Running a professional service business—whether it's an accounting firm, consultancy, creative agency, or law practice—depends on having the right accounting tech stack. This article breaks down key accounting tools your small business needs, focusing on valuable features and integrations for professional services across the US, UK, Canada, Australia, and New Zealand. We'll highlight where competitors fall short, what small teams really want, and how MinuteDock fits seamlessly into your workflow.

• Core Accounting Software: The Heart of Your Finances
• Time Tracking and Project Management: Tracking Hours to Get Paid
• Payroll Solutions: Paying Your Teams Without Headaches
• Expense Tracking and Receipt Management: No More Shoeboxes of Receipts
• Reporting and Analytics: Insights Beyond Basic Bookkeeping
• Building Your Integrated Tech Stack: How it all Fits Together
• FAQS
• Final Thoughts

Core Accounting Software: The Heart of Your Finances

Choosing the right accounting software is essential for accurate bookkeeping, invoicing, and reporting. The leading platforms for professional services include:

Xero

Born in New Zealand and popular worldwide, Xero is praised for being easy to setup and use with integration with many useful third-party apps. Small teams often switch to Xero because it feels more user-friendly​. Xero’s pricing is transparent and allows unlimited users, making it cost-effective for firms with multiple team members​. Importantly, Xero offers a rich ecosystem of 1,000+ integrations for add-on functionality​. For example, MinuteDock is a top rated and award-winning time tracking option for Xero!

QuickBooks Online

‍Intuit’s QuickBooks is often the default choice for small businesses in the US and beyond. It’s feature-rich – offering everything from robust reporting and inventory tracking to customizable invoices and multi-currency support​. Businesses love that QuickBooks is “simple to use” once you get the hang of it and integrates with “lots of” other apps​. In fact, QuickBooks Online boasts 750+ integrations in its app store​, so connecting time trackers like MinuteDock time tracking for QuickBooks, CRM, and other tools is usually straightforward. QuickBooks also makes it “easy to send invoices and get paid” through its built-in payments system​ – a big plus for service businesses that invoice clients frequently.  In short, QuickBooks is powerful, but make sure you need all its horsepower!

MYOB

‍A stalwart in Australia/New Zealand, MYOB (Mind Your Own Business) has both desktop and cloud offerings. It’s a trusted name for compliance (GST/VAT, payroll in AU/NZ) and has a feature set comparable to QuickBooks. Heaps of accountants from ‘down under’ swear by MYOB.  

If you’re in a region where MYOB is available, it’s certainly a capable core system – just ensure it plays nicely with the other tools (time tracking, etc.) you plan to use. The good news is MYOB has an add-on marketplace; while smaller than Xero’s, you will find popular integrations for payroll, time tracking, and more. MinuteDock’s time tracking for MYOB offers an easy way to translate timesheets into invoices.

Bottom line

‍Your core accounting platform is the engine of your finance workflow. Pick software that fits your business today—and still has your back next year. Professional service firms should look for ease of use (so your team actually leverages it), strong invoicing and project tracking support, and an open ecosystem of integrations. Xero, QuickBooks and MYOB all score highly on features and extensibility (each with hundreds of apps available)​​​. Whichever you choose, make sure it can connect to the other key tools in your stack – because a standalone accounting system can only take you so far.

Time Tracking & Project Management: Tracking Hours to Get Paid (Hint: MinuteDock Makes it Easy)

For professional services, time is literally money. Accurate time tracking and project management tools ensure that every billable hour (or project milestone) is captured and invoiced. Yet this is an area where core accounting software often falls short, leading firms to seek dedicated solutions like MinuteDock.

Most general ledger platforms have either limited or no built-in time tracking:

• QuickBooks Online offers timesheets and a Projects feature in higher plans, but many users rely on external tools (QuickBooks even acquired TSheets and rebranded it as QuickBooks Time). Using MinuteDock’s time tracking for QuickBooks Online can make the timekeeping and billing process simple and stress free.

• Xero has a Projects module, but using an integrated app like MinuteDock for time tracking with Xero makes it effortless to track your time and invoice clients.

Given these gaps, it’s no surprise that many firms use a specialized time tracking app. A tool like MinuteDock is designed to fill this niche: it lets teams track time by client, project, or task in a flexible way, then syncs those hours to your accounting software for invoicing. By integrating apps rather than operating in isolation, a time tracking app ensures you’re not copying timesheet data into Xero or QuickBooks manually (which saves time and prevents errors).

The key is choosing one that integrates seamlessly with your accounting platform. MinuteDock, for example, connects with Xero, QuickBooks, and MYOB, so that time entries flow into your billing system. As a result, you can generate invoices for hours worked with a few clicks, and your financials stay up to date.

Pro tip: Look for features like built-in timers (desktop and mobile), the ability to assign different billing rates to team members or project types, and real-time reporting on billable vs. non-billable hours. These help a consulting or agency team monitor productivity and profitability per project. By having a time tracking tool tightly integrated with your core accounting, you’ll address a common pain point head-on – something countless users on platforms like G2 and Capterra voice when they say they want easier tracking of billable work and less manual data transfer between systems.

Payroll Solutions: Paying Your Team Without Headaches

Even if your business is all about client services, you likely will have to run payroll for your staff or even pay yourself a salary. A payroll solution that connects to your accounting software is the next essential tool in a small business tech stack. The goal is to handle salaries, wages, taxes, and compliance efficiently, so you’re not stuck with spreadsheets or double entries.

If you use QuickBooks or Xero, you have a few options:

• Built-in payroll vs third-party: QuickBooks Online offers its own payroll add-on (especially popular in the US), whereas Xero includes payroll for some countries (like Australia, NZ, UK) but not in the US. In fact, Xero users in the US must integrate a third-party payroll app – Xero has partnered with Gusto as a seamless add-on​. Many Xero reviewers highlight integrating Gusto as a positive move​, since it handles automated tax filings and direct deposit while feeding payroll data into Xero automatically.

• Top payroll apps: Gusto is often praised for its user-friendly approach to payroll and benefits for small businesses. It’s a top choice in the US for those on Xero or even FreshBooks. ADP and Paychex are larger providers that also integrate with QuickBooks and Xero, but they may be overkill for a small firm. In Australia, Xero Payroll (built-in) or MYOB PayRunning might suffice, but some growing businesses opt for tools like KeyPay (now part of Employment Hero) for advanced rostering and then push data into Xero. The UK and Canada have their own favored solutions (e.g., Wagepoint in Canada for QBO integration).

• Integration matters: Whichever payroll system you choose, ensure it syncs journal entries to your accounting books. This way, your wage expenses, taxes, and withholdings are recorded without manual intervention. For example, Gusto’s integration with Xero automatically posts payroll totals to Xero each pay run, keeping accounts in balance​. This not only saves time but also reduces errors (and stress come tax time).

Key features to look for

‍automated tax filing (PAYE, IRS filings, superannuation in AU, etc.), direct deposit, employee self-service portals for payslips, and benefits management if applicable. By including a reliable payroll app in your toolkit, you’ll address a common small biz pain point (payroll complexity) and free yourself to focus on billable work. Plus, your employees will thank you when payday runs without a hitch.

Expense Tracking & Receipt Management: No More Shoeboxes of Receipts

Keeping track of expenses – from minor client meal receipts to software subscriptions – is another area where specialized tools can make a world of difference. While Xero, QuickBooks, and others have built-in expense modules, small businesses often benefit from a receipt capture and expense management app to streamline this process.

Why use an expense-tracking app? Two big reasons: automation and accuracy. These apps let you snap photos of receipts, automatically extract the details via OCR, and categorize or sync them to your accounting software.

Popular choices in this category include:

• Dext (Receipt Bank): A favourite among accounting firms, Dext prepares receipts and invoices for you by pulling data and integrating with Xero/QBO. For instance, a consultant on the go can photograph a taxi receipt and have it appear in Xero with the correct expense code, rather than later typing it in.

• Expensify: Known for its user-friendly mobile app, Expensify allows employees to file expense reports that can be approved and then exported to your accounting software. It’s great for teams that travel or incur reimbursable expenses. Expensify integrates with QuickBooks, Xero, and others to push the final expense entries over.

• Hubdoc: Now actually owned by Xero, Hubdoc is included with some Xero plans. It fetches bills and statements from vendors (like your phone or utility company) and grabs receipt images, then creates transactions in Xero or QBO. Users appreciated apps like Hubdoc in reviews because it “integrates seamlessly” and automates a once-tedious task. If you’re a Xero user, Hubdoc is an obvious one to activate (since it’s bundled in many cases). QBO users might use QuickBooks Receipts or third parties like Dext.

Professional service firms might have travel expenses, software fees, or subcontractor invoices – tracking all that manually can eat up hours. By incorporating these tools, you build a more complete accounting tech stack that covers daily financial admin.

When evaluating expense apps, ensure:

• They integrate with your main accounting platform (to avoid any CSV export/import headaches).

• They support multi-currency if you deal with international expenses (relevant for consultants traveling or dealing with global vendors).

• They have good mobile capabilities (since you often capture receipts on the go).

• They provide audit-friendly storage of the documents (images of receipts attached to transactions, which is great for compliance).

With a proper expense tracking tool, your bookkeeper (even if that’s just you) will have a much easier time reconciling accounts. No more missing receipts or mystery credit card charges – everything is documented and synced. This means more accurate books and less stress at month-end.

Reporting & Analytics: Insights Beyond Basic Bookkeeping

Having all your financial data in one place is wonderful – but making sense of it is the real end goal. Basic accounting software reports (profit & loss, balance sheet, etc.) are vital, yet many small businesses benefit from advanced reporting and analytics tools on top of their accounting data. This is especially true for professional service firms that want to track performance by project, client, or department, or forecast future periods.

Tools in this space help turn raw numbers into decision-making gold:

• Fathom: Fathom is a reporting app that integrates with Xero, QuickBooks, and MYOB to provide visual dashboards, KPI tracking, and even consolidation for multiple entities. It’s popular among businesses and accountants who want to monitor metrics like average revenue per client, billable utilization rates, or budget vs actual on projects. In fact, QuickBooks Online’s higher-tier plans have offered Fathom reporting as a built-in perk, highlighting its value for deeper insights.

• Spotlight Reporting: Another app originally from New Zealand’s ecosystem, Spotlight connects to your accounting data to produce sleek management reports, cash flow forecasts, and even scenario planning. A consulting firm could use Spotlight to project how hiring another consultant might affect cash flow, or to create client-facing reports on the value delivered.

• Google Data Studio / Power BI (with connectors): For those who want to go DIY, tools like Google’s Data Studio or Microsoft Power BI can pull data from your accounting system (with the help of connectors or exports) to create custom dashboards. This might be more horsepower than a small business needs initially, but as you grow, having business intelligence capabilities can set you apart – you’ll know exactly which services are most profitable, or how your utilization this quarter compares to last.

The common theme is integration and real-time data. You don’t want to manually dump numbers into Excel every month to get insights. The best analytics tools plug directly into Xero, QBO, etc., and update automatically. For example, once Fathom is linked to your QuickBooks, your dashboard of key metrics updates whenever you reconcile new transactions. This gives you up-to-date visibility at any time.

Even a 5-person consultancy can benefit from tracking KPIs! You don’t need a CFO to be metrics-driven; you just need the right software tools presenting the data in a meaningful way.

When setting up your analytics/reporting layer, consider:

• What key performance indicators (KPIs) matter for your business model? (E.g., billable hours vs. non-billable, project profitability, average collection period on invoices, etc.)

• Can your accounting software’s native reports give you this, or do you need a specialized app?

• If using an app, ensure it’s recognized as a top performer. (For instance, Fathom and Spotlight are frequently top-rated in Xero’s app marketplace for reporting.)

• Ensure any solution you choose can handle multiple currencies or entities if that’s in your scope, and that it produces reports that are easily shareable (PDFs or online links for your team or clients).

With robust analytics in place, you move from just booking history to actively planning the future. That’s a game-changer for small businesses looking to grow or improve efficiency.

Building Your Integrated Tech Stack: How It All Fits Together

We’ve covered a lot of ground – accounting platforms, time tracking, payroll, expenses, and analytics. The final step is ensuring all these pieces work in harmony. The true power of these tools emerges when they’re not isolated, but integrated into a smooth workflow. This is where MinuteDock and similar integration-friendly tools really play a pivotal role, acting as connective tissue between your activities (time worked, expenses incurred, payments made) and your financial records.

When selecting tools, always ask: “Does this integrate with my other software?” The reason is simple – integration eliminates duplicate data entry and reduces errors. In fact, industry experts often evaluate small business software on integration capabilities for critical categories like payroll, payments, sales tax, and time tracking​. These are exactly the integrations that save you time. For example:

• Your time tracking app posts approved time entries to Xero as draft invoices – you review and send them to clients, who pay online, and the payment is recorded back in Xero. No muss, no fuss.

• Your payroll system runs direct deposits and then creates an expense journal in QuickBooks automatically, so payroll costs are always up to date in your accounts.

• Your expense app publishes transactions to your ledger with receipts attached. At audit time, each expense in Xero has a source document on file with no extra work from you.

• Your reporting dashboard pulls from all the above, meaning when you log in, you see the latest figures on cash flow, revenue, or project margins without exporting data or manually updating anything.

By choosing best-in-class tools for each function and making sure they talk to each other, you essentially create a custom accounting system tailored to your firm’s needs. A consulting agency might use Xero + MinuteDock + Gusto + Expensify + Fathom, whereas a creative agency might use QuickBooks + Gusto + Dext + Spotlight. The specific combo can vary, but in both cases, each piece fills a niche and shares data with the others.

Always keep in mind: it’s not just about having these tools but also about using them together to streamline workflows. So, as you plan your software stack, envision how data will flow from one tool to another. This will highlight the benefits clearly and help you avoid any setup that doesn’t play nicely together!

FAQs

What is the best accounting software for small businesses?
Xero and QuickBooks Online are widely recognized for their extensive features, ease of use, and large integration ecosystems.

How do I accurately track billable hours?
Use specialized time tracking software like MinuteDock, which integrates directly with your accounting system, ensuring accurate billing and reduced admin.

What apps integrate with QuickBooks and Xero for payroll?
Gusto (US), Wagepoint (Canada), and KeyPay (AU/NZ) are popular payroll solutions that integrate smoothly with these accounting platforms.

Why is integration between accounting apps important?
Good integrations save you from tedious data entry, cut down mistakes, and keep your numbers fresh—perfect if you’re growing fast.

Final Thoughts

A high-performance accounting tech stack for a professional services business isn’t about any single application – it’s about the synergy of all the right tools. Your core accounting platform is the anchor, but on its own it might leave you with gaps in time tracking, payroll, or analytics. By filling those gaps with specialized apps (and focusing on integration-friendly choices), you create a system where data flows seamlessly from where it’s entered to where it needs to go. The reward is more accurate records, less manual work, and insights that help you make better decisions.

In summary, the accounting tools every small service business should consider include: a robust accounting software (Xero, QuickBooks, etc.), a time tracking/project management tool (like MinuteDock) to capture billable hours, a payroll solution (e.g. Gusto or your accounting software’s payroll module) to pay your team, an expense tracking app (Expensify, Dext, etc.) to automate receipt handling, and a reporting/analytics tool (Fathom, Spotlight) for higher-level financial intelligence. This combination covers the end-to-end lifecycle of your finances – from earning revenue to managing costs to analyzing performance.

Remember, the goal is to spend more time on your business, and less time wrestling with administration. The right mix of tools, set up with integrations, will work quietly in the background – tracking time, syncing data, crunching numbers – while you focus on delivering great service to your clients. In the competitive world of professional services, that efficiency and clarity can be a true game-changer.