The Importance of Accounting Software in Retail

Handling your accounting effectively is vital for store success. Accounting software programs perform critical functions in tracking expenses, invoicing, payroll, and ensuring compliance with tax guidelines.  Today, with the ATO requirements for payroll, it has become a necessity for a business to have such software.

Xero is one of the most popular options among Australian retailers, mainly because of its comprehensive capabilities and cloud interface.

However, for some reason, Xero's recent price increase has raised many complaints, with several wondering about the platform's affordability. I am not sure why this year, as it was last year that the big price rise occurred, yet last year I heard nothing, and today I hear much. Maybe it's been the straw that broke the camel's back for some.

Xero price increase

I decided to investigate, so I went to the Xero website and decided to work on the Premium 5 plan, which is the most popular with my clients. I then used this website to convert the figures into 2024 dollars. 

Then, I made a column for price rise in percentage.

Check the above graph to provide a clearer view of these rate hikes. While the growth from 2021 to 2022 is less than inflation, there was a big leap of 15.44% in 2023. For some reason, this did not raise eyebrows amongst my clients, but in 2024, when faced with another 4.78% increase, I got some enquiries.

Addressing the Rationale Behind the Price Hikes

I have not heard or seen anything from Xero that states the reasons for those fee increases. I do know that it appears that the shareholders on the ASX like them. A company like Xero that can pass the costs on to its users is desirable to its shareholders. Looking at the ASX share price, it appears that the price rise is positive news, and it shows that Xero is a company that can pass on its costs.

Retail accounting software Australia

If you use Xero, the price hikes did upset you. Well, it's unlikely to get better for you next year. There are several others in the marketplace that offer comparable software. Reckon and MYOB are most popular with my clients, both of which, in my experience, can do your business. Our POS software integrates with these accounting software, saving time and effort. 

Most accounting software also offers a free trial to test it out. This should make it easy to examine based on your business needs, ease of use, reporting capabilities, and integration with existing structures. 

Most allow you to switch from Xero to them fairly quickly. However, you will get a copy of your information in Xero and make all relevant reports before stopping your subscription. Once it's cancelled, the data contained within that subscription is archived and held by Xero for 7 years, but you need to pay for access.  Most people who switch run to the end of the financial year and start the new year with another accounting system. 

Conclusion: Prioritising Your Business Needs

Ultimately, it is crucial to evaluate your alternatives cautiously, seek expert advice, and leverage community insights to make an informed choice that aligns with your business desires, budget, and long-term achievement. By prioritizing your specific desires and carefully weighing the pros and cons of diverse accounting software solutions, you can navigate this venture and discover the proper fit for your small retail enterprise. 

In my experience, the most crucial consideration is your ease of use, as most major accounting software in Australia do the same tasks and give the same reports.