A year ago I wrote a blog post called ‘Why Xero Accounting is the F*ing Bomb’…spoiler alert!
I changed my mind!
For the past 3 years I’ve been singing the praises of Xero and frankly my bookkeeping buds are SHOCKED that I’ve changed my tune.
They think the sky is falling.
I LOVED Xero and how simple the workflow is with their software…that bit hasn’t changed.
But why have I decided to switch my own books to Quickbooks Online and why am I suggesting this to clients too?
It’s pretty simple really, Quickbooks Online just works.
But there’s more. So Let’s jump into how Quickbooks Online is beating Xero’s behind (in my opinion).
#1. Xero’s Bank Integration is Limited - Quickbooks Online’s Bank Integration is the Bomb
It’s not a matter of one software connecting to banks and the other requiring a shit-ton of data entry.
It’s the fact that Xero uses a service called Yodlee for bank integrations while Quickbooks Online has this built in.
Unfortunately, if you have a business bank account that has 3 credentials to login - ID, Username, and Password for example - you CANNOT connect your bank to Xero!
Fix the software to accommodate 3 login credentials perhaps?
Or maybe ask Yodlee to get with the program on this and update their service?
Nope! Not even close. Their solution is to go to the bank and get set up on a personal bank account that only requires 2 login credentials.
[sarcasm dripping from my voice] 😑
That’s just dumb! Some banks give better perks to business accounts that personal (like no fees). And do we really want corporations with employees not having access to corporate cards to track spending?
With Quickbooks Online this isn’t an issue at all! They support 3 login credentials, no problem!
#2. Xero Bank Feeds Break Often - Quickbooks Online Bank Feeds Break LESS Often
It’s the nature of the beast, feeds are going to break as banks update security and logins bounce. But feeds breaking weekly and some going out for months on end - that’s RIDICULOUS!
But that’s exactly what we’ve experience with Xero and our clients. They get frustrated, we get frustrated, it really just sucks.
Quickbooks Online on the other hand, does have the occasional broken feed, but we’ve noticed that they are much quicker to fix the problem and I’ve never experienced an ongoing feed problem.
#3. Xero has been Promising Recurring Payments for Over a Year - Quickbooks Online Already has Them!
At first, I thought Quickbooks Online was limiting because they’re setup to really only take invoice payments through their own payment processor, Quickbooks Payments.
I thought, ‘Whatever, I can use Stripe with Xero and if I change my mind, I have options!’
So I ran my clients’ monthly payments through Stripe, but I’ve got beef with them too!
Subscriptions (recurring payments) start the day you set them up - you cannot set them up ahead of time.
For unexplainable reasons, sometimes Stripe won’t let you set up a subscription for a client. You will get error messages saying to add a valid payment method…but you can charge them for a one-off payment so that doesn’t really make sense.
Need to make a quick change to a subscription, like give your client a discount for referring people? Stripe says F YOU! You have to delete the subscription, charge the different rate on the exact date, then wait a month to start the subscription back!
And what are the alternatives?
Additional softwares like ChargeBee or SendOwl that charge an additional fee to have flexibility?
We asked Xero for help. They promised to create a solution. Then they left us hanging for over a year and frankly I’m tired of waiting for this feature that seems like a no-brainer in our subscription-based economy now.
Quickbooks Online on the other hand, does require you use Quickbooks Payments. And the workflow isn’t the easiest to figure out on your own - definitely watch a tutorial.
But guess what?
It just plain works!
You can make changes on a whim, schedule payments ahead of time, take credit cards and bank transfers (which are FREE - say what?!).
Yes, the options are fewer, but when the one option works, does it matter?
#4. Xero has No Way to Visualize the Numbers - Quickbooks Online has Lovely Visuals Built Right into the Dashboard
So many coaches and other online business owners are visual by nature.
Seeing a spreadsheet of numbers shuts them down like an arcade game that just got unplugged.
The light dies inside them, their eyes glaze over, and their ears close up. They simply can’t or won’t process the information.
Xero dooms you to this fate unless you want to buy an expensive add-on…that you then have to access through the add-on’s website, not Xero.
Quickbooks Online has a few key charts right on the dashboard to help you see the numbers.
See when money came in. See what you spent the most money on. See how much you spent vs. received.
Easy! No extra cost or outside website!
How hard is it to switch accounting software?
How much detail do you want to move over? If you want every line moved over, it can be quite tedious.
If you don’t care for granular detail and you download the General Ledger from your previous software, you can pretty easily move over the info. A bookkeeper can use monthly journal entries to quickly put the old numbers into the new software.
It’s easier to switch as a new year begins so you can start fresh.
Want to try Quickbooks Online?
It might be a good idea! But it’s super important to get your account set up the right way from the very beginning.
We can help you get setup and get a sweet discount on your Quickbooks Online subscription!