The dawn of new millennium in 2000 was followed by a rapid change in business accounting methods with the introduction of Goods and Services Tax. Since the last decade and a half, a considerable number of large and small scale businesses have computerized their account details and transactions. For many, the thought of computerizing their past data was tiring and unnecessary. Moreover, many businessmen refrained from it because of extra work introduced by GST. However, use of computerized accounts can save your business from total failure. Especially in case of small scale business, many think additional reports like BAS are unnecessary. The computerization of small business accounts can thoroughly provide automatic reports to government, which greatly cuts short the hassle and cost of compiling ATO cost.
Desktop Vs Cloud:
Lately, the trend of using online accounting software has been overpowering desktop accounting software. Desktop software remained powerful for almost a decade. There is no doubt about their accuracy, nor do they require a constant internet source. Still, there are many issues that have been resolved by online accounting software.
Firstly, desktop software can be purchased for single computer, which makes them way more expensive than online software. Secondly, desktop software cannot be accessed when a person is traveling, plus they require constant repairing and updating.
Cloud softwares are far better and quicker than desktop software in this digitally oriented age. They provide an automatic and common environment to connect to online payment gateways, bank accounts and management systems. According to Australian statistical report, 67 percent of accounting firms and 27 percent of businesses have switched to online accounting software on account of following reasons:
- Business enhanced Security
- Reduced IT Costs
- Reduced Chances of Loss in Case System Breaks Down
- Increased Networking and Functionality
- Accessibility at Any Place and Time
- Automatic Updates and Backup
- Less Failure Susceptibility
Comparative Analysis of XERO, MYOB and Quickbooks Online
Here are the most famous accounting cloud softwares used around the world today:
Below is a detailed comparison of all three softwares so as to let the readers make an informed decision.
Ease of Use
Workable design is the major factor that invites people to learn how to use a product.
MYOB is very easy to operate and can be easily learned with a few hours of training. However, on the flip side, it’s reporting function options are also simple and limited, which makes it less suitable for large businesses. It has no ABA files. Payroll report can be printed out in PDF format, but MYOB doesn’t provide suppliers and payroll files.
Xero on the other hand is a complete package. It has been designed, keeping in mind the user experience. For online support, the software also provides training facility. This software has a vast employee portal, which increases understanding. It is also plugged with auto-superannuation payment facility, which makes it favorite of all.
Quickbooks Online has the edge of excellent reporting. It has been designed to hide complex tasks to avoid confusion. One drawback of Quickbooks Online is its design layout. Sometimes, you are unable to locate things where you logically would have thought they would be. On the positive side however, QBO can be fully explored with the help of video tutorials and online training.
Xero- Xero is no doubt modern hero in pulling out easy solutions for businesses. In case of desktop software, calculators and ledgers were constantly used for data categorization and compilation. By using Xero, reconciling of transaction and steady classification can be done within seconds.
MYOB- From 1980s till 2014 in Australia, MYOB remained a powerful accounting tool. With certain upgrades, MYOB also offers automatic solutions to manual tasks, however, it is not as efficient and detailed as Xero.
Quickbooks Online- As for QuickBooks online, it is a good software for starters. If you are looking for automated executive report sheets, QuickBooks Online is not a suitable option as it lacks robust accounting features.
Mobile App Facility
A dramatic shift in user behavior in favor of mobile internet surfing has led ninety percent of websites to develop mobile apps for maintaining traffic inflow and popularity. Likewise, this trend has seeped its way to push accounting software to provide mobile app facility. These days, it is largely favorable because you can approach your account’s dashboard anytime you want.
Xero- Xero provides multiple options on mobile apps. User can create invoices, upload files, send receipt and take photos of receipts. Managing contacts and viewing of bank account balances is also possible. One can also take payments by third party plugin apps, like Ezi Debit and Paypal.
Quickbooks Online- Quickbooks Online also provides a functional mobile offering. It is well designed to offer quoting, bank reconciliations, invoicing, P&L balance sheet reporting and tracking down recent activities. If you are approaching the app on your tablet, you can also get location based pre-filling information of invoices and GPS service. Quickbooks Online no doubt has the best mobile app facility.
MYOB- MYOB mobile app is quite simple and provides only three primary functions: Invoicing, Contacts Information and Payments. However, payments can be done directly via PayDirect app by MYOB.
The primary function of all accounting software is bookkeeping. Additional features include time-sheets, quoting and inventory tracking. Any software should be adaptive enough to smoothly integrate with all kinds of businesses, like e-commerce, stock, inventory, etc. In this regard, QBO surpasses XERO and MYOB with 138 add-ons available in online app store. Xero has 400 adds, whereas MYOB has 200, apart from 22 certified ones. On certain common apps, high importance is given to time-sheets, job quoting and POS systems.
Considering the price factor is probably of prime consideration, especially for a small scale business. However, the worth of price should be evaluated against the ease of service being provided.
Quickbooks Online- Quickbooks Online is by far the cheapest among other two options. Moreover, in terms of functionality, the price is favorable than Xero and MYOB. They offer three kinds of offers worth of $15, $25 and $35 on monthly basis. They also provide maximum 30% discount for the first year of purchase.
MYOB- MYOB has the least favorable offering, in light of limited functions they offer. They offer two packages: $35 per month for single employee, $45 for multiple employees.
Xero- Xero recently increased its prices in 2015. It is the most expensive of all, however, it is worth paying the amount for the kind of services they provide. Their packages start from $25 and go as high as $60 or even more, depending on payroll.
Despite its price, Xero is still our favourite accounting solutions. If you would like to setup Xero for your business, please contact us for a Xero discount code.