As an accountant, I’m still seeing many business owners losing time, for a couple of reasons. First, they are sticking to manual processes to “save money”. Second, they’re using the wrong online tools to keep track of their expenses, income and inventory.
I can’t stress enough how much it makes sense to use software to run the financial side of your business. The small monthly expense is worth it because you’ll save yourself time, you’ll save your accountant time (which saves you money) and you’ll have instant access to essential data that will help you make smarter decisions.
These are some of the platforms I recommend to businesses that are just starting out or are transitioning to be digital first.
Best overall financial management tool
My top recommendation for the heavy lifting of tracking invoices and reconciling accounts is Xero. This is the best bookkeeping software for non-accountants. It will make everything so much easier when it comes to keeping track of money, and it lives at the ‘centre’ of a lot of other software you will use as you grow.
QuickBooks has its place for small, service-based businesses and some sole traders who want to keep their overheads as low as possible but if you want your business to grow, you may as well start with Xero.
Best tool for taking payments
One key function of running a business is making it as easy as possible for clients to pay you. As the days of emailed or hand-written invoices come to an end; a simple tool like Square is incredibly valuable. This lives in your bag (or even your pocket) and allows you to take payments on the spot.
With a Square terminal, you can let your clients tap to pay as soon as a job is done and accept EFTPOS as well as credit cards. Square doesn’t cost a lot to use, it can create itemised service lists, and it integrates with Xero, meaning you’ll have less paperwork to deal with.
Best software for job/project management
For businesses in the trade space, tools like ServiceM8 or Tradify are essential. These tools offer in-depth features for quoting, customer management and job planning. You can use them to allocate staff to jobs, see quotes, issue invoices and track all details of your projects in one place.
These tools are highly customisable, allowing you to track everything from tapware costs to incidentals like pipes and adhesives.
Best tool for inventory management
If your business carries stock, standard bookkeeping platforms often lack robust inventory management processes. I recommend using Unleashed, a cloud-based platform initially designed for e-commerce but applicable to any retail or stock-based operation. It has a built-in sales app to track profit margins and ties into Xero nicely.
Top tool for time tracking
MinuteDock is a simple but powerful timekeeping add-on that’s especially useful for service-based industries. It allows you to track client time and activities efficiently, which is vital if your business model sees you billing by the hour. MinuteDock is straightforward and effective, and it’s even Australian-owned.
Receipt capturing tool for small business
My recommended tool for capturing receipts and bills is Hubdoc. It comes free with any Xero subscription and creates transactions from receipts, eliminating the hassle of filing them manually. Hubdoc learns over time, categorising recurring transactions automatically, which can save even more time and stress.
When you need human help
These tools will make your day-to-day workload a little lighter and give you the ultimate advantage as a business owner, which is being able to see up to date information about what’s going on with your finances and stock if you have it. I’ve seen business owners who resist using software, but as soon as you get into a habit of using online tools (and it doesn’t take long), you’ll wonder why you waited.
However, once your business reaches a certain point, you will probably need to bring on an extra pair of hands to help you keep everything up to date. One option is an offshore bookkeeping service, which will help with the basics, but as you grow you’ll appreciate having the support of a bookkeeping specialist who can support you and send the right information to your accountant. Look for a registered BAS agent in Australia (my personal recommendation is MAC Accounts), and make sure they are licensed and insured.
Final thoughts on small business software tools
Many of these software solutions come with excellent tutorials to help you get started. With the right combination of tools and support, you can streamline your operations and make better business decisions based on accurate and comprehensive data.
Need help with your business accounting? Reach out to JVP Advisory today.