There are a few different options when it comes to accounting software. Xero, QuickBooks, and MYOB are all popular choices, but which one is the best for your business? In this article, we’ll compare the features of each software to help you decide which one is right for you.Â
Keep in mind that there is no perfect solution – every business is different, so you may need to try out a few different programs before finding the one that works best for you.
But with this information, you should be able to make an informed decision about which accounting software is right for your business.
Overall, there are three main contenders for the best accounting software: Xero, QuickBooks, and MYOB. All of these boast their unique features and benefits – but which one is the best for your business?
In this blog post, we’ll look at each of these options in detail and help you narrow down the choice to find the perfect software for your company.
Which accounting software is right for your small business? Xero, QuickBooks, and MYOB are popular options, but which one is the best?
This article will compare the three options and help you decide which one is the best fit for your company. We’ll look at pricing, features, ease of use, and more to help you make the best decision for your business. So, which one should you choose? Read on to find out!
Let’s get started!
So What Is The Cloud?   Â
You should save all of your data, files, and even your software in the cloud so that you can access it from any computer or device, regardless of where you are or when you want to access it. Discover the difference that working, banking, communicating, selling, and buying in the cloud can make for you.
- Traditional banking vs internet banking – It used to be the case that the only time you could access the information on your finances was when you were physically present at the bank. When you bank online over the internet, all of your financial information is stored in the “cloud.” You are able to access it whenever you want, wherever you are, and on any device you choose.
- Comparing conventional mail with web mail – Historically, the post office was the sole location where you could access your correspondence. When you have webmail, your email is accessible whenever you are connected to the internet. Sending an email can be done at any time, from any location, and using any device.
- Your files could only be accessed when you were physically present in the office if you used traditional filing methods rather than cloud storage. If you choose an online or cloud storage service, all of your files will be readily accessible to you whenever and wherever you have internet access.
- Comparison of conventional shopping to shopping done online – Customers have a restricted window of opportunity to browse and make purchases from your wares if your brick-and-mortar establishment is only open at specific times and locations. Customers have the benefit of being able to view products and make purchases whenever they want, from any location, and using any device they choose when they buy online.
- Comparing traditional accounting software with accounting software hosted in the cloud – With more conventional desktop applications, your information is stored locally on your personal computer or portable device. This means that it can only be accessed at specific times and on specific devices; also, it is typically only available to a specific number of users.
Your data will be stored online via cloud software, making it possible for you to view it from any location as long as you have an internet connection. A further feature of quality cloud software is the capacity to support an unlimited number of users at the same time.
Xero
Xero is a piece of accounting software that is hosted in the cloud and is geared towards use by startups and small enterprises. In 2006, it began conducting business in New Zealand, and it currently has a presence in a number of countries throughout the world.
Invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, and basic business and management reporting are some of the essential elements that are included in Xero.
Other key features include automatic bank and credit card account feeds.
Xero has the capability to import bank and credit card statements automatically. It provides a free application programming interface (API) that makes it possible for users and third-party software suppliers to combine Xero with applications from other companies.
Over 275 independent software suppliers have contributed to the development of Xero add-ons. Additionally, Xero is compatible with a wide variety of tax rates and currencies. In addition to that, it offers consumers in the markets of Australia and the United States a payroll function to make use of.
E-invoicing, inventory management, bill payments, dashboards, bank connections, and claim management are some of the features that the software provides.
Additionally, due to the fact that it is cloud-based, the information can be accessed from many devices at any time, from any location, and at any time of day. Furthermore, it is simple to communicate this information to the appropriate parties.
QuickBooks
Intuit, an American firm that was established in 1983, is the provider of the online accounting software package known as QuickBooks.
The programme is geared mostly towards small and medium-sized enterprises and gives them the ability to monitor sales as well as expenses and profits; it also lets them make and send invoices; manage and pay bills; monitor inventory; and monitor and pay taxes.
The desktop application and the web service are both available for use with QuickBooks.
Because the online version stores all of the information in the cloud, the real-time data can be accessed whenever it is needed and can be shared with anybody, no matter where they are located in the globe.
MYOB
Desktop accounting application MYOB, which is also known as ABBS, is designed to meet the needs of both large and small enterprises.
The programme includes functions such as the generation and monitoring of quotations, invoices, and payments; the management of inventories; the processing of transactions involving several currencies; the reading of reports; and the tracking of budgets.
Xero vs MYOB vs QuickBooks on numerous Features
1. Ease of Use
- MYOB is extremely user-friendly, and its operation can be picked up by virtually anyone with only a few hours of instruction. However, in the second phase of the system, the reporting function options are likewise simplified and condensed, making the system appropriate for use in large companies. The ABA file is missing, which is a great disappointment.
- Xero, on the other hand, offers everything you need in a single package. The whole feel of using it was taken into consideration during the design process. In addition to that, this software features an integrated learning centre for online support. In addition to that, the software features a sizable staff portal, which makes comprehension much easier. Additionally, the auto-superannuation payment feature has been enabled, which has contributed to its growing popularity among customers.
- The reporting capabilities of QuickBooks Online are very strong. In order to prevent confusion, it is meant to conceal difficult jobs. The design layout of QuickBooks Online is one of the software’s drawbacks.
Sometimes things are not where you would expect them to be based on reasoning, and you are unable to discover them. On the other hand, video lessons and other forms of online training make it possible to comprehend QBO in its entirety. This is a significant plus.
2. Banking & Currencies
Users of either Xero or QuickBooks can safely link their bank accounts to the respective software, which then automatically syncs the programme with real-time changes to the status of the transactions on the system.
This makes it much simpler to keep track of the flow of cash and to reconcile the accounting.
Both have connections with several banks all over the world; however, if a customer’s bank is not one of those listed, the customer has the option of manually uploading bank transactions one at a time or importing bank statements.
Users of Xero also have the option to set up direct feeds from Stripe, TransferWise, or PayPal, which will enable the programme to automatically import the transactions into the user’s account.
Xero, QuickBooks, and MYOB are the three accounting software packages that provide clients with functionality to help them deal with numerous currencies. For instance, with this programme, they are able to send invoices to their clients, pay their vendors and staff, and examine a variety of reports in a number of different currencies.
3. Mobile App Facility
Ninety percent of websites have developed mobile applications as a result of the exciting shift in user behaviour that favours mobile Internet browsing. This is done in order to retain a steady flow of traffic and popularity. The development of accounting software to support mobile applications is another example of how this pattern is gaining traction. You may get in touch with the dashboard of your account whenever you want, thus the atmosphere is generally welcoming these days.
- On its mobile app, Xero offers a wide variety of customization choices. The user has the capability of generating invoices, uploading files, sending receipts, and photographing receipts. In addition to this, it is possible to manage contacts and check the balance of bank accounts. Payments can also be made with the use of third-party plugin applications like Ezi Debit and Paypal.
- The QuickBooks Online software is built to facilitate accurate bank reconciliation, the creation of invoices, the reporting of profit and loss balance sheets, and the monitoring of recent actions. You can acquire location-based pre-information of bills and GPS service if you contact the app on your tablet. This information is available to you. In general, there is no question that the QuickBooks Online mobile app function is the best one.
- Invoices, contact information, and payments are the three key features that can be accessed using the MYOB mobile app, which has a fairly intuitive user interface. On the other hand, MYOB is able to make payments immediately through the PayDirect app.
Both Xero and QuickBooks offer mobile applications that are suitable for use on mobile devices running the Android and iOS operating systems respectively.
Xero mobile accounting, Xero Projects, Xero Expenses, and Hubdoc are the four apps that are available through Xero. On the go, users are able to carry out nearly all of the activities that are possible via the web by using the app.
Users of the QuickBooks mobile app are only able to use the fundamental capabilities that are included in the simple start plan. The web version of QuickBooks Online is the only platform on which users may access the other capabilities that are included in the Essentials, Plus, and Advanced plans.
4. Number of users
- You are free to register an unlimited number of users in Xero at your discretion. There are no limits placed by Xero on the number of users who can access the programme under any given plan. The subscriber is able to invite new users on an as-needed basis and can choose to provide those new users full or restricted access depending on their needs.
- There is a cap on the number of users that can be supported by QuickBooks. For instance, if you have Quickbooks Essential, you can have up to three users, but if you have Quickbooks Plus, you can have up to five users.
- You are just required to have one user to get started with MYOB Accounting. MYOB Premier, the more complex edition, is available with either 1, 3, or 5 users, and this number can be increased to a maximum of 15. Connection speeds can be slowed down by multiple users accessing the network at the same time, but you can boost your connection speeds by installing add-on software such as Access Anywhere.
Depending on the package, QuickBooks and MYOB both provide a certain number of people to have access to their respective software. For instance, QuickBooks has three different pricing tiers, with the Simple Start plan allowing access for just one user and one accountant, the Essential Plan for three users and one account, and the Plus Plan for five users and one account.
5. Reports & Dashboards
Through a variety of reports and dashboards, customers of each of the three accounting software packages (Xero, QuickBooks, and MYOB) are provided with an overview of how their company is doing.
The functionality that allows for the creation of reports and dashboards is included in all of the plans. They are modifiable, and users are even given the ability to more deeply delve into the specifics of the information presented. Every report provides a real-time analysis and is available at any moment for viewing.
6. User Interface
The user interfaces of all three pieces of software are well organised and straightforward to use. In addition, the interface is structured in such a way that even a person with no prior experience may go about on their own and figure out how to use the software.
Xero allows customers to experiment with the system by providing them with false data so they don’t have to worry about accidentally losing or altering important financial data. On the other hand, MYOB has made it even simpler for individuals who are not trained in financial matters to navigate the software by employing layman’s language rather than formal financial ones.
7. Add-on Software
- The maintenance of books is the primary function of any and all accounting software. Timesheets, quotations, and the ability to track inventories are some of the additional features. Any piece of software must have an adequate level of compatibility in order to readily interact with many aspects of organisations, like e-commerce, stocks, inventories, and so on.
- When compared to XERO and MYOB, QuickBooks Online (QBO), which has 138 add-ons available in its online App Store, comes out on top. Xero has 400 add ons, while MYOB has 200, including 22 certified add ons. Xero is the clear winner here. On several widely used applications, the timesheets, job quotation, and point of sale (POS) systems are given significant weight.
These accounting software packages provide customers with fundamental accounting capabilities that assist them in keeping track of and maintaining their financial records.
On the other hand, if a user is seeking for some additional functionality to get a holistic perspective and track all of their business activities on one platform, that is also something that is doable. These software packages enable integration with applications developed by other companies, transforming themselves into all-encompassing platforms.
There are over 400 add-ons available for use with Xero, including ones that manage payroll, inventory, payments, time tracking, online shopping, and customer relationship management.
8. Customer Support
For users to have all of their questions answered and for the company to create a client base comprised of loyal customers, customer support as well as after-sales care are extremely vital aspects.
All of Xero’s users have access to online customer care that is available around the clock. Unfortunately, they do not provide a phone number for customer support. However, they also provide a large number of other resources, such as in-depth articles on assistance, learning courses, and other information, which the user can consult before getting in touch with their support team. The users of Xero also have the ability to initiate a discussion with the company’s community of clients, accountants, and bookkeepers, as well as to ask questions to that community.
QuickBooks offers support for contacts in a very same manner.
They include tutorials, training seminars, frequently asked questions, and searchable help articles and blogs on a variety of topics.
Users have the option to speak with QuickBooks specialists who are available around the clock, Monday through Friday, or to email them with any questions they may have about the software.
Users have the option of posting their inquiries in the community forum, where other users and industry professionals will be able to respond, or they can get in touch with a Pro advisor for a cost-free consultation.
Users can look through the readily available articles and FAQs on MYOB to get the solutions to their questions. You can also contact them through their website if you have any questions or concerns.
Users also have the option of contacting them through the specified email address or phone number.
Payroll Functionality of Xero, MYOB and QuickBooks
The process of calculating payroll is a complicated aspect of the business. Even if these systems handle payroll, there is still a need to master the ins and outs of how the system works.
Xero is the most helpful of the packages available; it even automates termination payouts and provides employees with a basic self-help portal through which they can see payslips, submit timesheets, and ask for time off online.
In addition, for a nominal additional fee, Xero offers the best costs function available.
This is a fair indicator of the limitations of SME accounting software because Xero caps the number of employees on a payroll at 200.
Xero Payroll is the industry leader in its category. Payroll for MYOB is not too far behind at this point. Both of these options for payroll management for SMEs are really strong choices.
QuickBooks features an excellent Australian-specific payroll system.
Customer and Sales Functionality
Within the context of this system, a customer might either be an individual or an organisation. There is no such thing as a relationship between customers; for example, you cannot have a customer with a head office that is also a client with a shipping address.
The pricing system is fairly basic. Xero only offers a single price point for each individual product.
It is considerably more advantageous to use MYOB due to the fact that it provides a set of numerous price lists that can be allocated to consumers as well as quantity-break pricing. You also have the option of setting markup pricing.
As was the case with inventory, Xero has come to the conclusion that if your pricing and sales procedures include any degree of complexity, you should look for an appropriate front-end sales platform and integrate it.
POS
None of them has a built-in point-of-sale system. However, there are viable alternatives in the cloud:
There are specific cloud POS systems available, such as Kounta, which interact very well with Xero, QuickBooks, or MYOB. Other cloud POS systems, such as Dear Inventory and CIn7, also offer adequate POS modules.
Be aware that if you operate MYOB in “cloud mode,” the integration process will be considerably simpler for you; however, this results in a product that is frequently excessively slow.
Shopify Integration
Shopify is by far the most popular B2C solution for small and medium-sized businesses. Integrations are available for Xero, MYOB, and QBO accounting software. Be aware that if you operate MYOB in “cloud mode,” the integration process will be considerably simpler for you; however, this results in a product that is frequently excessively slow.
Bank Feeds
If you run your business from one of the most important cloud accounting markets, then all of these programmes provide excellent bank-feed capability for local currency bank accounts (USA, UK, NZ, Australia, and increasingly Singapore).
The most modern version is Xero, although the advantages this provides are contingent on the financial institution you use. Take the NAB internet banking service as an example.
A direct submission of payment requests will soon be available through Xero.
This will be the first major efficiency improvement in banking following the breakthrough of the bank feed, which Xero was the pioneer of.
On the other hand, if you are not located in one of the primary markets, you can discover that your financial institution does not even have a bank feed.
Automatic Intercompany Bookings
For the purposes of financial reporting, you should probably consolidate the transactions that take place between companies that are part of the same corporate group.
However, transactions between different companies need to be kept separate. This functionality is not available in Xero, QBO, or MYOB AccountRight.
There are tools available in the cloud that can consolidate, and Xero itself has various options that can assist with running reports across several charts of accounts.
However, there is no process that creates automatic entries for loans between entities.
Xero provides some help in the form of the ability to route a purchase order from one entity so that it appears as a sales order in another entity and vice versa. Because of this, some of the data input work is eliminated.
The second strategy involves using a single installation of Xero or QBO to manage several firms. Both Xero and QuickBooks include a notion that is comparable to the sub-account seen in larger accounting systems. This means that you are able to record bookings using a “profit centre” as well as cost centres; for more information, see the following item.
This is a streamlined method for managing the financial records of several different businesses under a single platform. However, you will need to pay close attention to the smallest details while booking, and you will have to use manual reporting in order to distinguish between accounts receivable, payable, and inventory. As a consequence of this, accountants do not believe this to be an especially appealing option for multi-entity solutions.
Multiple Profit Centres Via Sub-Accounts
Both QuickBooks and Xero feature tools that allow users to link transactions to “categories,” which, in conventional accounting terms, are known as sub-accounts. These categories can be used to establish divisions, profit centres, or cost centres.
These are referred to as “tracking categories” in Xero, while QuickBooks calls them classes.
Although they are not a terrible solution, conducting data entry with them requires quite a bit of scripting in greater depth. You may, for instance, construct a chart with three dimensions, such as accounts, profit centres, and cost centres.
Historical Data
Since computers are supposed to be good at storing data and analysing thousands of records, it appears unusual to focus on “historical data.” However, MYOB, a significant historical player in Australia, does not make history.
Instead, it provides options for “the year before,” “this year,” and “the year after.” It is therefore necessary to delete data that is older than “last year” and to access it by opening previous versions of your company’s data.
One such restriction is not present in any of the other systems under consideration here. Oddly enough, MYOB’s only rival in this market, AccountRight Live, still uses the same legacy software.
This is presumably due to the fact that MYOB has not yet updated the extremely outdated database engine.
The process of importing previous transactional data into a new system is not as straightforward as it may initially appear, but it is still doable (if you are not using MYOB). Constructing a simple data warehouse and populating it with previous transactional data as well as a feed from the newly implemented system is one option.
Analytics
When it comes to making decisions that are beneficial to the growth of a firm, accounting reports are pretty much useless.
The typical reports are out of date and provide next to no insight into how sales are generated or what factors contribute to overall profitability. (The Profit and Loss Statement as well as the Balance Sheet are created for third parties such as banks, tax authorities, and minority shareholders.)
The cash flow reconciliation is the only traditional report that I can devote a significant amount of effort to (and in 2016, I said “hooray” to Xero, which now offers this report, called “Statement of Cashflows”).
The term “analytics” refers to software that brings you closer to a current examination of the aspects on which you should be concentrating your efforts. In terms of the user experience, this is browser-based software that is very graphic and allows you to “dig down” to see details and “drill up” to keep a big-picture view.
In addition, the software is highly customizable. And this goes on. It is not enough for larger organisations to have solid analytics; smaller businesses also need them in order to grow into lucrative larger businesses.
Even while Xero features a report writer, none of these systems include a significant amount of analytics functionality. There are certain cloud packages that do an adequate job of serving as “business intelligence” products. I am a big supporter of analytics and dashboards, which are important tools in the profit engineering strategy taken by GrowthPath.
GrowthPath has lately come to the conclusion that Zoho Reports is the best option for our company. An open-source version of the enterprise-level software Pentaho is available for use by more sophisticated companies.
However, we shouldn’t let ourselves be swept away by technology. Eighty percent of a successful application of analytics consists of carefully designing a handful of critical business drivers that are unique to your company in the context of its rivals and market. The software component accounts for 20 percent.
You don’t need fifty key performance indicators with nifty charts. Naturally, if you had fewer than ten, it would be easier for you to concentrate; otherwise, you won’t be able to.
Conclusion
There is no question that Xero triumphed over both QuickBooks and MYOB in the competition between the three accounting software programmes Xero, MYOB, and QuickBooks.
According to our findings, Xero is the superior option. Imagine, however, if in addition to this, you are seeking accounting software for your company.
The first step is to read over all of the features and explanations that were shown earlier, and then the second step is to decide which option is the most appropriate for your company taking into account its size and budget.
