Choosing the Right Accounting Software for Your SMB: Xero vs. MYOB vs. QuickBooks

Failing to keep up with your daily, weekly and monthly accounting tasks is like piling up the stock in your warehouse and then trying to find a particular item a month later. Just as you would take regular stock of your inventory, tackling your accounting tasks on a regular basis will make the business financials flow more smoothly and give you more energy to work on the business instead of in it. Using accounting software is a great way to keep your records organised and up-to-date, especially for small to medium-sized business (SMB) owners. 

Choosing the right accounting software for your SMB will depend on various factors, including your specific business needs, budget, and preferences. It is a choice that can significantly impact your financial management, efficiency, and overall business success. Xero, MYOB and QuickBooks are all popular options, and each has its own pros and cons.

To determine the best accounting software for your SMB, consider the following factors:

1. Features and Functionality

• Xero
  Xero offers a wide range of features, including invoicing, expense tracking, bank reconciliation, and payroll. It also has a robust ecosystem of integrations with third-party apps.
  
• MYOB
  MYOB offers a comprehensive set of accounting features, including invoicing, expense management, payroll, and inventory tracking. It's known for its flexibility and ability to handle various business needs.
  
• QuickBooks
  QuickBooks is widely used and offers a broad range of features, including invoicing, expense tracking, payroll, and inventory management. It has a large user base and an extensive network of add-ons.
  

Related: Your weekly Accounting Must Do's and Dont's

2. User-Friendliness

• Xero
  Xero is often praised for its user-friendly interface and intuitive navigation. It's suitable for users with varying levels of accounting expertise.
• MYOB
  MYOB's interface may not be as modern or intuitive as Xero's, but it's still user-friendly and accessible.
• QuickBooks
  QuickBooks is known for its ease of use and is suitable for users who may not have extensive accounting knowledge.

3. Scalability

Consider whether the software can grow with your business. You'll want a solution that can accommodate your SMB's needs as it expands.

4. Integration with other Software

Check if the accounting software can integrate seamlessly with other tools your business uses, such as CRM software, e-commerce platforms, or inventory management systems.

5. Customer Support

Evaluate the quality of customer support and resources available from the software provider. Reliable customer support can be crucial when you encounter issues or have questions.

6. Training and Onboarding

When evaluating accounting software options like Xero, MYOB and QuickBooks, it's crucial to assess the availability of training and onboarding resources provided by each software company. Comprehensive training and onboarding support can significantly impact how quickly your team can become proficient with the software.

Here's a breakdown of the training and onboarding offerings of each software:

• Xero:
  Xero offers a range of resources to help users get started and enhance their proficiency:
  
  Online Help Centre: Xero provides an extensive online help centre with articles, guides, and video tutorials. These resources cover a wide array of topics, from basic tasks to advanced accounting functions.
  
  Xero Central Community: Users can access Xero Central, an online community where they can ask questions, share experiences, and learn from other Xero users.
  
  Xero U: Xero University offers a variety of courses and certification programs for accountants, bookkeepers, and business owners who want to deepen their knowledge of the software.
• MYOB
  MYOB is dedicated to helping users learn and make the most of its software through various educational resources:
  
  Learning Hub: MYOB's Learning Hub includes videos, articles, and webinars on topics ranging from software basics to advanced accounting concepts.
  
  MYOB Community: Users can engage with other MYOB users and find answers to their questions in the MYOB Community forum.
  
  Training Services: MYOB offers training services, including in-person workshops and online courses, to cater to different learning preferences.
• QuickBooks
  QuickBooks, like the others, places a strong emphasis on providing training and onboarding support:
  
  QuickBooks Learning Centre: QuickBooks offers a Learning Centre with articles, videos, and step-by-step tutorials to help users navigate the software effectively.
  
  In-Product Help: The software includes in-product help and tips, making it easier for users to find answers to their questions without leaving the platform.
  
  Live and Recorded Webinars: QuickBooks frequently hosts live and recorded webinars on various accounting and software-related topics.

7. Local Compliance and Taxation

Ensure that the software you choose complies with your country's tax laws and regulations, as accounting standards can vary significantly from one location to another.

8. User Reviews and Recommendations

Read user reviews and seek recommendations from other SMB owners who have experience with the software you're considering. Their insights can provide valuable perspectives.

Ultimately, the best accounting software for your SMB will depend on your unique requirements and preferences. All three options (Xero, MYOB and QuickBooks) are reputable choices, so it's essential to carefully assess your needs and perhaps even try out free trials to see which one aligns best with your business.

Keep in mind that the cornerstone of effective business accounting for SMBs lies in maintaining accurate records and maintaining organisation. Collaborating with an experienced accounting firm can alleviate the burden of financial management, allowing you to concentrate on expanding your business. By partnering with a reputable accounting firm like Azure Group, you'll receive the support you need to grow your business. Feel free to reach out to us today. 

Related: 10 Benefits of engaging an Accounting firm for your Small Business

Have you noticed our #FridayExpertTips... here's one that relates to Accounting

“It's important to keep track of your financial data on a monthly basis. It can help you see what areas of your business are increasing (or) decreasing. It will help you invest more in areas where your ROI is higher.”

This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions.  Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.