Xero Accounting Software Program
If you have been using QuickBooks desktop (QBD) for many years and you’re thinking of switching QBT to online accounting solution. you should also check out XERO online accounting. Most likely, you have heard of QuickBooks Online (also known as QBO) but you never heard of Xero and you’re not alone!
The top two companies in small business online accounting software are QuickBooks Online (QBO) and Xero. The good news for us is both companies are under constant development and update new features regularly so you can do your job much better.
XERO is number two in terms of plan subscriptions in online accounting software for small business. XERO is an incredibly powerful and also easy to use accounting solution to run your business. It is mostly used by small businesses around the world. They use it every day on the laptop, phone, and mobile devices how their business is performing, connect bank accounts, track sales, send and receive invoices. You can connect with your accountant, and much more from anywhere, anytime.
Xero offers three plans at this time.
1) Starter – $9.00 per month
2) Standard – $30.00 per month
3) Premium – $70.00 per month
For $30.00 per month, Xero standard plan is probably the best money savings plan for the certain small business type. Think of this as your own typical business type with the following requirements in new online accounting program!
– Need employee payroll for 5 or less.
– Need to comply 1099s for non-employee compensation.
– Be able to track inventory. Basic Buy and Sell type.
– Connect bank accounts and easily download to Xero books.
– Need unlimited users access (example: 5 users plus).
How much money will you save with this Xero standard plan over QBO plan?
For to have the above features in comparison to QBO, you will need PLUS plan ($40 per month plan) and basic online payroll (pricing starts at $25 per month). Granted, QBO PLUS plan comes with more functionality but you may not use it.
So, let’s compare the price for both programs.
QBO Plus plan = $65/month ($40/month for subscription plus $25/month payroll).
Xero Standard Plan = $30/month.
It’s fair to say, you could save $35.00 per month ($420/year) if need basic payroll, 1099s and inventory feature for your business. You can also get expert help and support whenever you need it from Xero.
Here is the deal. Inventory feature is included in Standard plan. It takes QBO plan to have that functionality. You can add as many users as you want in your Xero account. With Plus plan, you get up to five users. After that, it’s extra for adding additional users. For payroll, Xero supports limited states but it is included up to five employees. You can also convert your previous and current fiscal year of data from QB to Xero using Xero conversion tool for free.
Xero offers these similar features like QBO. Connect to your bank for automatic updates and simple bank reconciliation. Create and send quotes and invoices. Get paid faster and send customers online invoices to improve your cash flow. Enter and pay bills. Categorize your income and expenses using class tracking. Track sales and profitability for each of your locations.
Here is one more benefit having the Xero at the year end. You can export easily to tax software when ready. QBO can’t do that. Xero can export in a few clicks to an import-ready Lacerte Tax, CCH Prosystems fx Engagement or TaxACT file. Or, export a trial balance for upload into other tax software.
The bottom line is Xero accounting software is the definite alternative to QuickBooks. It is worth investigating further. There is actually a 30% off sale on XERO going on this week (special 6-month introductory offer) and also a free 30-day trial, so it’s a pretty good time to check out Xero.