lodgment), you might not need your own software. You just pay your accountant’s fees, and they do the rest.

If you do some tasks yourself (like sending invoices, tracking expenses, or paying staff), having software is helpful. You can share access with your accountant — they get accurate data, and you stay in control. In short:

Software + Accountant = great combo for growing businesses

Accountant only = fine for simple setups or those who want everything managed externally

What Else Helps a Business Run Smoothly? (From an Accountant’s Perspective)

Clean record keeping
Use tools like Dext or Hubdoc to store receipts and invoices digitally — no more shoeboxes or missing paperwork. Tools: Dext, Hubdoc

Separate business and personal accounts
Always use dedicated business bank accounts and cards to keep finances clear and avoid mixing expenses. Tool: any banks

Keep books up to date
Reconcile accounts weekly or monthly so your reports are accurate and useful year-round. Tool: xero

Set aside money for tax and super
Save around 20–30% of your income in a separate account to cover GST, income tax, and super obligations. Tools: WeMoney, Frollo

Cash flow forecasting
Plan ahead to spot quiet periods or upcoming expenses. Helps avoid nasty surprises when bills are due. Tool: Float(integrates with Xero)

Know your break-even point
Understand how much you need to earn to cover your costs — gives you a clear financial target. Tool:Calxa

Use proper payroll software
For employees, use systems that handle Single Touch Payroll (STP), super, leave, and PAYG properly. Tool: KeyPay

Regular check-ins with your accountant
Don’t wait until EOFY — quarterly or monthly chats help keep things on track and spot issues early. Tool: any communication. 

Create a simple budget
Helps control spending and keep your finances aligned with your business goals.Tool: Excel

Choose the right business structure
Sole trader, company, trust — your setup impacts tax, liability, and growth. Make sure it fits your needs. Tools: Cleardocs or Lawpath

Final Thoughts

Accounting software isn’t just about keeping up with the ATO — it’s about running your business smarter. Xero, MYOB, and QuickBooks each have strengths, and the right one depends on what your business needs.

Not sure what fits best? Talk to your accountant — they’ll usually have a preference and can help you get started the right way.