Choosing the right accounting software for your business is a very important task. There are many accounting software available, but the right one can definitely become the difference-maker for the way you manage and handle your business. According to Stephen Kinch of Kalc Accounting, “Managing and tracking your income and expenses is vital for running a business, but it is too often labor-intensive and time-consuming.”
Most business owners know that they need an efficient way to track their investments and expenses, but some of them are still afraid of how much an upgrade or purchasing a new software will cost. However, with most systems nowadays becoming cloud-based, the rates have gone lower, and there are no more packages to fit just about every business there is.
So, what are the things you should look for when finding a new accounting software? First of all, you should check if it is user friendly. You want something that is simple but efficient and can get the job done. Integration is also a very vital consideration. Will your new software be able to integrate with other software efficiently? Reporting capabilities also play a huge role. You want to instantly see your most relied on functions like sales in regions, expenses, and management accounts. Lastly, if your company works in multiple currencies, your software should be able to handle that and make your job much easier.
Benefits of An Upgraded Accounting System:
Once you have checked out your software’s capabilities and basic functions, you can then start to see the benefits if you get an upgrade or migrate to a new accounting system.
- Efficiency- You can save a lot of time that is spent on data entry each week. Your assistants will also be pleased because more of their time is freed up and being put to good use. You can use your free time to focus on other matters such as proactive accounting, where you can add more value to your business.
- Pricing- The rate of accounting systems nowadays is lower. They are much more affordable since almost all of them are now cloud-based. You will surely save up more than you spend on your current software.
- Accessibility- With the help of cloud-based software, all you will need is a good internet connection, and you will be able to manage your business from any location. You have the luxury of checking how well you are doing and reading progress reports whenever you would want.
- Tailored Fit- An upgraded accounting software gives you the freedom to manage your software in a way that works best for you and your business. You can add different functions and choose what you would want to see to keep track of your progress.
- Data and Back-Ups- It is common to worry if your files have been backed up or not. However, an updated accounting software automatically backs up your files and puts them in your system’s cloud.
Xero and Sage are two of the top accounting software in the market right now. They provide the benefits listed above, along with much more. So what should you choose? The good news is that you can choose either one of them and walk away happy. However, to help you decide, let’s compare the two.
Let’s start with the number of users. Sage usually charges extra for additional users depending on which package you avail. Xero, on the other hand, lets you add as many users as you need and can dictate. In terms of integration, both of them can integrate with different systems but Sage usually focuses on other Sage products. Xero allows users more freedom to integrate with other third-party applications.
Both Xero and Sage are efficient in terms of bank feed making them beneficial for businesses with multiple currencies. In terms of pricing, Sage is great if you are trying to avail of a starter package, but if you are looking at the long run, Xero can prove to be much more beneficial for you. Sage has a variety of products and fee structures depending on the number of users so it may be hard to get a clear pricing fee for comparison with other software. Both systems can be called user-friendly but an advantage that Xero has in this topic is its focus on clients. Their support services are 24/7 and they adapt based on customer feedback.
Both systems are very efficient, and there is really no wrong choice. However, with its simplicity and focus on the customers, we have to give a slight edge to Xero. Their ability to adapt is second to none, and it helps that they have a Xero App Marketplace, allowing them to evolve with their customers!
To learn more about finding the right accounting software, check out this infographic by LiveCosts.