Efficient Bookkeeping: Tools for Small Business Success

Your small or medium-sized business (SME) is an important part of the fast-paced economy that moves the country forward. Having a business is exciting, but it's also full of complicated financial issues. A trustworthy accounting tool will help you navigate this tricky financial world and use your resources best. In addition, our previous blog discussed the four best bookkeeping software for your business needs. However, The Kalculators has decided to take this further by giving you more details about tools you must have for your business growth. Before we look at the top 10 best accounting software for small businesses in Australia like yours, check out a guide to small business bookkeeping in Australia. After that, let’s get started!

Top Bookkeeping Tools For Small Businesses

If you are a small business owner trying to elevate your business, here are the top bookkeeping tools you must have.

1. Xero

Xero is a tool that enables you to connect your bank account for a more streamlined experience and receive financial performance reports delivered directly to you. Since Xero's mobile experience is one of its most amazing features, it is an excellent choice for entrepreneurs constantly moving and working from different locations. From your mobile devices, such as a smartphone or tablet, you may use the software to issue personalised invoices, keep track of inventory, and generate purchase orders that can be attached to bills.

2. Economic Calendar 

An economic calendar tool is crucial for marking critical deadlines and due dates for accounting services' closing and regulatory requirements. This is because there are multiple accounting deadlines and regular stakeholder meetings. Another use of an economic calendar is to foresee the developments and plans of businesses. An economic calendar is useful for monitoring a firm's timeframes and ensuring that deliveries to consumers and clients are made securely and timely.

3. Quickbooks

It is possible that the first tool that springs to mind when you hear the term "small business accounting software" is Intuit Quickbooks, and there is a good reason for this. In addition to its first-rate range of skills; the program distinguishes itself with features such as the ability to capture receipts and provide chat help around the clock. Integrations with PayPal, Shopify, and Square are also included in its features. Those components and several others make Quickbooks a popular cloud accounting software for small businesses after they are considered.

When you sign up for programs, you can monitor your income and expenses, issue invoices and receive payments, generate reports, provide estimates, monitor sales and taxes, and record and organise receipts. Inventory tracking, time tracking, and even full-service payroll processing are all included in more advanced programs.

4. AIS $ MIS

Both the accounting and management information systems are essential tools in accounting services. These systems simplify the process of managerial accounting for financial transactions. AIS stands for Accounting Information System, a computer-based system firms use to make crucial financial choices. An AIS is responsible for gathering, processing, analysing, and storing a corporation's financial data. Users such as accountants, consultants, financial officers, chief financial officers, auditors, and government tax authorities are among those who can retrieve and report on such data using this system. 

Another instrument utilised to analyse and make decisions based on the data produced by business operations is the Management Information System (MIS). The management information system provides a comprehensive understanding of the business flow and calculates the company's various future courses.

5. Less Accounting

Online firms utilise Less Accounting to generate proposals and invoices and to bill customers. Moreover, the system can calculate and manage staff members' payroll. Less Accounting simplifies filing taxes by maintaining proper records and reconciling the accounts. In addition, it provides automated monthly statements that measure a company's financial success.
A bookkeeper from Less Accounting will have your company up and running in a short amount of time and will immediately download bank information. It is possible to have a stress-free tax season thanks to the built-in tax features of the system.

6. Freshbooks

One of the most straightforward solutions available, FreshBooks takes great satisfaction in its ability to improve accounting efficiency for small businesses. One of the claims made on the FreshBooks website is that the program may assist users save up to forty-six hours annually when paying their taxes.

Because it is compatible with various business apps, the platform gives you access to a centralised dashboard to handle your accounting and financial matters. You will receive regular secure backups, and you will also have access to a mobile app that will enable you to monitor your company at any time.

7. Wave

Wave stands out from the competition because of its assortment of completely free accounting resources. It covers all aspects of accounting and are tailored to meet the needs of sole proprietors and freelancers. It is extremely popular because of its user-friendly layout and method that does not require payment. The fact that it is free does not change the fact that it does not compromise essential capabilities like invoicing, receipt scanning, and financial reporting. This is what sets it apart from other similar products.

Factors to Consider When Choosing Bookkeeping Software

When looking for the best bookkeeping software, there are a few questions you should ask yourself and considerations you should give to certain very essential variables before making a final decision.

1. Simple integration 

Integration with your current solutions, such as sales platforms, shipping systems, and payroll programs, is essential for any bookkeeping software to apply to your organisation.

2, Flexible multiple-user access 

By inviting them to your system, you can limit the information and actions other users can access in most bookkeeping software. For instance, you could limit employee access to time tracking and customer invoicing while granting full access to your company partner and accountant.

3. Multiple-company backbone 

Accounting software that allows you to manage the finances of several small businesses under the same login could be helpful if you own more than one company. Keeping the business and personal finances apart will incur additional costs.

4. Mobile-friendly and cloud-based 

Thanks to the widespread adoption of cloud-based bookkeeping software, you can view your account from any computer with an internet connection anytime. The availability of mobile apps that allow for real-time monitoring of crucial data and completing fundamental tasks is beneficial for remote or field-based teams.

5. Access to several currencies 

The Internet has helped bridge the gap between retailers and their customers. These days, even the smallest businesses have international customers.

6. Data protection 

Cloud-based bookkeeping software is becoming increasingly popular. Likewise, you should invest in such a tool rather than desktop-based alternatives. 

7. Customer care 

As advanced or user-friendly as the program may be, transitioning to new bookkeeping software is always challenging. You may rest assured that you or your team will require the assistance of a specialist at some point. 

8. Cost

The cost is always a factor for small business owners looking to purchase bookkeeping software. They can’t afford the steep licence costs associated with it. Yet, this is not the case with cloud-based bookkeeping programs. These resources are available for a monthly subscription fee. You can access their fundamental functions with a monthly payment of $9 to $20.

How to choose the best bookkeeping software for your business

Before deciding on our top four software solutions, we researched and checked different bookkeeping software providers that offer specialised products for small businesses. When choosing, we considered cost, scalability, ease of use, reputation, and bookkeeping functionality.

The importance of a company’s reputation can be attributed to the fact that the longer a company has been in business, the greater the likelihood that any technological hiccups have been ironed out. This, in turn, makes it more likely that an organisation’s essential financial information will be reported accurately. Scalability was the second most crucial factor to consider since as a company expands, so do its bookkeeping requirements, and migrating all of that financial data to a new piece of software can be very time-consuming.

The importance of a company’s reputation can be attributed to the fact that the longer a company has been in business, the greater the likelihood that any technological hiccups have been ironed out. This, in turn, makes it more likely that an organisation’s essential financial information will be reported accurately. Scalability was the second most crucial factor to consider since as a company expands, so do its bookkeeping requirements, and migrating all of that financial data to a new piece of software can be very time-consuming.

Conclusion

When selecting the appropriate accounting software for a small business, it is essential to consider various criteria. This includes your company's specific needs, the program's scalability, the integration possibilities, the security measures, and the reliability of the customer service. Bookkeeping is an essential component in the management of the financial aspects of a small firm. In addition to providing better financial planning, ensuring compliance with laws and regulations, improving cash flow management, enhancing decision-making, and facilitating efficient audits, bookkeeping contributes to the improvement of financial planning by meticulously recording and maintaining financial transactions. Investing in bookkeeping is an investment in the future success of your small business, regardless of whether you choose to use manual methods such as ledger books or accounting software. 
As an Australian business owner, you have nothing to worry about regarding bookkeeping and its tools. We at The Kalculators can help you ensure your business records are well-kept with the aid of new technology tools. Our bookkeepers are professionals who ensure your business uses the right bookkeeping tools. We provide exceptional bookkeeping services, therefore, you have all the time to focus on your business.

Do not let the new bookkeeping tools stress you; let The Kalculators alleviate your stress and take your business to a higher level!

If you are unsure of any bookkeeping questions, please speak with one of our friendly accountants. Please give us a call at (08) 7480 2593 or send an email to info@thekalculators.com.au.

Frequently Asked questions

How can bookkeeping tools work better for small businesses?

Keeping track of transactions, making financial reports, billing clients, keeping track of expenses, and handling payroll are all easier when you use good bookkeeping tools. They automate jobs that are done over and over again, cut down on human error, give small business owners real-time information, and save them time and money.

How do I pick the best accounting tool for my small business?

When picking a financial tool, think about the size of your business, budget, specific accounting needs, how well it works with other software, how easy it is to use, how secure it is, and how it can grow. It's important to consider and weigh several choices before making a choice.

Can bookkeeping tools help me prepare for tax time?

Good bookkeeping software can make filing taxes easier by accurately grouping expenses, keeping track of tax-deductible things, making financial statements, and making it easy to find the documents you need. Some tools even let tax professionals integrate them with tax software or offer easy export choices.

Do I need to know much about accounting to use bookkeeping tools?

Even though you should know the basics of accounting, many bookkeeping tools are made with easy-to-use interfaces and processes that don't require much accounting knowledge. Learning basic accounting rules, however, can help you understand financial data and use these tools to make smart choices.

How can I learn more about keeping my books in order so my small business does well?

Online tools, books, workshops, webinars, and professional accounting courses can all help you learn more about how to keep your books efficiently. You can also get specific advice and help that fits the needs of your business by talking to a certified public accountant (CPA) or hiring a professional bookkeeper like The Kalculators.