Choosing accounting software | Why we recommend Xero
When it comes to accounting software for small business, we’ve tried a lot of different systems. So, when our clients ask us which cloud-based accounting software we recommend, we confidently say Xero.
Xero has been purpose built to be simple and intuitive for small business. As accounting professionals, Valorium Advisors needs to be confident that the systems and processes we set up for our clients are reliable, secure, and efficient. In our experience, Xero delivers that in spades. That’s why we have become experts in Xero.
It makes accounting seamless and easy to use, so in the end our clients’ books can be done faster, cheaper, and accurately. Being able to give clients the ability to log in from anywhere on any device and view their business finances live provides them peace of mind that they’re in good hands.
Xero has been a game-changer in client – accountant interactions. By providing free access to over 700 apps we can customise our clients’ accounting software for small business to cater for any business type and the function they want.
As mentioned, we’ve run the race with a range of other accounting software for small business. And we’re happy to work with the systems our clients are comfortable with. So it is worthwhile looking at Xero’s main competitors to see what they offer.
Comparing small business accounting software
To help, we turned to Canstar Blue, an Australian comparison website. Each year it completes an accounting software review to compare ease of use, value for money, reporting, ease of integration, functionality, customer service and overall satisfaction. Here’s what the 2020 review says about the four most popular accounting software programs for small business.
Intuit QuickBooks offers two different small business accounting products: QuickBooks Online for small businesses and QuickBooks Self Employed.
QuickBooks Self-Employed features include customer invoicing, payment alerts, payroll capacities and automatic BAS generation. QuickBooks software is also capable of recording receipts for expenses and building reports to track business performance over select periods of time.
Offering a 30-day free trial, QuickBooks is cost-effective, with prices starting at under $10 per month for the Self-Employed package. The Simple Start package is $20 per month, the Essentials package is $35 per month, and the Plus package is $50 per month.
Each package comes with a start-up offer of 30 per cent off for the first three months. With each price jump, businesses will gain access to additional features. The Plus version contains functions such as inventory and project tracking. It also offers budgeting tools to help you stay on track towards your financial goals.
MYOB offers a variety of products to assist businesses with keeping on top of their finances. In addition to the basics of accounting software, MYOB has additional extras through partnerships with other companies. These extras can make the software more personalised for individual businesses.
Features include payroll for employees, invoicing for clients, reports and budgets for team meetings, and functions for tax time, inventory, bank reconciliations and cash flow management.
The Essentials software is priced between $10 and $60 per month, while the AccountRight range costs between $70 and $140 per month. There’s also MYOB’s ‘EssentialsPayroll’ starting from $10 per month, up to $60. New subscribers can get up to 50 per cent off their first three months.
Features of MYOB plans include invoicing, payroll, BAS and GST statements, and tools to manage bills and expenses.
In addition to accounting software, MYOB has software for all areas of your business, including business management and partnered software to suit specialised areas, such as eCommerce, with packaged deals available for those after multiple services.
Originally operating under the QuickBooks brand, Reckon is now a separate entity. It offers several accounting software features for small businesses outside of the financial industry, in addition to specialised products suitable for accountants and bookkeepers.
With the Reckon One software, businesses can choose between the Basics, Essentials, Pro and Premium packages, priced between $7 and $36 per month. The more expensive package allows you to create invoices and bills, reconcile bank transactions and track expenses. Reckon additionally offers the Reckon One Payroll for wages, leave and super, which is available for $5 a month. Reckon also provides Point of Sale (POS) software.
And finally, our favourite - Xero
Xero has grown to be a globally recognised accounting software provider available in a range of subscriptions to suit all business sizes and industries.
Starting at $25 per month for the Starter pack, the Standard pack is $50 per month, and the Premium pack starts at $65 per month. Each price point increase unlocks additional features.
The larger packs will suit larger businesses, allowing more employees to be added to the software (at an additional cost), while the Starter pack should suit owner-operated businesses.
Features such as invoicing (including reminder emails), inventory and payroll are available in all packages, with additional features such as automatic bank transactions and bank reconciliations also available. If you’re looking to make the most of your accounting software, it’s best to research Xero’s website for a full comparison of capabilities and extras. Or, you can sign up for a free 30-day trial to get a feel for how the software works.
So, which accounting software is for you?
While Valorium Advisors have settled on Xero as our preferred accounting software for small business, we are happy to work with you using any cloud-based program you prefer.
If you’re now questioning your current choice and are interested in Xero, don’t hesitate to get in touch for a chat. We will manage everything needed to transition you to Xero as efficiently as possible.
Want to learn more? Our experts are ready for your questions.