Software

The problem with traditional accounting software is that it's tied to a single PC. You need to install it and thats the only place it can accessed on. Xero is a cloud based accounting solution that does away with much of the double handling that used to occur with stand alone application like MYOB and Quickbooks. Xero is accessed via their website and all your data is kept securely online.

Because it's accessible from anywhere via the internet, it means you can use any of the new smartphones or iPad tablet style devices to issue invoices on the spot, rather than have to go home and do data entry at the end of the day. This also lets you track hours more accurately because you don't have to remeber all the details for as long. A great time saver for tradesman and other service professionals who visit multiple sites.

As you issue the invoices, the bookkeeping is automatically done. Xero can also import bank statements exported from your online banking account. So you won't need to manually enter every transaction there either. 

The easiest way to migrate to a new accounting system it to wait until your accountant does your tax at the end of the year or end of quarter, because thats when you have the closing balances for all your ledger accounts. It's also a great opportunity to get rid of all those accounts you don't use anymore.

You can try Xero for free without a time limit. So while waiting until the end of a quarter you can have time to get familiar with it.

Once you're ready, Xero has a setup wizard that steps you through the process, whether you use MYOB, Sage, Quickbooks, Excel or something else. Simply enter your basic company details, bank balances and the balance of your receivables and payables. Then enter your unpaid invoices. From then on you can keep up to date as you go.