Quickbooks Online vs. Xero, Which one is the better value?
Most small businesses in the U.S. use a Quickbooks product to handle their accounting needs. In fact, over 75% of U.S. businesses use an Intuit product.
But is it better because more people use it? Perhaps not. In this post, I’ll compare the two products, specifically, Quickbooks Online vs. Xero. Then you can decide which one is better for your business.
Quickbooks Online users surpassed 2 million users in the past year while Xero has over 1 million. Most of Quickbooks users are in the U.S., while Xero’s users are from Australia, New Zealand, U.K. Asia and North America. Growth rates for both cloud-based products are increasing rapidly as businesses begin to realize that this “cloud” thing is real and have begun to move to the solutions that provide it.
For many years, Quickbooks products were the only choice for small businesses. The Internet and the introduction of SAAS (software as a service) products have shown that new accounting solutions have been developed that rival Quickbooks. Xero has been the leader in this area. This has caused Intuit to reinvent and change its QBO product to match what the market is offering. That’s a win either way for small business owners since this innovation has provided new products and services at a more competitive price.
Are You Running Your Business with Real Time Data?
One of the greatest advancements in cloud technology has been the addition of real time bank feeds. These feeds allow your accounting software to connect to your bank and creditors so that information can be reviewed as it occurs. Why is this so significant? First, this allows the business owner to make decisions based upon data that is current. That can make a big difference if you’re contemplating a large purchase or hiring another employee. Previously, the owner had a ballpark idea or could ask the accounting staff if there are any checks ready to deposit. In addition, you’re accounts can be reconciled daily with real time bank feeds so you know exactly what you have. Some bank are now offering multiple pushes of transactions per day while others send them to your software overnight. Either way, it sure beats waiting to reconcile your bank statement at the end of the month. There’s no more “end of month” tasks to do for you or your staff to give you the reporting that you need(other than payroll). How much time does that save you?
Real time data not only allows you to make business decisions on a timely basis, but it gives you an advantage over your competition! Many businesses aren’t using this technology yet. This will give you the data to make quicker decisions and beat your competition! Plus, you’re not tied to a desktop to view your information. If you’re in the field or at a job site, you can review that purchase order and make that decision confidently. If you’re interested in learning more, contact [email protected]
APP of the Month--Bill.com
Each month, I will profile an application or add-on that I think can help your business. First, let’s define what an application/add-on is and what it does.
An application is software program developed by a separate company that performs specific functions. An application is sometimes called an add-on because it’s “added on” to another software program that you are using. For example, Quickbooks has approximately 500 applications that you can select to perform tasks that Quickbooks doesn’t. A reporting application like Spotlight can plug-in to Quickbooks and draw the data out that you want to review. Before the age of cloud software, you needed to buy an application at a store, load it into your computer and then use it. Nowadays, it’s a few clicks and you’re done.
Bill.com is a cloud-based software program that helps business owners and bookkeepers pay their bills. But that’s not all Bill.com does. It can reduce the time needed to process and pay those bills significantly. For example, you could have your vendors send their bills to you via email directly to Bill.com. Then you can either approve the bill and pay or send it to the appropriate person for approval and then pay. There’s no paper. There’s no checks to write. Funds can be sent electronically directly to the vendor for a lot less than sending a check. In addition, it’s much more secure since your payments are traceable. No more lost payments or phone calls asking when your payment will be coming.
You can also receive payments via Bill.com for a fraction of the cost of credit card transactions. I’ve used Bill.com for several years and use it to help and set up new customers to streamline the accounts payable functions. It saves time and money that you can verify. If you’re interested in a demo, contact Scott at 763.412.1170 or [email protected]