Most Popular Cloud Accounting Systems in Australia

The top contenders for cloud accounting systems in Australia are Xero, MYOB, and QuickBooks Online. Xero, with its user-friendly interface and robust features, has gained immense popularity among small and medium-sized businesses. MYOB, on the other hand, offers a comprehensive suite of accounting tools and has been a go-to choice for many Australian businesses for years. QuickBooks Online, backed by its parent company Intuit, is known for its powerful functionalities and seamless integration with various business applications.

But these three systems are just the tip of the iceberg. Our detailed exploration will delve into the unique features and customer support offered by these cloud accounting systems. So, if you're ready to transform your accounting processes and embrace the power of the cloud, let's dive into the world of Australia's most popular cloud accounting systems together!

What Is “The Cloud”?

The internet is called "the cloud," but that's another term. Accounting done through the internet, often known as online accounting, is another name for cloud accounting. There are other categories of cloud services, but those that offer online accounting fall under the "Software as a Service" (SaaS). This indicates that rather than purchasing the existing accounting software, you must pay for a subscription to an online platform that provides accounting services.

How Can the Cloud Accounting System Help My Company?

Cloud accounting will save your company money on software and upgrades because they are included in the monthly subscription fee. This will help your company transition to cloud-based software in general and SaaS in particular.

Your data files will also be stored by the supplier, which means you won't have to pay extra for additional data storage or stronger computer processors. Other advantages of using cloud accounting over traditional desktop accounting software include the following:

• With an active internet connection, you can access it around the clock.

• It is not necessary to shut down the system in order to install or run updates or upgrades.

• This file-sharing method is far quicker than sending a file via email because you can provide those who require it with protected access.

• In contrast to desktop software, multiple users can access the application simultaneously.

• The data has been automatically backed up, and because it is centralised, we only need to worry about maintaining a single data file instead of a number of backup files.

• You won't have to spend as much time manually entering data because most data will be updated automatically.

• It provides data in real-time, allowing users to make the most informed judgments based on the most recent facts available. You will always have your finger on the pulse of your company if you have access to real-time information.

Why Should You Use Cloud Accounting?

There are four advantages that come along with opting for cloud accounting:

• Accessibility
• Security
• Automation
• Add-Ons

1. Accessibility

As long as you have an internet connection, you can access the data in your accounting system from (almost) any location on the planet. The first benefit is represented here.

Because of this, working with bookkeepers, accountants, and auditors based in different places is significantly simplified.

It is also easier for your Treasurer to handle things if they are located off-site.

2. Security

Although there are good reasons to be concerned about hacking, the general perception is that your accounting data is safe. This is despite the fact that there are valid grounds to be concerned. You will first need to sign in, which requires Two Factor Authentication in order to gain access to your accounting data.

After that, you will be able to access your data. This indicates that in addition to entering your username and password, you will need to enter a code received from an authentication app on your mobile device or texted to your mobile phone. The code can be used to verify that you own the mobile device.

Because you do not have to worry about the possibility of a fire, flood, or theft caused by someone breaking into your office, data that is saved online is considered to be safer than data that is housed at your office.

In addition to that, it will automatically perform backups for you; however, the amount of control that you have over the process of recovering backups might vary.

3. Automation

Advantages like this make cloud accounting appealing.

You can't eliminate manual entries, but you can dramatically reduce the number of entries, saving you a lot of time each month.

Bank Feeds import bank account data and Bank Rules automatically allocate transactions to your chosen accounts. Since Australia and New Zealand have implemented Single Touch Payroll and Payday Filing, you must have your payroll information online to enter your reports immediately. New Zealanders call this "payday filing." Both standards and initiatives were designed lately and began rolling out.

4. Add-Ons

You could feel pressured to transfer from the small company accounting system you are now using to a full-fledged ERP system that costs hundreds of thousands of dollars, with the promise that it would handle everything for you. If so, you should know the potential consequences before transitioning. This pressure may increase as the size and complexity of your organisation grows.

Doing so is necessary, but in most situations, the same aim may be achieved by utilising cloud accounting software in conjunction with various add-ons rated as the best in their respective categories. Those add-ons are ranked as the best in their respective categories.

A Customer Relationship Management (CRM) system or a system for managing your client information (and possibly invoicing) is an example of an add-on. Other examples of add-ons include a rostering and payroll system for managing your team and an effective reporting solution for ensuring that your management and board have the information they need to make informed decisions.

A Remark on Bank Feeds

The ability of online accounting systems to retrieve data from your bank statements through bank feeds is a useful feature. On the other hand, not all feeds are the same:

1. Direct feeds

The data will be provided electronically, as stipulated by the formal arrangements the software provider has made with the bank. The benchmark for excellence is this. The connection to the bank has been validated; therefore, it is safe to use and practically completely free of mistakes.

2. Screen Scraping

This is yet another choice that can be made. It violates the agreements you have made with your bank that you are required to hand over your login information and password for your bank account.

After that, the program logs on to your banking software in your place as though it were you, reads the statement on the screen, interprets it to the best of its ability, and then transmits the information to the accounting system.

Warning: use at your peril because the bank won't take any of it, and neither will the company that makes accounting software.

Remember: All Accounting Systems Are Similar In Some Respects

It is important to note that all financial management systems perform the same core functions despite their differences. They accurately handle debits and credits, ensuring your Trial Balance is always in order. Additionally, they manage your receivables and payables, allowing you to keep track of those who owe you money and those you owe money to.

Every system offers a payroll feature suitable for smaller charity groups with up to fifty employees. However, if your payroll processing is more complex, you might need to switch to a stand-alone (but integrated) payroll system. These alternatives work effortlessly for small businesses, but larger enterprises might require more sophisticated options.

What Are the Most Important Features to Look for in Cloud-Based Accounting Software?

1. Analysis of Requirements: Do Not Skip This Step

Take some time in the beginning to evaluate your requirements; if they are particularly difficult, don't hesitate to bring in an outside consultant for assistance.

The system that is not appropriate for your requirements will cost you the most money.

Make sure that you consider the requirements of the whole organisation and not just the members of the finance team.

• Will those on the board have access to the information they require to manage the strategy effectively?
• Will programme managers have access to all they require to administer their areas successfully?
• Who exactly is entering the data?
• Will the new system allow them to manage their time better?

2. Structure

How complicated is the organisational structure of your company? There are discrepancies in what each accounting system can do, and this gap has caused problems in the past for some non-profit organisations. Be aware of the current number of programmes or jobs you offer and how that number is expected to shift over the next few years.

Moving to cloud accounting software presents an excellent opportunity to examine your organisational hierarchy (jobs, classes) and accounting structure (chart of accounts).

Find ways to simplify things while ensuring that everyone still has access to the information they require.

3. Cost

There are variations in the prices of the applications that we are going over here, but in all honesty, this criterion is the least relevant.

Spending a few dollars less on a system that makes your life more difficult and provides you with more manual labour will ultimately result in you spending a significant amount more money throughout your lifetime.

In addition, you should include some time in your schedule for being trained and assisted. It is in your best interest to ensure that the new system is appropriately configured and that you are comfortable using it if you transfer to a different system. If you do so, it will be a great investment and save you a lot of money over time.

Options for Accounting Software Hosted in the Cloud

We are going to concentrate our attention on four distinct cloud-based accounting software solutions at the moment:

• MYOB AccountRIght
• MYOB Essentials
• Xero
• QuickBooks Online

1. MYOB AccountRight

Some argue that MYOB AccountRight is not cloud software because it requires software installation, although it has the basic features of online software. Purists will defend their claim that MYOB AccountRight is not cloud software.

Your data is stored in the cloud so that you can access it from any Windows device with MYOB AccountRight. Because of this, it naturally includes all the automation benefits and features listed above.

The data file may be used locally without the internet and synced with the cloud later. Unlike other cloud-based systems, this one does not make all important applications accessible through a web browser session. However, this software brings a few key programs online.

AccountRight Live lets your accountant, bookkeeper, and other team members access the same data file and receive real-time updates to all desktop account information. This guarantees accurate and current finances. The program's cloud-based architecture gives users this capability.

Positive Aspects

• It is a simple update process for existing MYOB Classic users (Premier 19 range). The procedure considers each transaction in its entirety, precisely as it was initially entered, in addition to your settings and preferences.

• Users with experience with older MYOB products will find that AccountRight is relatively easy to learn. The navigation and workflow remain fundamentally the same as they were in 1990, despite the fact that the colours have been modernised and new features introduced.

• It organises jobs in a hierarchical structure, with headline and detail jobs. You will have a limited amount of success reporting on them using MYOB itself. Still, third-party add-ons like Calxa can make very effective use of the structure to deliver highly adaptable and powerful reports.

• There are a number of ways to locate a transaction in just a few clicks, but searching for transactions and doing audits is the most effective of the bunch.

• MYOB offers the most dependable bank feeds. They have only used direct feeds, and a few years ago when they bought BankLink, they increased both the number of feeds and their range. Most of Australia's and New Zealand's banks and credit card companies have feeds for their customers.

• Finding staff members who are experienced with MYOB is relatively easy. Because it has been around for such a long time, many people have experience. You will have a lot of options to pick from, although it is obvious that not all of them are of high quality and that you will need to sort through them.

What Isn't So Great

• You will still need to install new software and keep it updated regularly. If you do most of your work from the same computer at the same desk, this will often only be a small problem. If you carry a laptop wherever you go, it is only a tiny inconvenience for you. On the other hand, it is a huge deterrent if you need to get your information technology staff (or an external contractor) to install every update on every machine in your organisation.

• Since MYOB AccountRight is a Windows application, it is incompatible with Apple devices like the Mac or iPad. That is completely irrelevant to some people, while it is a deal breaker for others.

• Payroll is effective for businesses with between 50 and 100 employees. If they were straightforward and consistent, 200 would be just perfect. Consider implementing an external payroll system if you have many casual or part-time workers whose time must be divided across several assignments in a given week. This situation can become unmanageable very quickly. Additionally, it does not provide its workers with a portal through which they can access their pay stubs, make requests for time off, and so on.

• Recent developments have introduced multi-currency capabilities for both exporters and importers, with a few reporting enhancements still to come.

2. MYOB Essentials

Essentials are MYOB's program for the "real cloud" in a web browser. Although it has expanded and improved over the years, at this time, it is only appropriate for the most modest of non-profit organisations.

MYOB LiveAccounts is a first-generation cloud accounting software for individuals and small businesses looking for a straightforward double-entry accounting method. MYOB LiveAccounts, like Xero and Saasu, enable users to automate pulling bank feeds into the software and feature payroll capability.

Business owners who want functionality comparable to the desktop version of MYOB they are now using will have to wait for the release of the new MYOB AccountRight Live.

Positive Aspects

• It operates in a web browser.
• It utilises the gold standard in direct bank feeds, just like AccountRight.
• The Bank Rules that process the bank inputs are dependable while retaining adaptability.

What Isn't So Great

• There are no positions available, nor are there any departments or expense centres.
• The payroll process is quite straightforward and elementary.
• Since it is not commonly utilised in the NFP sector, locating staff with experience using it is more difficult.

3. Xero

In the recent past, Xero has established itself as the leading modern accounting system, and it currently has the highest number of online members in Australia and New Zealand. It's a wonderful thing, but a non-profit organisation should be aware of a few things that aren't always an issue for the small businesses that make up their primary target market.

Xero must be doing something right, as the company's customer base is expanding exponentially. Xero is straightforward accounting software that runs in a web browser; Saasu is more complicated. However, it does provide fully integrated payroll and bank feeds for its customers.

One of the more prominent providers of cloud-based accounting solutions is Xero. They have a public listing on the New Zealand Stock Exchange and have made significant investments in product design and marketing channels.

Xero has a global customer base of 50,000 people and offers localised versions for the United States, the United Kingdom, Australia, and New Zealand. All customer data is stored in the United States. Xero uses a content delivery network to get around the slowdowns created by the physical distance between the company and its customers.

Due to Xero's acquisition of the Australian payroll provider PayCycle, customers can access comprehensive finance and payroll tools. Xero incorporates automatic bank feeds with over 5,000 banks worldwide, including all major Australian financial institutions.

Positive Aspects

• Because it is browser-based, you can access it from virtually anywhere and on (nearly) any device. In most cases, downloading the app on your phone is preferable to attempting to use the web version on your mobile device.

• It has proven quite successful among those not trained in accounting and is intended to be simple for people unfamiliar with debits and credits.

• The bank feeds are getting better. When they originally began, all of the bank feeds were taken from screen captures; however, they now have direct feeds from the main banks. Ask questions before deciding if you work with a credit union or a smaller bank.

• It is simple to discover employees with experience with Xero due to its widespread adoption in the company.

• Many currencies' features work well if you are on the appropriate plan.

What Isn't So Great

• There can be up to one hundred Tracking Categories in a given list. These classes or tasks in Reckon and QuickBooks are equivalent to MYOB. If you now have several hundred (or thousand) jobs or classes, this will be an insurmountable obstacle. Still, there won't be a problem if you don't anticipate exceeding that number at any point in the near future.

• After 100 employees, processing payroll can become cumbersome, and a strict cap of 200 people can be employed.

• However, it needs to be clearer how to look for Christians, so you should try. This issue often only arises with first-time users and may be resolved by proper training and acquiring relevant expertise.

4. QuickBooks Online

The newest player on the market (roughly speaking) is in Australia and New Zealand. Still, its parent company, Intuit, is one of the world's most well-known and successful accounting software developers and manufacturers. The accounting software QuickBooks has a rival in Reckon.

Because Quickbooks Online does not have the same features as the desktop or the hosted version, it is inappropriate for all commercial enterprises. Instead, it is a different product developed especially for internet access. This design offers positive and negative aspects to the user's experience of utilising the product.

Positive Aspects

• Because it works within browsers, accessing it is simple.

• Users of Reckon will find that this improvement feels the most natural to them. Even though the screens and workflows have been modified, the vocabulary and procedures have remained mostly unchanged.

• It allows you to manage programmes and cost centres through a hierarchy of classes, and there is no limit to the number of classes you can have.

• It delivers payroll through third-party software (Keypad), but the integration is so seamless that you won't even notice it's there. It arguably has the greatest payroll system. In addition to that, it provides a great employee interface that can be used to manage pay stubs, vacation time, and other things.

• Built-in support for several currencies.

• In addition to the Bank Rules that you make yourself and others have, it will automatically recommend rules based on machine learning of the actions taken by other users. Therefore, if it identifies a transaction in the bank labelled "Caltex" and finds that most other users have assigned it to Fuel Expenses, it will recommend that you do the same.

What Isn't So Great

• Fewer direct bank feeds. Because most feeds originate from screen-scraping technology, this has been a problem for some time. Nevertheless, during the previous two years, they have made significant progress; currently, the main banks are getting their data via direct feeds, but they always double-check their information before making any decisions.

• When you are just starting, it may be challenging to locate transactions. However, this can be remedied by proper training and experience.

• Although Xero and MYOB are more well-known in Australia and New Zealand than QuickBooks Online, you shouldn't have too much trouble finding people to work with QuickBooks Online.

5. Saasu

Sydney-based Saasu provides cloud-based accounting solutions for SMBs. Saasu offers sales, purchasing, inventory management, payroll, eCommerce, CRM, point of sale, and workflow management. Customer relationship management is another element. These capabilities resemble accounting suite desktop apps.

Saasu "medium business" includes inventory, payroll, and automatic bank feeds from most Australian banks direct to the programme.

Saasu exceeds expectations by calculating Australian firms' tax and superannuation. It also has advanced inventory management and a lightweight CRM for most small businesses.

Saasu is noted for its comprehensive online accounting API. This API links thousands of banks to hundreds of online apps, software, and payment systems.

Conclusion

In conclusion, businesses can consider several popular options regarding cloud accounting systems in Australia. These systems offer a range of features and benefits that can streamline financial processes and enhance overall efficiency. By harnessing the power of cloud technology, businesses can enjoy real-time access to their financial data, secure data storage, and seamless collaboration with their accountants or team members.

Among Australia's most popular cloud accounting systems are Xero, MYOB, and QuickBooks Online. Xero stands out for its user-friendly interface, extensive integrations, and strong focus on automation. On the other hand, MYOB offers a comprehensive suite of accounting tools tailored to small and medium-sized businesses. QuickBooks Online is known for its robust features, scalability, and affordability.

Regardless of which cloud accounting system you choose, it's essential to assess your business needs, consider factors such as pricing, scalability, and industry-specific features, and take advantage of free trials or demos to ensure a good fit for your organisation.

Have you used any of these popular cloud accounting systems in Australia for your business, or are you considering implementing one? Share your experiences or thoughts in the comments section below!

Content Summary

• The top contenders for cloud accounting systems in Australia are Xero, MYOB, and QuickBooks Online.
• This file-sharing method is far quicker than sending a file via email because you can provide those who require it with protected access.
• Sometimes, doing so is necessary, but in most situations, the same aim may be achieved by utilising cloud accounting software in conjunction with various add-ons rated as the best in their respective categories.
• Those add-ons are ranked as the best in their respective categories.
• It violates the agreements you have made with your bank that you are required to hand over your login information and password for your bank account.
• After that, the program logs on to your banking software in your place as though it were you, reads the statement on the screen, interprets it to the best of its ability, and then transmits the information to the accounting system.
• Make sure that you consider the requirements of the whole organisation and not just the members of the finance team.
• Moving to cloud accounting software presents an excellent opportunity to examine your organisational hierarchy (jobs, classes) and accounting structure (chart of accounts).
• It is in your best interest to ensure that the new system is appropriately configured and that you are comfortable using it if you transfer to a different system.
• It will use a hybrid paradigm, and user access will be provided via a locally loaded MYOB application that will then access a cloud-based data file.
• Using AccountRight Live, your accountant, bookkeeper, or other members of your team will be able to connect to the same data file and receive immediate updates of all records presented on their desktop records of accounts in real time.
• The software's cloud-based architecture makes this kind of functionality available to users.
• Users now have the ability to import automated bank feeds into their accounts in the beta version that is currently available.
• Finding staff members who are experienced with MYOB is not difficult.
• On the other hand, it is a huge deterrent if you need to get your information technology staff (or an external contractor) to install every update on every machine in your organisation.
• Essentials are MYOB's program for the "real cloud" in a web browser.
• MYOB LiveAccounts, like Xero and Saasu, enable users to automate pulling bank feeds into the software and feature payroll capability.
• Xero is straightforward accounting software that runs in a web browser; Saasu is more complicated.
• However, it does provide fully integrated payroll and bank feeds for its customers.
• One of the more prominent providers of cloud-based accounting solutions is Xero.
• Xero has a global customer base of 50,000 people and offers localised versions for the United States, the United Kingdom, Australia, and New Zealand.
• It has proven quite successful among those not trained in accounting and is intended to be simple for people unfamiliar with debits and credits.
• Ask questions before deciding if you work with a credit union or a smaller bank.
• It is simple to discover employees with experience with Xero due to its widespread adoption in the company.
• These classes or tasks in Reckon and QuickBooks are equivalent to MYOB.
• The accounting software QuickBooks has a rival in Reckon.
• Therefore, if it identifies a transaction in the bank labelled "Caltex" and finds that most other users have assigned it to Fuel Expenses, it will recommend that you do the same.
• Although Xero and MYOB are more well-known in Australia and New Zealand than QuickBooks Online, you shouldn't have too much trouble finding people to work with QuickBooks Online.
• Saasu is a Sydney-based company that offers small and medium-sized enterprises accounting solutions hosted in the cloud.
• In conclusion, businesses can consider several popular options regarding cloud accounting systems in Australia.
• Among Australia's most popular cloud accounting systems are Xero, MYOB, and QuickBooks Online.
• Regardless of which cloud accounting system you choose, it's essential to assess your business needs, consider factors such as pricing, scalability, and industry-specific features, and take advantage of free trials or demos to ensure a good fit for your organisation.