Cash flow, bookkeeping, payroll, sales, reconciliations, tax: even a small business has many transactions to record, and good records are how you see whether it is making money.
There are plenty of free and low-cost accounting programs. Not all of them suit an Australian business. Before you choose one, check these five things.
1. GST and activity statements
If your business is registered for GST, the software should record GST on each transaction and produce the figures for your business activity statement (BAS). Some free programs are built for other countries and don't.
2. Payroll and Single Touch Payroll
If you pay anyone, you must report their pay and super to the ATO through Single Touch Payroll (STP). Check that the software, or a payroll add-on, is STP-enabled.
3. Bank feeds and invoices
Automatic bank feeds from your Australian bank save hours of data entry. Check that you can send invoices and track who owes you money.
4. Room to grow
A program that suits a sole trader may not cope with more people, stock or locations. Find out what the next plan up costs.
5. Your accountant's access
Ask your accountant which software they work in. If they can log in to your file, year-end is quicker and usually cheaper.
At the start of a business every dollar counts. The right software takes care of the routine work so you can focus on growing.
Talk to your accountant before you choose: they can tell you which programs suit a business like yours.