Insights
Best practices and tips on spend management, automated expense tracking and corporate debit cards for Australian SMB and enterprise businesses.
Australian small and medium enterprises are rapidly embracing cloud-based tools to streamline their operations, and accounting software is leading this digital transformation. While 73% of Australian businesses now use cloud accounting solutions, many business owners are still wrestling with the limitations of traditional desktop systems—being tied to a single computer, manually backing up files, and struggling to give their accountant real-time access to financial data.
If you're a freelancer, contractor, sole trader, or business owner considering the move from desktop to cloud accounting, you're in the right place. Understanding how Australian small and medium businesses are spending is more important than ever in 2025. This comprehensive guide will explain what cloud accounting is, why it matters for your business, and how to evaluate solutions that fit your needs. We'll also explore how modern spend management tools can enhance your cloud accounting setup to create a complete financial ecosystem.
This guide walks through the key principles and tools every small to medium business needs to know.
What is cloud accounting?
Cloud accounting software is simply accounting software that runs on the internet rather than being installed on your computer. Instead of purchasing a CD or downloading a program to your desktop, you access your accounting system through a web browser or mobile app, just like you would with Gmail or Facebook.
Traditional accounting software requires you to:
- Install and maintain software on a specific computer
- Manually back up your data
- Purchase and install updates
- Work from the same location where the software is installed
Cloud accounting software operates on a Software-as-a-Service (SaaS) model, meaning:
- The software runs on secure servers managed by the provider
- You access it from anywhere with an internet connection
- Updates happen automatically in the background
- Your data is backed up continuously
In practical terms, cloud accounting handles everyday tasks like:
- Creating and sending invoices from your phone
- Recording expenses by photographing receipts
- Automatically importing bank transactions
- Generating real-time profit and loss reports
- Preparing GST returns and BAS statements
Benefits of cloud accounting
Anywhere access
Modern business doesn't happen from behind a desk. Cloud accounting lets you manage your finances from your laptop at a client meeting, your phone while travelling, or your tablet at home. As long as you have an internet connection, your financial data is at your fingertips.
Real-time visibility
Gone are the days of wondering whether your business is profitable or waiting until month-end to understand your cash position. Cloud accounting provides live dashboards showing your current financial health, outstanding invoices, and cash flow projections.
Automation
Cloud accounting excels at eliminating manual data entry. Bank feeds automatically import transactions, smart categorisation learns your spending patterns, and recurring invoices send themselves. Many systems can even chase overdue payments for you.
Collaboration
Multiple team members can access the system simultaneously with different permission levels. Your accountant can review your books in real-time rather than waiting for you to email a backup file, and your bookkeeper can work remotely without compromising security.
Integrations
Modern cloud accounting software connects with hundreds of other business tools. Whether you need to sync with your point-of-sale system, payroll platform, or project management tool, APIs make these connections seamless.
Compliance
Australian cloud accounting platforms are built with local compliance in mind. They handle GST calculations, generate BAS-ready reports, and many are Single Touch Payroll (STP) enabled, ensuring you stay compliant with ATO requirements.
Security
Reputable cloud accounting providers use bank-grade encryption, multi-factor authentication, and continuous monitoring. Your data is typically more secure in the cloud than on your office computer, and automatic backups mean you'll never lose years of financial records to a hardware failure.
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Access free Budgetly tools to reduce admin and improve expense tracking. 
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Challenges with traditional accounting
While desktop accounting software served businesses well for decades, it comes with significant limitations in today's connected world:
Location dependency: You're tied to the computer where the software is installed, making remote work or on-site client meetings challenging.
Manual maintenance: Updates, backups, and troubleshooting become your responsibility, taking time away from running your business.
Data risks: Files can be lost due to hardware failures, corrupted by viruses, or accidentally duplicated when shared via email.
Limited collaboration: Sharing financial data with accountants or team members typically involves emailing files or using remote desktop software, both of which create security and version control issues.
Higher total costs: While the upfront software cost might seem lower, ongoing maintenance, updates, and IT support often make traditional software more expensive over time.
Key factors when choosing cloud accounting software
Ease of use
Your accounting software should simplify your life, not complicate it. Look for intuitive interfaces, clear navigation, and workflows that match how you naturally think about your business finances.
Integration capability
Consider what other tools your business uses and ensure your accounting software can connect with them. Popular integrations include payment gateways, e-commerce platforms, CRM systems, and inventory management tools.
Automation and AI features
Modern cloud accounting platforms use artificial intelligence to categorise transactions, extract data from receipts, and identify potential duplicates. These features save time and reduce errors.
Scalability for growth
Choose software that can grow with your business. This means considering user limits, transaction volumes, and advanced features you might need as you expand.
Payroll functionality
If you have employees, integrated payroll can streamline operations and ensure compliance with superannuation and STP requirements.
Support and training resources
Quality customer support becomes crucial when you're learning new software or facing urgent issues. Look for providers offering multiple support channels and comprehensive learning resources.
Pricing and value
Consider the total cost of ownership, including monthly fees, transaction charges, and add-on features. Often, paying slightly more for comprehensive functionality delivers better value than choosing the cheapest option.
Local compliance
Ensure your chosen platform understands Australian tax requirements, handles GST correctly, and stays current with ATO regulations.
Switching to cloud accounting
Migrating to cloud accounting might seem daunting, but it's typically simpler than most business owners expect:
Step 1: Choose your new cloud accounting platform and create an account
Step 2: Import your existing data (most platforms offer migration tools or services)
Step 3: Connect your bank accounts to enable automatic transaction feeds
Step 4: Set up your chart of accounts and customise settings
Step 5: Invite team members and advisors with appropriate access levels
Step 6: Configure integrations with other business tools
Step 7: Run parallel systems for a short period to ensure accuracy
Most accounting software providers offer migration assistance, and many accountants specialise in helping businesses make the transition smoothly.
Emerging trends
Automation and AI Driving efficiency
Artificial intelligence is transforming routine accounting tasks. Modern systems can automatically categorise expenses, predict cash flow, and even suggest tax deductions based on your spending patterns.
Banking and accounting convergence
The lines between banking and accounting are blurring. Many accounting platforms now offer payment processing, lending services, and business banking features, creating all-in-one financial hubs.
Mobile-first business management
Smartphones are becoming primary business tools. The best cloud accounting platforms prioritise mobile functionality, allowing you to run your finances entirely from your phone when needed.
Bundled services
Rather than juggling multiple providers, many businesses prefer integrated suites combining accounting, payroll, tax preparation, and business advisory services under one umbrella.
How Budgetly fits into cloud accounting
Cloud accounting software helps Australian businesses gain a clear financial picture, but it doesn't always solve the challenge of controlling day-to-day spending. This is where Budgetly fits in.
Budgetly is an AI-driven spend management platform built for Australian businesses. It helps eliminate overspending, streamline approvals, and bring expense data into real-time alignment with your accounting system.
Ways Budgetly adds value alongside cloud accounting software:
Spend control: Prepaid and virtual employee cards with set limits and rules prevent overspending before it happens, rather than discovering it after the fact in your accounting reports. You can even issue a corporate card for management-level purchases while maintaining the same spend visibility and control.
Receipt capture & automation: AI extracts GST information and matches receipts automatically, eliminating the manual data entry that often creates bottlenecks in expense processing. Each transaction syncs instantly with your expense tracker, ensuring full transparency and accuracy.
Reconciliation efficiency: Transactions sync cleanly into your accounting platform with all necessary details pre-populated, reducing month-end reconciliation time from hours to minutes.
Budget visibility: Real-time dashboards show where money is going as it's spent, complementing your accounting software's historical reporting with forward-looking spend insights.
Simplified processes: An all-in-one platform for payments, approvals, and reconciliation eliminates the need to juggle multiple systems and manual processes — making it easier to manage every transaction through one central expense management system.
Budgetly creates a complete financial ecosystem that not only records data but also proactively manages and prevents overspending. While your accounting software tells you what happened, Budgetly helps control what's happening now and what will happen next.
Frequently asked cloud accounting questions
Is cloud accounting secure?
Yes, reputable cloud accounting providers invest heavily in security measures that typically exceed what most Australian businesses could implement on their own. Features include bank-grade encryption, multi-factor authentication, regular security audits, and compliance with international security standards. Your data is usually safer in the cloud than on office computers.
Do I still need an accountant?
While cloud accounting software handles many routine tasks, accountants remain valuable for strategic advice, complex transactions, tax planning, and business growth guidance. Many accountants now focus on advisory services rather than data entry, adding more value to your business.
How does cloud accounting help with payroll?
Many cloud accounting platforms include integrated payroll features that automatically handle superannuation, PAYG withholding, and Single Touch Payroll reporting to the ATO. This integration ensures payroll transactions flow seamlessly into your accounting records without manual entry.
How hard is it to switch?
Most Australian businesses find switching easier than expected. Cloud accounting providers typically offer migration tools, support services, and step-by-step guidance. Many accountants also specialise in helping businesses transition smoothly. The process usually takes a few days to complete.
Can spend management tools integrate with my accounting software?
Yes, modern spend management platforms like Budgetly are designed to integrate seamlessly with popular cloud accounting software. Transactions, receipts, and expense data sync automatically, eliminating manual data entry and ensuring consistency between systems.
Build confidence with better cloud accounting
Cloud accounting represents the future of financial management for Australian businesses. The benefits of real-time access, automated processes, seamless collaboration, and enhanced security far outweigh the limitations of traditional desktop systems. As artificial intelligence and automation continue advancing, cloud accounting platforms will become even more powerful tools for business growth and efficiency.
However, accounting software is just one piece of the financial management puzzle. By adding spend management platforms like Budgetly to your cloud accounting setup, you create a comprehensive system that not only records financial data but actively helps prevent overspending and streamlines expense processes.
The combination of cloud accounting for historical reporting and analysis, paired with proactive spend management for real-time control, gives your business the complete visibility and control needed to make confident financial decisions and drive sustainable growth.
Ready to improve financial control and reduce admin across your team?
Schedule a demo with us today, or watch a 10-minute recorded demo!
