Why Forward Thinking Small Business Accountants Are Recommending Xero

INTRODUCTION:

If you are a small business owner by now you most likely will have been informed about the advantages of cloud accounting and explained the various pros and cons. Small business accountants everywhere have generally been encouraging their clients to make the change.

So if you have decided to make the switch, which way do you go?

We believe that whilst no accounting system or package is perfect, from what we are seeing Xero appears to be continuing to increase its market share and for many good reasons. For most small businesses MYOB and Quickbooks are the other two main players.

Here are few insights why we believe that it is generally in your best interests to make the change.

Figure 1: The chase is on! Xero seems to be leading the way over its competitors. Photo courtesy Scolari Comerford Chartered Accountants Sydney and Dubbo

Reason Number 1: Bank Feeds

While Quickbooks and MYOB also have the functionality of bank feeds, Xero goes one step further by presenting each transaction on the dashboard making it easier and faster to reconcile your bank accounts. Even better, Xero remembers where you posted a transaction for a withdrawal or deposit last time (it recognises the payer or payee) and then asks if you want to post to the same code.

This reduces the risk of mistakes and also speeds up the reconciliation process.

Reason Number 2: Pricing

Whilst Quickbooks can start from as little as $5 per month and Xero starts from $25 (up to $60) you get what you pay for. For ease of use and automation the extra $20 a month is worth it. MYOB ranges from $35 to $110 depending on your circumstances.

Figure 2: Picking the right cloud accounting package can be tricky!

REason Number 3: Add Ons

Being able to integrate with industry specific software and apps can make a massive difference for usefulness and functionality. With this respect Xero has many options compared to others. This means that if you want to use for example, a specific inventory module for your accounting needs, chances are that Xero will have an add on that suits and you won't be left having to use the standard inventory application that comes with the cloud accounting module.

Reason Number 4: Familiarity

With Xero currently chewing up market share, accountants and their teams are spending more time on this application than others meaning that support for their clients and ability to provide more meaningful business advisory services around key performance indicators such as debtor days, inventory days, three way budgets and many other useful insights are going to be more likely.

The more forward thinking accountant can see that Xero will continue to provide training and add ons that will help them as it continues to become more popular.

CONCLUSION:

Most accountants have clients that use any number of accounting applications and most will accept what the clients are comfortable with. MYOB has been such a dominant force for many years but is trying to play catch up. Quickbooks is attempting to win the battle on price but it may also have left its run too late in Australia and New Zealand anyway.

Rightly or wrongly we have decided that based on our and our clients' experiences that Xero is the the best out there.

Is it time for you to make the change?