How STP is Going to Impact your Small Business

How STP is going to impact your business

Last Tuesday legislation passed, making it compulsory for all employers with less than 19 employees to be on some form of electronic accounting software and report wage information STARTING 1st of July 2019. Single Touch Payroll (STP) has been rolled out for larger business since July 2018.

More information from the ATO.

Statement from the Commissioner

 

You may already be using software such as Xero, Myob or Quickbooks products but it is recommended to engage your accountant for registration and training to get the most out of the software.

If you are not using a software that offers STP, we have done the hard work of reviewing your options for you. See some information below and give us a call to get set up or learn more about our accounting packages for small businesses.

 

OPTIONS

MYOB Essentials

Established 2014

Pros

  • Online Solution
  • Bank Feeds
  • Online Payments (MYOB Payby)
  • Suited for small to medium businesses
  • Payroll
  • Single Touch Payroll (STP)

Cons

  • Interface
  • Limited Customisation

Overview

MYOB has been a leader in the accounting software industry since the early 90’s with its AccountRight range.  With the release of online software solutions like Xero, MYOB entered the arena with their online solution called MYOB Essentials back in 2014.

Essentials is an easy online solution that is easy to setup and maintain even by the novice user.

Essentials products are powered by MYOB Banklink feeds.  Banklink has a history of over 25 years in the game and has access to over 120 banks and financial institutions.

Here are some of Essentials key features:

  • Dashboard:The simple dashboard provides up-to-date information on the businesses cashflow situation
  • Invoicing & Quotes:simple quote & invoice templates that can be edited slightly to include logos and payment terms.  Converting quotes to invoices is easy as a few clicks
  • Payments: MYOB offers access to MYOB Payby, an easy online payment solution. Once setup small businesses customers can pay easily online safe and secure.

Business owners have the option to order a free payment machine that can take payments from clients whilst on the road.

  • Payroll: Essentials offers by far the easiest payroll facility of all online products. Setup is easy, processing pay runs are usually done in as little as a few clicks. The added benefit is the solution is fully compliant with government requirements and can take care of small business single touch payroll needs.
  • Reports:Essentials caters for all the usual reporting needs. It offers a very simple and easy to use budget tool to help small businesses monitor their cashflows

Pricing

Essentials offers three different pricing plans:

Starter

  • $27/month
  • 5 invoices and quotes
  • Enter 5 bills
  • Reconcile 20 transactions
  • Live bank feeds
  • Reports
  • Unlimited users
  • Payroll 1


Accounting

  • $45/month
  • Unlimited invoices and quotes
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Unlimited users
  • Payroll 1

Accounting + Payroll

  • $ 55/month
  • Unlimited invoices and estimates
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Expenses
  • Unlimited users
  • Unlimited payroll

Payments are made monthly. There are no annual contracts, so you can cancel your subscription at any time

Essentials is best suited for small to medium sized businesses.  The software isn’t over complicated, and offers simple features, reports and integrations.

The major drawbacks to the software are limited customisation of the invoices and standard reports available.  The interface is new and isn’t the standard look of MYOB’s usual products.  Those use to the old MYOB interface will find it difficult to start but will adapt quickly to the change

 

Xero

Established 2006

Pros

  • Unlimited users
  • Numerous integrations
  • Suited for mid to large businesses
  • Advanced features

Cons

  • Learning
  • Poor customer support

Overview

Xero is a complete online accounting solution with complex features, ample reporting, 700+ integrations, and unlimited users as standard.

Xero currently has over 1,000,000 users, and is the primary solution to more than 16,000 accounting firms

Xero has an attractive and modern user interface. To the beginner it will take a great deal of time to explore and understand the software’s features. Once the users get accustomed to using the software, Xero is easy to use.

Here are some of Xero’s key features:

  • Dashboard:The customizable dashboard features graphs and Labels
  • Sales Overview:Xero has recently added a Sales Overview page
  • Invoicing:Xero only offers a single invoice template. However, you can create custom templates and customize them.
  • Quotes:Create quotes and convert them to invoices, purchase orders, or bills with ease
  • Accounts Payable:You can easily create and manage bills in Xero. You can enable recurring bills and attach important documents or photos of the bill to Xero.
  • Inventory:Albeit Xero is much better suited for product-based businesses, you can add items and record basic information. With tracked inventory, Xero keeps tabs on your stock levels, average purchase costs, and the number of items committed to quotes.
  • Reports:Xero offers ample accounting reports. There are 55 reports total, covering everything from sales to budgeting to cash flow and more. Reports can be customized as needed, and you can save your favourite report for quick access.
  • Class Tracking:Xero allows you to set up tracking categories with individual tracking options within each category. Categories could be locations, teams, manufacturing, etc.
  • Payroll: Xero allows processing of payroll for up to 200 employees. Xero is single touch payroll ready.

Pricing

Xero’s most recent improvements has come at a cost to users, with increased pricing.

Xero offers three different pricing plans:

Starter

  • $25/month
  • 5 invoices and quotes
  • Enter 5 bills
  • Reconcile 20 transactions
  • Live bank feeds
  • Reports
  • Unlimited users
  • Payroll 1

Standard

  • $50/month
  • Unlimited invoices and quotes
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Unlimited users
  • Payroll 2

Premium

  • From $60 – $ 150/month
  • Unlimited invoices and estimates
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Expenses
  • Project management
  • Multi-currency support
  • Unlimited users
  • Payroll 2 – 200

 

Payments are made monthly. There are no annual contracts, so you can cancel your subscription at any time

Xero is best suited for mid to large-sized businesses. The software is well-developed and offers strong accounting and ample features, reports, and integrations.

Xero has always offered strong customer support but getting in touch with an actual representative is a lot more difficult. Xero has never offered phone support and has always relied upon email support. Xero’s usual turnaround time for support has moved from a return call in 1 – 2 hours, to now taking days.

MYOB AccountRight

Established 1991

Pros

  • Bank Feeds
  • Suited for medium to large sized businesses
  • Offline access and backups
  • Interface
  • Inventory
  • Payroll
  • Single Touch Payroll (STP)

Cons

  • Maintenance & Updates

Overview

MYOB has been the leader in the accounting software industry for some time.  With the evolution of cloud-based accounting software MYOB has released their hybrid solution.

MYOB’s hybrid solution Account Right Live enjoys the benefits of online software and some of the advantages and disadvantages of desktop software

AccountRight has retained the usual MYOB user interface from previous versions.  This an advantage for those business owners migrating across from old versions of MYOB who want to maintain their existing processes and avoid having to deal with change.

Here are some AccountRight Live key features:

  • Stability: The cloud-based data file can be sync’d automatically with the desktop file so if the internet does cut out you can continue using the program. Otherwise you have the to use it completely offline if internet access is poor, and then sync it into the cloud when you are ready.
  • Invoicing:MYOB offers various invoicing templates for products and/or serviced based businesses, with options to create your own.
  • Quotes:Create quotes and convert them to invoices, purchase orders, or bills with ease
  • Accounts Payable:You can easily create and manage bills in MYOB. You can enable recurring bills and attach important documents or photos to open bills in MYOB.
  • Inventory:Comprehensive inventory system.  MYOB keeps track of your stock levels, average purchase costs, and the number of items committed to quotes.
  • Reports:MYOB offers comprehensive list of reports for beginner to advanced level.  Reports cover everything from sales, purchases. cashflows, general ledger, GST, payroll and inventory. Reports can be customized as needed, and you can save your favourite report for quick access.
  • Categories & Job Costing:MYOB allows you to set up categories to assign transactions i.e. category might be setup for offices, or business segments. MYOB also allows Job costing, so you can track income and expenses related to a specific job
  • Payments: MYOB offers access to MYOB Payby, an easy online payment solution. Once setup small businesses customers can pay easily online safe and secure.

Business owners have the option to order a free payment machine that can take payments from clients whilst on the road.

  • Payroll: AccountRight offers the best in payroll processing and easily tracks all that is required i.e. leave entitlements etc. All MYOB products are single touch payroll (STP) compliant

Pricing

Account Right pricing various depending on needs:

Basics

  • $50/month
  • 5 invoices and quotes
  • Enter 5 bills
  • Reconcile 20 transactions
  • Live bank feeds
  • Reports
  • Unlimited users
  • Payroll 1

Standard

  • $67/month
  • Unlimited invoices and quotes
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Up to 5 users
  • Payroll 2

Plus

  • $100/month
  • Unlimited invoices and estimates
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Expenses
  • Project management
  • Multi-currency support
  • Up to 5 users
  • Unlimited payroll

Premier

  • $ 130/Month
  • Manage 2 company files
  • Unlimited invoices and estimates
  • Manage bills
  • Reconcile bank transactions
  • Live bank feeds
  • Reports
  • Expenses
  • Project management
  • Multi-currency support
  • Up to 10 users
  • Unlimited Payroll

 

Monthly subscription preferred so you can cancel anytime.  Annual contracts available but costly.

MYOB Accountright live is best suited for medium to large-sized businesses.  It offers all features required to maintain a small to large business

Accountright live main disadvantage is that it still relies upon the user updating the MYOB software when new versions are realised, and maintaining computer hardware to ensure it can run the program without issues.

Quickbooks Desktop (Reckon Accounts)

Established 1987

Pros

  • Progress invoicing
  • Online hosting available (through intuit certified host)
  • Suited for medium to large businesses
  • Classes

Cons

  • Lack of custom reports
  • Integration with other systems not great
  • User Interface

Overview

For over 25 years, QuickBooks has offered their products on the Australian Market.  However, in 2012 the rights holder of the brands QuickBooks & Quicken decided to rebrand and the name became Reckon Accounts

Quickbooks was one of the most popular accounting solutions some time ago, and it still offers solutions for all types of businesses

Traditionally it is still desktop-based program and requires regular maintenance, but Reckon does offer a cloud hosting solution

Some of the main features below:

  • Invoicing & Quotes: Various invoice & Quote templates.  Invoicing good particularly in the building and construction industry (Progress invoicing)
  • Inventory:suited for medium sized businesses, you can add items and record basic information.
  • Reports:offers ample reporting with well over 50 reports in total. However, lacks custom reporting
  • Class Tracking:allows you to set up tracking categories. Class categories could be locations, teams, manufacturing, etc.
  • Payroll: Allows processing of payroll.

Pricing

Quickbooks (Reckon Accounts) offers four different pricing plans:

Accounting

  • $505/Yearly
  • 1 user licence
  • Track finances & expenses
  • Inventory management
  • Invoice and pay bills
  • Prepare BAS and track GST
  • invoices and quotes

Plus

  • $590/Yearly
  • 1 user licence Track finances & expenses Inventory
  • management Invoice and pay
  • bills Prepare BAS and track
  • GST
  • Payroll

Premier

  • $710-$999/Yearly
  • Up to 5 user licences
  • Track finances & expenses
  • Inventory management
  • Invoice and pay bills
  • Prepare BAS and track GST
  • Payroll
  • Estimates and quotes
  • Multi currency enabled
  • Multi-user enabled

Enterprise

  • $710-$2,420/Yearly
  • Up to 30 user licences
  • Track finances & expenses
  • Inventory management
  • Invoice and pay bills
  • Prepare BAS and track GST
  • Payroll
  • Estimates and quotes
  • Multi currency enabled
  • Multi-user enabled
  • Multi-company reporting

 

Payments are made Annually.  No monthly subscription available.

Reckon accounts is suited for medium to large business owners

Drawbacks for the program is lack of custom reports, lacks integration with other external programs, and the user interface is confusing for users not accustomed to the QuickBooks look

Quickbooks Online

Established 2014

Pros

  • Online solution
  • Low cost monthly packages
  • Pretty good phone support.
  • Suitable for small businesses

Cons

  • New user interface is a bit confusing for some users. Many users find themselves having to search for things that were easily available in old desktop versions
  • Complicated accounting system which is not intuitive. Easy to make a huge mess of many, many transactions before you realize it.
  • Bank Feeds
  • Reporting not as robust as in previous versions (QuickBooks Pro)
  • Payroll

Overview

Quickbooks online is a modest online solution with basic features that meet the requirements of a small business owner

When compared to its competitors it is the cheapest option available

Here are some of Quickbooks online key features:

  • Invoicing:simple invoice templates that do the job.  Option to activate client portal whereby customers can see their invoices, pay them, and/or address any concerns
  • Expenses:simple feature that tracks expenses using phone apps etc.
  • Reports: Simple and easy reports to help small businesses monitor their cashflows

Pricing

Simple Start

  • $15/month
  • Track income & expenses
  • Send custom invoices & quotes
  • Snap & store receipts
  • Connect your bank
  • Track GST & e-lodge BAS
  • Insights & reports
  • Manage payroll – 1 staff included

Essentials

  • $30/month
  • Track income & expenses
  • Send custom invoices & quotes
  • Snap & store receipts
  • Connect your bank
  • Track GST & e-lodge BAS
  • Insights & reports
  • Manage payroll – 3 staff included*
  • Manage suppliers and bills
  • Multi-currency
  • Set-up recurring invoices
  • Manage users (up to 3)

Plus

  • $35/month
  • Track income & expenses
  • Send custom invoices & quotes
  • Snap & store receipts
  • Connect your bank
  • Track GST & e-lodge BAS
  • Insights & reports
  • Manage payroll – 10 staff included
  • Manage suppliers and bills
  • Multi-currency
  • Set-up recurring invoices
  • Manage users (up to 5)
  • Track inventory
  • Track projects & locations
  • Manage budgets

 

Payments are made monthly. There are no annual contracts, so you can cancel your subscription at any time

Quickbooks Online is best suited for small businesses only.  The software does have its drawbacks with the new interface confusing users, bank feeds aren’t real great, and payroll is limited.

 

 

If you want further assistance in getting registered, understanding compliance or setting up an accounting package give us a call today  07 3808 2868