Accounting software for solo trader

[JonoBoy]

Hi

I am a solo trader runnning a single-person counselling practice with very little overheads or expenses (other than rent etc). I earn less than $60k so am not even GST registered.

I've had a look at MYOB and it looks to be more than I need (even the most basic package).

Then I came across 'Express Accounts' by NCHsoftware and it was really impressed by the simple interface yet comprehensive backend etc.

Does anyone in New Zealand use this for accounting? Is it adequate if the tax-man audits me?

Thanks
Jonathan

[spaceman]

Anything that keeps records will do for the IRD..... receipts in a shoe book even.

Lots of free stuff out there that will do the job.....google..... download....try some out....stick with the one you like best

Or just use a spreadsheet program like Excel

Cheers
Spaceman

[Rosco]

There are tonnes of packages available these days. The main things I would consider

1) Does it account for GST if you exceed the threshold in the future?
2) I prefer online packages, so that you are not having to buy or install updates. Therefore Xero, Saasu, MYOB etc
3) Make sure it downloads your bank statements, as this can reduce owner errors
4) If it is an online software, make sure it is backed up, and not a small company that could close down at any time
5) Make sure it can give you an easy report of your profit for each month, and obviously the financial
6) Make sure you can easily print a full General ledger at the end of the financial year. This will show what makes up each of the income and expenses on your profit and loss report. So IRD may want to see this at some point.
7) Make sure it is simple and easy for you.

It sounds like you plan on doing your own taxes which is fine. I would suggest getting a chartered accountant to review your financial statements and tax returns before you submit them. A good accountant will be able to suggest items you have not claimed, and also mistakes that you have made.

Also, have you considered a limited liability structure? This seperates you and your business. As a counsellor is there a high risk of your business being attacked by a patient?

Ross

[Perry]

Quicken. If you can buy an older version (e.g. v7.5)
it will do everything you're likely to need. It is not
an invoicing program, however. Like all such s/ware,
it takes a little effort to get it set up right and look
the way a user prefers.

I've been using Quicken for many years. I like it's
flexibility. During that time, I tried a couple of
alternatives (for free - recommended by my acc-
ountant) but sent them back.

[JonoBoy]

Thank you all for you advice. I think I'll have a look at Xero as well before committing. But it seems like a good idea for me to have an accountant peruse my processes earlier rather than later to make sure I'm doing the right thing.

And yes the liability issue is something I have to address. Currently have a company registered to protect the business name but might be a good idea to start using it for other protections.

[Tan]

But it seems like a good idea for me to have an accountant peruse my processes earlier rather than later to make sure I'm doing the right thing.

Check with your accountant which one suits them - will save them time & you money.

[Perry]

Impeccable advice. Accountants may even be able to
get you a discount on one of the packages the use.

[donna]

Xero.com - NZ business - it's all online - so you can access from anywhere - just wonderful to work with and share with your Accountant etc.

And great support too.

Cheers,

Donna

[Jester]

I use Xero and find it really good. All your transactions auto feed and you can set it up so that they auto code as well. Makes a painful task almost painless

[drelly]

I want to use Xero but with multiple entities, it gets too expensive.

[Rosco]

Have a look at Saasu. We are in the process of investigating Saasu for clients, and it seems pretty good!

My general thoughts
- Quickbooks - to difficult for most users
- MYOB - just doesn't seem to be keeping up with the play
- Banklink - still great for simple, cash based reporting. And fool proof!
- Xero - I think well marketed, but I don't think the reports are flexibility is that great.
- Cashmanager - out of date

Ross

[crackennz]

Hi there, I have tried MYOB very briefly, trialled Xero and purchased Quicken through trademe....I too am a sole trader/contractor and found these accounting softwares either way to convoluted, not flexible in their systems and just way too much work for what I need.
Cashbook is what you need, you can download a fully working trial and keep using it for 10 years if you like although I'm sure you will be happy enough with it after a year or two to pay for it..
Oooops just checked their website "acclaim.co.nz" and you can have a 90 day trial and then pay or use the lite cheaper version or the free home version....
You set it up easily with different categories for expenses and income and away you go....
Only for pc though so if you are a switcher to mac like me, you'll need parallels...

Well worth a look..

[xenophobicfruit]

Hi,

I am a long time Xero user. I have 4 entities with them, all on the "large" plan, and it is made affordable because I get an early adopter discount in addition to the multi-entity discount. It still costs me about a grand in subscription costs per a year but it is well worth it for the companies it looks after.

The reports of it being inflexible are erroneous in my opinion. They have an easily accessible API and if you want you can hook into it to do all sorts of things.

However I recently became a sole trader, moving from salaried employment to contracting. Xero would not offer me another account with them on the current pricing I have with them. After some thought about how the books would work for my contracting work I realised that Xero would not be a suitable product either.

I came across an accounting package called Wave Accounting and I have been very pleased with it.

1) It is FREE
2) It offers automatic downloading of transactions from my bank.
3) It automatically categorises transactions
4) It has invoicing
5) It has an ingenious personal accounts section whereby I can split my transactions between personal expenses and businesses expenses.
6) It can recognise transactions across entities. Get paid into your personal account and it will recognise that you have previously generated an invoice for that in your business entity.

I cannot recommend this product enough for sole traders and small businesses. That is their intended market and they do it really well. Support is excellent I had a problem connecting to my bank for transaction downloading and they had it fixed within a few days.

There are a few negatives.

1) It is slow.
2) There are some quirky things about the interface I don't agree with.

[crackennz]

Yes but with Xero...do you have to sign up with one of their advisors/accountants or doesn't matter who you use?

Personally for me only I meant it was not very flexible for what I want it for and I did have a good long look and play with it.
I'm sure thousands if not millions use it and absolutely love it, however for a small scale gst registered sole trader, personally I think you can't go wrong with Cashbook...it's basic, it works and it does everything I require..

[rueben]

I use Cashbook - its fantastic.

I agree - I have used Cashbook Lite, and Cashbook Complete for about 9 years. Its really, really simple and cheap.

You can download the free trial at acclaim.co.nz.