Choosing bookkeeping software can feel overwhelming. There are so many options, features and price points that it’s tempting to just pick something and hope for the best.
But the system you choose will sit at the centre of your money flow – invoices, bills, payroll, reporting and tax. When it fits how you work, everything runs smoother. When it doesn’t, you end up fighting with it (and avoiding it).
Here are some practical things to think about before you decide.
Start with how you actually work
Before you look at software, take a close look at your current setup:
- What’s working well? (For example, online invoicing, bank feeds, attached receipts.)
- What’s painful or clunky? (Spreadsheets, double-handling, manual data entry, no reporting.)
- Who needs to use the system and what do they need from it? If you’re moving from older desktop software or a spreadsheet, think about the gaps:
- Do you need better visibility on who owes you money?
- Do you want to automate recurring invoices or payroll?
- Do you need easier access for your bookkeeper or BAS agent?
The clearer you are on your needs, the easier it is to see whether a piece of software is a good fit or just “shiny”.
Be realistic about your budget – and the future
Bookkeeping software is an investment, not just a cost line. Cheaper isn’t always better if it limits what you can do or creates more manual work.
Consider:
- the monthly or annual subscription
- the value of your time (and your team’s time)
- whether the software can scale as your business grows
Sometimes paying a little more for a tool that saves you hours each month (and helps you avoid mistakes) is far better value than a rock-bottom option that you’ll outgrow quickly.
Check whether it will grow with you
A good bookkeeping system should be able to support you now and in a few years’ time.
Look for things like:
- cloud-based access (log in from anywhere, with automatic backups)
- bank feeds and easy bank reconciliation
- the ability to handle payroll and super (now or later)
- integrations with other tools you use (POS, job management, ecommerce)
- user permissions and security settings
If you need to share information with your accountant or BAS agent, make sure they can access what they need without constant exporting and emailing.
Support and training matter more than you think
Even the best software will feel frustrating if you can’t get help when you need it.
Check what’s available in terms of:
- help articles, videos and guides
- in-product support or chat
- response times for support
- local advisors or partners who know the software well
Good training and support can dramatically reduce downtime and “I have no idea what I’m looking at” moments.
Involve the people who will actually use it
If you have team members who will be sending invoices, approving bills or running payroll, involve them in the decision.
Where possible:
- let them try the demo or trial version
- ask what feels intuitive and what feels confusing
- get their feedback on day-to-day tasks
They don’t need to choose the software for you, but their input can help you avoid picking something that looks great on paper and is horrible to use in real life.
Don’t rush the decision
It’s worth taking a little time up front to choose well. Switching systems later can be done, but it’s always more work than setting things up properly the first time.
Give yourself a reasonable timeframe to:
- shortlist a couple of options
- try them with real (or test) data
- talk with your bookkeeper or BAS agent about what they recommend
The goal isn’t to find the “perfect” system forever – it’s to pick something that fits your business, your stage and your way of working.
Next steps
I work exclusively in Xero because, for most small, service-based businesses, it hits the sweet spot of functionality, simplicity and scalability. But the principles above apply no matter which software you choose.
If you’re unsure what would suit your business best, or you’re thinking about moving to Xero, I’m happy to chat through your situation and give you an honest view of your options.
BookKeep Up helps small business owners choose, set up and streamline Xero so your software supports you – and you’re not constantly catching up.