Online Advantages and Disadvantages of the Latest Accounting Software

Online advantages and disadvantages of the latest accounting software

One of the biggest questions we receive as accountants is “what is Xero” and “should my business be using it”? This often leads to a few more questions that address cost, secure data storage and my favorite will Xero stop the grey hair! Well the good news is both MYOB and Xero have set out to make your life a little easier, with the advancement of cloud based online technology.

As our Accountant and advisor, we should do hard work for you. I’ve contacted both MYOB and Xero, to work out which product best suits client needs. I found that each product (and by product) has its own features that won’t necessarily fit every client. For example, business with stock control and foreign exchange transactions would not suit the Xero model and would be better off staying with MYOB Premier. But for the small to medium sized business, where typically the owner also works in the business, the offerings from Xero are more attractive, offering efficiencies that are simple and easy to adopt.

Below is comparison on price between MYOB and Xero:

• MYOB: Essentials is purely online, with cashbook costing $16/mth and Accounting $29/mth. It’s similar to Bank Link and in my opinion is overpriced.
• Account Right Live: can be used on the desktop or via an application online. It is not completely cloud based. Basic is $30/mth, Standard $43/mth and Plus $80/mth. We have found the package runs very slowly, but MYOB promises that they are upgrading the software.
• Account Right Premier: Only available for the desktop, has inventory management and foreign exchange capabilities. This is typically used by our larger business clients.
• Xero does not have stock control feature in the packages. Xero has advised that in the short term they will be introducing the feature. Monthly fees are as low as $25/month, but with all the required inclusions you’re most likely to spend at least $50/mth.

Both MYOB and Xero have taken the security of your data seriously. Both are using security systems that are safer than our online banking system. Although, we must stress that our data is not stored in Singapore, rather somewhere in Asia. At first glance I was concerned about this, but when you think of our everyday tech driven life, we are already facing this dilemma. Users of Ebay, email providers like Gmail and Yahoo all store our personal data in Asia with less secure systems.

Summing up, for most small to medium sized business, I recommend Xero’s $60 to $80 plan (depending on file size and number of employees). The Xero platform runs a whole lot faster, with the same functions as MYOB, with the capability to have add ons which sync with your iphone or smart phone. Better still, we found that Xero was receptive to the needs of smaller to medium sized businesses and more proactive to move with the times and technology advancements.

We should know about the right accounting software that fits your business. There are so many choices and not one product fits every business. With start of the financial year almost here, it’s a good time to start thinking about implementing changes including accounting software.

Source: www.linkedin.com

Visit Us on: www.onestopaccounting.com