Quickbooks Online or Xero? Your Accounting Software Solution
Startups and SMEs in the Philippines are beginning to go digital with their data and records. Because of this, many software companies have programmed various accounting software packages. Most of them are offering business owners convenience on the management of various business responsibilities.
Quickbooks and Xero are two of the most popular accounting software programs. Both prominent for offering the most extensive accounting tools in the market. Companies use these Cloud Accounting Solutions to manage its day to day transactions, bookkeeping, and accounting. Moreover, these solutions are also used to record income and expenses, pay bills, invoice customers, create and prepare financial and tax compliance reports.
Both software offers cloud-based accounting. With cloud accounting, the traditional accounting ran locally on a computer’s hard drive and is now executed through the cloud, i.e online. This means that data is stored and accessed over the internet. With Cloud Accounting, redundancy in record-keeping is eliminated. Further, access to data can be done anytime and anywhere, and the costs of maintaining traditional software are eliminated.
With Quickbooks Online or Xero, you can take advantage of the benefits of cloud accounting and enjoy the convenient use of comprehensive accounting and business tools.
Xero penetrated the market in 2006 as making accounting sleek and enjoyable. It’s famous for its tagline “beautiful business”. Remarkably user-friendly, simple yet powerful, Xero endeavors to help businesses with setups and controls that require little accounting knowledge. Xero works best for small and start-up businesses that do not have much background or experience in accounting and bookkeeping.
The leading accounting software before was Quickbooks Online (QBO). It promotes “smarter business tools for the world’s hardest workers”. QBO offers an extensive array of accounting tools with customization and optimization of accounting tasks. It is also popular for its edge on producing customizable outputs. Quickbooks users usually have thorough knowledge and experience in accounting and bookkeeping.
Quickbooks Online vs. Xero
Quickbooks Online and Xero both work in a subscription business model. With a few clicks and keyboard inputs, one can make an online subscription. Simply set up an account and proceed with working out the monthly payments. Both Quickbooks Online and Xero offer packages with various scope and limitations.
Xero has three price levels: $9, $30, and $60 per month depending on the package subscribed. At the lowest cost, Xero offers basic plans and tools with very limited available tasks. To access more or the full set of features, clients would have to take on the higher-priced package plans.
For Quickbooks Online, one can subscribe to their basic package at $25 per month. This is at a higher price than that of Xero’s, but it has access to more functions and tools. You can upgrade to a mid-level plan or top plan once your business has grown, at $70, and $150 per month, respectively.
Creating invoices in Xero is very easy. It has a very easy to navigate interface. It previews the invoices before sending it. This gives the users the allowance to review and adjust it before finalizing.
Quickbooks Online updating details about the client directly in the invoice. This feature makes it more convenient. Users won’t have to navigate to the contact record before invoicing.
Creating financial reports for a specific range date is very much convenient in Quickbooks Online. It comes with clean and easy customization features.
Xero also offers customization but has a few problems in its reporting feature. Moreover, both software includes add-ons and integrations. This is helpful for companies that require more than the available Pro-forma reports.
Quickbooks Online and Xero are helpful tools, especially to small and starting companies. Both solutions have dominated the accounting software market for their low-cost advantage and convenience.
It can be challenging to choose which of the two accounting solutions will provide satisfactory Cloud Accounting Services for your business. 3E Accounting Services can help you make that decision. Experienced and competent accountants can assist you in aligning your accounting solution with your goals and business model. Contact them today to see how they can support your business.