Let’s talk about accounting solutions— any business is only as good as its accounting. Without knowing where your money is going or how you’re spending it, you can’t be as efficient with your spending–how you’re spending—whether you’re being wasteful or not. That’s especially important when you’re trying to get your new business off the ground. Without proper money management, you can’t be as efficient and without that efficiency, you won’t be able to grow as fast or not at all. That’s why what you use to keep track of your spend is as important as the product or service you are providing.
Most growing businesses tend to use what’s popular, in case they have issues and need to outsource accounting services to fix those issues, for example, and that’s why the more popular is QuickBooks, which is considered the tried and true when it comes to accounting software. Except that seems to be changing. Here at Collab we actually use Xero.
QuickBooks, while popular, especially with accountants, isn’t as intuitive, at least for us. We found its UI clunky, at best and its appearance can feel bloated and wasteful at times. Xero’s UI meanwhile, is best described as “no nonsense”. At a glance you know where everything is and what everything means. QuickBooks tends to use terms only someone who went to school for accounting would be comfortable enough using daily. Xero, meanwhile, uses labeling that makes sense for the rest of us. As an example, while QuickBooks uses words like “payables”, Xero uses “purchases” and “sales” – you don’t necessarily need the degree to maintain your books. If you have created a lot of online data already then Xero makes it easy to import—including from Microsoft Excel—using its direct-conversion tool. It can even import from CSV and TXT files too.
Xero integrates with more third-party apps than QuickBooks does too, a necessity especially for smaller to medium businesses. Speaking of, Xero has been experimenting with machine learning in order to make things more automated from the site side of things as well as better integration with finance related third-party sites. The best part is that when you do need outside accounting, said outsourced help can get the same reports as they would from QuickBooks.