If you are looking for a dead certain answer to which accounting software to use for Australian based business, you have come to the wrong place. It depends on the size of your business, and what you do within your business.

You need to evaluate what's out there and make the decision for yourselves. This decision should never be put in the hands of your IT personel, its an executive decision. Your IT department or advisor should give you a list of all the available options based on your requirements.

The main contenders for small business are Quickbooks and MYOB. Both have their strengths and weaknesses, however essentially do the same thing.

We have used both MYOB and Quickbooks, Quickbooks is easier to learn and more intiuitive while MYOB makes it easier to import and export information.

These packages quickly hit a wall once your business starts growing beyond a certain size, you will know when you hit it. You will then have to look at more powerful packages designed for medium business.

Packages that fit in this area would be Pastel, or Greentree

Once you get to the larger medium business or big business then MFG Pro, JD Edwards, or SAP will be of interest. Of course these systems are much bigger than just accounting, and there are many other modules like shipping, manufacturing etc etc and they are highly customisable (for a price)

Sit down and try and make a list of the things you do, and want your accounting software to do. This may be hard if you are just starting out, but if you have been in business for a while, it should be easy.

Many Business accounting software packages are customisable, for a price of course, and what a price it can be. Modifying an accounting software to suite your needs can put the GDP of many third world countries to shame. Make sure you have your facts on costing before making a decision on the accounting package both for the package, any extra modules required, and modification to do what you want it to do.

Is something you never want your accountant to say about your brand new business accounting software!

Make sure you involve your accountant in your purchasing decision. You will be stuck if your Accountant does not do site calls, yet does not have the ability to read your financial information at their office.

Whatever product you decide on, it must have ATO compliance. No point finding fantastic business accounting software online and then finding out that it cannot cope with the Australian tax system.

Microsoft small business accounting and Peachtree come straight to mind, neither I believe at this time are suitable for the Australian tax system.

The party piece of many business owners or decision makers is to spend a small fortune on business accounting software and then try and run it on hardware purchased in the mid 90's.

You are heading for a world of pain!

Don't be cheap, if you buy current accounting software, you should match that with current hardware.

If you cannot afford to upgrade you network system, then beg, borrow or steal because the reason for your cash flow problems could well be that you don't spend what is required on your IT Infrastructure and you are caught in a vicious cycle of never having enough money to spend on what's important.

We have an IT maintenance agreement that has been very successful in increasing service levels while reducing capital expenditure.

Listen to what people are telling you about the options you have.

Pick the business accounting software that you like the sound of the most. Ask the representative for a trial copy. If they do not have a trial copy, be especially cautious. There is no reason not to have a trial for potential customers to try unless of course the product stinks.

Pay your IT support people to install it and then have your book keeper / Accountant run it side by side with your existing system for a month. Get both your IT support and bookkeeper to write down every question they have about the new accounting software and present it to the sales rep at the end of the month.

Ask them to respond to each question in writing, this is because these days the phrase "yes it can do that" is a fairly loose term.

What it might actually mean is "yes it can do that, but it will require the purchase of an extra module for $8,000 and 100 hours of support and training"

If at the end of the month, it looks like its not going to work, you have saved a great deal of heartache.

Move onto the next accounting software package, you may find that your existing accounting software is not that bad after all and save yourself a packet.