The Best Accounting Software – Xero, MYOB or QuickBooks?
A question that we hear often is, which accounting software is best suited to my business? Aren’t they all the same?
In short. Yes, they are all pretty much the same.
However, Xero, MYOB and QuickBooks Online are also very different in their functionality and useability. All three packages have a very different look and feel about them.
While we are Xero Gold Partners here at Enrich Bookkeeping Solutions and are biased towards Xero, I wanted to share with you some of the differences between the three packages that I have come across to help you to be able to make your own mind up.
Which Accounting Software is the Best?
I am going to start with Xero, as this is the software that I have the most to say about.
Xero is by far the most user-friendly software out of the three, in my opinion. Xero provides great online training and support to help users be able to easily learn and navigate the software. One thing I really like about Xero is that, on every page you click on, there is a quick help video at the top.
Xero is cloud based and allows multiple users to be logged in at the same time, which everyone seeing the same data simultaneously and there is no extra cost of additional users.
Xero’s mobile app allows you to work where you want, when you want. This is also great for on-the-go businesses, like tradies, as it allows for invoices to be sent to your customer before you even leave site.
Speaking of invoicing. Xero’s online invoicing allows you to get paid faster, see if invoices have been opened and sends automatic reminders on overdue invoices. Xero is Certified in Payment Card Industry (PCI) and Data Security Standards (DSS) and SOC2.
Xero supports multi-currency operating businesses and connects with over 500 different products to make your life easier.
There is a find and recode option available to Xero advisors. Why is this important to business owners you ask? Well, it means that your Bookkeeper or Accountant can quickly and easily recode transactions that you have incorrectly coded, in bulk, as opposed to one-by-one which can take hours instead of minutes with Xero’s find and recode feature. So, in simple terms, you save money.
MYOB is a well knowns accounting software package due to their length of time in the game. While I was at university getting my accounting degree, MYOB was the solution we learnt to use.
I am going to focus specifically on MYOB AccountRight in this blog, only because it is different to their Essentials platform and I just don’t rate Essentials at all.
MYOB AccountRight is a desktop-based package, where you need to download the MYOB software onto your computer. Every time there is an update to the software, a new version is required to be downloaded. MYOB is in the process of moving their AccountRight package to a cloud-based solution, but this is still a work in progress. Having a desktop solution means that you need to backup your data and save locally.
MYOB also has a mobile app which allows you to run your business on the go.
MYOB invoicing also allows you to see when invoices have been opened and using PayDirect, allows on the spot card payments. A great feature for businesses who collect COD payments. This also means that you won’t be left chasing overdue invoices, getting you paid faster and saving you time.
MYOB offers phone support 7 days a week. However, you need to be prepared to wait on hold for long periods to time to speak to someone.
In my opinion, MYOB AccountRight is better for those larger businesses who heavily use job tracking, purchase orders and are managing large amounts of inventory. Generally, it is only in these circumstances that I would recommend MYOB to clients.
QuickBooks (QBO) is an affordable alternative for small businesses. I personally find QBO the hardest to navigate out of the three, however, they do provide online support and training.
QBO is a cloud-based solution which provides a mobile app that allows you to manage your business on the go. With QB Merchant Account Service you can accept credit card payments.
QBO website claims that you will be paid 2x faster with QBO. Not sure how this compares with other packages. They also have the automatic payment reminders, meaning you don’t have to be manually chasing up those late payers, QBO will do all the leg work here.
One thing QBO does that I cannot see that the other two offer is, time tracking within projects management. This can be good for business that charge by the hour or who are wanting to track KPI’s around time, such as staff productivity or labour percentages.
With over 700 integrations to QBO, it has the ability to grow with your business and meet most your needs.
If you are looking at engaging a Bookkeeper to assist you with managing your finances, I would recommend having a chat with them before choosing an accounting package. Every bookkeeper has a software that they preference and will likely be more proficient in that software over others, this means that they will be able to complete tasks more efficiently, saving you money.