7 signs it's time to switch your software for small business accounting

The ATO isn't messing around – they've got their eyes on your books, and manual errors can trigger unwanted audits and penalties. Don't let your business become a target.

1. You're spending too much time on manual data entry

Manual data entry is a time-consuming and error-prone process that can significantly hinder your business's efficiency. Hours spent inputting sales receipts, invoices, and expense tracking reports into your accounting software divert valuable time away from core business activities. This manual labor also increases the risk of human error, leading to inaccurate financial records.

And let’s not forget the ATO – they have a keen eye for discrepancies, and manual records can trigger unwanted audits and penalties.

Imagine running a small retail store where every sale is manually entered into QuickBooks Online. This tedious task is not only time-consuming but also opens the door for mistakes, such as mistyped numbers or missed transactions, ultimately affecting your inventory and sales reports.

Discover the differences between Thriday and QuickBooks.

To streamline your accounting process and reduce errors, seek out accounting software with robust automation features. Look for solutions that can:

• Automatic expense categorisation: Accounting software that intelligently categorises expenses based on rules you define, saving you time and ensuring consistency.
• Customisable invoice templates: Streamline invoicing with templates that match your branding and easily adjust for different clients or services.
• Seamless inventory management: Automatically update inventory levels as sales and purchases occur, ensuring accurate stock counts and reducing the need for manual adjustments.
• Bulk data import: Easily import transactions from bank statements or other sources, saving hours of manual work and reducing the risk of errors.

Tip: When evaluating accounting software, ask for a demo and specifically test the data entry features. See how intuitive and efficient the process is, and whether it can handle your specific types of transactions. 

Thriday, an accounting and tax receipt software for sole traders and small businesses in Australia, is designed to streamline your financial processes and eliminate the burden of manual data entry.

Watch our Thriday product video demo to learn more.

2. Your bank feeds are unreliable

You rely on bank feeds to automatically import your transactions, but they're not always reliable. You may notice missing transactions, incorrect amounts, or significant delays in updates. This can make it difficult to reconcile your accounts, track your cash flow, and make timely financial decisions.

This is one of the issues that Xero users experience. Probably, your small business uses Xero for accounting, and you've noticed that transactions from your business credit card aren't always appearing in your Xero account. You have to manually check your credit card statement and enter missing transactions, which is time-consuming and frustrating.

Get to know how Thriday stacks up against Xero.

To ensure reliable bank feeds, prioritise cloud based accounting software with:

• Direct bank connections: Prioritise software that connects directly to your bank, rather than relying on third-party aggregators, for more reliable feeds.
• Real-time updates: Ensure the software updates your accounts regularly, ideally multiple times a day, to minimise delays and give you the most up-to-date financial picture.
• Error handling: Look for features that help you easily identify and correct discrepancies or errors in your bank feeds, such as duplicate transactions or incorrect amounts.

Tip: Research the software's reputation for bank feed reliability. Look for reviews and testimonials from other users to see if they've experienced similar issues.

3. There's a delay between your banking data reaching your and accounts and accounting software

Delayed bank feeds mean you're not seeing your most up-to-date financial information. This can lead to overspending, missed payment deadlines, and inaccurate financial forecasts. In short, it means you're flying blind when it comes to your finances.

Consider using desktop accounting software like an older version of MYOB that only updates bank feeds once a day. A significant business purchase made today won't appear in your software until tomorrow, making it difficult to accurately track your cash balance.

To overcome this, seek software with:

• Real-time bank reconciliation: This feature ensures your accounting records match your bank statements instantly, giving you an accurate picture of your finances at all times.
• Cloud-based access: Access your accounting data from anywhere, anytime, so you're always working with the most current information, whether you're in the office or on the go.
• Mobile apps: Choose software with a mobile app so you can check your finances, approve invoices, and categorise expenses from your smartphone or tablet.

Tired of unreliable bank feeds or worried about your financial data? Thriday offers a streamlined solution. By combining banking and financial management in a single platform, Thriday eliminates the need for separate systems and the frustrations of bank feeds.

With Thriday, you get integrated *business bank accounts and *Visa Debit cards. This way you can manage your finances seamlessly in one place.

See how Thriday's smart features can make managing your money easier.

4. You can't understand your business finances without an accountant

Your accounting software should empower you to understand your own financial accounts, not confuse you. If you're constantly relying on your accountant to understand complex reports and explain basic financial concepts, it's a sign your software isn't user-friendly enough.

Using accounting software like Sage 50cloud, which offers complex and overwhelming reports, can hinder your financial understanding. Without easily accessible information about profit margins, expenses, and cash flow, you're essentially operating your small business blind.

To gain better financial control, look for software with:

• Intuitive dashboards: Look for clean, customisable dashboards that give you a snapshot of your key financials, such as cash on hand, outstanding invoices, and profitability.
• Customisable reports: Choose software that allows you to tailor reports to your specific needs and preferences. You should be able to easily filter, sort, and customise the data to get the insights you need.
• Visualisations: Graphs and charts can make it much easier to spot trends and understand complex financial data. Look for software that offers a variety of visualisation options to help you make sense of your numbers.

Tip: Test out the software's reporting capabilities before you commit. Can you easily generate the financial reports you need like cash flow forecasts or profit and loss statements, and do they make sense to you without having to consult your accountant?

5. You want to change your online accounting software but your accountant is against it

Changing your accounting software can be challenging, especially if your accountant is resistant to change. Factors like familiarity with existing accounting software, concerns about data migration, or the perceived learning curve can hinder the adoption of a more suitable solution.

For example, if your accountant is comfortable with QuickBooks Desktop and resists switching to QuickBooks Online due to its cloud based nature, your small business may miss out on valuable features and flexibility.

To overcome this challenge, choose accounting software with:

• User-friendly interfaces: An intuitive design and easy navigation to minimise the learning curve for both you and your accountant.
• Comprehensive training resources: Look for software providers that offer robust training materials, webinars, or tutorials to help your accountant get up to speed quickly.
• Excellent customer support: Choose a provider that offers responsive customer support to assist with any questions or issues that may arise during the transition or beyond.
• Data migration tools: Ensure the accounting software provides easy-to-use tools for importing your existing data, minimising disruption during the transition.

Tip: Involve your accountant in the software selection process. Let them test out potential options and provide feedback. Emphasise the long-term benefits of switching, such as improved efficiency, accuracy, and collaboration, which can ultimately benefit both your small business and their work.

6. Your costs are rising, but your small business accounting software isn't

Here’s another thing – you're paying more for your accounting software, but you're not seeing any significant improvements in features, functionality, or customer support. This means you're not getting the value you deserve for your investment.

For example, if you've been using Xero for a while and notice increased subscription fees without significant feature updates or improved customer support, it's time to reassess your options.

To avoid overpaying for subpar software, look for:

• Transparent pricing: Opt for an accounting software with clear pricing plans and no hidden fees. You should know exactly what you're paying for and what features are included at each pricing tier.
• Regular updates: The best accounting software is committed to ongoing product development and regularly releases new features and updates. This ensures that your software stays up-to-date with the latest accounting trends and technologies.
• Responsive customer support: Ensure that the accounting software providers you pick offer excellent customer support, preferably with multiple channels like phone, email, and live chat. You should be able to get help quickly when you need it, without having to wait on hold or deal with unresponsive support agents.

Tip: Don't be afraid to shop around and compare different accounting software providers. Look for a solution that offers the best value for your specific business accounting needs. Consider factors like price, features, ease of use, customer support, and integrations with other tools you use.

We got some comparison pages you can check on to do that:

• Thriday vs Airwallex
• Thriday vs Bankwest
• Thriday vs Wave
• Thriday vs Rounded
• Thriday vs Hnry

7. Your software lacks essential features

Your business is unique, with specific financial needs and processes. If your current accounting software doesn't offer the features you require, it's hindering your operations.

For example, if you run a service-based business that requires detailed time tracking and project management, a software focused solely on invoicing and expense tracking won't suffice.

To ensure your software aligns with your business needs, look for:

• Industry-specific features: Software tailored to your industry, offering features like invoice management, nonprofit accounting etc.
• Customisable options: The ability to adapt the software to your specific workflows and reporting requirements.
• Integration capabilities: The ability to connect with other business tools like CRM, e-commerce platforms, and bank accounts for seamless data flow.

Frequently asked questions

What if I don't have any accounting experience?

Many modern accounting software platforms are designed with small business owners in mind, even those without a financial background. Look for software that offers intuitive dashboards, easy-to-understand reports, and helpful tutorials or customer support resources. Thriday offers clear and concise guidance, along with interactive tutorials, to walk you through the basics of accounting and help you navigate the software with ease.

How do I convince my accountant to switch to new software?

Remember, the key is to show how the new software will benefit both you and your accountant. By positioning it as a tool to enhance their professional capabilities, you can increase the likelihood of a successful transition.

Is it expensive to switch accounting software?

The cost of switching can vary depending on the software and the size of your business. However, many providers such as Thriday offer free trials or demos so you can test out the software before committing. Additionally, the long-term benefits of increased efficiency and accuracy can often outweigh the upfront costs.

What should I look for in a good accounting software provider?

Look for a provider that offers reliable bank feeds, regular software updates, excellent customer support, and transparent pricing. It's also important to choose a provider that understands the needs of small businesses and offers features that are relevant to your industry.

The final straw

If any of these scenarios ring a bell, it's time to break free from the limitations of outdated accounting software. Whether you're a freelance graphic designer, a café owner, a consultant, or any other type of small business owner, the right accounting software can be a game-changer.

Upgrading to a modern accounting and tax solution like Thriday will save you more time, automating tedious tasks and freeing up your schedule for more strategic activities. If you're interested to know more about Thriday, sign up today for free! We have a dedicated customer support team ready to assist you every step of the way.

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