It is undeniable that the world is not the same place it used to be many years ago. A lot has changed due to various technological advancements and modernizations. We see new methods being embraced and incorporated in workspaces to add convenience.
A similar invention relates to the development of accounting software that has undoubtedly made maintaining books for businesses and limited companies less hectic. There are several advantages and disadvantages associated with the utilization of such software. However, let’s begin by learning some basic information about multiple accounting software that has attracted attention worldwide.
Freshbooks VS Quickbooks VS Xero
The first one on the list is called ‘FreshBooks,’ and it is helpful for all types of small and medium-sized ventures. You can access this software through your desktop computers, laptops, and even smartphones. It is a Canadian company that was started back in 2003 to assist small business owners in keeping accurate records of their day-to-day transactions. This sort of software is increasingly helpful for a business that cannot afford to hire professional accountants.
Another accounting software goes by the name of ‘QuickBooks,’ which was also built to make things easier for businesses that do not have any capital for getting experts. Besides keeping track of daily payments, you can use it to clear bills and manage other activities related to book-keeping effectively. QuickBooks can also help you generate annual reports of your business without any difficulty. It is an excellent option for managing expenses and income without spending many resources.
Upon surfing the World Wide Web, you will find numerous accounting software similar to those being discussed here. However, there is one more on our list called ‘Xero,’ that business people find favorable for keeping up-to-date accounts.
So far, we have only mentioned that these programs are suitable for small and medium-sized companies that wish to avoid hiring professional help. It should be noted that experts also use it to make their jobs more simple. What makes these programs increasingly impressive is that anyone can use them, regardless of their skills and expertise. Freelancers, self-employed individuals, and even those running well-established corporations find such software valuable.
Now that we have gotten some basic information out of our way, let’s get into the details of each software and indulge in an interactive learning session.
Benefits & Drawbacks of Three Major Accounting Software
Any business owner who decides to invest in this software is looking to reap its advantages to the fullest. Among its many perks, FreshBooks allows you to prepare invoices by using a customized layout. Moreover, you can also send the invoice to your customers through email while being able to see if they have viewed it or not. It comes with unique time-tracking features that enable workers to record every minute spent on a project. What makes FreshBooks highly popular among businesses worldwide is its increased accessibility. It has a user-friendly interface that can be easily understood and operated by anyone. It is a billing system that does not use any paper, leading to a reduction of costs to a great extent. It has a feature that records your employees’ work hours and helps calculate their monthly pay. You can even access it by downloading the smartphone application.
It is safe to say that even a top-notch accounting program can have a few faults, as pointed out by some reputable users. Firstly, a lot of clients have complained about its price. It seems like FreshBooks is quite expensive, mainly if you do not utilize all of its features. It tracks expenses automatically, but it often gets the categories wrong making it hectic to understand for the users. The automated recording is indeed a plus point, but not when you have to rearrange everything yourself because the software is not as competent. Any business owner realizes that each job is different, which means the terms of an invoice will also vary from one client to another. However, if you alter one invoice, the application will apply those same changes to all the future bills by itself. Another major disadvantage of FreshBooks that it does not support all currencies, which doesn’t sound ideal for a globalized entity.
There are several pros one gets to enjoy while using QuickBooks. Firstly, the software is designed in a manner that makes it user-friendly. Anyone in your company can easily use it for book-keeping purposes. Secondly, you no longer need to calculate your taxes based on your income as QuickBooks will do this task effectively. One of the main reasons for its popularity is that it can be accessed via all electronic devices, regardless of location. The incorporation of such incredible software is likely to boost the productivity and efficiency of your workforce. It has an automatic back-up feature that saves intensive financial information about a business, and it is highly affordable. It can help you organize receipts, receive timely payments, record revenue, and track expenses against income without any difficulty. Investing in it guarantees rising returns in both the short and long run.
One of the primary cons of QuickBooks relates to the lack of security of sensitive financial information of your business. A lot of users have also reported unexpected system crashes in the middle of important assignments. The back-up service is not very competent, meaning your data can be lost anytime. It has a restriction on the number of users who can use a single subscription. In addition to this, there is a limit to the number of transactions you can complete through QuickBooks. Lack of security means anyone can easily manipulate your books. It does not let you design a customized invoice as per your unique requirements. QuickBooks is not feasible for storing files that require huge space, adding to its many limitations. The double entry system embedded within this software often incurs errors. There is no professional support available when using QuickBooks, meaning it certainly needs some improvements.
One of the characteristics that ultimately prove beneficial for companies operating globally is the built-in currency converter in Xero. It automatically converts a foreign currency into one of your choices, saving a lot of time. It has numerous options and assists in carrying out transactions with increased convenience. Needless to say, people prefer Xero because it is relatively easier to understand and use. It does not contain any complicated accounting terminologies that many people find misguiding. You can even synchronize your bank records with this program and it will begin keeping up-to-date records, making it highly efficient. It is quite similar to the other two software discussed earlier when it comes to accessibility. You can access Xero from anywhere in the world through a device with an internet connection. All your transactions, balances and financial information can be easily viewed by simply logging in.
Although Xero is significantly better than other similar programs, many users seem to have a few complaints. Based on online reviews, Xero’s customer support is not as commendable as it should be. You either get late or no responses, making it relatively annoying. A lot of time the software crashes and you cannot do anything about it instead of waiting for it to come back online. Many users have also find Xero to be extremely slow at times, causing a drastic fall in overall efficiency. It does not have the option of setting up your own fiscal years, so you need to adjust dates manually. Even though it can be integrated with a lot of other programs and applications, Xero might not work with small, local banks. It does not print checks in an organized manner, so arranging the copies can consume a lot of time.
Now that we have thoroughly discussed helpful information about three different accounting software, do you have your pick? There are a few factors that can help you figure out which one is best suited to your business. The decision relies on the current magnitude of your venture and expected future growth. If you wish to remain operational as a domestic business, then perhaps FreshBooks or QuickBooks is perfect. However, for a corporation that sees itself as a globalized multinational in the future, Xero might be a better option. In the end, it all comes down to the size of your business, affordability, and the industry you belong to.