Home Forums Money matters Which accounting software best suits my small business?

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  • #1000208
    pinot88
    Member
    • Total posts: 5

    Hi all,

    I am an auto-dismantler looking to transition towards a digital medium (with STP reporting as well) and am looking at which platform out there is best suited to what I need. I’m a small business owner.

    Business Model

    • Purchase whole vehicles from ex-insurance stock, private sales etc.
    • Dismantle parts and store them on the shelf.
    • Sell parts to generate profit. Sales are made as cash, cheque and EFT.
      • No current POS system for now. We track via an invoice book that I update via spreadsheet.
    • Pay wages and overheads to keep the business operating. Mix of cash, cheque and EFT.
    • I use a spreadsheet to track a few simple metrics such as revenue and all expenses. My accountant handles BAS by instalment and at EOFY, determines the net GST payable. I provide all the receipts for him to do calculations. He also handles my tax affairs at EOFY.

    In order to track COGS, I complete a stock-take every quarter to value the existing stock. COGS = Opening Stock Value + Stock Value – Stock Remaining.. COGS is then used as part of P/L calculations.

    I would like an accounting platform that will let me:

    • Use bank feeds to pull all my online transactions together and categorize it.
    • Allow me to input all my cash sales into the accounting software to develop a true performance picture.
    • Allow me to input COGS or stock remaining so I can continually evaluate profit reliably.

    Would most platforms support this? And if so, is there anything I need to know or should I best speak to an accountant?

    Thanks
    Kevin

    #1223400
    Paul – FS Concierge
    Moderator
    • Total posts: 3,120

    Xero is the easy answer and well worth considering as they will keep on top of all of the changes that occur in the Australian landscape eg, they have a JobKeeper report.

    As well, they have a marketplace. It supports often good, third party providers which means you can often find something that will fix a problem you have if you want more than the basics.

    There may be some cheaper options though and i would recommend that you make sure that they support Australian tax rules and have the option of Cash and Accrual Accounting.

    Also beware that if you buy a subscription from an Accountant, the data is technically not yours so a mean Accountant may withhold your data if you are in dispute with them eg, not paying their bills.

    Lastly, check with your Accountant, which platforms they do support – it is always good to be on the phone with somebody who is expert in the platform you use.

    Cheers

    #1223401
    Tact
    Member
    • Total posts: 71

    Hi Kevin,

    The three big players are MYOB, Quickbooks and Xero.

    Technically, all three will do what you’ve asked.

    The difference is in the reliability and ease of use.

    I’ve found MYOB to be quite fiddly for people other than accountants when learning it. The interface works in the way that your grandad’s old jalopy does. It’ll get you there but you’ll never be able to drive on autopilot.

    Quickbooks is probably the cheapest option and has some beautiful reports and graphs. I have had a couple of issues in its down time and again, not that intuitive at times. I’d put it at second place.

    Xero has hit the nail on the head. It’s the iPhone of bookkeeping software.
    It’s more expensive but because it’s easy to use and collaborate with your accountant, it means that you aren’t putting things off until the last minute.

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