Xero vs. MYOB: How to Choose the Right Accounting Software for Your Business

Discover tools to save time, simplify admin and grow profits. Running a small business can be time-consuming. Between managing employees, bringing in new customers, and keeping the books balanced, there's not always a lot of time for innovation and growth. Thankfully, technology has advanced to the point where there are plenty of great software tools to help small businesses do just that. But with so many options available, which ones should you choose? In this article, we'll break down six of the most helpful tools for growing your business, and offer advice on how to pick the right one for you. 1. A simple, powerful accounting platform If you're not an accountant, bookkeeping can seem like a complex task. Luckily, there are many accounting platforms available to make the process easier and more streamlined. Accounting software is a convenient way for small business owners to simplify the bookkeeping process. Gone are the days of maintaining a paper ledger — accounting platforms provide tools to manage income, expenses, tax information and more, allowing business owners to keep track of their financial data in real time throughout the year. With over three million subscribers worldwide, Xero is a popular choice for entrepreneurs. Developed with small business needs in mind, Xero allows you to keep track of your finances via its intuitive, easy-to-read dashboard. At a glance, Xero users can get a holistic view of their financial position, including outstanding invoices and bank balances. However, don’t confuse simplicity with reduced functionality. This is a powerful solution that can deliver advanced reporting when you need it. And, with multiple subscription price points, there is an affordable option for all businesses. Not convinced just yet? For more help choosing the best accounting platform for your needs, read How to choose the right accounting software for your business. 2. Robust point-of-sale software A point-of-sale (POS) system is a must-have if your business needs to manage ordering or inventory. For retailers and hospitality merchants in particular, POS software can be a lifesaver — serving as a central hub to help business run more smoothly. Retailers can use a POS system to ensure appropriate stock levels are maintained, and that in-demand items are always available for purchase. This serves to ensure customers come back, time and again, to your business. Vend takes the pain out running your retail business by providing an integrated point-of-sale experience. With their portable software, you can accept payments, stay on top of inventory, and keep detailed records of your customers’ buying habits. You can also integrate the software with your accounting platform, to make it even easier to keep your business growing. In hospitality, POS software can help your business run more smoothly by streamlining the process for bookings and delivery orders, as well as tracking stock levels, and ensuring that your customer enjoys the ultimate dining experience. There are dozens of options on the market. The right option for your business depends on a number of considerations, including whether you offer delivery, accept bookings, and allow for meal customisations. Read more about how to find the best POS System for your restaurant on the blog. 3. Affordable email marketing software One of the most powerful ways to build customer loyalty is via email marketing. While social media and other channels might boost your brand visibility, a direct email will help ensure your past customers know about new product offerings, sales, and other changes in your business. Email marketing software can be used in a multitude of ways. You can use it to send regular newsletters, and track performance metrics such as open and clickthrough rates. Or, you could simply use it to let your customers know about a change to opening hours. Once your confidence with your chosen system builds, you might even consider using an automated email sequence to direct your customers through a pre-planned journey to drive sales for your business. For an email marketing platform with a good track-record, you can’t go past Mailchimp . Founded in 2001, Mailchimp has established itself as an affordable and easy to use email marketing platform for businesses of all sizes. Boasting an intuitive interface and expertly designed templates, sending out customer emails is easy for professionals and amateur marketers alike. If budget is a consideration, Mailchimp offers an entry-level plan — allowing businesses with fewer than 2,000 subscribers to use the platform free of charge. 4. A mobile EFTPOS terminal With cash use in steady decline , it’s never been more important for businesses to be able to accept cashless transactions. For that, you need a portable EFTPOS machine . All EFTPOS machines accept cards — it’s what they were originally built to do. However, the shift to more modern digital forms of payment will continue, and new payment methods will continue to emerge. In determining which EFTPOS machine is best for your business, consider not only whether it enables you to accept today’s most popular payment methods — but also whether it will continue to enable you to accept your customers’ payments into the future, as new methods such as ZipPay grow in popularity. Zeller Terminal is a powerful portable EFTPOS machine designed to make it easy to keep your payments in order and improve your cash flow. Featuring an elegant design, Zeller Terminal allows you to accept all payments, including smartphones and other mobile devices, contactless debit and credit cards, as well as traditional chip-enabled cards. Other benefits include being able to accept payments on the go, customising receipts, and a low fixed rate for all transactions. Coupled with a free Zeller Transaction Account , Zeller Terminal can fast-track payments, while ensuring that your funds (and those of your customer) are safe and secure. Learn more about how the Zeller Terminal can help you do business better by reading Zeller Terminal: your EFTPOS payments solution . 5. Task management software For every big task you need to tackle, there’s probably a hundred smaller tasks to manage. It’s these small, administrative tasks that keep the day-to-day operations running smoothly. Yet keeping on top of every detail can sometimes be overwhelming. If that’s the case, a project management tool might just be the lifesaver you’re looking for. What makes a good project management tool? Different people use different systems to stay organised, so choosing the right one might be a case of trial and error. That said, knowing your priorities is a good way to narrow the field. If you’re not sure where to start, Asana is a robust software solution that is easy to use. Even the free version comes with templates for everything from team meetings to event planning and content development, making Asana an ideal solution to break down tasks into smaller, achievable chunks. Plus, Asana’s collaboration features allow you to set up teams for separate projects, and communicate progress without the need for endless, repetitive emails to your staff. 6. A collaboration platform Maintaining open and transparent communication with your team is the secret to a high-functioning, positive workplace culture. While face-to-face communications is ideal, COVID-19 has taught us that workplace communications can take many forms. Tools that make group communications simple to deploy, and easy to read, are vital for your workplace. Consider how hard it has been to communicate constantly changing public health advice, or managing staffing, during the pandemic. Having the right collaboration tools can make all the difference. Slack is a team communication platform that acts as a modern alternative to email and other business tools. It makes it easy to keep track of conversations, files, and information shared across all devices, and integrates with existing tools such as MailChimp and Google Drive to allow information to be share efficiently across all platforms. If you find it challenging to keep track of email threads, you might find that Slack has the advantage over email, making it easier to keep track of discussions without worrying about where you filed an importance correspondence. In short, technology can make your life easier — whether you are running a small or large-scale enterprise. When you decide you need help with accounting, processing payments, or staying in touch with your customers, there are numerous options on the market. The important thing is to know your business needs and choose tools that are compatible with your goals, as these will streamline tasks and free up your time so that you can enjoy the fruits of your labour.

An accountant is an invaluable asset for your small business. As a business owner, maximising your tax offsets (and paying the right amount of tax) is vital. That’s why it’s important you find a good tax accountant early on — otherwise, you could end up paying more tax than you have to, or not enough. An accountant is a professional who takes care of your business’s bookkeeping and prepares important financial documents such as balance sheets, profit-and-loss statements, and more. However, the best accountants don’t just crunch the numbers — they add value to your business. An accountant can give you strategic advice and think of out-of-the-box ways to save your business money, and grow profits. You just need to choose the right one. The difference between bookkeeping and accounting When choosing an expert to be involved with your business’s financials, you need to ensure you are clear on your growth goals. Some business owners choose to engage a bookkeeper instead of a registered accountant, often to save money. However, there are some important differences to be aware of. Bookkeepers record the day-to-day financials of the business —  payroll, invoicing, and transaction records, for example. Accountants, on the other hand, are more focused on budgeting, forecasting, running financial reports and statements, and working on your business’s tax returns. As a business owner, having an accountant as part of your team is imperative for the long-term success and growth of your business. Finding an accountant for your small business Step 1: Create a shortlist With so many accountants available, it’s important to research your options. You’ll want to find an accountant who understands your business, the type of products and services you offer, and who will be able to help with your growth strategy. You should also consider a few factors such as location, workload, type of accounting software, fees, and their reputation in growing other businesses. These days, location is not as important as it once was. Virtual meetings and cloud-based accounting software have made it easier for both accountants and their clients to view real-time data, eliminating the need for you or your accountant to be located in close proximity. This is great news for small business owners: if your accountant can be located anywhere in the world, then you can find one that understands the mechanics of your business. Once you have a rough idea about the type of accountant and accounting services your small business requires, the next step is to compile a shortlist of accountants that will fit your business’s needs. Consider asking your network for recommendations, and spend some time searching online. There are various online directories you can search including: Institute of Chartered Accountants in Australia Institute of Public Accountants Certified Practicing Accountant of Australia It may be a tedious task, however it’s an important one to ensure your business thrives. Step 2: Interview your options Now that you have your shortlist, it’s time to contact each option and learn more about how they run their business. There are four key considerations in determining which accountant is the best fit for your business’s requirements. 1. Experience and specialisation Do they have experience in dealing with similar businesses to yours? Find out what type of clients they’ve dealt with in the past; the size of the businesses, any industry-specific software they’ve used, and how they’ve helped other businesses grow. The more familiar the accountant is with the ins and outs of your industry, the better for your business. An accountant with a good understanding of the intricacies of your business will be able to make recommendations that are align with your business strategy. 2. Communication style While not technically part of your staff, your accountant will be a key team player in your business. Yet in order for your business to benefit from their expertise, the lines of communication must be open. The success with which you and your accountant communicate will be a big factor in the success of your partnership. As Albert Einstein said, “The hardest thing in the world to understand is the income tax.” If you agree with this sentiment, you’re in good company. The accountant you choose needs to be able to cut through financial jargon and explain difficult concepts clearly and concisely, as well as respond to your calls and emails in a timely fashion. Think about how you will communicate with your accountant. You might consider granting them secure third party access to your Xero organisation, and making use of Zeller's integration with Xero Bank Feeds , for example. It’s also important to consider who would step in if they were to go on holiday, or fall ill; do they have a team of professionals who would be able to assist you? Communication is a vital part of running your business, so set your expectations from the very beginning. 3. Proactivity The best accountant for your business will do more than simply lodge a tax return and manage your business accounts. They be will be proactive, helping you to identify quick wins as well as plan longer-time cost-saving initiatives. So, how do you find the best accountant for your business? It’s simple. Ask them what they would suggest to save your business money. Their response will allow you to gain an idea of just how much work they are willing to put in. “The worst accountant to have is the one who just says 'yes', 'no', and 'it depends'. The accountant you want is the one who asks open questions: who, what, when, where, how, why. A good accountant will enquire about the type of work you do, and make smart suggestions based on that,” says Duncan Perkins, owner of Tax Time. However, in order for your accountant to be proactive, they must be kept informed of important business decisions and aware of plans for future growth. This is where many small business owners miss out. “A lot of people see their accountant as a machine to get a task they hate out of the way,” says Duncan. “They’re scared to ask questions, because if they do they think it’s going to cost them a couple of hundred dollars to resolve something that may only save them a very small amount. But a good accountant will help you stop focussing on the little things, like $10 deductions, and start looking at the bigger picture — so they become more of an advisor.” 4. Cost Find out what additional costs are associated with the services provided. You’ll want to know upfront what the expense will be to your business, and if payment plans are available. Ask what’s included in the accountant’s fee and what’s considered an additional cost. Keep in mind that, whilst accountants can take care of the entire financial side of your business (including bookkeeping), this might not be the best approach for you. As most accountants charge by the hour, you’ll likely want to maximise the time you’re paying for instead of paying for simple tasks such as bookkeeping and paying invoices. For that, you could engage a bookkeeper or find accounting software that will simplify tasks like invoicing by sending automatic invoices and recording their contents. If you handle the simpler tasks, it will allow your accountant to deal with the more complicated tasks like forecasting, bank account reconciliation, lodging tax return forms, payroll, and capital depreciation calculations. Your accountant will be intimately involved with the operations of your business, so finding the right person for the job is important. When it comes to finding a good tax accountant, you’ll need someone trustworthy, that has experience with similar businesses and has clear and concise communication with their clients. Remember, you and your accountant operate as a team. The accountant you choose should help your business grow, offer sound advice on business issues, and save you money both in the long and short term.

With tax time almost upon us, we caught up with Lloyd Richardson , CEO of Jim’s Tax and a Fellow CPA, to get his perspective on what small business owners need to keep in mind as the end of the financial year approaches. Lloyd has spent more than 40 years in the accounting world – he grew up in the industry, took over his father’s practice, and now heads up a 60-strong network of tax agents and bookkeepers across the country, so you could say he knows a thing or two about tax.  Read on to learn his practical, no-nonsense advice for small business owners looking to get the most out of this end of financial year.  Preparing your small business for EOFY tax. Question: How far in advance should small businesses start preparing for EOFY? Answer: Small business owners generally prepare BAS statements quarterly, and that’s when you should be thinking about your end-of-year tax too. A good bookkeeper will prep your financials quarterly and refer them to a tax agent, who can then estimate your tax position. It’s always better to plan early, but a lot of businesses wait until June and panic. You need a proactive bookkeeper. A Jim’s bookkeeper is trained to handle this, and then your tax agent (hopefully also a Jim’s Tax person!) will review it at tax time. But at a minimum, your accounts should be updated quarterly. Key financial documents for EOFY tax. Question: What key documents or reports should small businesses have ready? Answer: Importantly, you need a profit and loss statement and a balance sheet, ideally on an accrual basis. These help determine profitability based on your business structure – whether you’re a sole trader, partnership, trust or company.  Remember that GST is typically calculated on a cash basis – money in, money out. But small business tax is done on an accrual basis – what’s been invoiced. That’s why it’s so important to know whether you’re reporting on a cash or accrual basis, it affects when income is counted. You should have your financials up to date by the end of March. Then in early June you can sit down and ask yourself (and your tax agent), “What’s my profitability up to March? How much have I earned in April and May, and what can I do before June 30 to legally minimise tax?” Common EOFY tax deductions and overlooked claims.  Question: Are there any deductions or claims that often get overlooked? Answer: There are two sides to EOFY planning – income and expenses. On the expenses side, look at your debtors. Write off bad debts before 30 June or you’ll be taxed on them. Check your depreciation schedule too – sometimes there’s old plant and equipment that’s been written off or no longer exists. Write it off and claim the deduction. Also, pay expenses before the end of June and delay income if you can. For example, if I finish a job on 29 June, I might not invoice until 1 July (subject to cash flow, of course) and that pushes the tax into the next year. EOFY tax tips by business structure (sole trader, company, trust). Question: What steps should sole traders take that might differ from those with staff or a company structure? Answer: Sole traders pay tax on net profit. Super isn’t compulsory for sole traders, which catches people out. You can contribute up to $30,000 into super and claim it as a deduction – taxed at 15% in super instead of up to 47%. Companies should keep an eye on debit loans – directors drawing from the company. You’ve got to sort those before EOFY or they’ll be taxed as unfranked dividends. Directors can also contribute to their super – up to $30k per director) – and if you haven’t used your full contribution cap in the last five years, you can add more. If you’ve got staff and your pay run starts 1 July, consider paying it early on 30 June so you can claim the deduction this year. You can pay expenses up to 12 months in advance. And if you buy plant and equipment under $20k and receive it before 30 June, you can write off 100% of it. Over $20k, you have to depreciate it. 2025 ATO guidance for small businesses at EOFY. Question: Have you seen any recent changes in ATO guidance that business owners should be across Answer: The ATO is focused on trusts this year. If you operate through a family trust, make sure your distribution minutes are done before 30 June to allocate profit to beneficiaries. If not, the whole lot could be taxed at up to 47%. Be careful with trust distributions to companies too, that’s under scrutiny. If you’re in a company, sort out your debit loans before EOFY. If you don’t, they might be taxed as income. Super and wage adjustments can help, but don’t go throwing around massive bonuses, your structure has to support it. Overcoming EOFY tax stress. Question: For business owners who feel overwhelmed by EOFY, what’s your advice? Answer: Talk to a Jim’s Tax agent. The first step is getting your accounts up to date, at least to March, so you’ve got a clear idea of where you stand. What’s your actual net profit? What tax is payable? What’s already been paid through your BAS? Once you know those numbers, the fear factor drops and you can take action if needed. A lot of people get overwhelmed because they don’t have the right info in front of them. If your books are a mess, EOFY can feel like a mountain. But if you’ve kept things tidy through the year, or get someone to help you sort it out now, it becomes much more manageable. I do the same process in my own business – I check receivables and payables, think about super, and look at expenses I might bring forward. Also, another big benefit of using a tax agent is that your return can be lodged as late as May or June the following year. If you’re not using a tax agent, it’s due by the end of October.   Reviewing business performance at EOFY. Question: What should business owners be asking themselves (or their advisors) when reviewing the past financial year? Answer: Start by getting your accounts up to date – that’s non-negotiable. Then ask the basics: “What’s my net profit? How much tax is payable? What have I already paid?” Once you’ve got those answers, the next question is “What can I do before 30 June to reduce my tax?” That’s the conversation you want to be having with your tax agent. EOFY is also a good time to reflect on what went well and what didn’t go so well over the past 12 months. Were your margins healthy? Are you on top of your cash flow? Is your structure still the right fit? Those kinds of questions can lead to smarter decisions for the year ahead. Quick 2025 EOFY tax wins for small businesses. Question: What are some quick wins business owners can take in the final month of the financial year? Answer: Pay super before June 30, that’s a big one. If you’ve run a payroll and you know what super is owed, pay it a few business days before 30 June so it lands in the fund on time – then you can claim the deduction this year. If you miss the cut-off, you can’t claim it until next year, even if you pay it in early July. Delay income where it makes sense, bring expenses forward where possible and write off bad debts. Review your depreciation schedule — if you’ve bought any assets under $20k and started using them before 30 June, you can claim the full deduction this year. It’s not about magic tricks, it’s about good management. The small things can make a big difference when they’re done right and done on time. Business restructuring or system changes at 2025 EOFY. Question: Should business owners consider restructuring, changing systems or adjusting payment schedules at EOFY? Answer: If you’re thinking about changing structure, say from sole trader to company or trust, EOFY is the time to do it. You can wrap things up neatly on 30 June and start fresh on 1 July. It’s much easier from a bookkeeping and reporting point of view, otherwise you’re dealing with a crossover year, and that just creates more complexity. The same goes for system changes. If you’re switching accounting software, or introducing a new payroll or invoicing system, 1 July is a clean starting point.  EOFY is a natural point to review how your business is running. If something’s not working, now’s the time to make a change, but always get advice first so you’re not creating a bigger headache down the track.