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For the past couple of years, Intuit’s QuickBooks Online has been dominating the accounting software market and have also become a household name with a reputation for reliability. It has only been recently that competition has started to arise. Xero has quickly become QuickBooks Online’s biggest competitor. Within the last year, both have been growing at the same rate. While QuickBooks still has the market share advantage, Xero has presented itself as a top competitor and contender in a way that no other company has before.

Small businesses are left with a question about which cloud accounting software to choose. Upon the first inspection both seem to offer the same things. To help make it easier for you, we have explained all the differences and similarities between Xero and QuickBooks Online.

Cloud Accounting
Both Xero and QuickBooks Online are cloud accounting software. Cloud accounting is the latest progression in accounting. Cloud-based programs are when your financial data is stored in a remote cloud server. This has multiple benefits, including but not limited to, increased security, remote access, and real-time updates.

Users
One of the biggest differences between QuickBooks Online and Xero is the number of users allowed for an account. With Xero cloud accounting, there is an unlimited amount of users allowed, no matter what subscription plan you have. With QuickBooks Online, the user limit is one, three, or five depending on the size of the package. So if you have a small business in which multiple people need to access the accounting software, Xero might be the option for you as adding additional users to QuickBooks Online can become pricey.

Use
It would be hard to make it in the accounting software industry if your product was not easy to use. Both Xero and QuickBooks Online provide a relative ease of use, which is great for small businesses as many owners are not trained accountants. However, Xero stands out as the one with better ease of use. The layout and navigation are easy and the tools are comprehensive and well organized. QuickBooks Online has a nice layout as well, but some users complain about unnecessary navigation steps and minor bugs.

Pricing
A big factor when it comes to determining which software to use for your small business accounting is the price. Comparing the two is a little difficult, as their packages don’t always offer the same thing. If all you need is the bare minimum for company bookkeeping, then QuickBooks Online is the best option. For more comprehensive packages, Xero is the clear winner. They offer more features at a lower rate than QuickBooks Online.

Customer Service
A company’s customer service and support team say a lot about how much they care about their clients. Both QuickBooks Online and Xero do a lot to prove that they care about the small businesses that use them. Many people had some problems with QuickBooks Online’s customer service in the past but Intuit has listened and made a real effort to fix it. Both do a great job when it comes to answering minor questions or issues. Xero tends to do better with more serious problems, having quicker response times, and representatives that understand and can fix issues better.

Security
One of the biggest worries small businesses have about cloud accounting software is security. As accountants, we always tell people that cloud accounting is actually safer than traditional software. Both QuickBooks Online and Xero excel at making sure your financial data stays safe. Data is heavily protected both physically in secure data centers and remotely with encrypted passwords and authorization.

Verdict
The truth is that you cannot go wrong with either program. Xero pulls ahead in many categories but QuickBooks Online has more experience, clients, and a better reputation. If you are still struggling to pick between Xero and QuickBooks Online, talk to one of our Chartered Accountants to determine which accounting software would be better for your business.

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Bookkeeping is one of the most stressful parts of owning and operating a small business. There is a lot to keep track of, and the possibility of making a simple, but giant mistake, can cause anxiety. Doing accounting yourself for your small business can be time-consuming, and stressful, with little to show for all your hard work.

Luckily in this age, there are countless affordable and useful cloud accounting software options to help small businesses. The first step to easier small business accounting is finding an experienced chartered accountant to join your team. This takes a lot of the stress off of you. However, even with an accountant to do your taxes and double-check your work, you will still need to do daily bookkeeping. For that, we recommend using a cloud accounting software such as QuickBooks Online.

Here is How QuickBooks Online Can Help Your Small Business:

Price
Accounting software can be expensive, especially as you start to add key features to the package. QuickBooks Online has one of the best and most affordable pricing packages. The great news is that necessary accounting features are not compromised due to the affordable price.

The most affordable plan is a little over $10 and although it is limited to one user, none of the key features are compromised like other services. Every package can be customized to your pricing and business needs.

Easy to Use
Once you get QuickBooks Online you will be amazed at how easy it is to use. With the easy to use dashboard and real-time updates, you can manage and see your financial data at any time.

QuickBooks Online offers a free 30-day trial so feel free to try it before you buy it. The customer service team at QuickBooks is friendly and professional so any questions or concerns you have can be answered. There are also countless videos and demos available online to help you navigate this software.

Time Saving
QuickBooks Online is a huge time saver when it comes to small business accounting. Tasks, such as invoices and payments, can all be automated and data between cards and bank accounts can be synced, all to save you time.

With QuickBooks Online you will spend less time doing your books and more time focused on your small business. This accounting software can do everything for you, from creating financial reports to categorizing your expenses.

Accountant-Approved
Whether you already have a small business accountant or are considering getting one in the future, this software will help eliminate the stress of keeping your bookkeeping up to date. Most accountants already use QuickBooks so they have a strong understanding of how the software works and can access your accounting data securely from wherever they are.

Cloud Accounting
With cloud accounting, you can access your data anywhere, at any time. Your financial data is stored securely and remotely in the cloud servers. Making real-time changes and updates becomes significantly easier for both you and your accountant. Sharing the data with necessary parties is as easy as logging in.

There are many benefits of cloud accounting, but one of the most important is the added security. Backing up your financial data is simple and safe and all of your data is protected; the data is only accessible with encrypted passwords.

If you own a small business and feel overwhelmed by bookkeeping or want to focus more on running your business, consider getting QuickBooks Online. This cloud accounting software will be invaluable to helping you manage your financial data.

If you would like to know more about QuickBooks Online or want to talk to a Professional Chartered Accountant about cloud accounting, contact us for a free consultation.

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With every new technology, it is common for some people to be reluctant to jump on board. With the rise of smartphones and advancing file-sharing technology, cloud networks are the way of the future. They allow for data to be shared anywhere, at any time, and on any device. The chances are that you already use cloud technology, whether it’s Apple’s iCloud to store your phones’ music or it is your company’s use of Google Docs to share documents.

So, if this is the way of the future, why are people hesitant, or even afraid, to jump aboard cloud accounting?

Here are 6 reasons why some companies and individuals are hesitant to adopt this new cloud accounting software – and why they do not need to worry.

Security Risks

We understand that this involves your business’ finance and protecting that data and information is of the utmost importance. For many people, the fear is that cloud accounting is not as secure as accessing and storing the data on a single or limited physical device in a protected location. The logic behind it is easy to understand. You cannot see cloud technology the way you can other technical equipment. Something about tangible objects always seems more real and safe compared the invisible and intangible.

Small business owners should not worry though, as cloud accounting is in fact more secure than storing the data on a single physical device. Access to the cloud is always encrypted and password protected – only those with approved access can see the data. Most traditional accounting software is stored in select devices and only shared by physically moving the data from one person (or device) to another through a flash drive; either of which can easily be stolen, damaged or lost. Simply look at any spy, superhero, or action movie; the company data is always stolen by breaking into and hacking the physical equipment that houses the data – yes, this is an analogy referencing movies; however, it can just as easily become reality for your business.

Fad Fears

Technology fads come and go as quickly as fashion ones do. Some technologies like Google Glasses or Pokémon Go burned out almost as soon as they launched. It is easy to understand why a company might not want to jump on the cloud train only for that train to stop and disappear shortly thereafter.

However, it is clear that cloud technology is here to stay. Apple and Google have been using it for years and as it becomes more ingrained and used in everyday practices the more likely it is to stay in other sectors. Amazon Web Services, their cloud service, is responsible for storing some of the world’s most sensitive data. Cloud accounting has been around for several years now and only continues to grow. The possibilities it offers only continue to expand. More companies and small business are adopting it and more software companies are producing it. Cloud technology is here to stay, at least for a good while, so the fears of it being yet another fad technology should not be a deterrent for businesses considering a change.

Expenses

Cloud accounting offers a lot for businesses. As some people read the long list of benefits and services that cloud software offers they hear dollar signs. Surely the large amount of services is reflected in a high price? Think again. Cloud accounting is actually cheaper than traditional accounting software. With it there is no need for expensive updates, IT costs, or purchasing exclusive devices. Replacing servers and equipment can be costly and it binds businesses and companies to long-term commitments. Say goodbye to that with cloud accounting and say hello to inexpensive, flexible bookkeeping and accounting software.

Time Constraints

With every new system or software, there is a period of learning – or relearning. It takes time to figure out what does what and how everything works. This reluctance to take time to learn new software is one reason why people do not want to adopt cloud accounting. If it’s not broken, why fix it – right? Well, traditional software might not be broken, but it’s still not working quite right. It requires manual entry of data and there is a time lapse between the data changing, imputing those changes, getting feedback from an accountant and finally receiving the reports.

Traditional accounting software is like taking the long route whereas cloud accounting is taking the shortcut. The destinations are the same, and both ways are safe, but why take more time doing something if you don’t have to? Adopting cloud accounting might take some time to adapt to the initial learning curve but overall, you’ll be saving time. Data inputs and account updates all happen real time meaning you’ll spend less time bookkeeping and more time running your business.

Loss of Control

Some people correlate proximity with control – the closer something is, the more control one has over it. This gets extended when it comes to financial data. When the bookkeeping is done on the in-house computer, one has more control over it. By extent then, this means that these people think that using cloud accounting means they have less control over their data, which isn’t true. If anything, one has more control. The data might no longer physically be stored in a location near you but it now can be accessed anywhere you are. Cloud accounting gives businesses more control over sharing data, which people get to see what, and when data gets updated. Simply because the data is no longer physically tied down, does not mean it is hovering out of your grasp, out of your control. Cloud accounting gives more control to businesses about the ‘where, when, who and what’ of their data.

Generation Gap

For some people, the hesitation and fears over cloud technology simply comes down to their age and the generation in which they were born. There is a sharp divide between those that had to adopt the Internet and digital technology and those that were born into it. Those that were born into it accept each new technology with ease. For others, each new technology is a new fear. “Can I use this? Can I understand this? Is this necessary? Will this technology replace me?” All these fears are valid but they shouldn’t stop one from taking the plunge into the future. Cloud accounting is just like traditional accounting software except that it is more flexible and dynamic. There is nothing to fear from it.

Having questions and doubts about new technologies before adopting them for a business or company is smart. Curiosity and inquiry are smart practices but once the information is gathered, do not let fears stop you from accepting the technologies of the future – or risk being stuck in the past. It is time to join cloud accounting and see your business fly into the future.

The post 6 Reasons Why People Are Reluctant to Upgrade to the Cloud appeared first on Capstone LLP Chartered Professional Accountants.

What is cloud accounting? Well, simply put, it is accounting software that is hosted over remote servers and can be accessed through the Internet or another network. You probably already use cloud technology for your phone, computer and tablet for everyday accessibility and sharing.

Cloud accounting software is similar to traditional software, except that the data can now be access anywhere, at any time and on any device. It is technology that benefits customers, small businesses and accountants.

Here are five ways that cloud accounting helps everyone:

1. Mobile

Everything today is done on the go, so why isn’t accounting? With cloud accounting, it can be. Traditional accounting software is tied down to a single or a few physical computers. To access data using that software one had to go to the data – now the data can come with you instead. Expenses can be inputted on the go, which benefits everyone. For businesses, it means that financial data is updated as soon as something happens, which in turn makes it easier for accountants to provide their clients with the best and most accurate service possible. As for customers, cloud accounting benefits them as they can receive invoices, bills and receipts directly and immediately from businesses.

Cloud accounting also means that sharing information is easier than ever. No longer is transferring data onto a flash drive and physically carrying it to the next person necessary. Now it is as easy as signing in. This means that every person who needs access to the data can – whether that is multiple people at the business, investors or even your accountant. Businesses can share information with their accountant across the country or even with another store, branch or office around the globe. Cloud accounting also allows businesses to control what information invited users have access to.

2. Real Time

With traditional accounting, inputting data can take an exorbitant amount of time. Accounting becomes an unwelcome chore that sucks all the fun and energy out of running a business. No longer are you or your accountant required to dig through a shoebox full of receipts, manually recording each one. Now businesses have the ability to update their accounting in real time. This means that accountants can now provide insight and advice based on real time information as well.

Another drag of old accounting software was the lengthy and expensive updates. With cloud accounting updates happen automatically and quickly, with no cost. There’s no lull as you wait for the new software to be installed or the new equipment to be delivered. Now updates happen as quickly as any other application, and are usually done in the background without affecting the user experience and without requiring any intervention from the user at all.

3. Accuracy

Waiting to input financial data or doing it manually often results in human error. We are only human – we forget, our minds stray, and after a couple of hours the numbers start to blur. Human error can often have detrimental and costly consequences though. It also makes it difficult for your accountant to do their job correctly. With cloud accounting that is no longer an issue. Because data is entered immediately and the updates are real time, the chances of accidentally typing a 3 instead of an 8, or missing the critical extra 0, or comma, is significantly reduced.

4.Security

Security is usually a top concern when it comes to switching over or starting to use cloud accounting. The good news is that this software is just as safe, if not more so, than traditional accounting software. Sharing the data via the cloud is safer than manually transporting the data through a physical flash drive that could potentially be stolen or lost. With cloud accounting, everything is protected with verified and encrypted passwords making it extremely hard for the data to be hacked or stolen.

The lack of storage on a physical computer or drive also adds to the increased security of cloud accounting. Unlike data on a physical computer it cannot be stolen, damaged or lost. This also means that there is no trace data left on any device that can be accessed by unauthorized personnel. There is also the added benefit that most cloud services have back up servers meaning your data is always accessible and always safe.

5. Money

When it comes to money and cost benefits, cloud accounting definitely provides added benefits to businesses. Traditional accounting software requires costly updates and businesses often can become tied down to purchasing equipment and contracts that bind them long term. With cloud accounting, money is easier to keep track of and easier to save. It can be used on any machine and updates are free. There are also no extra fees for storing backups as this all happens remotely in the cloud by default. Not to mention, with less time spent on keeping the books in order, there is more time for businesses to focus on their operations and growth.

It is best to think of traditional accounting software as the landline of telephones – stationary, outdated, and difficult to share information safely on. Cloud accounting, by comparison, is the smartphone version of bookkeeping software – mobile, diverse and ever growing in terms of possibilities. There are countless benefits when it comes to switching or adopting cloud technology. Whether you are a business, customer or an accountant. It is the way of the future – so do not get stuck in the past.

Contact us today for a free consultation to see how cloud accounting can help your small business.

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