Sole Trader Tips: Hnry Review

Hnry was founded in 2017 in New Zealand and quickly expanded to Australia, where it has become an accounting option for sole traders. The company was founded to make it easier for self-employed individuals to manage their finances and ensure that they comply with tax laws. 

How Does Hnry Work?

Hnry is an accounting business built for Australian sole traders and small businesses. It offers a range of features to help you manage your finances, including invoicing, expense tracking, and tax management. One unique aspect of Hnry is that it uses technology and human accountants to handle your finances.  

When you sign up for Hnry, you'll be assigned a personal accountant who will handle all your accounting tasks. This includes preparing and filing your taxes, managing your invoicing and expenses, and providing financial advice.   

Overall, Hnry is a new approach to accounting that offers a range of features to help you manage your finances. If you're a sole trader who likes interacting with accountants, it's worth considering as an option. However, as we'll see in the next section, Thriday offers some unique advantages that make it a compelling alternative to Hnry. 

What are Hnry Fees?

One of the most important factors to consider when choosing an accounting provider is the fees associated with using it. Hnry offers a pricing model that is based on your income. The company charges a flat rate of 1% of your income up to a limit of $1,500. This means that the more you earn, the more you'll pay for the service. While the pricing structure may seem high compared to other providers, it's essential to consider your business needs and whether the value that Hnry provides is suited to your requirements. 

How does Thriday compare with Hnry?

While Hnry is a popular accounting software option in Australia, others are available. Thriday is another accounting software that offers a range of features for sole traders and small businesses. 

One of the main differences between Thriday and Hnry is the pricing structure. Thriday offers a range of plans that suit businesses of any size, with prices starting at just $0 per month for a bank account* only plan. For more advanced features like automated bookkeeping and accounting, you'll only pay $29.95 per month. This can make it a more affordable option for businesses that want to avoid giving up a percentage of the income they receive. The affordability of Thriday compared to Hnry becomes significant if your business earns between $50,000 to $150,000, as with Thriday, you are looking at $299 a year (under an annual plan), and with Hnry, you are looking at $500 to $1,500 a year. 

Regarding features, Thriday really stands out compared to Hnry, as it offers a range of tools to help you manage your finances, including automated invoicing, receipt reconciliation, bill payments, expense tracking, BAS and tax reporting. The software is easy to use and offers a simple interface that makes it easy to navigate. 

Thriday can also provide dedicated tax accountants like Hnry does through its partner POP Business; the company also offers excellent customer support. Whether you need help setting up your account or have questions about using the software, the Thriday team can help. 

Ultimately, the choice between Hnry and Thriday will depend on your specific needs and budget. Hnry may be the right choice for you if you're looking for an accountant only. However, if you're a small business that needs a more affordable option with automated features and excellent customer support, Thriday is definitely the right choice. Take this quick tax quiz to determine how much money you could save by using Thriday.

What is the Hnry Bank Account?

Hnry provides a trust account to clients. This account is used to receive payments from clients and customers. By keeping your business finances separate from your personal finances, Hnry aims to simplify your accounting and ensure everything is done correctly. 

The Hnry bank trust account is not accessible by customers and is held in trust by Hnry. Whilst this means the funds you receive are available for tax bills, it also means that you can only access a portion of the income your business derives during the year. For larger businesses, this may create cash flow challenges. 

Thriday vs Hnry - Automated Allocations

Experience the Thriday advantage! When you earn income with Thriday, effortlessly configure automated allocations to send a percentage of your earnings directly to your preferred bank account. Unlike Hnry, where you're limited to distributing only up to 45% of your income, Thriday empowers you to take control. Hnry holds the remainder in a Trust account, sending it to the ATO before tax time. Thriday's automated allocations are a game-changer for budget enthusiasts, eliminating the manual grind and making financial management a breeze.

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How Do You Sign Up for Hnry?

If you're interested in using Hnry for your small business, you must be a sole trader only: 

1. Visit the Hnry website: Start by visiting the Hnry website and clicking on the "Join Now" button.  
2. Enter your details: Provide your personal and business details, including your ABN and contact information. 
3. Provide your Driver's licence: You'll need to provide a copy of your Driver's licence. 
4. Nominate your bank account: Confirm where you want the portion of your income to be sent to. 
5. Start using Hnry: Once your account is set up, you can start using Hnry to manage your accounting, tax, and financial affairs. 

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How to Switch from Hnry to Thriday

If you're currently using Hnry but are interested in switching to Thriday, the good news is that the process is straightforward. Here are the steps you need to follow: 

• Sign up for Thriday: If you haven't already done so, join Thriday for free and create an account.  
• Provide your accounting details: Provide details about your current accounting setup. 
• Let Thriday take care of the rest. 

Thriday's team of experts will handle the switching process, including transferring your financial data and ensuring that all tax obligations are current. Once the transition is complete, you can use Thriday to manage your accounting, tax, and financial affairs. 

Thriday offers a range of affordable accounting and tax services for small businesses and sole traders, including bookkeeping, tax returns, and financial advice. By switching to Thriday, you can benefit from an automated accounting approach tailored to your business's specific needs. 

Key Takeaways

Hnry is a New Zealand-based accounting provider that uses human accountants to manage the books for sole traders. While Hnry has grown in Australia, it has some drawbacks, including high fees and a limited range of services. 

Thriday, on the other hand, is an affordable and flexible alternative to Hnry that offers a range of accounting and tax services tailored to the needs of small businesses and sole traders. By signing up for Thriday, you can benefit from advanced AI that automates your banking, accounting and tax for a fraction of the cost of Hnry. 

The process is simple and straightforward if you're interested in switching from Hnry to Thriday. Thriday's team will handle the transition process, ensuring that all your financial data is transferred safely and securely. 

So whether you're a small business owner or a sole trader, choosing the right accounting platform is essential for managing your finances and staying on top of your tax obligations. By considering the features and benefits of platforms like Hnry and Thriday, you can make an informed decision that meets your accounting needs.