Prior to 2000, a lot of small businesses got by quite happily using paper-based accounting systems. But the introduction of the GST saw most switch to accounting software to better manage their finances. The market has since flooded with choice. In my experience two main players have floated to the top: MYOB and Xero.

MYOB 

One of MYOB’s big advantages is that its products are so well known and familiar with small business. In the early days MYOB was an innovator in the space and was a clear market leader.

3 more reasons to love MYOB

1. Working offline on MYOB is a breeze so there’s no stress or panic if your internet goes down or you are out of a service area;
2. MYOB gives you the security and flexibility of local back-ups in the event of disasters; and
3. You own MYOB so are not liable for ongoing fees to access it and your own company financial data. As you can never own your cloud software, most cloud packages’ pricing are subject to change at any time as a result of this.

As technology has matured, MYOB is now viewed by some small business owners as cumbersome in light of the emergence of cloud accounting software like Xero.

XERO

Xero is currently a leader in cloud accounting and continues to grow it’s market share at a rapid rate. Xero ticks all the boxes with most of the accounting functions we expect to see, included. But what really catapulted Xero to accounting software glory is the level of reporting available. At a minimum you can view and share interactive reports and budgets in real-time, all prepared with a single click – no need to wait for month end. BAS returns can be completed in minutes, and all reports link through to the source transactions.

4 more reasons to love Xero

1. Bank statement lines are automatically fed into your Xero account meaning less time spent reconciling your accounts;
2. No need to install software, update or keep backups – it’s automatic and you can log in from anywhere at any time from your computer or mobile device via your web browser;
3. An ecosystem of 300+ Add-on applications to manage your business so you can customise your Xero to work best for your business; and
4. Unlimited collaboration with your staff and trusted advisors so you can have a deeper level of reporting and real time advice from your bookkeeper or accountant without being in the same room.

Final say

For business owners, making the decision of what accounting software to invest in is a biggie. Both MYOB and Xero are reliable, experienced market main stayers. So business owners are now faced with a choice and must think about who they invest in as their long term accounting software partner.

If you want more information on Xero, MYOB or which accounting software is best for your business please contact us.

Clarity Financials has teamed up with charity Mercy Huts Surf Retreat because we love their vision to help alleviate poverty via a unique, fun and sustainable model.

The Vision: Mercy Huts Surf Retreat exists to benefit local people living in poverty in Indonesia through the provision of education, employment and financial aid. This will be achieved through the development of beach-front retreats for holiday-goers that give back to the local community. The first of these is located in Rote Island, Indonesia.

The Story: Mercy Huts was established in January 2012 when Matt & Nat Thistlewaite teamed up with Sally & Paul McMahon. They shared a mutual desire to empower people living in poverty in remote Indonesia. In 2010 the team were personally impacted whilst visiting communities in East Indonesia. This region is the most severely affected by poverty and has the highest malnutrition and infant mortality rates in all of Indonesia. Locals live on less than US$1 per day. Tourism is currently being promoted in East Indonesia and can often have negative impacts on remote communities. Click here to see how Mercy Huts hopes to be part of the solution in reversing these alarming statistics and Meet the Team behind the project.