Accounting Software NZ: Complete Small Business Guide 2025
Choosing the right accounting software is one of the most important decisions you'll make for your New Zealand small business. This comprehensive guide covers everything from essential features to specific product recommendations based on your business type.
💡 Quick Recommendation
For 90% of NZ small businesses: Start with Xero's Starter or Standard plan ($25-$70/month). It's cloud-based, IRD-integrated, and supported by most NZ accountants.
Why Your NZ Business Needs Accounting Software
Manual bookkeeping with spreadsheets might work for your first few months, but as your business grows, accounting software becomes essential. Here's why:
✓ Time Savings
Automated bank feeds, invoice generation, and GST calculations save 10-15 hours per month compared to manual spreadsheets.
✓ IRD Compliance
Direct integration with Inland Revenue for GST returns, PAYE, and provisional tax. One-click filing eliminates errors.
✓ Real-Time Insights
Know your cash position, profitability, and outstanding invoices instantly. Make informed decisions with live financial data.
✓ Accountant Collaboration
Your accountant can access your books remotely, reducing fees and making year-end much smoother. Most NZ accountants prefer Xero or MYOB.
Cost-Benefit Reality: Accounting software ($35-$70/month) typically pays for itself through reduced accountant fees, faster invoicing, and better cash flow management.
Essential Features for NZ Businesses
Not all accounting software is created equal. For New Zealand businesses, these features are non-negotiable:
1. GST Compliance & IRD Integration
Must handle GST calculations automatically, support both monthly and two-monthly filing, and integrate directly with Inland Revenue for digital GST returns.
2. NZ Bank Feed Connections
Direct connections to ANZ, ASB, BNZ, Westpac, Kiwibank. Transactions import automatically for reconciliation. Xero has the strongest bank feed network in NZ.
3. Invoicing with NZ Tax Requirements
Generate professional invoices with GST breakdown, IRD number, and NZ payment terms. Should support online payments (Stripe, PayPal, POLi).
4. Expense Tracking & Receipt Capture
Mobile app to photograph receipts on-the-go, automatic categorization, and mileage tracking for vehicle expenses. Essential for sole traders and contractors.
5. Financial Reporting
Profit & Loss, Balance Sheet, Cash Flow statements. Must support NZ financial reporting standards. Customizable reports for different business needs.
6. Multi-Currency Support
If you trade internationally, need automatic exchange rate updates and foreign currency bank accounts. Critical for importers/exporters.
Top Accounting Software Options in NZ
1. Xero 🏆
Best for Most NZ Small Businesses
$25-$95/mo
3 plans
New Zealand's most popular accounting software, founded in Wellington. Used by 75%+ of NZ accountants and bookkeepers. Cloud-based, mobile-first, and deeply integrated with NZ banking and IRD systems.
✓ Strengths
- • User-friendly interface (easiest to learn)
- • Strongest NZ bank feed ecosystem
- • 1,000+ integrations (payroll, POS, inventory)
- • Excellent mobile app
- • Most NZ accountants prefer Xero
- • One-click GST returns to IRD
✗ Limitations
- • Inventory management is basic
- • Job costing less robust than MYOB
- • Payroll is separate add-on ($10-$25/mo)
- • Transaction limits on lower plans
Best for: Service businesses, consultants, freelancers, professional services, retail, hospitality, trades (plumbers, electricians, builders)
2. MYOB
Best for Inventory & Manufacturing
$35-$110/mo
4 plans
Established accounting software with strong inventory management and job costing. Popular with retail, manufacturing, and construction businesses. Offers both cloud and desktop versions.
✓ Strengths
- • Advanced inventory management
- • Strong job costing & project tracking
- • Built-in payroll (no extra cost)
- • Desktop option for offline work
- • Excellent for manufacturing
- • Purchase orders & supplier management
✗ Limitations
- • Steeper learning curve
- • Less intuitive interface than Xero
- • Fewer third-party integrations
- • Higher starting price ($35 vs $25)
- • Smaller bank feed network
Best for: Retail with inventory, manufacturing, construction with job costing, wholesale/distribution, businesses needing advanced stock control
3. QuickBooks Online
Best for US Parent Companies
$35-$100/mo
4 plans
Intuit's cloud accounting software with NZ-specific version. Good choice if you have US parent company or need to consolidate with overseas entities. Strong feature set but less NZ market share than Xero/MYOB.
✓ Strengths
- • Global brand with local support
- • Multi-currency excellence
- • Good inventory features
- • Project profitability tracking
- • Automated expense categorization (AI)
✗ Limitations
- • Fewer NZ accountants use it
- • Bank feeds less comprehensive
- • Some features US-focused
- • Smaller NZ user community
Best for: NZ subsidiaries of US companies, businesses with significant US/international trade, companies wanting QuickBooks Desktop familiarity
Best Accounting Software by Business Type
🔧 Trades & Services (Plumbers, Electricians, Cleaners)
Recommended: Xero Starter or Standard ($25-$70/month)
Why: Simple invoicing, expense tracking via mobile app, integrates with job management tools like Tradify or AroFlo. No need for complex inventory.
🏪 Retail (Physical or Online Stores)
Recommended: MYOB Business or Xero + Inventory Add-on
Why: Need strong inventory management, POS integration (Vend, Square), stock tracking, and multiple sales channels. MYOB has better native inventory, but Xero + app ecosystem is powerful.
💼 Professional Services (Consultants, Lawyers, Accountants)
Recommended: Xero Starter ($25/month)
Why: Service businesses need invoicing, time tracking (via add-ons like WorkflowMax), expense management, and client reporting. No inventory required. Xero's integrations excel here.
🏗️ Construction & Building
Recommended: MYOB Business or Advanced ($70-$110/month)
Why: Job costing is critical—track profitability per project, materials vs. labor, subcontractor payments. MYOB's project tracking and purchase orders are superior for construction.
🍽️ Hospitality (Cafes, Restaurants, Bars)
Recommended: Xero + POS Integration (e.g., Lightspeed, Square)
Why: Hospitality needs seamless POS integration, daily sales tracking, tip management, and rostering. Xero integrates beautifully with modern hospitality POS systems.
📦 E-commerce & Online Sellers
Recommended: Xero + Shopify/WooCommerce Integration
Why: Need automatic sales imports from e-commerce platforms, multi-channel inventory sync, and international payment handling. Xero has the best e-commerce app ecosystem.
👤 Sole Traders & Freelancers
Recommended: Xero Starter ($25/month) or HNRY (specialist for contractors)
Why: Simple needs—invoicing clients, tracking expenses, GST returns. Xero Starter covers 20 invoices/month (enough for most sole traders). HNRY handles GST/PAYE/ACC automatically for contractors.
Pricing Comparison 2025
| Plan | Xero | MYOB | QuickBooks |
|---|---|---|---|
| Entry Level | $25/month Starter: 20 invoices, 5 bills, bank reconciliation | $35/month Starter: Unlimited transactions, basic features | $35/month Simple Start: Basic invoicing & expenses |
| Mid-Tier (Most Popular) | $70/month Standard: Unlimited transactions, quotes, purchase orders | $70/month Business: Inventory, job costing, payroll | $70/month Essentials: Multi-user, bills & quotes |
| Advanced | $95/month Premium: Multi-currency, expenses, projects (5 users) | $110/month Advanced: Advanced inventory, manufacturing | $100/month Plus: Inventory, project profitability (5 users) |
💡 Hidden Costs: Add-on costs can include payroll ($10-$25/month per company), inventory management apps ($20-$80/month), advanced reporting tools, and accountant/bookkeeper access (usually free).
How to Choose the Right Accounting Software
Follow this 5-step process to select the best accounting software for your NZ business:
Step 1: Assess Your Needs
- • Business type: Service, retail, trades, e-commerce?
- • Transaction volume: How many invoices/bills per month?
- • Inventory: Do you track stock levels?
- • Staff: How many people need access?
- • International: Multi-currency requirements?
Step 2: Check Accountant Compatibility
If you have an accountant or bookkeeper, ask which software they prefer. Most NZ accounting firms are Xero-certified, and using their preferred platform will save you money and hassle.
Step 3: Verify NZ Features
Ensure the software includes:
- ✓ GST tracking and IRD integration
- ✓ Bank feeds with your NZ banks
- ✓ NZ tax compliance (PAYE, FBT, provisional tax)
- ✓ Local support and documentation
Step 4: Test Drive (Free Trials)
All major platforms offer 30-day free trials. Sign up for 2-3 options, import some transactions, create invoices, run reports. The interface matters—you'll use this daily.
Step 5: Calculate Total Cost
Don't just compare base prices. Factor in: payroll add-ons, inventory apps, payment processing fees (2-3% on card transactions), implementation/training time, and accountant integration costs.
Implementation & Setup Tips
Switching to accounting software (or changing platforms) can feel daunting. Here's how to make it smooth:
✓ Setup Checklist (First 7 Days)
- 1. Create your organization & enter business details (IRD number, GST registration)
- 2. Connect bank feeds (ANZ, ASB, BNZ, Westpac, etc.)
- 3. Import your chart of accounts (or use default NZ template)
- 4. Add customers and suppliers (import from spreadsheet)
- 5. Set up invoice templates (logo, payment terms, bank details)
- 6. Configure GST settings (monthly/2-monthly, cash/accrual basis)
- 7. Invite accountant/bookkeeper (give advisor access)
✓ DO: Start at Financial Year Beginning
Ideally switch at your financial year start (March 31 or June 30 for most NZ businesses). Makes historical data less critical and simplifies your first year-end.
✓ DO: Get Professional Help
Pay an accountant or bookkeeper for 2-3 hours of setup help ($150-$300). They'll configure your chart of accounts correctly and show you best practices. Saves months of confusion.
✓ DO: Use Bank Feeds from Day One
Don't manually enter transactions if bank feeds are available. Let the software import transactions automatically, then categorize them. Saves hours every week.
✗ DON'T: Import Years of Historical Data
You rarely need it. Import opening balances as of your start date (one journal entry), then move forward. Historical data can stay in your old system or spreadsheets for reference.
✗ DON'T: Skip Training Resources
Xero and MYOB offer free webinars, video tutorials, and certification courses. Spend 2-3 hours learning the basics—it'll save you weeks of trial-and-error.
Frequently Asked Questions
What is the best accounting software for small business in NZ?
For most small businesses in New Zealand (1-20 employees), Xero is the best choice. It's cloud-based, integrates with NZ banks, handles GST and IRD filing seamlessly, and is used by over 75% of NZ accounting firms. Pricing starts at $25/month for the Starter plan. MYOB is a strong alternative for businesses needing advanced inventory management, while QuickBooks suits businesses with US parent companies.
How much does accounting software cost in NZ?
Accounting software in New Zealand ranges from $25-$110/month depending on features and business size. Xero: $25-$95/month, MYOB: $35-$110/month, QuickBooks: $35-$100/month. Most small businesses (1-10 employees) will spend $35-$70/month. Additional costs may include add-ons, payroll modules, and accountant/bookkeeper fees.
Does accounting software integrate with IRD in New Zealand?
Yes, all major NZ accounting software (Xero, MYOB, QuickBooks) integrates directly with Inland Revenue (IRD) for GST filing, PAYE, and provisional tax. Xero and MYOB offer one-click GST returns that automatically populate from your transactions. This eliminates manual data entry and reduces errors in tax compliance.
Can I do my own accounting in NZ with software?
Yes, you can handle basic bookkeeping yourself with accounting software (invoicing, expenses, bank reconciliation, GST returns). However, you'll still need a qualified accountant for year-end financial statements, tax planning, and lodging annual returns with IRD. Most NZ small businesses use a hybrid approach: owner does day-to-day bookkeeping in software, accountant handles quarterly reviews and year-end compliance.
Is Xero or MYOB better for small business in NZ?
Xero is better for most small businesses in NZ due to its user-friendly interface, lower starting price ($25 vs $35), stronger bank feed ecosystem, and wider accountant adoption. MYOB is better if you need advanced inventory/job costing, run a retail/manufacturing business, or prefer traditional desktop software. For service-based businesses, freelancers, and professional services, Xero is the clear winner.
What features should I look for in NZ accounting software?
Essential features for NZ accounting software include: GST tracking and automated returns, direct IRD integration, NZ bank feed connections (ANZ, ASB, BNZ, Westpac), invoicing with NZ tax numbers, expense tracking, financial reporting, mobile app access, multi-currency support, and accountant collaboration tools. Optional features include inventory management, job costing, payroll, purchase orders, and industry-specific tools.
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