Every business needs an accounting department.
Whether your business is large or small, balancing the books and keeping up with the outgoings and
incomings are essential to a successful operation.
Accounting is the backbone of any business, which means it’s vital that you choose the right
Let’s take a look at Xero, an accounting software business, and review their services.
What is Xero accounting software?
So, what exactly is Xero accounting software? Xero is an accounting software company based in New Zealand that offers a cloud-based software service for both small and middle-sized businesses.
Xero is a public accounting software company. It has offices in Australia, New Zealand, the United States, the United Kingdom, Asia, South Africa and Canada.
Xero offers products that are based on its accounting software service. These are sold through the SaaS model – software as a service. The software itself is sold as a subscription, which depends on the number and type of company entities that the subscriber is managing.
So, what are the critical features of Xero accounting software?
The prominent features include automatic feeds of both bank and credit card accounts, expense claims, accounts payable, invoicing, fixed asset depreciation, standard business reporting and purchase orders.
Xero software can automatically import credit card and bank statements for your company. With Xero’s software, you receive a free API. This allows you to integrate external applications through the Xero software.
Xero has the ability to support multiple currencies and different tax rates. It also incorporates a product and payroll feature as well. Xero allows its customers to access local terms in the United States, Australia, and New Zealand.
How much does Xero Accounting Software Subscription Cost Per Month?
Now that we’ve discussed Xero as a company and what it offers with its accounting software let’s take a look at how much a Xero accounting software subscription will cost you or your business per month.
Xero has five different subscription plans which are dependent on your company’s needs.
The Starter plan costs $9 a month and includes zero people on the payroll. As it is their most basic subscription, you will be highly limited in what features you can access.
The Standard plan costs $30 a month and includes up to five people on the payroll. Again, it’s somewhat limited in features, but certainly allows access to more than the Starter plan.
Their Premium 10 plan allows up to 10 people on the payroll and will cost you $70 a month. Their Premium 20 plan allows up to 20 people on the payroll and will cost $90 a month.
Their most expensive plan is the Premium 100 plan, which allows up to 100 people on the payroll – ideal for a medium-sized business. However, this is going to cost your company $180 a month to run – by far their most expensive package available.
What is Accounting in The Cloud?
While you may know a little bit about how an accounting software executes its service to companies, let’s quickly run through what it means to instigate your accounting in the cloud.
Accounting in the cloud refers to cloud computing software that is hosted on a remote server. Accounting software like Xero provides SaaS model subscription accounting services to companies as a business model.
This means that data is sent to the cloud where it is processed and then returned to the owner and user. This means that all features and application functions are performed off-site, as opposed to on the desktop of the user.
When using the cloud, a user will access a software application remotely through the internet or a similar network, using the cloud application itself. When a company uses a third-party service provider like the cloud, it saves them having to install this application on each desktop within the company.
Another advantage of performing services through the cloud is that workers who are remote or unable to access a company desktop can still access the stored data as well. They will see the same version of the software as their colleagues in the office.
Xero VS Quickbooks
We’ve discussed the different features of Xero accounting software. Now, let’s compare is against another popular accounting software for businesses, Quickbooks:
As for the accounting side of things and features, Xero comes out on top. Quickbooks will cost you the same as Xero does. While Quickbooks is easier to use and has access to mobile apps, Xero has hardware requirements and users and permissions, making it safer.
Xero has better customer support than Quickbooks does. Additionally, while there are disadvantages to Xero’s features, there have been actual complaints of Quickbooks.
Xero has added security and integrations, along with positives reviews and feedback.
While Quickbooks comes in at a very close second, we believe that Xero is the overall winner when it comes to better features, customer service, positive reviews and free payroll.
Is Xero Accounting safe?
So, with all that being said, is Xero accounting software safe? Let’s take a look.
There are both advantages and disadvantages to using Xero software. Let’s look at an advantage first.
Xero accounting software is safe to use because it has a user-friendly, intuitive interface. This means that even users who aren’t great with technology can easily find their way around this accounting service.
Now, let’s discuss a possible disadvantage with Xero accounting software:
Xero’s primary advantage is also its disadvantage. This is because, while it’s good that it’s easy, this also means that it’s very basic software. While it is excellent at performing its payroll features, users typically found that it lacked essential functions that most small businesses require to do their accounting effectively.
The features that Xero lacks in their accounting software include a comprehensive search tool, cloud storage, inventory management, and tax software integration.
While Xero is excellent accounting software that’s easy to implement into employees work schedules, it may lack the features that you require to execute your annual accounting efficiently.
However, it is our overall winner, and can also serve your company in many significant ways, too.
Max started The Responsive Agency in 2014 to help business owners to navigate the fast-paced world of digital marketing. With a focus on solutions that offer high-performance growth, clients have seen dramatic increases in turnover and profit.