One of the most important decisions a small business owner can make is choosing the right accounting package for their venture. There are many accounting packages for small business in the market, but no ‘best’ one as such. The decision rests on the business type and size, requirements of the industry, and, of course, the accounting support available to the owner. As an outsourcing partner supporting thousands of SMEs across Australia, we’ve seen firsthand how the right accounting package, paired with expert support, can transform the way a business operates. The right setup plays a key role in accounting for small businesses by keeping finances accurate and compliant.
What Small Businesses Should Look for in an Accounting Package
There are several factors businesses should look for in their choice of accounting package. Some of the most important ones are:
- Ease of use
- GST/BAS compliance
- Bank feeds & reconciliations
- Payroll integration
- Inventory (if relevant)
- Reporting dashboards
- Scalability as the business grows
Modern accounting packages offer online accounting for small business that helps streamline their finance functions, ensure compliance, and enable accurate and on-time lodgements. Even so, many businesses will require accounting and bookkeeping support along with a good accounting software package.
Top Accounting Packages for Small Businesses in Australia
| Parameter | Xero | MYOB Business | QuickBooks Online |
|---|---|---|---|
| Best for | Small businesses wanting simple, cloud-first accounting with strong bank feeds | Small to medium businesses needing robust inventory & payroll | Small businesses looking for affordability and strong automation |
| Key Strength | Excellent UX, powerful integrations, real-time financial insights | Strong inventory and payroll tools, local Australian support | Automation, easy setup, and competitive pricing |
| Ease of Use | Very intuitive and beginner-friendly | Moderate learning curve; great for growing businesses | Easy to learn; ideal for non-accountants |
| Core Features | Invoicing, bank feeds, payroll, BAS prep, reporting, expense claims | Invoicing, payroll, inventory, BAS, job tracking, reporting | Invoicing, payroll, BAS lodgement, automation, receipt capture |
| Payroll | Xero Payroll add-on available | MYOB Payroll included in most plans | Payroll add-on available (cost varies) |
| ATO Compliance | Fully ATO-compliant STP & BAS | ATO-compliant with strong STP Phase 2 support | ATO-compliant STP & BAS |
| Pricing (AU) | From ~A$33/month | From ~A$30/month | From ~A$29/month |
| Integrations | 1,000+ apps via Xero App Store | Inventory, POS, CRM, plus built-in MYOB ecosystem | Good integration library via QuickBooks Apps |
| Limitations | Payroll costs extra; limited inventory | Can feel complex for micro-businesses | Limited advanced reporting vs competitors |
| Support | Online help centre, community & partner network | Local Australian support, partners & training options | Online help centre, chat support, wide partner network |
How to Choose the Right Accounting Package for Your Business
Business Size and Complexity
The software package you choose should align with the specific requirements of the business, and hence, a small to medium-sized business may need only simple, basic accounting software, whereas a large corporation would require more complex accounting systems that include additional functionalities of payroll, inventory management, multi-currency support, and so on. There are several types of accounting, and depending on the business, the accounting software should be able to support these.
Major Features Offered
Ease of Use
Integrations
Budget
One of the most important factors is the budget earmarked for accounting software. From free software tools to premium ones offering high-end and complex accounting solutions, there are several types of accounting software available, catering to budgets of all sizes. Assess your business requirements and budget, and choose the best fit that makes sense for your business. Read this article to know how to reduce accounting software costs without compromising on the functionalities.
Customer Support
Accounting Services for Small Business: Why the Right Support Still Matters
Strong accounting for small businesses goes beyond using the right software. Owners need clear, reliable financial information to make decisions, stay compliant, and avoid last-minute stress during BAS or tax season. When this foundation is weak, everything else becomes harder.
That’s why proper bookkeeping for a small business is so valuable. Clean, timely records keep cash flow visible, help prevent errors, and make reporting far easier. When the day-to-day data is accurate, the entire accounting process becomes more organised and predictable.
Reliable support brings structure, reduces risks, and gives small businesses the confidence to focus on growth rather than paperwork.
Common Challenges Small Businesses Face Even With Good Software
Why Outsourcing Your Accounting or Bookkeeping Still Makes Sense
That’s precisely why outsourcing remains one of the most effective ways to ensure accuracy, compliance, and efficiency. Despite the availability of several accounting packages for small businesses, outsourcing enables business owners to hire the best accountant for small business that can optimise the use of these software tools with minimal investment from the businesses themselves. Some of the advantages of outsourcing include:
- Access experienced and qualified accountants at a fraction of the cost it takes to hire in-house.
- Maximise the use of the best accounting software, including its advanced features, to your business’ advantage.
- Benefit from ease of scalability depending on seasonal demands.
- Enjoy higher profit margins.
- Focus on business growth and expansion with your outsourcing partner handling all accounting and related functions.
How befree Supports Small Businesses Across Australia
With almost two decades of experience helping businesses across Australia, befree has a strong track record of supporting small businesses using leading accounting software packages like Xero, MYOB, QuickBooks and others. Our team not only manages day-to-day bookkeeping and compliance tasks but also helps businesses get the most out of their chosen software, ensuring accurate setup, cleaner data, and fully optimised workflows. By combining expert talent with deep software knowledge, we help small businesses operate more efficiently, stay compliant, and focus on growth. Want to know how we can help your business? Connect with us, and we will take the conversation forward.