11 Jul Quickbooks or Xero – how to choose
Xero and Quickbooks are the most widely used cloud accounting softwares for SMEs and start-ups. In many ways – they are quite comparable and as direct competitors, both companies continuously strive to improve their features. Here we have listed some of the major differences between them.
PREVALENCE IN DIFFERENT MARKETS
Quickbooks is more popular in the United States and Canada, while Xero is more prevalent in Southeast Asia, Australia, New Zealand and United Kingdom. Depending on in which country or continent your company operates, you will find your peers using either one of them.
In general, there will be no major differences between the two as both prefer to stay competitive to each other. For Singapore, pricing for Quickbooks is $7 – $31 a month and Xero $20 – $40. Both offer a month free trial. Both run frequent discounts and promotions so it is worth checking their websites for the latest updates. Very important: both subscriptions are quite flexible and can easily be cancelled with one month notice.
Direct bank feeds can be quite important for accountants. Reconciling what has happened in the bank account against recorded transactions can be one of the most tedious processes in accounting. For Singaporean banks, Xero currently offers direct bank feeds with DBS and UOB and soon with OCBC as well.
INDUSTRY SPECIFIC SOLUTIONS
One of the greatest features of new generation cloud software is its open source nature. That means that you can plug and play additional features (called add-ons) based on the industry of your business. Some examples include: inventory management in e-commerce and wholesale, project management in architecture firms, paper invoice processing in manufacturing, multi-unit reporting in franchises. The good news is that the overwhelming majority of those add-ons have been designed to work with both Xero and Quickbooks so this should not be a decisive factor.
Entrepreneurs that have experience working with both systems report that they find Xero a bit easier to use especially for those who are not accounting trained. Quickbooks is also possible to get around but it was designed first and foremost with accountants in mind.