Choosing business software
The right software saves hours every week, gets you paid faster and reduces mistakes. The wrong software, or too much of it, costs money and causes frustration. This guide helps you work out what you actually need, compare options on total cost, keep your data secure, and bring your team along.
In short
- Start from your business goals and problems, then list must-have and optional features.
- Most small businesses need an office and email suite, accounting software and a few tools for their industry.
- Compare total cost of ownership, not just the monthly price, and try before you buy.
- Check security - multi-factor authentication, updates, backups and where your data is stored.
- Review subscriptions regularly and cancel tools you don't use.
Start with what you need
business.gov.au says the digital tools you choose should support your business goals, such as increasing revenue or profit, improving processes, speeding up tasks or helping staff communicate.
Before you look at any products:
- List the problems you want to solve: “invoices go out late”, “we double-book appointments”, “nobody knows where the latest file is”.
- List must-have and optional features for each.
- Check what you already have. Your current software may already do it.
A short digital strategy helps you plan this. business.gov.au has a free template.
The core toolkit
| Need | Typical tools | Things to check |
|---|---|---|
| Email, documents and calendars | An office suite such as Microsoft 365 or Google Workspace | Business accounts, shared drives, security settings, and whether you can manage it yourself without hiring IT support or a managed service provider (MSP). SafeSMB is one option that can help |
| Accounting | Cloud accounting software | Bank feeds, invoicing, GST and BAS reports, links to your accountant |
| Payroll (if you have staff) | Often part of accounting software | Single Touch Payroll reporting, award rates |
| Customers and sales | A CRM or booking system | See Choosing a CRM system |
| Projects and tasks | Project management or shared task lists | See Project management basics |
| Team chat and meetings | Chat and video meeting apps | See Video calls and remote meetings |
| Selling | Point of sale, online store, payments | See Selling online |
| Industry software | Job management for trades, practice software for health, booking for salons | Ask others in your industry what they use |
See Bookkeeping basics and choosing accounting software.
Compare options
- Shortlist two or three options for each need.
- Work out the total cost of ownership. business.gov.au describes this as the upfront cost plus running costs over the tool’s life: subscriptions per user, add-ons, setup, training and switching costs.
- Check integrations: does it connect with your accounting, email and other tools?
- Try before you buy: use a free trial with real tasks.
- Check support: Australian business hours, help guides and local partners.
- Check you can get your data out if you switch later.
- Read reviews from similar Australian businesses.
Keep costs under control
business.gov.au suggests:
- review what you already use and cancel subscriptions you don’t need
- check for duplicate tools that do the same thing
- choose tools based on what you need now, not what you might use later
- look for free plans or open-source software
- bundle tools into one subscription where that’s cheaper
- ask the sales team for a discount
- pay annually only once you’re sure the tool is right long-term.
Review your software list once a year.
Security
Every tool you add is another place your data lives. Before you start:
- Turn on multi-factor authentication for every account.
- Install updates promptly.
- Give each person their own login, with only the access they need.
- Check where your data is stored and how it’s backed up. Keep your own backups too.
- Choose secure products. The Small business cyber security handbook from the Australian Signals Directorate covers securing accounts, devices and data, and choosing secure products and services.
- Protect your business email. Email is often the first target for scams and account takeovers. SafeSMB is one option for Australian small businesses that want business email protected from hackers and recoverable when things go wrong, without hiring an IT provider.
See Cyber security and backups.
Bring your team along
business.gov.au notes that new tools have a better chance of success when staff are involved:
- Involve staff in decisions where possible.
- Explain how the tool helps them.
- Train people before they need to use it.
- Make changes gradually.
Set a date to switch off the old system, so people don’t keep using both.
Get help
The Australian Government’s Digital Solutions program helps eligible small businesses with topics including business software, websites, digital marketing and cyber security. Find it through business.gov.au.
Common questions
What software does a small business need?
Most need an office and email suite, accounting software, and a way to manage customers, bookings or projects. Some also need payroll, point of sale, inventory or industry-specific software. Start with your business goals and problems, not the software.
How do I compare business software?
List your must-have and optional features first, then shortlist two or three options. business.gov.au suggests working out the total cost of ownership - the upfront cost plus running costs over the tool’s life - and trialling tools before you buy.
How can I reduce software costs?
business.gov.au suggests reviewing what you already use and cancelling tools you don’t need, checking for duplicate tools, choosing based on current needs, looking at free plans or open-source software, bundling tools, asking for discounts, and paying annually only once you’re sure a tool is right.
Is cloud software safe for my business data?
It can be, if you choose reputable providers and set it up well. Turn on multi-factor authentication, keep software updated, give staff only the access they need, check where your data is stored, and keep your own backups.