Xero Cashbook Alternatives: GST & Non-GST Accounting

When it comes to managing simple compliance work for sole traders, rental properties, and trusts, Xero Cashbook has been a go-to solution for accountants. However, with the upcoming changes to Xero's product offerings, accountants are starting to explore Xero Cashbook alternatives. In this article, we'll discuss what Xero Cashbook is, why it's popular, and which alternatives might best suit your needs going forward.

What is Xero Cashbook?

Xero Cashbook is a stripped-down version of Xero's full accounting software, designed for accountants managing clients with basic financial needs. It offers bank feeds and reconciliation functionality, making it easier to keep on top of transactions without requiring the full feature set that Xero’s primary product offers.

Xero Cashbook is available in two versions:

1. Non-GST Cashbook, priced at $16 per month per client (excluding GST).
2. GST Cashbook, priced at $28 per month per client (excluding GST).

Both versions are tailored for basic compliance tasks, such as bank reconciliation and recording transactions, making them ideal for rental properties, trusts, and sole traders who don’t require more complex accounting features. However, Xero is retiring the GST Cashbook and replacing it with the new Ignite plan, priced at $35 per month (excluding GST).

As Xero phases out this product, many accountants are looking for effective Xero Cashbook alternatives to maintain their workflow without upgrading to the more expensive Ignite plan.

Why Xero Cashbook Was Popular

Accountants have relied on Xero Cashbook for its cost-effective approach to managing simple client needs. It offers a streamlined solution for tasks like reconciliation and bank feeds, without the complexity and extra features needed by larger businesses. This made it particularly useful for sole traders and landlords who require simple, straightforward compliance work.

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The Search for Xero Cashbook Alternatives

With the impending retirement of the GST Cashbook, accountants are now turning their attention to viable Xero Cashbook alternatives that offer similar features and pricing. Here are some of the top alternatives to consider:

1. Spreadsheets & Bank Statements

For clients with basic financial records, a combination of spreadsheets and bank statements may serve as a cost-effective solution. Accountants can use programs like Excel or Google Sheets to record transactions manually and perform reconciliations. While this approach lacks the automation and convenience of Xero’s bank feeds, it’s still a workable option for small clients.

However, the manual nature of this approach can increase the risk of errors, making it less suitable for accountants handling larger volumes of transactions. Nevertheless, for very simple businesses, this method remains a reliable Xero Cashbook alternative.

2. Other Accounting Ledgers (e.g., MYOB)

MYOB is one of the more established Xero Cashbook alternatives available in the market. MYOB offers a variety of products that cover essential features like bank feeds, transaction recording, and GST reporting. With options like MYOB Essentials and MYOB Business, accountants can find a solution that closely mirrors Xero Cashbook’s functionality but at a potentially lower cost.

For those already familiar with MYOB, this could be an easy transition, ensuring minimal disruption to both accountants and their clients.

3. Alternative Solutions (e.g., Prosaic)

For accountants looking for specialised Xero Cashbook alternatives, tools like Prosaic provide an innovative approach. Prosaic connects to personal bank feeds, automatically categorises business expenses, and posts them directly into Xero as journal entries. This makes it ideal for managing the expense side of compliance work, particularly for sole traders or small businesses that don’t need a full-fledged accounting system.

This solution offers an efficient way to automate parts of the accounting process, making it a valuable alternative for those seeking to replace Xero Cashbook with a more specialised tool.

Conclusion

As Xero retires its GST Cashbook, accountants must consider the best Xero Cashbook alternatives to continue offering effective, streamlined services for clients. Whether you opt for manual methods using spreadsheets, switch to an established accounting system like MYOB, or explore newer tools like Prosaic, the key is to find a solution that matches the simplicity and functionality previously provided by Xero Cashbook.

The future of simple compliance work is evolving, and with the right Xero Cashbook alternative, you can maintain efficiency and value for your clients without adopting Xero's more expensive Ignite plan.

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