Most companies today have realised the benefits of cloud computing. The list will include convenience, improved collaboration, enhanced security, and lower IT costs. Thus, it is not surprising that a lot of small and medium-sized businesses has shifted to cloud and outsource accounting.
This technology provides businesses with remote working capability and data access from any location. Two of the more popular online cloud accounting software available today are MYOB and Xero. A comparison of these two is necessary in completely understanding which is best.
MYOB has been in the business for years but in terms of cloud accounting, Xero has a huge head start. The developments in the past couple of years suggest that MYOB is determined to catch up. It has made a lot of improvement since 2014. The most notable of which is moving to a browser-based interface. Xero, on the other hand, has the experience.
Here are some features that make Xero and MYOB convenient for users:
- Xero and MYOB work over the web
- Everything automatically updates
- Constant online backup and security
- Allow multiple access
- Clients can use multiple online payment methods, including PayPal
- It integrates with online store
- Automates cash receipts and expenditures management, basic bookkeeping functions, and financial reports generation
- Bank reconciliation and integration
- Real time reports
- Online help and videos
MYOB had been the accounting software of choice for small and medium-sized enterprises since the 80’s. It started as a desktop-based software package joining the bandwagon and releasing its cloud solution in 2014.
Advantages of using MYOB versus Xero:
- The interface is the same as the desktop version. It reduces the learning curve for long-term MYOB users.
- It allows users to download account files and store them as backup on the computer. Once account is cancelled, the software retains data for seven years more.
- The software allows quick payment application against a lot of invoices at once. It also automatically applies discounts to customers who pay within certain terms. Xero’s, on the other hand, requires manual ticking of invoices.
- Users can submit quotes to clients with MYOB. Once the customer accepts, the software generates invoice in a click.
Xero established its own cloud-based accounting system in 2006. Since then, it led cloud accounting software market. The software encourages higher levels of collaboration between members of the team. This focuses on removing accounting processes inefficiencies through automation, multiple browser transaction processing, and fast loading time.
- Xero has a faster loading time compared to MYOB. This will also allow users to open multiple tabs to perform different transactions as well as simultaneously generate reports. MYOB users, on the other hand, can only do one task at a time. The software freezes, thereby compelling users to wait for a transaction to finish first before starting a new task.
- This allows users to send invoices via a client’s email address. If a customer is a Xero user, they can download statements and invoices from their own web portal. Xero’s audit trail monitors when customers view the invoice.
- Users can also create quotes using Xero. Once a quote is accepted by a client, it is automatically converted into active jobs.
- The app is always on. Invoices and bills are sent or settled automatically even without logging in. This way, it offers the same facility to set up repeating transactions.
Choosing the Appropriate Cloud Accounting Software for Your Business
There are lots of good choices when it comes to cloud accounting solutions today. Choosing the solution that meets your business’ needs and preferences is crucial for seamless integration. Based on our analysis, MYOB catches up fast but they may need a few years to get to the same level of accuracy, speed and integration as Xero. For their part, Xero continues to innovate and introduce processes to further benefit users.
Need help choosing the appropriate accounting software for your business? Overwhelmed with the migration process? Contact us and we will help you navigate your way through the process.