As a sole trader, you've probably encountered several issues when looking for an accounting software that meets your needs. In general, finding the right accounting software can be difficult because:
At Parpera, we've focused on building an accounting, bookkeeping and money management tool specifically for sole traders and small business owners: you can sign up in 10 minutes, manage your transactions from the App, flag business expenses as tax deductible and a lot more.
In this article, you’ll learn why Parpera works especially well for sole traders in Australia, and how it compares to other accounting software. We’ll cover:
Note: Looking to get started with sole trader accounting software right away? Sign up to Parpera for a 30 day free trial!
Parpera makes it easy for sole traders and small business owners to do business by offering accounts, cards, payments, invoicing, insights, tax, and accounting - all in one easy-to-use app. Parpera's founder, Daniel Cannizzaro, set up Parpera when he experienced first-hand the issues freelancers face when it comes to business banking and managing their finances.
You can read more about Parpera's story here: The Banking World for Freelancers was Broken. Here's How We're Fixing it With Parpera
Here are some of the features and benefits that come with using Parpera:
As a freelancer, you often want an accounting tool that helps with managing your invoices and client details -- almost like a project management tool.
Parpera has a built-in CRM, which means you can easily keep track of all your client details with just a few clicks. And coming soon, we’ll also send clients automatic payment reminders as the invoice due date gets nearer and late payment reminders for clients who haven’t paid on time.
The combination of banking and business accounting services on one platform also allows Parpera to match your payments to invoices automatically — also known as auto-reconciliation.
With most accounting software, you have to manually log into the tool and match each transaction to the invoice. With Parpera, everything is connected which means invoices are reconciled automatically.
With Parpera, you can quickly capture, store, and categorise your expenses directly from your phone. Once you store your receipts in Parpera, we’ll save them indefinitely, so you can manage your business paper-free.
Whenever you tag an expense from a certain category, the App will remember and will store it in that category moving forward.
You'll also be able to flag certain expenses as tax deductible, or for GST. That way, at the end of the tax year you'll know how much you owe in taxes.
Not only that, but you can also transfer a specific amount to a separate tax wallet on your account. You'll also get an estimate for the amount of tax you need to save up, based on your income and deductible expenses.
With your Parpera membership, you can create and send professionally designed invoices straight from your phone in just a few clicks.
We automatically insert your business account details and make sure every invoice is tax compliant whether or not you’re registered for GST. We’ve optimised our invoices to make it easier and more intuitive for clients to pay you. Here’s how:
Though Parpera emails invoices on your behalf directly from the App, you can review or edit each one before sending it, or delete it if you find any mistakes. You can also send a copy of the invoice to yourself.
We know that as a freelancer, you want to get set up as quickly as possible and spend as little time as you can on admin. With Parpera, you won't have to watch video tutorials on how to use the App, and it only takes 10 minutes to get set up.
Here’s how to get started:
To create a Parpera account, you only need your Australian Business Number (ABN) and one form of ID (either your passport or driver’s licence). If you don’t have an ABN yet, no worries. You can get one during the sign-up process. And once you’re on board, you can access all Parpera services immediately.
Other accounting software requires you to set up syncing with your bank feeds. You’ll also have to manually log into the accounting software every time you want to do your accounts.
When you sign up to Parpera, you instantly create a business account. Since everything happens in one account, you won’t have to worry about syncing bank feeds or logging into a separate piece of software every time you want to do your accounting!
With your digital business account from our trusted partner (to be announced soon), you’ll receive:
Parpera also helps you save money so you’re not caught short come tax time. You’ll have a separate savings account where you can store your GST money and where you can put more money aside for taxes.
You can also create and download business transaction reports as Excel or CSV files directly from the App. Email them to yourself or to your accountant.
If you have an accountant who insists on using Xero, you can still set yourself up with Parpera and then sync everything with Xero.
On one screen, you'll be able to see who’s paid you and who hasn’t. And soon, we’ll have a functionality that will show your cash flow in real time, as well as other business analytics too.
One of the main uses of accounting software is to keep track of how much you owe in taxes and therefore make it easier to set aside the right amount every month. With Parpera, there are a few ways we make this easier for you:
Easily estimate how much to set aside for taxes: You can choose to give Parpera an estimate of your business revenue, and it’ll calculate your blended tax rate along with an estimate of what to set aside for taxes every time a client pays you.
Separate your taxes from your main account: You’ll also be able to set aside your estimated tax into a dedicated sub-account with just a few clicks. That means that when your next PAYG instalment is due, you can easily transfer the right amount of money from that subaccount.
Easily prepare and lodge your BAS: You can prepare your BAS directly from the Parpera App, and get easy instructions to help you lodge your BAS. If you’re on the Automate plan, you’ll get your BAS lodged automatically by our trusted accounting partner.
Earn money on your tax savings (coming soon!): Over time, your tax savings wallet will be accumulating money as you set aside money for taxes. Why not put that money to good use? With Parpera Earn, you’ll be able to earn interest on the money in your tax savings wallet.
As a freelancer, you work alone. But as a Parpera member, you’re part of a community. That means you’ll get:
You can even shape the future of Parpera. Share your ideas, send us your feedback, and tell us how we can make Parpera better for you and all sole traders.
Parpera is Latin for “fair wallet,” which aligns with our mission to create a fair and transparent financial environment for sole traders through a multi-service money-management solution, all packaged in an easy-to-use mobile app.
We’re working hard to offer you access to a wide variety of financial and accounting services through one affordable pricing plan, with no hidden costs. Take advantage of our free 30-day trial, then choose between three tax-deductible packages:
Cancel anytime for free.
We know Parpera may not be the ideal fit for every sole trader, so we’ve created a comparison chart of alternative sole trader accounting software for you to decide which suits you best.
We’ve chosen only Australian-based accounting software because if you’re going to connect your bank feeds, you want to be sure the platform you choose can connect to Australian banks.
Also, Australian tools will guarantee you remain compliant in your invoicing and tax preparation. You'll also run less risk of non-Australian tools discontinuing use, forcing you to find different tools, like a Wave alternative in Australia.
You’ll find only plans that are designed specifically for sole traders or small businesses.
Cost comparison chart:
*For a more in-depth look, check out our article on Xero vs MYOB vs Parpera.
Good for: MYOB is especially good for small and larger established business owners who might have more complex financial needs.
Good for: accountants, small business owners and sole traders who are doing a high amount of revenue and want better visibility into their business.
Good for: small business owners and sole traders who are looking to scale, want to use bookkeeping software and want good visibility over their business.
Good for: sole traders and small businesses who want to be able to forecast cash flow, accept payments automatically from invoices and integrate with third party apps.
The best accounting software as a sole trader or self-employed depends on your specific business needs.
If you’re looking for something affordable, that is specifically designed for the self-employed and can be also used for banking purposes, then Parpera is your best bet.
If you’re looking for something more advanced, that allows you to set up cash flow forecasting and have better visibility over your business, you can check out our sole trader accounting software comparison chart.
As a sole trader, it’s not absolutely necessary to have and use financial statements. However, they are useful to help you keep track of your business and to submit your tax return.
Accounting tools like Xero, Quickbooks and Sage will help you prepare financial statements. You can also export your business account statements from Parpera and work with your accountant to prepare these financial statements.
Sole trader accounting software doesn’t have to be complicated or expensive, especially when it’s designed with sole traders in mind, like Parpera. We hope the information provided helps you see the benefits of using Parpera for all your sole trader financial needs, as well as make a more informed decision before choosing accounting software for sole traders.