Do I even need accounting software?
When you're just starting out with a handful of orders, a spreadsheet can do the job. No shame in that.
But here's the thing. Once orders pick up, typing every sale and every bill into a sheet gets old really quick. And when you register for GST, you'll need to get your numbers right every quarter.
That's where software helps. It pulls in your bank transactions and does most of the sorting for you.
What should an online store look for?
Keep it simple. You want software that does these things well:
- GST tracking. It should tag the GST on every sale and every expense.
- BAS reports. BAS is the form you send the ATO, usually every quarter, to report your GST. Good software builds it for you.
- Bank feeds. Your bank transactions flow in on their own. No more copying.
- Store connection. It links to Shopify or WooCommerce so your sales come across.
- Your accountant can use it. This saves you time and money at tax time.
How do the main options compare?
Here's a rough, honest look. Prices are estimates in AUD and change often.
| Feature | Xero | MYOB | Spreadsheet |
|---|---|---|---|
| GST and BAS ready | Yes | Yes | You do it by hand |
| Bank feeds | Yes | Yes | No |
| Shopify / WooCommerce link | Yes, via apps | Yes, via apps | No |
| Used by Aussie accountants | Very common | Very common | Not really |
| Rough starting price | ~A$35/month | ~A$30–A$40/month | Free |
MYOB and QuickBooks are both good too. I'm not going to pretend they're not. Pick the one your accountant likes, because they'll be in there with you.
Why I think Xero suits most small stores
Honestly, for a small online shop it's the easy choice:
- It was built with Aussie GST and BAS in mind.
- It connects to heaps of apps, including Shopify and WooCommerce.
- Lots of bookkeepers and accountants already use it, so handing things over is easy.
The cheapest plan does have limits on how many invoices and bills you can do, so check the plan fits your order volume.
When should I switch from a spreadsheet?
A good rule of thumb: switch when any of these happen.
- You're getting more than a few orders a week.
- You're about to register for GST, or you already have.
- You spend more than an hour a week on your books.
- You've had a "where did that money go?" moment.
If you're close to the A$75,000 turnover mark, it's time. That's when GST registration becomes a must.
What if I run a service business instead?
If you do jobs like cleaning, installs or repairs, you've got different needs. Quotes, booking jobs and sending invoices from your phone matter more than stock.
A tool built for service work can help, and it can link to your accounting software too.
How does this tie into my profit?
Your accounting software tells you what did happen. A calculator helps you plan what will happen. Use both.
Try the profit calculator to see what's left after GST, shipping and fees. And if you want the full maths, read how to work out your real profit after shipping and GST.
Frequently asked questions
What's the best accounting software for a small online store in Australia?
For most people, Xero. MYOB and QuickBooks are good too. The best one is often the one your accountant uses.
Can I just use a spreadsheet?
Yes, while you're small. Once you register for GST or get regular orders, software will save you a lot of time.
Does Xero connect to Shopify and WooCommerce?
Yes. You can link both using apps, so your sales and fees come across into Xero.
Do I need accounting software to lodge a BAS?
No, but it makes it much easier. Good software builds the BAS numbers for you, then you or your accountant lodge it.
Is accounting software tax deductible?
Usually, yes, as a business expense. Check with your accountant for your own situation.
Prices are rough estimates and change often. Always check with the provider. This is general info, not financial or tax advice.