With the constant changes in the technological landscape that we are experiencing today, it is important as ever to stay updated on recent technological advancements, in this instance being cloud accounting software. Providing instant accessibility to accounting software at any given time and place, this innovative way of performing accounting has significantly sped up the process from the traditional ways, allowing business owners to spend more time building their business. This benefit has increased the demand for such applications, resulting in the establishment of a number of cloud accounting software with each having distinct features. This then begs the question – which one should you go for?
The three major cloud accounting software’s in Australia today are: MYOB, Xero, and QuickBooks, all government certified and with respectable names for themselves. This post will compare each of the software’s based on: Price, User limit, User experience, Mobile App & Add-ons, and Customer support, before concluding what is the best option.
MYOB: Unlike its competitors, MYOB has been in the business of doing accounting and bookkeeping in Australia for the longest, being founded in 1991. Since it was first founded, they were the leading company for traditional accounting software but have now entered the contemporary market of cloud accounting market.
Xero: Founded in New Zealand in 2006, Xero is currently leading the cloud accounting markets in New Zealand, Australia, and the United Kingdom. It is one of the fastest growing software-as-a-service companies, identified by Forbes as the World’s Most Innovative Growth Company in 2014 and 2015. With over 3,000 employees, they are currently raking in more than 2 million subscribers, only focusing on cloud accounting.
QuickBooks: QuickBooks is an accounting software package owned and developed by the American company, Intuit. Intuit was founded in 1983, with a strong focus on developing and selling financial-, accounting and tax preparation software. One of QuickBooks strengths in this market is their affordable prices.
For most small-medium sized business owner, price plays a major role in the decision-making process. The pricing differences are as follows:
MYOB Essentials Payroll (10$/month) – Pay up to 4 employees
MYOB Accounting Starter (27$/month) – 5 invoices, up to 25 bank transaction feeds and payroll for 1 person.
MYOB Accounting (48$/month) – Unlimited invoices & quotes, unlimited bank transaction feeds and payroll for 1 person.
MYOB Accounting + Payroll (60$/month) Unlimited invoices & quotes, unlimited bank transaction feeds and unlimited payroll.
Xero Starter (25$/month) – 5 invoices and quotes, enter 5 bills, payroll for 1 person and reconcile 20 bank transactions
Xero Standard (50$/month) – Unlimited invoices and quotes, enter unlimited bills, payroll for 2 people and reconcile unlimited bank transactions
Xero Premium 5-100 (65$-150$/month) –Unlimited invoices and quotes, enter unlimited bills, payroll for 5-100 people (number of payrolls for people decides price), reconcile unlimited bank transactions, automate superannuation and handle multiple currencies.
QuickBooks Simple Start ($16.50/month) – Payroll for 4 people, track income and expenses and send unlimited invoices.
QuickBooks Essentials ($27.50/month) – Same features as in ‘Simple Start’ but includes managing and paying bills, payroll for 7 people, multiple currencies and generate sales quotes.
QuickBooks Plus ($38.50/month) – Same features as in ‘Essentials’, but includes payroll of 10 people, tracking inventory-, projects & locations and manage budgets.
1 user for MYOB Essentials but increases to 15 with MYOB Premier (part of AccountRight), which is pricier and not a cloud accounting software, but rather a desktop one.
Has no limit on the number of users that can use the software at the same time, which is great for medium to large- or growing businesses.
The ‘Essentials’ package allows for up to 3 users at the same time, while the ‘Plus’ package allows for up to 5.
As for the user-experience of the three different accounting software’s, Xero offers the best experience. Built from the ground up to be user-friendly and easy to navigate Xero is easier to learn and use on a day to day basis. Then, with some training, you could master Xero and all of its advanced features to unlock its full potential for your business.
Mobile app and add-ons
At First MYOB did not have a mobile app, but they have now developed one that allows you to send invoices directly which immediately updates the MYOB system. Additionally, there are also contact- and payment functions.
With around 20 accessible add-ons, MYOB offers a limited range of customization to the software compared to its competition. This restricts the accounting specifications but is still viable if you are looking for basic accounting needs.
Xero has a fully developed mobile app for their software that allows the user to: create invoices, receipts, upload files & photos of receipts, manage contacts, reconcile banking, and check bank account balances.
As for add-ons to the software, Xero is ahead of the competition with over 500 available add-ons – supporting extensive customization opportunities to your business needs.
Comparable to Xero, QuickBooks has developed a mobile app that allows users to: create invoices, quotes, scan receipts, bank reconciliations, and balance sheet reporting.
QuickBooks places second in regard to the accessibility of add-ons. With over 140 add-ons, the software also allows for reasonable customization.
Customer support, for many, plays a major role in their decision making. Its role in showing how much a company cares about their customers is evident, and thus, is important to take note of.
MYOB offers customer support in the form of training videos, as a part of a course, online documentation, community forums and phone assistance from 9am-5pm every day of the week. Overall, a solid foundation for customer service.
Xero, out of the three option, provide the best customer support due to its free 24/7 online support for all their users. Similar to MYOB, they also provide online courses, FAQ-sections, and discussion forums, but differ from the competition with their live webinars.
QuickBooks provides phone support 6am-6pm Mon-Fri, and 6am-3pm Saturdays. If you have the Advanced plan, you will be a part of QuickBooks premium circle, putting you first in line when you call customer support. Additionally, they also provide courses, discussion forums, FAQ-sections, and business advice.
MYOB, Xero, and QuickBooks are all great services in providing an easy-to-use and effective cloud accounting software. They all have their differences in features, and depending on the size of your business, what features you need and your budget, either one of the choices could be the best one for you.
Having said that, Xero provides the best solution for most businesses. With its unlimited user limits, easy to use user interface, advanced automation, and wide plugin library, Xero provides a great solution. However, If your business has a low budget, and you just want the most basic accounting software, then QuickBooks or MYOB could be the right choice, just be aware that you may wish to transfer to Xero when you grow. For business who are looking to convert to Xero from MYOB or Quickbooks, come have a chat with our team and we can help set Xero up with minimal disruptions.