Choosing the right software for you

In last month’s issue, we looked at the reasons for having a robust accounting system in place. This month, we look at three different options, weighing up the pros and cons of each

At the end of a long working day, the last thing many of us want to do is sit in an office and be overwhelmed by the sheer amount of bookwork that needs to be done.

All three products we’re reviewing are aimed at small to medium-sized companies and may not necessarily
be suitable for larger organisations.

Each of the products has varying levels of functions, so we’ve taken a broad-based approach when reviewing them and what they can
offer.

Xero

Its simplicity means that Xero is easily the most user-friendly option available to small businesses.

Pros

• Fully online, it is accessible regardless of where you are.
• Mobile app available.
• Thousands of add-ons, including building-specific tools that allow for the flow through of invoicing.
• Long established in online solutions.
• Departmental/job reporting available via segment reporting.

Cons

• Can be quickly outgrown if the business expands rapidly.
• Need to purchase add-ons for any job costing/quoting work.
• No offline access, problematic if the internet is down or unreliable.
• Payroll is an additional cost.
• Segment reporting is not as user-friendly as MYOB or Moneyworks.
• Xero is ideal for labour-only contractors or those who don’t have standard quoting for materials or a need to cost out/track job expenditure.

MYOB

MYOB’s cashbook option is the cheapest online tool on the market.

Pros

• Includes job costing tools in AccountRight package.
• Has traditional offline access and online options, as well as a hybrid package.
• Includes payroll (other than cashbook option).
• Mobile app available.

Cons

• Not as well established as Xero in online services.
• May require a higher level of accountancy knowledge to operate. 
• Add-ons are not as widespread as Xero options.
• It’s not as user-friendly as Xero.
• We think MYOB is best suited for those who scope out all aspects of a job when they quote, as it offers better functionality in this regard.
• The all-in-one package allows for less complex reporting and lower cost.
• A good mid-range system for a growing business, it also has a wide product range to support different business sizes.

Moneyworks

It’s the most comprehensive system on this list, but does require users to have a good base knowledge of accounting.

Pros

• Reporting on a job-by-job basis. Provides the ability to track each job – profits or losses – on a daily basis.
• Includes job costing in package plus measuring quotes vs actual results.
• No limit on the number of companies used per licence.
• MoneyWorks Trades Plug-in – an extension that allows for the importation of price books and invoices generated by the major trade suppliers in New Zealand. 
• Online and offline options available.
• Reports are more customisable than MYOB, although there are charges associated with this.

Cons

• The least user-friendly option.
• Optimal job costing requires an add-on.
• Harder to correct user errors.
• Pricing is not on a monthly subscription basis. A one-off outlay is needed, it requires more cash up front.

Once up and running, a business would not outgrow this system in a hurry.

However, the user would need additional training in order to get the most from it. Upfront pricing may put some people off.

Points to remember

This is a very high-level review of only a few of the software options currently available.

There are, of course, many others on the market that should be considered before deciding on a new system.

The major point is that you will need to do a bit of research or discuss options with a business advisor, in order to ensure that you have the best possible system in place to meet your needs.

While the information above is not meant to be exhaustive, each system has its own positives and negatives. In particular, job costing usually requires the use of an additional service.

A key point to remember is that these are accounting systems – not necessarily building software systems. Finding what works best for your business is crucial.

If you do have any further questions about what software your business should be using in order to reduce the number of hours you are spending in your office each night, please contact Peter van der Heijden at peter.vdh@crowehorwath.co.nz or your local Crowe Horwath advisor.