Hnry is the new kid on the block. You may have seen their advertisements recently – which has led you to this post comparing Hnry to Xero accounting software.
Hnry markets itself as an “accountant and tax automation tool for sole traders”
They cater specifically to sole traders who may be working as freelancers, contractors, tradies etc. Xero have cast their net a lot wider, and offer a more complete all-in-one solution for businesses no matter what type of entity you may be operating as.
Both software originated in New Zealand. Hnry in 2017 and Xero back in 2006.
Read on for our comparison of the key features of Hnry and Xero accounting software.
Pricing
Hnry (as of the time of writing September 2023), deduct 1% + GST from every $100 you earn from your customers. This is capped at $1,500 + GST per year. If you receive individual payments of under $50, then a minimum fee of .50c per payment applies.
Xero are a monthly subscription service. There are different levels of subscriptions, depending on what features you need. The lowest level offered is the Starter Plan at $29 per month.
Tax Returns
Hnry have their own accountants that prepare your Tax Returns. You can choose to still use your own accountant if you wish.
Xero don’t offer Tax Return preparation services.
Customer payments
With Hnry, your customer payments go directly to Hnry, with the remainder banked into your own bank account once Hnry’s fees and your ATO amounts have been deducted.
Xero allows you to have as many bank accounts as you like and there is no restriction on what account your customers pay into.
Conclusion
Xero are a more robust, complete accounting solution that cater well to the needs of a growing business. Hnry are a more specialised accounting solution that caters well to sole traders who want a simple solution to help stay on top of their taxes.
It’s important to do your own research to find out what best suits your needs. You can always give them both a go so that you get hands-on experience with both software.
About us:
Festival Bookkeeping are a team of Xero advisers and bookkeepers located in Adelaide, South Australia. We help busy business owners and their teams Australia-wide. You can contact us on 0421 501 887 or sarina@festivalbookkeeping.com.au
Learn more about our bookkeeping services here: https://festivalbookkeeping.com.au/services/xero-bookkeeping-packages/
Looking for more helpful articles about bookkeeping and accounting? Try https://festivalbookkeeping.com.au/xero-payroll-4-common-mistakes and https://festivalbookkeeping.com.au/8-different-ways-to-bundle-your-services/
Read what our happy clients have to say here: https://festivalbookkeeping.com.au/testimonials/
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