There are a whole host of online cloud accounting platforms for small businesses, Xero, QuickBooks are the main two by market share, which we shall discuss the pro’s and con’s below. However, let’s not forget Sage and FreeAgent – which we will save for another date.
At Optimise Accountants & Tax Advisors, we have a preference towards Xero as most of our client base uses this platform. However, there are benefits and drawbacks to both of the two cloud accounting packages which we highlight below.
Xero
Xero was founded in 2006 in New Zealand by Rod Drury and Hamish Edwards with a bold vision: to bring small business accounting into the cloud era. At a time when most accounting software was still desktop-based, Xero pioneered a fully cloud-based solution that focused on real-time collaboration between businesses and their accountants.
What are the pros of using Xero?
- Unlimited Users – If you run a (larger) small business with many users, then Xero may be for you with unlimited users within its packages unlike QuickBooks.
- User Interface – May feel (and so do we!) the user interface is clean, easy to navigate with a clear layout for daily reconciliations.
- Reporting – Xero has many reports with all of them flexible and customisable to suit business owners needs.
- Third Party Apps – Xero has an open source API so users can link many popular integrations, such us HubSpot, Shopify, Dext and many more.
What are the cons of using Xero?
- Support – Xero only has e-mail only support which may not be ideal for some businesses.
- Not simple for beginners – the terminology and workflows can be less intuitive than QuickBooks.
QuickBooks
QuickBooks is a product of Intuit Inc., an American software company founded in 1983 by Scott Cook and Tom Proulx. Intuit first found success with its desktop personal finance tool, Quicken, but quickly recognised the need for small business accounting software.
What are the pros of using QuickBooks?
- Mobile App – QuickBooks has an excellent mobile app with great features, including invoicing, snapping receipts and checking bank balances.
- Live support – QuickBooks has phone support and live support.
- Automation – QuickBooks automates many tasks out of the box, such as recurring invoices and tracking mileage.
What are the cons of using QuickBooks?
- User limits – QuickBooks restricts the number of users per plan, and adding users can become expensive.
- Rigid reports – the reporting is less customisable than Xero.
Which is right for me?
Xero and QuickBooks both offer free trials so we recommend taking advantage of this to find out what is the better option for you and your business. Xero is great for customised reports, multiple users and integrating third party apps. While QuickBooks offers great support, automation and a robust mobile app.
Feel free to contact us here with any questions or book in a discovery call if you require assistance with any accountancy services.
