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At the mention of cloud based accounting software, Xero and QuickBooks Online immediately come to mind. As leaders in the market, these two solution providers offer a somewhat equally comprehensive suite of functions, features and packages that cater to the needs of businesses of various sizes. So, how do you decide which of the two fits the bill?
As ONE of the companies in Singapore that qualifies as a Productivity Solutions Grant (PSG) pre-approved vendor for both QuickBooks (InvoiceNow) and Xero with up to 80% subsidy, we have compared the two for you so that you don’t have to do it yourself!
Points of clarification:
Though many of the features seem similar, that didn’t use to be the case. QuickBooks had the head start in being IRAS compliant, whereas Xero was the first mover into establishing the bank feed feature. Over time, these differences smoothed out, resulting in the similarities we see today in these two remarkable software solutions.
However, the two still have their distinctive strengths:
QuickBooks has a comprehensive list of built-in templates that can be customised to a certain degree. Some of these include sales quotation, sales invoice and statement of accounts. This could be a massive time-saver for your company as there is no longer a need to create standard business documents from scratch and making them look neat.
Xero’s financial and management reporting features are rather robust. This feature can give management a highly detailed breakdown of sales and performance across different metrics of their choice (i.e. segment, product). Meanwhile, QuickBooks has an arsenal of advanced reporting options that allows management to track the efficiency and effectiveness of various business processes.
Xero has a plethora of applications and add-ons to choose from. It is almost certain that you would find one that fits your business needs to a tee. That however, comes at the cost of the time spend sieving through hundreds of similar looking applications. On the other hand, while QuickBooks supports fewer add-ons, they are distributed across a wide enough variety of categories and are most likely sufficient for most businesses.
Now that we've done the work for you, the ball is in your court. At the end of the day, both solutions have their defining strengths, which allow them to cater to different business needs. To reap the optimal benefits, new users should engage professionals to ease their migration to cloud-based solution as experienced professionals are able to give valuable tips, ensuring a smooth transition. Regardless, cloud based accounting software can be very powerful and time-saving, allowing you to focus more on other essential business functions, so it pays to choose carefully. Finally, with digitalisation transforming every sector of Singapore’s economy, it is essential that your business benefits from such technologies to improve operations and generate new revenue. If you require further clarification about which accounting software solution might be best suited to your business needs, feel free to email us so that we can assign a consultant to follow up with your inquiries. You may also be able to enjoy up to 80% subsidy when you engage us for the implementation and migration into QuickBooks or Xero.
The contents of the blog only provide information on the differences between Quickbooks and Xero. Please conduct your own due diligence and consult your professional accountant before making any project decision.