Accounting is continuously changing and it’s a great time to review your accounting package before 31/03/14.
Banklink
A lot of property investors still use Banklink as it is extremely simple and easy.
Other Options with Xero
Xero partners (most accountants), can offer you some extra packages not readily available to the public:
Recommendations
1. If you have a non cash business where you invoice customers, then you need more than Banklink. You need a full accounting system such as Xero. There are a number of other options such as Saasu, MYOB live, Quickbooks, etc.
2. If you are a cash based business (make a sale and receive the proceeds straight away), then either Banklink or Xero GST cashbook would be fine. The decision comes down to whether you prefer the slightly cheaper Banklink, or the convenience of online through Xero.
3. If you own rental properties, for one or two properties, you can still use cashbooks or just narrated bank statements. As you get more rentals it becomes easier to use an accounting package. Either Banklink or Xero Cashbook would be fine, and it depends if you prefer the online program. I find Banklink to be a little simpler.
Timing and changeover
If you were thinking of changing accounting package, now is the perfect time so that it is all set up and running before 31/03/14.
Ross
Banklink
A lot of property investors still use Banklink as it is extremely simple and easy.
- OK for cash based business (motels for example) and rental properties
- Can complete payments basis GST returns
- Doesn’t provide invoicing, debtors, creditors, so doesn’t work perfectly for non cash businesses
- $10 + GST per month approximately to get the bank transactions from Banklink
- Simple cash reporting, graphs and can compare well to budgets
- Accounting firms can provide Banklink training and training notes
Disadvantage: Banklink hasn’t changed in the last 10 years and it is not a cloud based product. Accountants need to manually email you the months file, then you have to email it back when finished.
XERO
Xero is a cloud based accounting system that started around seven years ago, so it is no longer the ‘new kid on the block’.
For non cash businesses, it is a full accounting system that can do your invoicing, debtor management, creditor management and full accrual profit and loss. As a business owner it is essential that you know and understand your monthly profit.
- Most reasonable sized businesses will have to go on to the Standard plan, which is $50 + GST per month.
- Under the More options on www.xero.co.nz, there are weekly free training webinars and also email support.
- Xero has a number of add-ons that can provide further services or information for your business such as job management program and payroll.
- If you cease your business, Xero keeps your information for 7 years, and they can restore this if necessary. Note: there is a cost involved.
- Slightly easier to set up new bank accounts and can put on more credit card options than Banklink.
- By using either Xero GST cashbook or Xero Cashbook, you have access to the file storage facility in Xero and to the Add-ons.
Other Options with Xero
Xero partners (most accountants), can offer you some extra packages not readily available to the public:
- GST cashbook for $19 per month + GST
- Quite similar to using Banklink for a cash business, but cloud based with more up to date transactions.
- NO invoicing, debtors or creditors.
- But can still process cash transactions and complete GST returns.
- Easy to upgrade to Standard package at a later date.
- Cashbook for $10 per month + GST
- Ideal for rental property clients. Quite similar to Banklink for rental properties but cloud based with more up to date transactions.
- NO invoicing, debtors or creditors.
- Can process cash transactions and give reporting on each rental.
- Can link to Pocket Rocket Add-on to gain access to property management software. Pocket Rocket is free for one property.
Recommendations
1. If you have a non cash business where you invoice customers, then you need more than Banklink. You need a full accounting system such as Xero. There are a number of other options such as Saasu, MYOB live, Quickbooks, etc.
2. If you are a cash based business (make a sale and receive the proceeds straight away), then either Banklink or Xero GST cashbook would be fine. The decision comes down to whether you prefer the slightly cheaper Banklink, or the convenience of online through Xero.
3. If you own rental properties, for one or two properties, you can still use cashbooks or just narrated bank statements. As you get more rentals it becomes easier to use an accounting package. Either Banklink or Xero Cashbook would be fine, and it depends if you prefer the online program. I find Banklink to be a little simpler.
Timing and changeover
If you were thinking of changing accounting package, now is the perfect time so that it is all set up and running before 31/03/14.
Ross
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