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As a bookkeeper, having a favourite bookkeeping software is almost like having a favourite hotplate for cooking on. No one talks about it, but we all have one. That’s not to say it’s the best, just that it’s our favourite. LPB’s brand colours represent our favourite three, Xero, MYOB and QBO, in that order. Every now and then we make a different recommendation to meet your unique bookkeeping needs or work with an accountant on another platform. However, most clients agree with our recommendation for Xero, MYOB or QBO.

As you read our quick and dirty outlines of why we love these three bookkeeping software platforms, it is important to remember:

• Your business needs are unique – so is your bookkeeping.
• These three will all do invoices out, bills in, simple payroll and basic financial reporting.
• Most of our clients are incorporated, and our recommendations reflect this.
• There are other bookkeeping software options available with varying strengths and limitations that may suit you better.

Before you make a final commitment, we suggest you ensure your bookkeeper and accountant are comfortable on the platform. Software can’t persuade your bookkeeper or accountant to change their ways, but a good bookkeeper and accountant combination can help you learn to love their preferred bookkeeping software.

Xero

It’s no secret to most of our clients that Xero is LPB’s favourite child, I mean bookkeeping software program. We love it because it’s easy to train you on and great to grow with you. It was built for the internet to maximise the benefits available from the cloud. It also has excellent training courses as part of your subscription, including many focussed on the Australian financial system.

Xero is our recommendation if you are new to accounting records, think you will grow your business, or just want great value in your bookkeeping software.

Things we love about Xero:

• Intuitive structure and functionality.
• All key data on one screen – bank feed to the left, allocations to the right, keeping things easy.
• Cloud-based allowing use on multiple screens simultaneously.
• Automated invoice reminders.
• Find and recode function in case large chunks of data have been misallocated.
• Subscriptions options start at $32 a month depending on your needs – accountant version, payroll only, packages specialising in expenses, projects, or more detailed analysis of your finances.

Being honest about our bias, it was tempting to say we have zero limitations about Xero. But then we remembered it was only created as a bookkeeping software tool. As such, it is less helpful in complimentary add-on areas that others built in. When it comes to inventory management, project tracking, and expense claims, it’s a bit clunky and could be better. But we still love it.

MYOB

For a long time, MYOB was synonymous with computerised bookkeeping. It hit the scene early and took ledger books into the computer era. It may not be as sexy and sleek as its newer competitors, but it really gets traditional accounting details. We still recommend it for big and complex businesses (or anyone with a deep understanding and love of accounting).

Strengths include:

• Inventory management and project tracking.
• Pure accounting structure for the detailed accountant in you.
• Supporting established businesses already embedded in the system with years of data stored within.

Limitations:

• Older, less integrative technology and coding, as investment in development was paused and only restarted a few years ago.
• Does not play nicely with add-ons, likely due to the pauses in development over the years.
• The complex design for accountants makes it challenging for small business owners to pick up and run with.

QBO

We are numbers people at LPB, but if you are a visual person, QBO might be for you. QBO is very visually appealing but not very intuitive. We like it if you are a small business that just wants to track simple data – ins, outs, and invoices.

Strengths

• Affordability at $25 a month.
• Built for tablets, it is great for onsite quotes or bills from tradies and travelling salespeople.
• Visually engaging and popular with creatives, digital natives, and visually oriented learners.

Limitations

• Payroll – it’s provided separately and doesn’t sync back.
• Training is American and does not align with the Australian financial system.
• Not intuitive if you are used to traditional paper ledgers or systems like MYOB and Xero.

If you are looking for a bookkeeper to set you up and train you on Xero, MYOB or QBO, contact us today.